reach their long cherished aspiration to be independent. Through all those years It is unnecessary to discuss now whether the Philippines could produce enough The existing free-trade relations between the United States and the Philippine The following statistics show beyond question that the trade of the United Value of United States exports with Asia and Oceania-Averages and per cent 48, 200 nd ed to Calendar years period July 1, 1915, to Dec. 31, 1927. Figures for Asia and Oceania taken from Stat. Fiscal years July 1 to June 30, 1888 to 1915. W along economic lines. When Governor-General Davis announced, up rival in Manila, a program of economic development, no new policy was ex Rather it was a logical working out of policies as formulated by the Government from the inception of American occupation of the islands. For the purpose of assisting us to develop our country economically, gress of the United States instituted free trade between the United S the Philippines. As a natural outcome, the inhabitants of the Philippines embarked task of promoting the sugar industry. Modern mills were erected. that while the Philippines remains under the American flag its produ be placed on the same footing and accorded the same treatment as tho possession, territory, or state of the United States, these pioneers inves sugar industry millions of dollars from their savings and from the mo their properties. And now, gentlemen, may I ask: Is it just and fair practically inducing these American and Filipino investors to invest so lions in the sugar industry and now that they are just beginning to rec investments, limitation is to be meted out to them? Mr. Chairman and gentlemen of the committee, these are the bare fa are the real conditions surrounding the sugar industry of the Philip submit them to you for your consideration and action. The proposed r vitally affects the economic life and progress of the Philippines; not only coconut oil are at stake but the welfare and happiness of a people placed their trust in your sense of justice and generosity hang in the ba am confident that, as in the past, the same sentiments of fairness will in deciding this controversy STATEMENT OF HON. PEDRO GUEVARA, RESIDENT COMMIS FROM THE PHILIPPINE ISLANDS (The witness was duly sworn by the chairman.) Mr. GUEVARA. Mr. Chairman, I simply want to ask pe to submit a brief for the record. The CHAIRMAN. That permission is granted. (Mr. Guevara submitted the following prepared statement PREPARED STATEMENT OF HON. PEDRO GUEVARA, RESIDENT COMM FROM THE PHILIPPINES TO THE UNITED STATES MR. CHAIRMAN AND GENTLEMEN OF THE COMMITTEE: The proposition now pending before this committee to curtail the free-trade relations between the United States and the Philippine I worthy of serious consideration. The Philippine Islands are now u American Flag. It is not now necessary to relate the circumstances und the Philippine Islands came under the sovereignty of the United Stat proper to recall, however, that when the United States took possessio Philippines she announced to the world her motives and reasons for her "We accepted," said President McKinley, "the Philippines from h in the interest of their inhabitants and for humanity and civilization President continued: "Our sacrifices were with these high motives. to improve the condition of the inhabitants securing them peace, libe the pursuit of their highest good." Ex-President Taft in 1907 said United States should help develop industry, trade, and agricultur Philippine Islands. Time seems to have demonstrated that a conflict of economic inter occur between the United States and the Philippine Islands. It appears that above the moral obligation contracted by the United States to de Philippines both industrially and in self-governing capacity, American interests should be protected. Before such a plan, so injurious to P interests, is carried out we hope Congress will be just and fair enough our country the realization of her ambition to be an independent nat be master of its own destiny. The Filipinos are not unmindful that their association of 30 years United States has been beneficial and constructive and has led them to paralleled progress they have attained. Their economic situation has i reach their long cherished aspiration to be independent. Through all those years they have not lost their faith in America. To my mind the time has come for a definite settlement of the political and economic situation of the Philippine Islands. The 13,000,000 inhabitants of the Philippines can not, in justice, be longer left in a position of uncertainty, hindering the political and economic progress to which they are entitled. While the Filipinos are aware that the American people have the power to do with the Philippines whatever they please it is unbelievable that they will take a course ignoring completely all political and economic principles or ethical standards which are the pride of their history and traditions. It is unnecessary to discuss now whether the Philippines could produce enough sugar to meet the demands of the American market; nor is it necessary to consider whether Philippine coconut oil and hemp and other products may be competing with products grown in continental United States. It is not my purpose to discuss now this question for, in my opinion, it amounts to a discussion of whether the State of Utah raises products in competition with the Philippines or with the State of Michigan. I wish only to call the attention of the committee to the fact that the Philippines is under the jurisdiction of the United States like Utah, Michigan, or any other State of the Union. The State of Michigan, for instance, has no right to resent the fact that her sister State of Utah is producing more sugar than she does. Likewise, the inhabitants of Utah have the same right to enjoy the privilege of prosperity as that enjoyed by the inhabitants of Michigan. The inhabitants of the Philippine Islands are entitled to the same right, otherwise they would be the only oppressed people living under the American flag. Such a situation would certainly not be in accord with the ideals and principles of the American people. The existing free-trade relations between the United States and the Philippine Islands have been beneficial to both countries. The Philippines is not only a profitable market for certain American products; it is also a valuable commercial base for the United States, considering her commercial interests in the Far East, which gives her a commanding position in that part of the world. The following statistics show beyond question that the trade of the United States in Asia has increased at least 1,000 per cent since the occupation of the Philippines. Value of United States exports with Asia and Oceania-Averages and per cent increases [NOTE. All figures in thousands of dollars; 000 omitted] Exports Year 1 Calendar years period July 1, 1915, to Dec. 31, 1927. Figures for Asia and Oceania taken from Stat. Abs. of the U. S., 1928. Fiscal years July 1 to June 30, 1888 to 1915. The proposed limitation on the amount of certain Philippine produ may enter the United States free of duty is clearly unfair and unjust. no suggestion whatsoever from those advocating such limitation that th pines be also permitted to limit and tax certain American products and 1 dise now entering the Philippines duty free. The proposition carries no su that the Philippine Islands may exercise a like right, or anything of a satory nature. They little realize that were such a tariff plan adopted, place the United States in the same position of Great Britain in her deali the thirteen American colonies which brought about their separation mother country. The Filipinos believe that when Congress decides thi versy its action will be fair and just. STATEMENT OF HON. CAMILO OSIAS, RESIDENT COMMISS FROM THE PHILIPPINE ISLANDS (The witness was duly sworn by the chairman.) Mr. OSIAS. Mr. Chairman and gentlemen of the committee to express, on behalf of the Philippine delegation and the people, whom I have the honor to represent before the Gove and the people of the United States, our deep appreciation courtesy and attention which have been extended to us in th of this controversy. We are appreciative of the opportunit us to reason with you on this question, which so vitally aff interests of 13,000,000 inhabitants of the Philippines. I shall try to avoid a repetition of the points which have been adduced, either before this committee or the subcommi this Committee on Finance of the Senate, or the main point are already covered adequately in the records of the Comm Ways and Means of the House of Representatives. I wish to begin by addressing myself, Mr. Chairman and men of the committee, to the proposals of the representative cotton and dairy products interests who appeared before th mittee yesterday and advocated the levying of duties on Ph products. It seems to me that a committee which has demonstrated desire to seek the facts and the truth ought to have the situati clearly in mind. The cotton manufacturers from the United States occu place among the principal imports of the Philippine Island this country. Last year we imported over 24,300,000 peso of cotton goods from this country, absolutely free of duty. The meat and dairy products which we purchase from this rank sixth among the principal imports of the Philippine from the United States. The value of the meat and dairy p imported in 1927 was over 6,500,000 pesos. The records w that the Philippines to-day is the best exterior market of the States for its cotton products, and for its meat and dairy p It would seem to be economic shortsightedness on the par meat and dairy interests and the cotton interests to adv proposal which would cripple the very best customers that th in the world. The proposal here advanced is clearly a unilateral p While the representatives of these interests are advocat levying of duty upon Philippine products, there was not the r suggestion that this proposal be accompanied by a grant o to the Filipino people to impose duties upon their products any man should have the audacity to appear before a committee and advocate a proposal so clearly unfair, and attempt to justify it on ethical grounds is beyond my limited intelligence. The unfairness of a proposal so iniquitous, Mr. Chairman, must be apparent to the ordinary man, let alone a member of the highest legislative body of this enlightened land. Now, Mr. Chairman, I desire to be permitted to speak briefly on section 301 of the tariff bill under consideration, which vitally affects the interests of our people and, I may add, affects likewise the interests of the United States, not alone in the Philippine Islands, but in the entire Orient. Our plea is that the provisions in section 301 of the pending tariff bill, and which already have been incorporated in the tariff acts of 1913 and 1922, be at least maintained while the United States flag waves over the islands. The present law and the provisions of the pending bill are already disadvantageous to the Philippine Islands. The greater advantages are on the side of the United States. The trade arrangement now obtaining, and which has been in existence since 1913, has not been absolutely mutual or reciprocal. In the first place, America is decidedly in an advantageous position, because, by our organic act, under which the Philippines has been governed since 1916, Congress has the exclusive power to legislate on matters affecting trade relations between America and the Philippines. In the second place, that very same law reserves the power and the authority to Congress to annul the laws enacted by our Philippine Legislature. On top of these two decided positions of advantage on the part of this great, rich, and powerful country, there is still in the bill a clause which says "or which do not contain foreign materials to the value of more than 20 per centum of their total value." In other words, we have this 20 per cent qualification upon Philippine products that may be admitted free to this country, but there is no similar qualification, restriction or limitation on the kind or quality of American goods which may be sent free of duty to the Philippine Islands. Now, if, in addition to all this, we should accede to the proposal further adding discriminatory provisions, it would be difficult, gentlemen, for a distant people in the Orient to understand how a country which came to the possession of those Pacific isles as a result of war, with its history of fairness and square dealing, ofttimes preached to the inhabitants of the Philippines, could take such a backward step. If there is any change that is to be made in the law, or in the pending bill, it should not be in the nature of including discriminatory provisions, but rather, to eliminate the clause "or which do not contain foreign materials to the value of more than 20 per cent of their total value," in so far as Philippine products are concerned, or include a similar proviso in so far as American products are concerned. That would make the bill absolutely equitable and just, and it would make it entirely mutual and reciprocal. . Senator SIMMONS. Let me ask you a question there. Senator SIMMONS. Do you manufacture, in the Philippines, any article the raw material of which is not produced in the islands? |