o I / . ,K UMASS/AMHERST |i>ii|i|ll!!!ll!ll!!ll! 354.S I 1979 - House Document No. Ill 3T2O66 0344 ^q^ , y The Sixth Annual Report of the United States High Commissioner to the Philippine Islands to the President and Congress of the United States Covering the Fiscal Year July 1, 1941 to June 30, 1942 Washington, D. €., Octobei 20, 1*142 78th Congress, 1st Session House Document No. Ill SIXTH ANNUAL REPORT OF THE UNITED STATES HIGH COMMISSIONER TO THE PHILIPPINE ISLANDS MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING THE SIXTH ANNUAL REPORT OF THE UNITED STATES HIGH COMMISSIONER TO THE PHILIPPINE ISLANDS COVERING THE FISCAL YEAR JULY 1, 1941, TO JUNE 30, 1942 February 15, 1943.—Referred to the Committee on Insular Affairs and ordered to be printed UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1943 U LETTER OF SUBMITTAL To the Congress oj the United States: As required by section 7 (4) of the act of Congress approved March 24, 1934, entitled "An act to provide for the complete independence of the Philippine Islands, to provide for the adoption of a constitu- tion and a form of government for the Philippine Islands, and for other purposes," I transmit herewith, for the information of the Congress, the Sixth Annual Report of the United States High Com- missioner to the Philippine Islands covering the fiscal year beginning July 1, 1941, and ending June 30, 1942. Franklin D, Roosevelt, The White House, February 15, 1943. nx )» TABLE OF CONTENTS Page I. General Statement 1 II. Military AND Naval Activities AND Civilian Defense 14 Military developments 14 Naval activities 17 Civilian welfare and defense___l 20 III. Office of the High Commissioner 22 Foreign funds control 23 Freezing of Chinese and Japanese assets 23 Method of enforcement of foreign funds control 24 Census of alien property 25 Remittances by Chinese in the Philippines |to their families in China 26 Examination of effects of persons leaving the Philippines ___ _ 27 Special blocking of persons acting on behalf of or in the in- terest of the Axis - — 27 Administrative organization and personnel 28 Export control 29 Federal Loan Agency program 32 Administration of priorities 33 United Servi ce Organizations program 34 Sugar relief program 35 Background of the sugar problem 36 Proposed Export-Import Bank loan 37 The adjustment plan 38 Establishment of Welfare and Whereabouts Section 42 Relations with foreign consular representatives 43 Supervision of enemy properties 45 Requisitioning of enemy-owned supplies 46 Custody and administration of enemy properties 48 Location of offices of Coordinator of Enemy Alien Property and Administrator of Enemy Alien Property 48 Program for safekeeping of currency, gold, securities, and other valuables 49 United States currency, bonds, and Treasury checks accepted for safekeeping 49 United States Treasury checks held by Philippine Treasury 50 Valuables taken to prevent them from falling into the hands of the enemy 51 Collection and transportation of valuables to Cor- regidor 52 Inventorying of valuables taken in custody by the office of the High Commissioner 53 Recording and destruction of paper currency 53 Weighing and recording of gold bullion 55 Listing of securities obtained under First War Powers Act 55 Dispatch of valuables by submarine to the United States. _ 56 Bullion and currency held by Commonwealth Government on Corregidor 57 Welfare of civilian internees 58 Moratoria on obligations 59 Personnel of the office of the High Commissioner 59 Changes in personnel 61 V VI TABLE OF CONTENTS III. Office of the High Commissioner—Continued. ^age Personnel of the office of the High Commissioner—Continued. Location of staff on June 30, 1942 64 Washington staff 64 American staff detained by the enemy 64 Filipino regular staff detained by the enemy 65 Filipino household staff detained by the enemy 66 ' Export control staff 66 Foreign funds control staflf 67 Liaison staflf 67 Treasury staflf 68 Federal Loan Agency staff 68 Other officers and employees 68 Appropriations and expenditures of the office of the High Commissioner 68 Emergency fund_v 70 Official property 70 IV. Commonwealth Government 71 Federal legislation affecting the Philippines 71 Amendment of Tydings-McDuffie Act 71 Congressional appropriation of sugar funds—$10,000,000 allocation from emergency fund of the President and reimbursement thereof _- — 72 Extension of war damage insurance to the Philippines 73 Application to Philippines of United States law regulating entry and departure of persons from the United States- 74 Special session of the Philippine Assembly 75 Commonwealth bill requiring approval by the President of the United States 76 Elections of November 11, 1941 76 Appeals from decisions of the auditor general 79 Personnel of Commonwealth cabinet on Corregidor and in the United States 79 V. Collaboration With Japanese Government 79 VI. General Economic Conditions and Overseas Trade 84 Overseas trade 87 Exports of gold and silver 88 Predominance of trade with the United States 88 Reexports 89 Trade by countries 89 Balance of trade 92 Exports by commodities 93 Imports by commodities 97 Transportation 100 Shipping 100 Agricultural production -lU^ Mineral production 102 Forest production 103 Manufacture and merchandising 103 Economic legislation 103 VII. Social Conditions 104 Employment 104 Fear of war 104 Wartime reaction 104 VIII. Pre-War Japanese Influence lOo Land settlement 105 Commercial penetration 107 Mineral production 10| Fisheries and forestry 108 Other interests 109 Cultural penetration 109 IX. Government Finance, Currency, and Banking 109 Financial statements HO Coconut-oil tax HO Currency circulation 112 Banking 112 TABLE OF CONTBOSTTS VH IX. Government Finance, Currency, and Banking—Continued. Page Public debt 113 Funds available to the Commonwealth Government upon reoccupation of the Philippines 117 Funds available for general governmental purposes 117 Funds available for economic adjustment 119 Currencj' reserves in the United States 119 Funds available for public relief 119 Appendices: at celebration of 1941 . A. Address of the High Commissioner July 4, 123 B. Address of the High Commissioner at celebration of Loyalty Day by the University of the Philippines, College of Agriculture, October 10, 1941 127 C. Address of the High Commissioner at dinner in his honor, October 21, 1941 131 D. Address of the High Commissioner at Armistice Day dinner, November 11, 1941 134 E. Radio broadcast to the United States by the High Commissioner, December 13, 1941 137 F. Address of the High Commissioner at the inauguration of President Quezon and Vice President Osmena, December 30, 1941 138 G. Radio broadcast by the High Commissioner, March 25, 1942 140 H. Address of the High Commissioner before the United China Relief Society, April 9, 1942 143 I. Article by the High Commissioner appearing in Life magazine, April 20, 1942 145 J. Address of the High Commissioner before the American Newspaper Publishers Association, April 23, 1942 157 K. Address of the High Commissioner at the annual meeting of the United States Chamber of Commerce, April 30, 1942 161 L. Address of the High Commissioner at commencement exercises at Bucknell University, May 23, 1942 167 M. Address of the High Commissioner before the Boston Chamber of Commerce, June 25, 1942 173 N. Reports by Maj. C. Q. Marron, United States Army, relating to preparations for civilian defense in British Malaya and the Netherlands East Indies 179 O. Report to the National Emergency Commission regarding reports by Major Marron 199 P. Proclamation of President of the United States, August 27, 1941, expanding scope of export control 211 Q. Press release of December 23, 1941, concerning the safekeeping of United States securities and currency 212 R. Radio of December 24, 1941, from the Secretary of the Treasury delegating to the High Commissioner powers conferred upon the President of the United States by the First War Powers Act 214 S. Radio of December 26, 1941, from the Secretary of the Treasury directing the High Commissioner to take custody of privately owned valuables and to destroy them if necessary to prevent them from falling into the hands of the enemy 216 T. List of civilian internees in Manila 217 U. Statement respecting communication with persons in occupied areas of the Philippines 226 V. General ruling of the Treasury Department No. 10-A under Executive Order No. 8399, etc., concerning moratorium on obligations of Philippine companies in the United States 227 W. Press release of Treasury Department announcing moratorium on obligations of Philippine companies in United States 228 Digitized by tine Internet Arcinive in 2009 with funding from Boston Library Consortium IVIember Libraries http://www.archive.org/details/annualreportofun4142unit SIXTH ANNUAL REPORT OF THE UNITED STATES HIGH COMMISSIONER TO THE PHILIP- PINE ISLANDS Washington, D. C, October 30, 1942. To the President and Congress of the United States. Sik: Pursuant to section 7 (4) of the act of Congress of March. 24, 1934, I have the honor to submit herewith the Sixth Annual Report of the United States High Commissioner to the PhiHppine Islands. The report covers the fiscal year ending June 30, 1942. Because of the destruction of confidential files and records in the High Commissioner's Office in Manila so as to prevent their falling into the hands of Japanese forces which entered the city on January 2, 1942, because of the in- accessibility in Washington, where this report was prepared, of all papers and documents remaining in the Philippines, and because of the lack due to the war of basic statistical data and reports, the present report can be at best but fragmentary and incomplete. It covers a tragic period, when the American and Philippine flags flying over Manila were pulled down and the Japanese flag flown in their place, when the High Commissioner in order to continue to function was compelled to remove with a skeleton staff to the fortress of Corregidor and 2 months thereafter to Washington.