United States and the independent government of the Philippine Islands, the time, place, and manner of holding such conference to be determined by the President of the United States; but nothing in this proviso shall be construed to modify or affect in any way any provision of this Act relating to the procedure leading up to Philippine independence or the date upon which the Philippine Islands shall become independent. IMMIGRATION AFTER INDEPENDENCE SEC. 14. Upon the final and complete withdrawal of American sovereignty over the Philippine Islands the immigration laws of the United States (including all the provisions thereof relating to persons ineligible to citizenship) shall apply to persons who were born in the Philippine Islands to the same extent as in the case of other foreign countries. CERTAIN STATUTES CONTINUED IN FORCE SEC. 15. Except as in this Act otherwise provided, the laws now or hereafter in force in the Philippine Islands shall continue in force in the Commonwealth of the Philippine Islands until altered, amended, or repealed by the Legislature of the Commonwealth of the Philippine Islands or by the Congress of the United States, and all references in such laws to the government or officials of the Philippines or Philippine Islands shall be construed, insofar as applicable, to refer to the government and corresponding officials respectively of the Commonwealth of the Philippine Islands. The government of the Commonwealth of the Philippine Islands shall be deemed successor to the present government of the Philippine Islands and of all the rights and obligations thereof. Except as otherwise provided in this Act, all laws or parts of laws relating to the present government of the Philippine Islands and its administration are hereby repealed as of the date of the inauguration of the government of the Commonwealth of the Philippine Islands. SEC. 16. If any provision of this Act is declared unconstitutional or the applicability thereof to any person or circumstance is held invalid, the validity of the remainder of the Act and the applicability of such provisions to other persons and circumstances shall not be affected thereby. EFFECTIVE DATE SEC. 17. The foregoing provisions of this Act shall not take effect until accepted by concurrent resolution of the Philippine Legislature or by a convention called for the purpose of passing upon that question as may be provided by the Philippine Legislature. Approved, March 24, 1934. LETTER TO THE HONORABLE MILLARD E. TYDINGS FOR THE PRESS DEPARTMENT OF STATE MAY 24, 1937. of The following is the text of a letter from Mr. Francis B. Sayre, Chairman of the Interdepartmental Committee on Philippine Affairs, to Senator Tydings, Chairman of the Senate Committee on Territories and Insular Affairs. A similar letter was sent to Congressman Leo Kocialkowski, Chairman of the House Committee on Insular Affairs. WASHINGTON, D.C. The Honorable MILLARD E. TYDINGS, United States Senate. MY DEAR SENATOR TYDINGS: As promised in the conversation which the Secretary of War and I had with you on February 23, 1937, with regard to the approaching visit of President Quezon of the Philippine Commonwealth and the expected discussions between him and the Interdepartmental Committee on Philippine Affairs, I now wish to acquaint you and the other members of the Senate Committee on Territories and Insular Affairs with the progress and results of the discussions which ensued. In so doing, I feel that it is desirable to review some of the circumstances which led up to these discussions. The Tydings-McDuffie Independence Act, approved on March 24, 1934, provides the arrangements which control and guide, until July 4, 1946, the relationship which exists between the Government of the United States and the Commonwealth Government of the Philippines set up on November 15, 1935. This act did not become effective, as you know, until its provisions were accepted by concurrent resolution of the Philippine Legislature on May 1, 1934. In this resolution it was stated that, in accepting the Tydings-McDuffie act, the Legislature relied upon a statement of President Roosevelt "which gives to the Filipino people reasonable assurances of further hearing and due consideration of their views".19 The statement of President Roosevelt referred to was that contained in his message to Congress on March 2, 1934, recommending the enactment of the Tydings-McDuffie act, as follows: "I do not believe that other provisions of the original law need be changed at this time. Where imperfections or inequalities exist, I am confident that they can be corrected after proper hearing and in fairness to both peoples." " "H. Doc. 400, 74th Cong., 2d sess., p. 1. Provisions in the earlier Hare-Hawes-Cutting act to which the Philippine Legislature took exception, in rejecting that act, and which they hoped to have corrected in the Tydings-McDuffie act, related "to immigration, military, and other reservations, powers of the High Commissioner, and trade relations between the Islands and the United States".* With regard to the Tydings-McDuffie act, the Honorable Manuel L. Quezon, then President of the Philippine Senate and Chairman of the Philippine Independence Delegation, in a letter to you, dated March 22, 1934, two days before the passage of the act, stated as follows: "There are, of course, other provisions of the bill to which we object, but we are willing to take it as it is now, and we have given up any attempt at this time to have it in any way amended, because we are relying upon the statement made by the President in his message to Congress, March 2, 1934 . . . "Furthermore, we have seen the attitude of the chairmen of both committees of Congress toward the Filipino people's freedom and welfare, and we have no doubt that upon further investigation, when they shall have found that independence can be granted in a much shorter time and that other provisions of the bill need improvement, they will so recommend to the Congress." 99 23 Moreover, Vice President John N. Garner, in his speech at the Joint Session of the Philippine Legislature on November 12, 1935 (three days before the inauguration of the Commonwealth Government), stated in regard to “inequalities in our trade relations" as follows: "Our great President, Franklin D. Roosevelt, in sending the last independence bill to Congress, accompanied it with a recommendation that where there were inequalities in our trade relations, they should be adjusted by a Commission representing both peoples who could arrive at an equitable decision which would prove advantageous to our 120,000,000 people and to your 14,000,000 people." 99 28 The statements quoted evidence a feeling on the part of responsible persons in both countries that certain "imperfections or inequalities" may be found, upon further study, to exist in the Independence Act. These so-called imperfections or inequalities in regard to future relationships have been regarded as being susceptible of adjustment through joint study and conference. Contemporaneously with the recognition that imperfections and inequalities might exist in the Independence Act, an Interdepartmental Committee on Philippine Affairs was set up in December 1934. Acting upon a suggestion made by you and Senators McKellar, McAdoo, and Gibson in a joint telegram to President Roosevelt, this Committee began, in January 1935, a study of United StatesPhilippine trade relations." Since that time, this Interdepartmental Committee has been studying Philippine problems and coordinating the activities of the various administrative departments and agencies of the United States Government concerned with Philippine affairs. In the recent discussions with President Quezon, the deliberations of the Interdepartmental Committee have been attended by representatives of the Departments of State, War, Navy, Treasury, Agriculture, Commerce, and the Tariff Commission. It is the opinion of this Committee, 23 23 S. Doc. 57, 74th Cong., 1st sess., pt. 1, p. 10. Congressional Record, vol. 78, no. 64, Mar. 22, 1934, p. 5237. H. Doc. 400, 74th Cong., 2d sess., p. 44. "Joint telegram, dated Dec. 31, 1934, from Manila. as well as of President Quezon, that, in justice to the United States and to the Philippines, uncertainties and misconceptions in regard to the future political and economic relations between the two countries should be removed as soon as practicable. Until these uncertainties are removed, necessary economic adjustments in the Islands will be delayed. The Interdepartmental Committee is also of the opinion, on the basis of evidence now available, that certain modifications in existing legislation may be necessary to facilitate the adjustment of Philippine economy to a position independent of preferences in the United States market. However, the Committee cannot, until further study has been given the subject, recommend the specific adjustments which should be undertaken, nor can it estimate the period of time which will be required for making such adjustments. Much study has been devoted to a consideration of these matters by both the United States and the Philippine Governments, but no joint program has been formulated. In addition to the problems involved in the adjustment of the national economy of the Philippines, there are comparable problems involved in providing an adjustment of American export trade to a non-preferential, competitive position in the Philippine market. According to the terms of the Independence Act, American producers and export interests will be faced with an abrupt transition, on July 4, 1946, from a condition of free access to the Philippine market to one in which full Philippine tariff duties apply. The problems involved in this adjustment should likewise be studied. A recognition of these problems led the Interdepartmental Committee to the conclusion that it was desirable that a joint committee of American and Philippine experts be set up to study the problems and to formulate recommendations looking toward the correction of any "imperfections or inequalities" which might be found to exist in the present arrangements. President Roosevelt concurred in the proposal that the committee be created and he approved the appointment of the American members of the Committee. This Joint Committee held its first meeting on April 19, 1937, and is now carrying on Its studies. The Joint Committee will conduct its studies with the general understanding (agreed upon between the Interdepartmental Committee and President Quezon) that preferential trade relations between the United States and the Philippines will be terminated at the earliest practicable date consistent with affording the Philippines a reasonable opportunity to adjust their national economy. This does not mean that preferential tariff rates or preferential excise rates will be withdrawn prior to July 4, 1946, the date for complete independence fixed by the terms of the Independence Act. The studies of the Joint Committee will be based on the assumption that trade preferences will be terminated on that date or as soon as practicable thereafter, having in mind the difficult task of economic adjustment with which the Islands appear to be faced as trade preferences are withdrawn. President Quezon, as you doubtless know, has suggested advancement of the date of independence to December, 1938, or July 4, 1939. With reference to this suggestion, the Interdepartmental Committee and President Quezon have agreed that, insofar as they are authorized to speak, complete political independence of the Philippines shall become effective not later than July 4, 1946, the date fixed under the terms of the Independence Act. The Joint Committee, however, is instructed, in making its recommendations, to consider the bearing an advancement in the date of political independence to 1938 or 1939 would have on determining the date of termination of trade preferences between the United States and the Philippine Islands and on facilitating or retarding the execution of a program of economic adjustment in the Philippines. Legislation by Con gress would, of course, be required to effect any change in the date of independence. The functions of the Joint Committee, in general, are to consider proposals which have been made for changing the political and economic relations of the United States with the Philippines; to hold public hearings for interested parties both in the United States and in the Philippines; to study the problem of making adjustments in Philippine national economy; to prepare the way for a trade conference; and to make recommendations. Among the problems which will be given consideration by the Joint Committee are the following: The character of the trade preferences which should exist for a specified, limited period. The precise arrangements for governing the trade relations between the United States and the Philippine Islands after the termination of preferential trade relations. Economic adjustments that could be undertaken in the Philippines and methods of executing and financing such adjustments. The need or appropriateness of changes in the Philippine currency and banking system, and in the provisions for servicing Philippine bonded indebtedness, that may be required to implement the plan for economic adjustment recommended by the Joint Committee. Adequate protection of the rights and interests of the United States and its citizens in the Philippines and of the Philippines and its citizens in the United States after the attainment of independence. The bearing which the possible negotiation of the neutralization agreement provided for in section 11 of the Tydings-McDuffie Independence Act would have on the problems studied by the Joint Committee. It is anticipated that the report and recommendations of the Joint Committee will be submitted sometime before the close of 1937 to the President of the United States through the Interdepartmental Committee on Philippine Affairs and to the President of the Commonwealth Government. It is hoped that this report may be available in ample time for consideration by the Congress and by the Philippine Assembly this coming autumn and winter. For over a quarter of a century successive administrations of our Government have based their policy with reference to the Philippines upon an abiding confidence in the ability of the Philippine people ultimately to govern themselves as a free and independent nation. The task is one which involves problems of great magnitude. These problems are not merely those relating to trade between the two peoples but political and economic considerations of farreaching significance to the United States, to the Philippines, and to all nations having interests in the Far East. The attainment of the objectives which both peoples have had in mind will require patience, a sense of fair play, and cooperation. It is believed that the leaders of both peoples, imbued with the highest ideals, will be able to surmount the difficulties that yet lie ahead of them. I can assure you that, with such ideals in mind, the Joint Committee will endeavor to make some contribution toward the successful conclusion of this great undertaking. In view of the public interest in the problem, especially at this time, you may care to make this letter and its enclosures a matter of record for the information of Congress and the public. Sincerely yours, FRANCIS B. SAYRE Ohairman, Interdepartmental Committee on Philippine Affairs |