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Chapter 2 Preparations for War in the Philippines
In September 1939, the Second World War begins in Europe and the United States Military finally starts to begin to receive resources it needs to prepare for war as the War in Europe spreads throughout 1939 and 1940.

Federalizing the Philippine Army
In the Philippines, reports reach Parsons over the effectiveness of Japanese tanks against the Chinese Army as well as the reports of the effectiveness of the German panzers in Poland. He and Eisenhower had several deep discussions over the previous year, and Eisenhower is convinced, with tank support, and the formation of 3 infantry divisions with the trucks to move them, that a mobile force could attack the Japanese when they inevitably land at Lingayen Gulf (the assumed Japanese landing site for over 37 years) then there is a chance that the Japanese might be pushed back into the sea and valuable time purchased for the Philippines and the US Navy to fight its way to the rescue. The other choice, retreat to Bataan and hold out for six months will definitely delay the Japanese, but also will almost certainly not delay them long enough for rescue.

It is a risky strategy but if it fails, the mobile force should be able to retire to Bataan, where as a safety measure, the Philippine Army will be digging in and preparing the defense. If nothing else it will buy time to move everything useful to the final bastion defense and it will increase the Japanese casualties.

Parsons sends his recommendations to General Marshall in March 1940, where they are examined closely but Marshall simply has nothing to send him until September 1940, when the Selective Service Act is passed, the National Guard is federalized and massive defense spending is approved.

Parsons has actually asked for relatively small amount of reinforcement. The 65th Infantry Regiment (with its high number of Spanish speaking Puerto Ricans), a tank brigade, another cavalry regiment or the funds and equipment to raise one, permission to form two divisions out of the Philippine Scouts and US infantry (plus the reinforcing infantry regiment requested) to be designated the 12th and 23rd Infantry Divisions. He also requests sufficient artillery, vehicles and other equipment to form the planned Philippine Army 1st Division earlier than planned as well as some corps artillery and heavy equipment for his engineers. Parsons also wants some modern fighters and bombers, at least a group of each and Marshall begins talking to Hap Arnold about what can be provided and who can be sent to command it. The most urgent thing that Parsons asks for is a signals regiment, or at least a battalion as he is critically short on such support.

The main issue is that Marshall has only what can be spared after Lend Lease, US Army expansion, Hawaii, Panama and Alaska, leaving the Philippines far down the list in terms of what can be found to send them. For the rest of 1940 this will not be much, but he does order the 65th Infantry sent in September, authorizes the formation of the two divisions, and sends General Grunnert to assume command of the US I Corps, which will consist initially of only a headquarter but eventually, if Marshall can scrape some up, will have additional support and combat support units. While small arms can be found for the Philippine 1st Infantry Division, and extra machine guns and even the trucks, the problem of artillery units remains one of shortage. Marshall does persuade Roosevelt to part with some discretionary funds however, matching dollar for dollar what the Commonwealth spends, and thus doubles the available budget for the Philippine Army. He also manages to increase funds for the Philippine Department by 20% and finds a National Guard Signals Battalion to send. Additional reinforcements will have to wait until 1941 however.

General Marshall and Secretary of War Stimson (who takes office in 1940) are able to persuade to Navy to release any spare artillery in the Philippine Islands to the US Army, which is in dire need of artillery for the expanded Filipino coast artillery branch. Mines for use in Lingayen Gulf are also found from Navy and Army stocks and ordered sent urgently. However in spite of their best efforts Stimson and Marshall are not able to persuade Roosevelt to order the Philippine Army into federal service as he is concerned that this will further antagonize Japan and he is trying to buy time.

However Parsons and new High Commissioner Sayre manages to persuade Quezon that a formal request from him might do the trick, particularly when in Japanese move into French Indochina in September 1940 and also signs the Tripartite Pact. In November 1940 Roosevelt is forced to accept Quezon's request, particularly in light of the fact he has already federalized the US National Guard. Thus in early December, the Philippine Army is brought into Federal Service as an element of the US National Guard system and pay is increased to match that of soldiers in the US Army.

By January 1941, the US and Filipino armies have the following forces available:

The Philippine Department US Army January 1941
Headquarters US Army Philippines (Parsons)
Mobile Force
US I Corps (Major General Grunnart) (1,200 men)
26th Cavalry Regiment (Philippine Scouts) (800 men)
12th Infantry Division - 31st US Infantry regiment, 43rd Philippines Scouts (PS) infantry regiment, 57th PS infantry regiment, 86th Field Artillery regiment (PS), plus support (10,000 men)
23rd Infantry Division - 65th US Infantry regiment, 45th PS infantry regiment, 47th PS infantry regiment, 88th field artillery regiment (PS) plus support (10,000 men)

attached
Philippine Army (PA) 1st MP regiment (1,200 men)
PA 1st Engineer brigade (1,200 men)

Lingayen Gulf defense area (Ord)
2nd PA Engineer brigade (1,200 men)
11th PA Division (provisional) w 1st PA Coast Defense regiment (lacks artillery)(1,600 men) 2nd PA MP regiment (1,200 men)
21st PA Division (provisional) w 2nd PA Coast Defense regiment (lacks artillery)(1,600 men) 3rd PA MP regiment (1,200 men)

Bataan defense area
4th PA MP regiment (1,200 men)
3rd PA Engineer brigade, 5th PA engineer brigade (1,200 men each)

Airfield construction central Luzon
4th PA engineer brigade, 6th PA engineer brigade (1,200 men each)

Manila
6th, 11th, 12th PA MP regiments (1,200 men each)
1st PA Infantry Division (forming)(10,000 men)

Harbor Defense Command (Subic and Manila Bays)
Harbor Defense Command HQ (1,000 men)
59th US coast artillery regiment, 60th US coast artillery regiment (antiaircraft) (1,000 men each)
91st PS coast artillery regiment, 92nd PS coast artillery regiment (1,000 men each)
Marine Corps detachment Subic Bay (a small battalion in size) (800 men)
5th PA MP regiment (1,200 men)

outside of Luzon
7th and 8th PA engineer brigades (1,200 men each)
7th, 8th, 9th, 10th PA MP regiments (1,200 men each)

Total US Army (includes Philippine Scouts) 27,000 men
Total US Marine Corps 1,000 men (includes various detachments)
Total Philippine Army 27,000 men

The Asiatic Fleet
The US Navy Asiatic Fleet between 1937 – 1940 continues it's mission of showing the flag, acting as a trip wire force and continuing to maintain an American presence in China. It suffers it's first combat loss with the sinking of the USS Panay in 1937 (and the first deaths it would suffer from the Japanese attack). Until the end of 1939 Admiral Yarnell, a man with considerable diplomatic skills as well as a fine commander, is in command and he and General Parsons get along very well, in contrast to the relationship Yarnell (or lack of one) had with previous Philippine Department Commanders or with MacArthur.

Yarnell is supportive of the idea of the Philippine Coast Guard and he directs the commander of the 16th Naval District to provide training to Filipino junior officers and persuades Washington to allow Filipino mess attendants in the US Navy, who have damage control training just like all US sailors, to transfer without prejudice to the Philippines Coast Guard.

The Creation of the Philippine Coast Guard
The official beginning of the Commonwealth naval force is January 1, 1939. A large number of Filipino fishermen, coastal sailors and shipyard workers all apply, and the initial force of 500 men is easily recruited. Training is at Subic Bay and Cavite naval stations and aboard the USS Bittern (an elderly minesweeper). Late in the year, a 55 foot and a 65 foot torpedo boat arrive from Britain built by Thorneycroft, and engines needed for the construction of 4 more also arrive (all of which are under construction and should be ready for action in 1940). The Commonwealth government also acquires 6 fishing boats with diesel engines, 2 old tugboats, 4 motor yachts (varying from 30-50 feet) and 4 inter-island steamers (all under 1,000 tons) for use by the naval force, and equips them with machine guns and in the case of the larger steamers, a pair of 3 inch guns.

In 1940, the motor torpedo boats are formed into a squadron and along with an armed tug and 2 fishing boats are sent to a naval station that has been constructed at Aliminos on the shores of Lingayen Gulf. The station is only a few dozen men including the crews, but a small stock of naval mines is acquired and the tug and the fishing boats are equipped as minelayers. The small force is periodically serviced by trips to Cavite. A small sea plane ramp is added in 1940, and permanent detachment of a MP company from the Philippine Army is also assigned as well as a battery of coast defense troops equipped with pre World War I era 8 inch guns released from US Navy stocks in the US.

The remainder of the little fleet is at Cavite and Subic Bay training as of the end of 1940 and personnel have expanded to 1,500 men total.

In 1940, Admiral Hart takes command of the Asiatic Fleet and is persuaded to continue the cooperation that the US Navy has provided so far. He is not able to provide any ships at present, but as a plan is already underway to move the gunboats and other vessels out of China, he begins considering a plan to transfer them to the Filipino's as they will be of little use in the war plan he is developing and the trained crews on those ships, particularly the heavily experienced petty officers, would be valuable aboard his fighting ships. He sends a letter to Admiral Stark recommending that and receives an affirmative response late in the year but only if China is evacuated, which is not yet politically possible.

However there is more money available for training, not only for the Asiatic Fleet but also to pay for more fuel and supplies for the Philippine Coast Guard, and this is used to good effect. The older ships in the Coast Guard are able to get much needed repairs and servicing, and weapons such as machine guns can now be more easily passed from the US Navy to the Republic of the Philippines Coast Guard.

Philippine Department Air Force 1940
As additional funds that have become available with the general increase in the US Defense Budget once the War begins in Europe, there is now funds so that the air power that is in the Philippines can reorganized and efforts are made to expand and modernize it.

The first Filipino pilots to complete their twin engine training are ready for aircraft and they form the first transport squadron of the Philippine Air Army Force when they receive 12 DC3 transport aircraft in early 1940. The US Army also transfers all 15 of its observation aircraft in the Philippines (as it lacks the pilots to fly them in any event). Parsons puts the Filipinos to work conducting a thorough aerial mapping survey of the island as a review of defense plans determines that there is a severe issue with many of the maps of the islands being outdated or minimal in terms of information to begin with. The first priority is Bataan, the Central Luzon Plain, as well as likely Japanese landing sites. The 2nd Composite Group, Philippine Army Air Force, is formed with one observation squadron and one transport squadron.

Construction engineers have built a basic airfield at Del Monte in Mindanao, Baguio, Del Carmen, Cabanatuan, Rosales, Pilar, Mariveles, and Bataan (larger field near Pilar) in Luzon, as well as Matan on Cebu. Discussions continue about improving Nichols Field as well as building a hard surface concrete runway for Clark (the new home of the Filipino air transport squadron) but money will not be available until 1942. In the interim, all the airfields are completed by the end of 1940 and are able hold up to a squadron of aircraft although their principal role is training and for giving the transports someplace to land.

The 4th Composite Group, US Army Air Corps, is primarily serving as a training unit for the Philippine Air Force at this point, and as it has no modern aircraft, its pilots are working as flight instructors and squadron leaders for the PAAF. Parsons finds that his senior two aviators, Colonel Harrison Richards (Department Air officer) and Colonel Lawrence Churchill (commander 4th Composite Group) are incapable of working constructively together. Deciding he needs Churchill more (as he is working well with the engineers) he sends Richards to develop a potential air ferry route via Australia as well as missions to discuss coordination with the Dutch and British, thus moving him out of the way. Churchill is given a brevet promotion to Brigadier General, PAAF, and placed in overall command of that organization as well as that of his own 4th Composite Group and all Filipino and American units are officially designated Philippine Department Air Force in August 1940.

Parsons requests modern aircraft and at least a fighter group, although he would like a light bomber group, an air defense center, and at Ord's urging, he also requests radar. He also requests at least 2 more coast defense artillery regiments (antiaircraft) or sufficient training staff and weapons to form 2 for the Philippine Army.

Meanwhile the PAAF buys another 12 Beechcraft for use as light transport aircraft, which will allow the PAAF to form a third squadron for its 2nd Composite Group. For 1941 requests are made for 48 fighter aircraft, 24 light bombers and 12 float planes to form the 3rd Composite Group. As there are shortages of just about every type of aircraft due to Lend Lease and US military expansion, the request goes to Hap Arnold who is already considering a plan of his own.