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Mr. POND. Yes, Sir.

Mr. YULO. Would not the export tax provided in the TydingsMcDuffie act be a greater pressure to make that readjustment?

Mr. POND. It would apply pressure to make that readjustment, except that it will have the effect of ruining almost immediately certain industries. The tobacco, the button, the embroidery industries, they will be ruined almost immediately. What will happen to the sugar industry, I do not know. It will depend a great deal upon the price of sugar.

Mr. YULO. Would you, with the application of the export tax, be able to get the necessary capital for those industries to readjust? Mr. POND. I do not see where it would come from. You are going to destroy the capital invested in those industries.

Chairman MACMURRAY. Are there other questions? (There were none.) Thank you, Mr. Pond.

(Here follow the printed brief submitted by the Philippine-American Trade Association and mimeographed recommendation of that association.1)

Chairman MACMURRAY. That closes our hearing for today. We will resume the hearing tomorrow, Tuesday, at 9 o'clock. The hearing is closed.

(Thereupon at 4:58 p. m., an adjournment was taken until Tuesday, September 21, 1937, at 9 o'clock in the morning.)

Annex

PHILIPPINE-AMERICAN TRADE ASSOCIATION

ROOM 219 REGINA BUILDING
MANILA, P. I.

JOINT PREPARATORY COMMITTEE ON PHILIPPINE AFFAIRS
Manila.

September 7, 1937.

The Philippine-American Trade Association respectfully recommends, should a treaty or trade agreement be entered into between the United States and the Philippines, that the following provision regarding trade-marks and common and accepted trade-names be included therein :

Each of the parties signatory hereto mutually agrees to acknowledge, respect and safeguard the rights of citizens or corporations of the other country which have been established in trade-marks and common and accepted trade-names in trade and commerce in and between the two nations. This provision would be advantageous to both countries for it would properly safeguard the rights of the citizens and corporations of each country in trademarks and trade-names which have been established in the other country.

Respectfully submitted,

PHILIPPINE-AMERICAN TRADE ASSOCIATION
By RAF. R. Alunan, President

1 For the brief, see vol. III; for the recommendation, see annex to these minutes, infra.

PROCEEDINGS OF SEPTEMBER 21, 1937

SENATE CHAMBER, LEGISLATIVE BUILDING,

MANILA, PHILIPPINE ISLANDS,

Tuesday, September 21, 1937.

The hearing before the Joint Preparatory Committee on Philippine Affairs was resumed at 9 o'clock in the morning.

Present:

The Honorable J. V. A. MACMURRAY, Chairman;

The Honorable José YULO, Vice Chairman;

Mr. JOSEPH E. JACOBS, Vice Chairman;

Mr. CONRADO BENITEZ;

Mr. Louis DOMERATZKY;

Mr. BEN D. DORFMAN;

Colonel DONALD C. MCDONALD;

The Honorable QUINTIN PAREDES;

Mr. CARL B. ROBBINS;

The Honorable José E. ROMERO;

The Honorable MANUEL L. Roxas; and
Mr. FRANK A. WARING.

Absent:

Mr. JOAQUIN M. ELIZALDE.

Chairman MACMURRAY. Before opening the hearing this morning for today's schedule, I will recall that at Wednesday's hearing, September 15, 1937, Mr. Day, appearing on behalf of the Philippine Refining Company, was asked certain questions to which he did not have the answers available and was requested by Mr. Roxas to write, conveying the information. He has now written the Committee, and his letter will be inserted in the record as a supplement to his testimony on Wednesday last.2

The first of the organizations to be heard this morning is the Labor Mining Association, to be represented by Mr. Generoso Dayao and Mr. Marcelo A. Garcia. It had been scheduled for Mr. Rufo San Juan to speak also, but he has written the Committee that he had to go to his own province because of urgent family affairs. Other organizations to be heard today are the National Executive

See annex to the proceedings of September 15, 1937, ante, p. 350.

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Council of the Popular Front, represented by General José Alejandrino, Judge Delfin Jaranilla, and the Honorable Miguel Cornejo; the Sakdalista Party of the Philippines (national group), represented by Mr. Celerino Tiongco, Mr. Simon d'Sena, Mr. Fernando Manuzon, and Mr. Paulo V. Capa; and the Sakdalistas of Cavite, represented by Mr. Luis Suler, Mr. Fernando Y. Tañgog, Mr. Ignacio Martinez, and Mrs. Tomasa Ortiz. Although there was no previous announcement, the Committee has authorized the Commonwealth Association to appear today to supplement the brief1 which it had filed on time, although it failed to make the formal request for a hearing.

The first witness this morning, on behalf of the Labor Mining Association, is Mr. Dayao.

STATEMENT OF MR. GENEROSO DAYAO, ON BEHALF OF THE LABOR MINING ASSOCIATION

Mr. DAYAO. With the permission of the members of the Committee, especially the Chairman, and my dear friends, the Filipinos, I have no intention of making a supplementary statement orally; but on account of the kind invitation of Dr. Dorfman, I was obliged to come here to show my satisfaction and earnest courtesy to the Committee through Dr. Dorfman.

Chairman MACMURRAY. Might I ask you to please speak a little louder?

Mr. DAYAO. Oh, yes, Sir. Good morning, everybody! With your permission, Members of the Committee, especially the Chairman, and my dear Filipino friends, I have no intention of supplementing my brief by an oral statement; but I was obliged to come here because of the kind invitation of Dr. Dorfman. It is my obligation as a Filipino citizen to come and testify at this hearing and to show my earnest gratitude to the Committee through Dr. Dorfman.

Before I begin my remarks, I wish to introduce to you, dear friends, my humble social standing among the Filipino people. I am sorry to explain that I never had the opportunity to see the inside of a university nor the floor of colleges, neither the steps of any primary-school building, except my home study. My home 1 school is the International Correspondence School of Pennsylvania and the American Correspondence School of Law, Chicago, Illinois, United States of America.

Now, before I make my supplementary statement, I will cite to you the paramount factor, the foundation described by the honor

1
1See vol. III.

able Committee through its Chairman at the opening of these hearings on the 15th. He said, "I am sure that the American people want the Filipino people to have every opportunity to establish a sound economic regime in order that they may be able to maintain independence." Well, this paramount factor is beautiful. I admire it. I think I can contribute my little grain of sand to help and cooperate in its foundation to give the freedom of the Filipino people. But this is a question that is very hard to carry out. Why? Because in order to carry out this foundation, it is necessary to overhaul the Filipino machine. In the Filipino machine, something got cracking, a noise, and then we have to find some mechanical engineer to make a little repair. That means that the whole Filipino machine must be overhauled.

The first point I cite to you to overhaul is the moral relation of the American and Filipino peoples. We can see from what has passed since the occupation of American sovereignty in the Islands that the moral relation between these two countries is untainted by any stain whatsoever. If there ever is, and I hope and know there is not, our officials in our Government have not mentioned it to us. There is, however, some social differences that occur among our people. That is the unfair proportion of the distribution of earnings. We see that the White Filipino centrals, as much as possible, want to reap a 50-percent profit, which is, I believe, a planning of a castle in the air. Should they, however, be lucky enough to obtain a profit around this percentage, their attitude and attention to the laboring class is never altered, never even thought of-although a complete innovation is done with the business activities and a magnificent obsession is made in their social activities. For the laboring class, nothing at all is changed. They do not live; they only exist, as things exist in this world. Now, Ladies and Gentlemen, we, the laboring class, appeal to you to abolish such unfair practice of the theory of democracy. It is not democracy practically. Because democracy is nothing but the common folks. Better adapt the commercial relation between the American people and the Filipinos rather than the existing moral relation between the two countries.

The fact is that a government of a nation has an absolute duty to comply with the requirements of the international commercial agreement, which is promulgated with the consent and deliberation of all independent nations. It is therefore not wrong for the Filipino businessmen to pay less than other countries for products made and materials used. Evidently, it is the moral duty of the Filipino people to help the United States Government in financing material changes because she is a mother to us.

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