Arsenic Express

[Namayan]

1. Filipino First Policy (March 1957 – November 1957)

After the death of President Magsaysay in March of 1957, the Nacionalista party was thrown into chaos on who they will nominate as president. Magsaysay was sure to be reelected in 1957 both the Nacionalista convention and the Philippine elections.

Jose Laurel, Sr. had no intention of running for president against Magsaysay but now with the death of Magsaysay, President Garcia believes that Laurel, Sr. too wanted to run for president.

Claro M. Recto was dissatisfied with the party’s stance and has ambitions to become president.

While Manuel Manahan, one of Magsaysay’s allies, was given cold treatment by members of the Nacionalista Party, the party of former president Magsaysay.

President Garcia, who was President Magsaysay’s Vice President, had to figure out how to keep the party happy. Garcia found out from several party members that the convention would go for Recto as presidential nominee and Jose Laurel Jr., Laurel, Sr.’s son, as vice president nominee this coming convention.

He first negotiated with Recto to remain with the Party promising to pursue a more Nationalist policy. Second, he negotiated with Laurel Sr., in exchange for his support, would support his son’s nomination as Nacionalista’s vice president this coming election.

President Garcia’s negotiation still did not assure his nomination. There were several party members who wanted to be nominated as President. There was Senator Gil Puyat, Senator Amang Rodriguez and Manila Mayor Arsenio Lacson who vied for the presidential nomination.

---o---​

After the death of Magsaysay, an ambitious congressman, visited Arsenio Lacson in his Manila home and proposed to Lacson a team up, but Lacson had to leave the Nacionalista party for the Liberal Party. Lacson becomes the Liberal Party’s president nominee while this visitor named Ferdinand Marcos will become his running mate. Lacson, who was part of Marcos’ legal team during Nalundasan’s murder, rejected Marcos’ proposal. In jest, he told Marcos that he will not run as president with a running mate who was a murderer.

Lacson asked about Imelda, who is now Congressman Marcos’ wife. Lacson and Imelda somewhat have a history. Years ago, Imelda appealed to Lacson to overturn the decision that she should be the winner of the Miss Manila in 1953 rather than Norma Jimenez, as declared by the pageant’s board. This irked Marcos further due to coffee shop gossip that the first born of Imelda was the daughter of Lacson rather than Marcos.

---o---​

During the Convention, Lacson tried to give his “expose” of Garcia to garner votes. But instead of propelling him as the frontrunner of the Nacionalista convention, he was booed by a lot of Nacionalista delegates. Arsenio Lacson withdrew his candidacy as president nominee of Nacionalista to support Amang Rodriguez. In the end, the convention voted for Garcia presidential nominee and Laurel Jr as vice president nominee.

The Liberal Party convention was austere compared to the Nacionalista convention. It was a tea-party in Dewey Boulevard in contrast to the Nacionalista Convention wherein alcoholic beverages were welcomed. The Liberal Party wanted to remove the image of the corruption during Quirino’s administration. As expected, Jose Yulo received 95% of the delegates to be nominated as Liberal Party’s presidential candidate.

With Garcia’s plan to secure the nomination and no negotiation with Manahan, Manahan left the Nacionalista party and negotiated with the Liberal Party. Jose Yulo had promised the vice president nomination to Diosdado Macapagal. Yulo reasoned with Macapagal. Macapagal eventually acquiesced and gained several promises from Yulo. The Liberal Party delegates, thru negotiation of Yulo and Macapagal, were convinced to vote for Manahan and gain the support from Magsaysay’s voters.

Along with Manahan, he brought with him loyalists of Magsaysay. One of them was Raul Manglapus. Raul Manglapus is an excellent writer and was the one who composed for Magsaysay’s campaign in 1953 – “Mambo Magsaysay”. In turn, Manglapus used his talents to help the Liberal Party’s campaign for the 1957 elections.

President Garcia’s promise to Recto was pushed during the campaign. Garcia campaigned for a Filipino First Policy and an economy independent of the United States. The Nacionalistas promoted state run enterprises, an economy that would support and founding of local industries to lessen importation, reliance to the United States. This, in turn, forced the Liberal party to go against the stance of the incumbent and push for a more open economy allowing for more jobs and American investments, and continuation of parity rates voted by Filipinos in a plebiscite back in 1947. Yulo proposed a larger role of U.S. industries, making it easier for U.S. companies to invest in the Philippines.

The campaign was fierce and both party’s stance was clearly different. The Nacionalistas was the larger party, dominated the Congress and had the incumbent. However, President Magsaysay’s supporters are split between loyalists of Nacionalistas and those who followed Manahan to the Liberal Party.

During the campaign, defective Condoms were distributed to the voting public and labeled “Courtesy of Carlos P. Garcia – the People’s Friend”.

 

[Namayan]

2. Unexpected Victory (November 1957 – March 1958)

Jose Yulo won with 51% votes defeating President Garcia and Manuel Manahan garnered 59% of the votes winning over Laurel, Jr. After two weeks, newspapers were analyzing and nitpicking how the Liberal Party and Jose Yulo won over the Nacionalista juggernaut and incumbent President Garcia.

Jose Yulo’s election is unprecedented, serving previously as legislator, appointed as Chief Justice, after the execution of Jose Abad Santos, under Japanese occupation and now as executive, president of the Philippines.

The Liberal party only won 2 out of the 8 seats in the Senate up for election. This made the total count of Senators 22 out of 24 in favor of the Nacionalista party.

The first appointment done by President Yulo is to appoint Diosdado Macapagal as Secretary of Foreign Affairs. No one knew at that time what negotiations Yulo made with Macapagal to cater for Manahan’s seat as the vice president. But everyone expected it at that time to be the Secretary of Foreign Affairs due to Macapagal’s extensive experience in foreign affairs ranging from negotiating the U.S. Mutual Defense treaty in 1951, Japanese Peace Treaty in 1951 and Laurel-Langley Agreement in 1955.

The next policy undertaken by Yulo administration was the selling of government corporations. The Magsaysay-Garcia administration in 1957 had a budget deficit in 1957 of around $40 million or P80 Million. Yulo needed to trim the deficit down. Yulo is immediately stopped by a Nacionalista dominated Congress to the sale of these corporations. With the Nacionalista blocking the sale of NASSCO, he changed the purpose of National Shipyards and Steel Corporation (NASSCO) in Bataan as a naval shipyard instead. The integrated steel mill in Iligan owned by NASSCO is sold to an American private company, who was able to lobby the sale to a Nacionalista controlled Congress. This became the standard on how the Yulo administration sold government owned corporations by selling the assets and property, limiting the agencies into a regulatory agency or military arsenal rather than a money-making organization.

In order to please the land-owning Congress dominated by the opposing party, President Yulo stopped land reform. Distribution of land is stopped under the disguise of the need to carefully study the matter. The idea of agriculture scale for production is marketed in newspapers, radio shows and television shows by the administration. The decision of Yulo, who is a land owner, looked self-serving to the landless rural population. Yulo assured that more jobs will come in due to more capital investments by the United States. He assures the prices of agriculture produce will come down due to the scale of production. Such assurance is enough to satisfy consumers and urban voters for now.

Budget cuts are given to government corporations and agencies like PHILCOA (Philippine Coconut Authority), Abaca Corporation, Agricultural Credit and Cooperative Financing Administration (ACCFA) to compensate with the increase of public works and cut down the deficit.

The Yulo administration expects an increase of the need for electricity with a more open economy to foreign investors and the continuation of the parity rights. Yulo is aiming for Philippines to become a regional hub for automobile assembly plants. Daimler-Benz had already opened an assembly plant in Manila in 1955 during Magsaysay’s administration. Yulo wants to continue the friendly business environment of the Philippines compared to the region with low cost of doing business from electricity, to salaries and taxes.

Philippines still was dependent on fossil fuel fired powerplants. But Philippines have no fossil fuel resources. This created a problem on how to bring down electricity and make inputs for businesses cheaper. Yulo needs to find a solution to solve the electricity problems in the Philippines.

Nuclear power was also introduced to the Philippines by way of signing the Atoms for peace initiative in 1955 signed by Ramon Magsaysay. The Philippines invited the International Atomic Energy Agency to undertake a detailed study on the Luzon grid. In 1956, a study was conducted that a small nuclear plant that powers Manila will not be able to compete with financial viability of fossil fuel power station. The Yulo administration wants a new nuclear power study to be conducted under his administration but with a larger nuclear power plant in mind.

In parallel to the nuclear power studies, with the help of U.S. Bureau of Reclamation thru a water resources survey, around 20,000 to 25,000 MWH per year potential in the Philippines was surveyed with only 5% exploited. The building of Maria Cristina hydro power plant in Lanao, Mindanao has proven to be successful. Thus, the Yulo administration aims to build more hydro plants and make electricity cheaper.

 

[Unknown]

Hope there's no Marcos as a result of this, IMO...

Good start, and waiting for more...

 

[Nova 360]

Not alot of alternate history with a focus on a 1950s Philippines so I'm pretty interested in how this timeline develops further. Watched.

 

[Namayan]

Hope there's no Marcos as a result of this, IMO...

Good start, and waiting for more...

Marcos still exists but like otl 1957 still a congressman.

Hope you Enjoy the Timeline.

Not alot of alternate history with a focus on a 1950s Philippines so I'm pretty interested in how this timeline develops further. Watched.

Thanks. Hope you Enjoy the Timeline.

 

[Namayan]

3. New Opposition (January 1958-March 1958)

The delay of land reform and cutting of the budget of ACCFA by the Congress and President Yulo dissatisfied Vice President Manahan who not only looked physically similar to Magsaysay but also have similar ideological beliefs.

Vice President Manahan preferred his old job appointed to him by President Magsaysay, as head of Presidential Complaints and Action Commission (PCAC) in 1954.

Vice President Manahan tried to attend cabinet meetings but was barred by President Yulo. The people and the supporters of Magsaysay relied on Manahan to protect their interest. He thought about his original plan last year, to start his own party. But he is patient and let the Yulo administration gain footing for a year before deciding drastic course of action.

---o---​

With the defeat of Garcia and Laurel Jr, the Nacionalista Party is in disbelief. After accepting they lost to the Liberal Party, the Nacionalistas preferred working with the Yulo Administration rather blocking each measure proposed by Liberal Party senators.

The most critical of the Nacionalistas right after the first move of the Yulo Administration in Congress is Manila Mayor Arsenio Lacson. In his Sunday night radio show “In this Corner”, Mayor Lacson, born in Talisay, Negros Island, is heard with his regular expletives, foul language. He is nicknamed Arsenic for a reason. Mayor Lacson is critical about anyone in the show from the president down to any ordinary folk. He criticizes any wrongdoing of anyone including the president. He talks about anything in his half an hour radio show from midwives to the military defense of Southeast Asia.

Lacson had just returned from trip of the USA and Latin Americas after losing the presidential nomination during the Nacionalista convention. The first decisions of the Yulo administration are tackled by Lacson in his weekly radio show of how the Yulo administration betrayed the Philippines by promoting for a more dependent economy to the United States, the cancellation of the Magsaysay’s rail expansion line Cagayan Valley and delay of land reform.

Due to his absence, he meets with an employee of the newspaper Manila Chronicle to find out if there is any information, they have on the Yulo administration. The Manila Chronicle exposed President Quirino on his extravagance as president on his golden arinola (chamber pot) and expensive bed. Now that Quirino has been dead for 2 years, Lacson finds out that all these were made up and concoctions. The golden arinola was never true at all nor is the expensive bed of Elpidio Quirino.

Lacson is shocked when he hears the truth. The newspaper destroyed the reputation of a former president. All Lacson could do is curse the employee during the meeting. Lacson realizes he should be more careful and verify his information.

---o---​

When one first hears of Mayor Lacson, he talks like a stevedore. But if one knows the mayor’s background, one realizes he is very much educated, studied law in University of Santo Tomas and passing the bar in 1937.

Mayor Lacson was not afraid of anyone from the National Government. He was suspended in 1952 when the then President Quirino suspended him and filed criminal libel complaint against him due to Lacson’s criticism on his radio show. But the Supreme court voided Quirino’s suspension order after 73 days. He not only criticized Quirino but former president Roxas and former president Magsaysay whenever he sees any wrong doing.

The tough talking Lacson was once an amateur boxer, which accounted for his broken nose. He was part of the Guerrilla movement during World War 2, and was the head scout during the liberation of Manila in 1945.

Not only Lacson was tough talking, but he showed results in managing Manila since 1951. Starting with a P23 million-peso debt which cannot pay its own employees, Lacson turned around Manila’s finances. He personally led raids on brothels masquerading as massage parlors and unauthorized market vendors which was the ire of legal tax paying local business. He established a police patrol unit which he himself patrolled the city during the night.

He is brave enough to bulldoze squatters in Manila that slowly has been building up since 1945 living in parks. More importantly, he starts firing incompetent or corrupt city employees and police. When he came to office in 1951 as mayor, Manila’s budget accounted for 80% salaries. He stopped the practice of appointing non-working employees who gained political favors and ate Manila’s budget.

His reform of Manila made him enemies within the established politicians in Manila. But he is not the type of man who backs out. Even with death threats to his family, the greater political pressure given to him, the more defiant and determined Mayor Lacson becomes.

He is not as prim and proper like Quezon dressed formally in a white silk suit and dark blue under shirt and pastel tie. Lacson is a gaudy dresser. He does not dance nor tango like Magsaysay. He is a new breed of post war politicians, born this century.

There were several lessons Lacson learned last year. Due to his operation last year, he tries to start living a healthier lifestyle giving up some of his vices, alcoholic drinks and cigarette smoking. His ambition to become president comes first and fore most before his bad habits.

 

[Namayan]

4. The New Capital (March 1958- June 1958)

With an unfriendly Mayor in Manila, President Yulo hastened the complete transfer of the government from the city of Manila to Quezon City. Quezon City was officially already the capital of the Philippines since 1948. Unlike the elected leader of Manila, Quezon City’s mayor is appointed by the President. All the remaining government branches and agencies still in Manila are given a short time and enough budget to transfer to Quezon city including the executive branch.

The Science Act of 1958 was passed by the 4th Congress and established a Philippine Atomic Energy Commission. A budget was allocated for a working nuclear reactor. The reactor will be built at the University of the Philippines new campus in Diliman, Quezon City.

Besides transferring all of the national government offices, this new garden city of parks and open spaces would have 4 commercial centers based on the 1949 plan. An industrial park would be located Northeast of the city. President Yulo gives incentives for businesses, whether a new foreign investor or a business established already in Manila, to transfer to Quezon city by giving lower tax rates.

The Liberal Party continued the low income and middle-income mass housing in Quezon City that has been going on since President Quirino’s term under the People’s Housing Homesite Corporation starting with Projects 1 to 4. President Magsaysay continued the program with Projects 5 to 8. The Yulo administration starts building Project 9. Project 9 aims to be more ambitious than Project 4, which housed 3,039 family units in 92 hectares, but offers larger lots than 100 square meters.

---o---​

There is also an upcoming private development between Manila and the new capital. The Ayala family is building a multi lane major avenue in Nielson Field. The Ayala family is planning to make their farm estate to be a high density residential and commercial area. Gated communities for the rich had already begun in the farm estate starting with Ayala’s development of Forbes Park starting in 1949.

---o---​

Mayor Lacson not to be outdone, starts planning a new infrastructure program in Manila. Manila has the resources to compete with the National government. Most businesses and the largest port are located in Manila. The National government is not flushed with cash. This year due to their spending, the National government’s treasury cash on hand is around 900,000 pesos with a large deficit while Manila under Lacson has a 12 million pesos in hand and a 5 million budget surplus.

With new competition, Mayor Lacson wants businesses and skilled workers to remain in the City of Manila rather than transfer to the new business districts planned by the National government and a private developer. Otherwise, face urban decay.

First, he invited several companies and hired several advisors to conduct a study and build a new mass transport system. The Americans offered to rebuild the tramway, the British offered to build a tube or subway while the West Germans offered to build a monorail.

Manila had a streetcar system before but destroyed during World War 2. For years, Mayor Lacson has been battling reckless automobile violators in the streets of Manila from private cars to jeepneys. The Jeepney drivers held even a transport strike during the last mayor election due to strictness of the new policies. Mayor Lacson wants a government-controlled transportation in Manila and avoid the problems of future jeepney transport strikes.

Second, he plans to build low-cost housing for Manila’s citizens. The destruction of Manila during World War 2 and migration from the rural areas to Manila increased the migrant population in Manila. Most of these temporary shelters created by migrants are mostly concentrated in Intramuros and Tondo, Manila. These squatter settlements favored foreshore land along the bay, near the waterways like Pasig River, garbage dump site in Tondo. During Magsaysay’s term, the Tondo Fore shore land act allowed the land purchase of recognized residents within Tondo. However, it did not resolve the illegal settlers in other parts of Manila.

Unlike the mass housing of the national government in Quezon City, Mayor Lacson prefers a prefabricated apartment building. If a local company could not meet the target dates nor the required volume, Mayor Lacson will hire U.S. companies to build them either ship the materials from Continental United States or start a factory within Philippines preferably inside Manila City limits.

The first public housing project will be constructed in Harrison Park, which used to be one of the prime targets of squatters. Originally, he planned to build a Zoo but decided that the area would be for public housing.

Mayor Lacson also plans to build an incinerator plant to replace the unplanned landfill that has been piling up in Tondo. This will create jobs locally, provide additional power for Manila and remove the landfill in Tondo.

Along with a residential plan, he has been planning for years to build several schools and hospitals for the city’s citizens. These are the problems Manila had when he took office in 1951. However, financial problems and even the corruption of Manila’s municipal board had to be tackled first before he could even start building public infrastructure.

Rather than encouraging automobile assembly plants and compete with the National government in that industry, Mayor Lacson, with the support of the municipal board, encouraged and incentivized the building of labor-intensive industries like textile, footwear, garment factories and toy factories. He hopes to give anyone coming to a Manila a chance to get a job.

 

[Namayan]

5. Cars and Roads Program (July 1958- Sept 1958)

After the last election, the Nacionalista party and the Liberal Party have a clearer political difference on their respective parties’ beliefs with Nacionalistas preferring government interference and the Liberal Party a more market-oriented governance.

Changing of parties is not really new especially when the position to run for office is closed in one party, the other offers that position like Magsaysay’s shift from Liberal Party to Nacionalista party to run against President Quirino. However, with Nacionalista’s government control going against United States interest and with the Liberal party more friendly with the United States interest in the Philippines, a lot of Nacionalista party members migrated to the Liberal party especially those who believe on a more market-oriented approach with around 6 senators swearing in to the Liberal Party. This puts the Liberal party numbers at 8 senators instead of 2 just last year. This is still not enough to pass measures the Nacioanlista party totally are against like unlatching the peso from the dollar.

The spar between Nacionalista party and Liberal Party is mostly featured not in the legislature but the competition President Yulo and Mayor Lacson. President Yulo adapted Cars and Road program providing for infrastructure projects of more roads and encouraging assembly plants of automobile companies from foreign brands to build in Quezon City. The only difference between the assembly programs under Magsaysay and Quirino versus today is that President Yulo wants to corner the market within the region. He hopes to export these foreign brands to other countries. He gave better incentives that would have companies think about investing in Quezon city or transferring from Manila. His infrastructure program increased the deficit of the National government.

---o---​

Mayor Lacson economic plan targets on specific industries. Local upstarts, Filipinos, are given financial aid which are aimed at exporting products to the United States or even as far as Europe. Mayor Lacson’s trip to the United States last year was not only for vacation for his family nor just a speaking engagement or conference, the trip also gave Mayor Lacson connections and insight what products needed to be sold to the United States. On top of supporting young and ambitious Filipinos, Mayor Lacson created a business association, the Manila Business Club. The club started with wealthy Filipinos who are open to invest in the mayor’s industrial plan by investing in textiles, garments, footwear and the toy industries.

The first swing of the Liberal Party against Mayor Lacson in Congress is the proposal to stop the Incinerator power plant that will be built in Manila. The Nacionalista party led by Jose Laurel, Sr., Claro M. Recto and Amang Rodriguez fully backed Mayor Lacson and required members of the Nacionalista party in Congress to support Mayor Lacson. The Congress is still dominated by the Nacionalista party despite the transfer of some legislators to the Liberal Party.

The Nacionalista dominated Congress did not stop with the Incinerator plant. Mayor Lacson has been asking the National government for years to allocate to the City of Manila customs collection wherein 3/4s of the National governments custom collection came from the City of Manila. The Nacionalista dominated Congress passed a law forcing the National government to surrender 50% of the customs collections in Manila to the City of Manila. This is a blow to the Yulo administration and the National government. With less expected collectibles, the Yulo administration has to choose between to increase the national deficit, get foreign loans, cut the road infrastructure allocation or worse borrow from the City of Manila.

President Yulo cancels mass housing Project 9 in Quezon City and blames Nacionalista party and Mayor Lacson for the cancellation.

---o---​

The Congress passed the Labor Act of 1958 superseding Tenancy Act of 1954. This clarifies the relationship between farmer tenants as employees and security of tenure is dependent on the employee.

The act triggered a tenant uprising in several provinces of Tarlac, Pampanga, Nueva Ecija and Pangasinan. The tenants demanded their security as tenants or their own farms and lands. Simultaneously, a protest of around 10,000 people marched to Manila to protest against the President and Congress.

Mayor Lacson issued a permit to protest in Manila with Manila Police in standby to protect both the protesters and officials.

Government authorities caught some of the rebels. President Yulo blames members of PKP (Partido Komunista ng Pilipinas/Philippine Communist Party) and former members of Huks for causing the uprising and organized protest.

In order to negotiate with the protesters, President Yulo appointed Vice President Manahan to negotiate with the protesters. The protesters dispersed peacefully without anyone arrested.

With enough time given for the Yulo administration and the clear difference between the politics of President Yulo and former President Magsaysay, Vice President Manahan resigns from the Liberal party and forms the Labor Party. He brings with him several members of Liberal Party including Raul Manglapus while gaining some members of Nacionalista party. The Labor Party is formed along with Philippine trade unions and Farmer tenants as first members.

The creation of Labor Party with the promise of Land Reform for the 1959 midterm elections stops the tenant uprising, convincing the tenants to return to their farms in support of the new party. Vice President Manahan promises to protect the conditions of even labor workers in the Philippines.

 

[Namayan]

6. U.S. Parity Rights in the Philippines (Sept 1958 – Dec 1958)

The sale of Iligan Steel Mill to U.S. Citizens and corporations has been a hot topic of discussion. Members of the Nacionalista party, who prefers a Filipino first policy, has been criticizing President Yulo’s sale of a national asset. President Yulo justified the sale even encouraged more U.S. Capital to come in to help Filipinos setup industries and technical skills.

President Yulo has been conducting marketing campaigns on the advantage of U.S. Parity rights in the Philippines. Radio shows and newspapers explain the advantage of U.S. investments and technical help. President Yulo said that the question should not be if it should be removed but if how we are going to use it and take advantage of U.S. parity rights until it expires in 1974.

U.S. capital should be encouraged. Filipinos do not have all the technical skills nor the capital to fully industrialize. He promises to give more job opportunities once more U.S. capital and companies invests in the Philippines.

President Yulo reveals his ambitious 20-year program of achieving at least half of the industrial capacity of Britain. This involves taking advantage of the U.S. parity rights inviting U.S. capital, corporations to invest in agriculture, mining and manufacturing. Electricity and infrastructure are severely lacking. Newspapers and radio shows keep repeating President Yulo’s declaration that U.S. capital and technical skills will help narrow the gap between the Philippines and the developed world.

After 20 years of development, then and only then should the Philippines think of hoarding the companies for Filipinos when Filipinos themselves have enough capital and technical skill.

---o---​

MERALCO or Manila Electric Railroad and Lighting Company, who promised Mayor Lacson to build the Incinerator Plant in Tondo and rebuild Manila’s new Tranvia, withdraws their proposals.

Mayor Lacson, enraged, blames President Yulo for forcing the hand of James Rockwell, president of MERALCO, and their board of directors to cancel Manila’s projects and derailing Manila’s development.

Even request for loans from the National government and loans outside the Philippines is denied for Incinerator Plant and rebuilding of the Travia. The other proposals by other companies and countries also withdraw their rail proposals.

With limited options to get funding for the incinerator plant, the Tondo Landfill is instead reorganized into a city government-controlled landfill more organized than the unplanned Landfill. The scavengers that used to frequent the area is now forced to find another way of life.

Mayor Lacson tries to solve the scavenger’s loss of livelihood by helping them acquire jobs in Manila especially the new textile, garments, and footwear factories.

---o---​

President Yulo’s economies of scale approach in agriculture are being blamed as a pro landed elite policy. During Magsaysay’s term, promises of division of land among peasants gained the approval of the rural populace. Recognizing the possibility of communist recruitment of disgruntled tenant farmers, President Yulo starts a small business program. Instead of owning land and farming land, incentives, training and financial aid are given to those willing to start a business and move to urban areas. Tenant farmers, especially those disgruntled, are given priority.

 

[Namayan]

7. The World in 1958 – East Asia

Chairman Mao Zedong has launched the Great Leap Forward. Chairman Mao was inspired by Khruschev’s proposed plan to catch up and exceed the United States industrial output that made him create his own program. Instead of outproducing USA, Chairman Mao aims to outproduce Great Britain in industrial output.

The People’s Republic of China also Declared its territorial Sea stretching adjacent to the Philippine Islands. Although there was no exact wording printed given to the Filipinos, the news of Chinese Communists claiming the seas up to Manila Bay becomes the accepted truth despite lacking of verification. The topic became a discussion in Radio shows and television in the Philippines by the end of 1958. Every ordinary working Filipino became aware of Chinese encroachment and those who wanted to spread it made sure of it.

The Yulo administration is able to get the Philippine Congress pass a bill increasing the budget for the armed forces. The People’s Republic of China’s declaration and the assumption that their declaration reaches to the shores of the Philippines made it easier to pass. In recent polls, most ordinary Filipinos support the increase of the armed forces due to fear of Chinese invasion and reappearance of communism in the Philippines after the continued barrage of China’s declaration in newspapers, radio news and television news.

The truth about China’s declaration of her Territorial Sea never comes out not until Congress passes a larger military budget and the memory of the Filipino voter becomes distracted by another national issue.

---o---

In Vietnam, Secretary Macapagal hopes to sign several a trade deal with President Ngo Dinh Diem to buy goods from assemble cars and other goods from the Philippines instead of buying them straight from Europe or the United States while also buying South Vietnam’s excess rice production.

Philippine involvement does not end with Vietnam. The Federation of Malaya became independent just last year. However, communist elements remain in the former British colony. The Philippines establishes a diplomatic mission to the Federation of Malaya and drop to them ideas of a defensive alliance. Prime Minister Tunku Abdul Rahman likes the idea of the defensive alliance against the communist but is not committed to any defensive pact like SEATO. However, Macapagal’s main purpose is for Federation of Malaya to sign a trade pact similar with Republic of Vietnam - to buy Philippine assembled goods and buy excess produce from those nations that Philippines does not produce enough.

The South East Asian nations have reasons to listen to Secretary Macapagal. Philippines is the 7th largest Economy (total GDP nominal) in Asia after China, India, Japan, Indonesia, Turkey, Iran in 1958. Philippine economy has been bullish for more than a decade while efforts against Philippine communists have been successful with the elimination of the Huks and the banning of PKP (Philippine Communist Party) with the Anti-Subversion Act of 1957.

Philippine businessmen also became present in other British colonies in Sarawak, Northern Borneo and Brunei. Offers are made to even the Sultan of Brunei, protection against local communist elements, in case Brunei decides to become independent, citing Philippine commitment to the Korean War.

Sultan of Brunei, the Borneo crown colonies and London questions Macapagal’s motive. Manila has been pushing for the recognition of Sulu’s sovereignty in North Borneo. Philippines has a history of expanding her influence towards Borneo. Macapagal himself in 1947 negotiated with Britain control of Turtle Islands near North Borneo while Secretary Macapagal, then a congressman, co-sponsored a resolution in 1950 of the Philippine government’s claim of North Borneo.

 

[Namayan]

8. State Visits in 1958

President Yulo is thankful for the peaceful resolution in Taiwan. The Chinese have been shelling Taiwanese controlled islands escalating to naval and air Support from the United States until ceasefire was called.

President Yulo remembers his visit to Washington D.C. early this year when he met President Eisenhower and discussed the situation in the Far East including Taiwan. President Yulo offered Philippine military assets in case of escalation much like his offers to Filipino manpower in Indonesia.

The United States has been supporting Permesta rebels fearing the central government of Indonesia has been Soviet influenced.

However, President Yulo did not visit the United States to offer military assistance to the United States as an ally but gain loans, aid and grant. The Philippine national government has been under a deficit.

The Philippine economy under Quirino passed the New and Necessary Industries act giving 165 industries tax exemption in 1953 and expiring this year. There are calls from the Nacionalista party to solve the issue by letting the tax exemptions law expire, President Yulo hopes to continue the tax exemptions beyond 1958 and even add incentives to certain industries. The Philippine government does not have the necessary reserve to pursue President Yulo’s Plan and hopes that the United States can help in this regard.

He also wanted to upgrade the Armed Forces particularly the Navy. He hopes also to upgrade the Army’s M4 Sherman Tanks into M48 Pattons plus acquire a larger naval transport.

President Yulo justified the request due to the Philippine experience during the Korean war. The Philippine army learned the importance of a heavy tank. The Philippine Army lacking a heavy tank in 1950 used their Sherman tanks during the early days of war attacking entrench enemy positions. The Korean expeditionary force was only able to equip 4 out of the 5 Battalion Combat Teams. President Yulo, just in case the United States needs Philippines again, be able to equip all its expeditionary force with the right equipment.

The Philippine Navy used her 5 LST (Landing Ship Tanks) to transport Philippine troops to and from Korea which was not enough. The United States helped transporting Philippine troops using a Victory ship, USNS Sgt. Sylvester Antolak. The Philippines has been aiming to get an excess Victory liner from the United States with a wish list of one or two Haskell-class Transport.

President Yulo hopes also to acquire 12 Fletcher destroyers to which to escort sealift of the Philippines in a possible war. Philippine navy only has Patrol corvettes of around 600 tons and submarine chasers.

The United States through the U.S. Mutual Defense Assistance Act approves the request.

The most important acquisition of President Yulo are the loans and grants for the government and civilian industry. The National Economic Council of the Philippines recommended heavy investments on electrification for President Yulo’s push for heavy industry to encourage more investors to setup in the Philippines. The loans would help on multiple projects in Angat Dam and Marikina Multi-Purpose Project. However, the United States did not approve any loans for the dams. The United States did help President Yulo acquire loans and grants for Iligan Steel Mill which is majority owned by American citizens.

President Yulo got a loan from the World Bank for Angat Dam of the planned 206MW of power but no financing for the Marikina Multipurpose Project.

After his visit to the United States, President Yulo had a state visit in Japan hoping to gain more loans or aid from Japan.

The Philippines can rely on Japanese war reparations agreed on 1956 of a total amount of $550 million to which the distribution started in 1957. $25 million was agreed to be given in the first 10 years and $30 million in the next 10 years. By Philippine Reparations Law of 1957, the government will only get 40% of the reparations while the 60% would be given to private entities or individuals.

On his visit to Japan, President Yulo signed an agreement providing long-term credits to build Marikina Multi-Purpose Project. The hydro-electric project would be capable of 141MW and supplying 270 million tons of water annually and preventing floods in the Manila area.

Even before President Yulo arrives home to the Philippines, critics scrutinized the project including possible anomalies. Some critics fears the dam would be built in an Earthquake area. The project has been debated by Congress since 1955 and funded the studies. Mayor Lacson, one of the critics of President Yulo is quiet of the situation. Lacson answers why he is silent due to the project having no anomalies that he knows of. Lacson says he is more worried if we should trust the Japanese to build Philippine infrastructure. Critics of the Dam accused Lacson’s lack of criticism is due to self-interest since he is the mayor who will most benefit the project.

Eventually, the private owners of power plants like MERALCO, led by the company president James Rockwell, issue a joint statement on the dangers of Marikina Multi-Purpose Project. They brought several engineers to their press conference stating the several dangers of Marikina Multi-Purpose Project.

Mayor Lacson has some words for James Rockwell gives several of his expletives on his own press conference and radio show. He calls James Rockwell and MERALCO as profiteers not thinking the needs of the people. He further elaborates that the Thermal Plant of Meralco earns profits due to the main power provider in Manila. He asked his listeners to fully support President Yulo with his power projects.

The criticism of the project continued for months even if the construction started and the financial, technical help of Japan.

With all the funding for electrification, the Yulo administration was not able to get funding for his highway program.

 

[Namayan]

9. Decontrol and Devaluation of the Philippine Peso (1959)

Foreign businesses and local business alike pushed for devaluation and decontrol of the Philippine peso. With a more business friendly environment, the economy grew faster last year compared to the year Garcia became president. However, with the growth of export industries, national government’s deficit, problems in balance of payments, the pressure to devalue and decontrol the Philippine peso pegged to dollar is again discussed in Philippine Congress.

The Nacionalista controlled Congress, who some preferred to retain peso pegged to the dollar, is not too happy about Liberal Party’s move. However, businessmen who dislike the idea of control pressured Congress now that they have a more friendly president on the idea of decontrol. The businessmen, especially those dependent on import license to operate their business were afraid to expose the shortcomings of currency controls. Now, that President Yulo is backing the move due to the export program and foreign policy of the National government. The Nacionalistas are also pressured to pass it in Congress. However, in return, the negotiation required a series of laws that President Yulo and the Liberal Party have to support.

Higher tariffs for sugar products, coconut products which is dangled by President Yulo. These products are the top exports of the country in 1958, and businesses of most families in Congress or their financiers.

President Yulo got Congress to remove tariffs for coal, iron and other metals to help the steel industry. Removing the Iron and copper tariffs was one of the hardest negotiations for President Yulo due to the mineral exporters of the Philippines. President Yulo threatened to back out of the negotiations, including support for Sugar and Coconut industries. Members of Congress who are Pro-Sugar and Pro-Coconut supported President Yulo’s removal of tariffs to help the Steel Industry and continued to support President Yulo in his new tariff plan.

Raw wood tariffs were also lowered angering Congress supporters of the logging industry. However, plywood and veneer production are incentivized by Congress.

The protectionist wing of the Nacionalista party, who are not part of Sugar and Coconut bloc, wanted higher tariffs for other agricultural products such as Cacao, Coffee, Citrus and peanuts. But measures did not pass in Congress.

President Yulo and his Liberal Party allies worked with Sugar and Coconut bloc of the Nacionalistas in Congress to support new startup companies by removing tariffs and taxes for materials to make textiles, garments and footwear like rubber, cotton, silk and wool. Then, Congress tasked the National Development Company to help former tenants and new startups in the clothing industry.

With the stifling of NASSCO (National Shipyards and Steel Corporation) and the Bataan Shipyard relegated as a naval shipyard, President Yulo asked Congress to incentivize local private Shipbuilding not only to build for local demand but for export.

In order to finance local industries, the Rehabilitation Finance Corporation was reorganized as Export Bank of the Philippines. Congress and the Yulo administration agreed on the by-laws of the new bank giving special loan interests to Filipino owned companies on specified industries or companies that want to expand and hit export target quota are given better loan interest rates. The initial charter of Export Bank of the Philippines is to help clothing, private shipyard, automobile and steel manufacturing companies with capital.

Congress and the administration also agreed on profit tax reductions on exporting industries that hit government targets.

The Congress let the New and Necessary Industries Law of 1953 expire replacing it with new Tariff and Export Law of 1958.

In return, Congress approves one time devaluation to 1 U.S. dollar to 6 Philippine pesos at the beginning of 1960 from the current exchange rate of 1 U.S. dollar to 2 Philippine pesos.

---o---

When the new tariff passed, President Yulo is criticized of self-interest. Jose Yulo after the war was convinced by Vicente Madrigal to buy the Canlubang Sugar Estate in 1948.

The criticism on President Yulo forces his sale of his sugar estate in Canlubang.

---o---

The Communist Chinese Invasion scare due to media mileage did get Congress to pass increase in the armed forces budget. However, the scare did further increase the paranoia of Filipinos and the Nacionalista dominated Congress of Chinese owned enterprises and Chinese migration.

The Congress wants the 1954 Retail Trade Nationalization to expand beyond retail industry and reduce yearly Chinese immigration quota from 50 down to 25. The Retail Trade Nationalization law was aimed on Chinese nationals who dominated the retail industry in the Philippines preventing Chinese nationals to start business in the retail industry.

After much negotiation, the Yulo administration and Congress agreed on the process on how to resolve the situation.

The Commission on National Integration is given the task. That Chinese national who wish to invest in the Philippines must go in the process of Filipinization. If somehow, the Filipinization is discontinued in certain number of years, the companies owned by Chinese nationals are forced to sell to Filipinos or the National government. There is a debate to include West Germans and British nationals but was not included in the new Integration Law which only specifies Chinese Nationals.

 

[Namayan]

10. Policy of Attraction (1959)

The Philippine government has been working with both the Ford foundation and Rockefeller foundation. There were talks about the location of the institute. Secretary Macapagal, with the support of President Yulo, proposed it to be located in Kuching, Sarawak.

However, this required the support of the Sarawak and London.

It is a political maneuver by Secretary Macapagal to gain traction and influence in Borneo. The British government is currently conducting negotiations with local leaders and the Philippines has been pushing for Sarawak’s independence. The Philippines has been attempting to insert themselves into the discussion within local communities thru proposed trade deals with the Crown Colonies.

The motives of the Philippines are questioned.

Secretary Macapagal and President Yulo took interest in Sarawak United People’s Party and had several meetings with Ong Kee Hui and Stephen Yong Kuet Tze. Yulo and Macapagal promises to help Sarawak setup an independent government from Britain and would recognize Sarawak’s independence immediately.

---o---​

Since the beginning of 20th century, there has been tensions with the Christian migrant population relocated from Luzon and Visayas and the Muslims.

During the American colonial period, pagan Filipinos were exempted from land registration and individual land ownership. However, Muslims were not exempted from land registration since they were considered by the United States unlike their pagan counterparts. This practice and recognition continued after independence in 1946.

Christian migration to Mindanao boomed after World War 2. Unfamiliar with procedures, many Muslims did not apply for new lands nor filed for a legal title. While the Christians settlers knowing the legalities of the system, filed for a title. Due to their legal right, the Christians settlers called for the Philippine Constabulary to expel the “illegal settlers”. This created tensions between Christians and Muslims. Decades of this practice created a large disparity between Chrisitan settlers and Muslim Inhabitants.

There is also a disparity between Christian settlers getting social service like education and Muslims who preferred to be isolated in rural areas.

President Yulo was aware of the situation in Mindanao much like all prewar politicians. However, it is not until his meeting with Sarawak and North Borneo representatives that he was called about the situation in Mindanao wherein Sarawak and North Borneo representatives question Filipino leadership. If they cannot solve problems at home, what makes the Philippines the rightful leader of South East Asia and the Malay race.

It was a humiliating but enlightening experience for President Yulo. Instead of getting mad on the foreign representatives, he promises to resolve the issue and thanks them for the information.

President Yulo sought to reestablish the American period’s policy of attraction. Education was the primary tool by the Americans and President Yulo wanted to repeat the success. He tasked the Commission on National Integration to Filipinize those who have not integrated and clung to the old ways. Much like during the American period, Islamic law or tribal laws are accepted as long as they do not contradict basic American law but, in this case, Philippine law.

President Yulo wanted the Filipinization to be secular rather than religious. Loyalty to state should be created rather than identification as a Filipino due to being Roman Catholic. Although both have common history against Spain, the republicanism and secularism taught by the Americans are emphasized. Common heritage of being conquered and pacified by the Americans and the current threat of communism towards both Muslim and Christian Filipinos.

This is not the first time the government found out of the situation in Mindanao. There was a Special Committee of Congress in 1954 to find why there is an increase of banditry among Muslim Filipinos. Magsaysay was not able to address the situation since his land reform benefitted on moving Christian Filipinos to Mindanao.

President Yulo became stricter in inter migration to Mindanao. He hopes to register the remaining lands being lived by Muslims before arrival of more Christians. Some of the Muslims are brought to Manila to study and understand the two-party system politics.

Additionally, he asked the National Development Company to develop labor intensive industries in Jolo, Cotabato and Marawi City. This will at least help give those displaced from their ancestral lands with jobs. Legally, it was difficult to force Christian migrants with titled lands out of Mindanao. Removing the Christian migrant is out of the question.

The prevention of migration to Mindanao is not a welcome development in Luzon and Visayas. Especially Visayas which most Christian Filipinos benefit on migration and acquisition of land in Mindanao.

Members of the Nacionalista party are not happy with how President Yulo handled his foreign policy or the policy in Mindanao. The Nacionalistas calls the Irredentism of the Liberal Party, starting with Quirino and now Yulo, would put too much Philippine resources allocated to who they believe as foreigners. However, President Yulo reminded the Nacionalistas that even President Quezon, a Nacionalista, wanted a pan-Malayan nationhood.

Vice President Manahan and the Labor party held street protests in Manila and Cebu demanding the return of Land Reform and to reopen up Mindanao to Christian settlers. Protesters calls President Yulo as pro-Chinese for letting Chinese continued control of companies, pro-Muslim for cuddling the Muslims in Mindanao and anti-poor for removing land reform.

Manila Mayor Lacson issues permits to rallies organized by Vice President Manahan. Cebu Mayor Ramon Duterte does not issue permit with pressures from members of the Liberal Party. Cebu’s House Representative and former Mayor Sergio Osmena, Jr still command the loyalty in Cebu and remained loyal to the Liberal Party. Unlike in Manila where the mayor supported the protest and presence of Vice President Manahan, the protest in Cebu is less organized and with the authorities dispersing the protest violently.

 

[Namayan]

11. Multifamiliar of Manila (1959)

Mayor Lacson inaugurated one of buildings and the opening of mass housing in Manila located in Harrison Park. The architects retained some of the features of Harrison Park and the architects created pave walkways and trees along the paved walkways.

When Mayor Lacson visited Mexico during his trip to the Americas in 1957 after his loss at the Nacionalista convention, he was impressed on how the Mexicans built their public housing. Just like in Mexico, the public housing in Harrison Park is designed like a diagonal zig-zag pattern to maximize greenspace and sunlight. Although it did not have swimming pools like in Mexico designed by Mario Pani, the Harrison Park public housing complex have gardens. The complex is planned to have nine thirteen story buildings and six three-story buildings. Seven buildings are linked in the diagonal zig-zag and the remaining two are parallel to each last building that make up the zigzag. The six low buildings are parallel with the last building of the zigzags. In between have spaces enough for rest and garden area. The design is not the typical public buildings in Manila built during the American colonial period of neoclassical design or Art Deco and adheres to the principles of architectural functionalism of Charles Edouard Jeanneret.

A typical unit consists of dining room, kitchen, living room, two bedrooms, bathroom.

Rentals of Manila’s public housing is cheaper than getting a mortgage from a bank. Due to the limited space of the initial public housing, low-income families who work within the City of Manila are prioritized. The City of Manila fixes the rent at 14 pesos a month compared to the Minimum Wage Act of 1951 at 4 pesos a day in Manila or around 80 pesos working for 20 days.

The project is what Mayor Lacson envisioned. However, the cost of the housing projects has gone beyond the budget and taking longer time to build had he built a Zoo. The size of the project is not enough to accommodate the squatting problem. Each year since Mayor Lacson took office, an average of 1,000 squatter families per annum are evicted from the City of Manila. While the new housing project accommodates 1,000 families, it will take an estimated 3 years to complete.

Present during the inauguration are members of the press, the widow of former president Magsaysay, Luz, and prominent members of the Nacionalista party in support of Mayor Lacson.

The inauguration and announcement are not just for Mayor Lacson to brag. This coming November, Philippine midterm national elections and also Manila’s election including the position for mayor.

Mayor Lacson’s reelection is not secure. He first needs to win the Nacionalista Convention. The rift between Mayor Lacson and his vice mayor Roces started when Lacson was visiting the Americas. While in the United States, US News agencies sent him clippings which showed headlines of vice and corruption being uncovered in Manila during his absence. Lacson’s displeasure of Vice Mayor Roces was Roces’ appointment of one hundred employees of the city government during his absence without accounting the need of the city. They were political favors being paid similar to the practices Mayor Lacson stopped and removed since his election as Mayor in 1951.

This resulted in rift between Mayor Lacson and Vice Mayor Roces. Vice Mayor Roces is aiming for the highest position of the city left the Nacionalista Party for the Liberal Party.

Vice Mayor Roces galvanized the expelled squatters and jeepney drivers to support him. He criticizes Lacson as inhumane evicting squatters and too strict by penalizing erring jeepney drivers who are just making a living.

Manila Jaycees sponsored a debate between the mayor candidates in August of 1959. Vice Mayor Roces accused Mayor Lacson of a P7 million windfall received from the previous Manila Mayor which was supposed to be the secret success of Mayor Lacson. The foul mouth Mayor Lacson answered diligently detailed financial matters of the City which was in P21 million debt when he took over in 1952.

Mayor Lacson answered the accusations of Vice Mayor Lacson. The squatters are not even citizens of Manila but should be given housing. He blames President Yulo who cancelled the tradition and policy of providing for low-cost housing like during the time of President Quirino and President Magsaysay. As for targeting the jeepneys, they violated the rules, law and order of Manila. The Manila Police catches any erring drivers including private vehicles.

Aside from his campaign sorties for his reelection bid, Mayor Lacson campaigned for friends and allies both at the National government and local government. He went around the country to campaign for his friend, Senate President Rodriguez.

Along with Mayor Lacson’s nationwide campaign is Mayor Cesar Climaco of Zamboanga. Mayor Lacson and Senate President Rodriguez tries to convince Cesar Climaco to move to Nacionalista Party. Both Mayors Lacson and Climaco have the same politics within their respective cities. Climaco refused owing his loyalty to the Liberal Party. However, Climaco slowly learned from Mayor Lacson how to campaign nationwide and the massive machinery of the Nacionalista Party.

During the nationwide campaign sorties, Senate President Amang Rodriguez died in his sleep.

The death of the Senate President shocked the Nacionalista Party. He has been loyal to the party since 1933 and have been the president of Nacionalista party for years and famous for his malaprops. The Nacionalista Party had to choose a replacement candidate but not sure if that candidate would win like Senate President Rodriguez nor can someone easily replace him on how he handled competing egos within the Nacionalista party as the party’s leader.

 

[Namayan]

12. Heir’s of Magsaysay (1959)

United States Central Intelligence Agency (CIA) officer Smith has been ordered to influence the elections in the Philippines and find Magsaysay’s replacement. The goal of the United States is to find honest and competent politicians not attached to the local landed elite. Magsaysay fit the United States desires.

Before the election campaigns in the Philippines, Smith got the local station budget increased from the previous $250,000.

The United States believes they dodge a bullet with Garcia’s loss as president after finding out Garcia’s payoffs and nepotism on top of his Filipino First Policy. Garcia hired Boholanos as technical assistants which drained the National coffers 240,000 pesos a month a practiced revived after Magsaysay’s death.

Officer Smith believes President Yulo is an acceptable replacement to Magsaysay but his chances of winning or anyone of his party members are slim due to his policies. He is considered not as bad as the old guard of Philippine politics, but still part of the landed elite, and his policies created dissatisfaction in rural areas.

Secretary Macapagal is a willing United States ally. He has been furnishing the CIA station with political information for a number of years. He is not part of Magsaysay’s inner circle but he is an alternative option for the United States. However, Macapagal’s position is not ideal with Macapagal’s name attached to the Liberal Party and President Yulo.

Smith, in his search of Magsaysay’s replacement in Liberal Party, does meet Ferdinand Marcos but finds out he is much part of the old guard as he is corrupt. He is called godfather by those who know him and as congressman serving as import control committee on “selling Import licenses”.

Smith believes their best chance is to get the former allies of Magsaysay elected. Vice President Manahan is on top of Smith’s list. He also plans to get Manglapus and Magsaysay’s former Chief of the Armed Forces Vargas elected. Senator Pelaez is included in the list to support for reelection due to Pelaez support to Magsaysay in the Senate.

There are several allies of Magsaysay that are still in the Nacionalista party that are shunned by old guard of Philippine politics nor have jumped ship with Manahan’s Labor Party. Some of them believes the Labor Party is too left leaning with political beliefs on raising the minimum wage, wanting a new land reform and elements of communist labor movement.

Mayor Arsenio Lacson is also in the list. He would have been President by now had he accepted Magsaysay’s offer in 1953 as Magsaysay’s running mate. Arsenio Lacson is very popular due to his radio show and his colorful personality would make it easier for him to win compared to Vice President Manahan. In the United States, Mayor Lacson is more or less known compared to other Filipino candidates and would be easier to sell to the American public. The New York times compared him to the former New York City Mayor Fiorello La Guardia. However, the problem with Mayor Lacson is that he will most likely fight the corrupt politicians, the communists, the Soviets as he would the United States. He is deemed by CIA station as too brave, nor as willing to be influenced diplomatically by the United States.

Due Lacson’s chance of winning, a plan needs to be formulated in order to influence his decisions in favor of the United States.

The recommendation on how to deal with Mayor Lacson just in case he wins as Philippine president reaches CIA Director Dulles.

---o---​

President Yulo’s campaign coincided with the official visit in Lanao Del Norte. The once unified province of Lanao is split into two by Philippine Congress. His arrival is welcomed by Iligan City officials led by now a Liberal Party Mayor and Liberal Party dominated Municipal board, employees and a huge crowd. Iligan is the new capital of Lanao del Norte.

President Yulo promises Iligan City to become the industrial center of the country. The National government has put a lot of money to Iligan including the upgrade of Iligan Port and financing the urban plan of Iligan. Much like the City Charter signed under a Liberal party president, the future of Iligan now lies with a Liberal Party president who wants to move wealth and industries far from Nacionalista controlled Manila.

To help the national government, the Iligan municipal board approves the urban planning and zoning of Iligan city. They also approve the National government’s right to all the earnings of Iligan port’s custom in exchange for financing the upgrade of the port.

President Yulo went to several inauguration of newly built facilities and had a mass St Michael Church.

After his sorties in Iligan, President Yulo departed for Marawi City, the new capital of Lanao del Sur. He attended several inaugurations of clothing factories supported by the National government.

---o---​

After his Mindanao tour, President Yulo met with several people from North Borneo and Sarawak like Fuad Stephens, Tun Mustapha, Stephen Ningkan and many more. President Yulo is willing to offer a defense pact and economic ties with the Philippines assuming they decide to become their own separate nation. This would remove any fears of annexing North Borneo.

President Yulo emphasizes the industrial and economic advantage of the Philippines over Malaya, Philippines established standing within the international community due to Malaya’s more recent declaration of independence. The Philippines is also spending many times more than Malaya in military.

He promises the new pact to be independent of both colonial powers. He also promises that the new pact will accept members within the South East Asian region unlike SEATO which accepted nations not located in South East Asia.

 

[Namayan]

13. The World in 1959 – Peaceful Coexistence

The election of Nikita Khrushcev as Soviet Premier, and the turn of foreign policy of the Soviet Union to a more a peaceful coexistence led to cultural exchanges between to the two countries. The Lacy-Zarubin agreed on cultural exchange between the Soviet Union and the United States.

When the American National Exhibition in Moscow opened, Vice President Nixon attended the opening. An entire house was built for exhibition which claims that everyone in the United States can afford.

Khruschev visited the American Exhibit three times. The third visit occurred inside a kitchen model home. Both Khruschev and Nixon debated with their informal debates broadcasted in three major networks in the United States and Soviet Union.

The debate between Khruschev and Nixon gave opinions on Nixon’s statesmanship.

After visiting the American Exhibit, thru the invite of the United States, Premier Khruschev began his state visit in the United States in September.

When he first arrival, crowd of thousands curious to see the communist dictator drive in. The American public did not know what to do. They were present but did not clap viewing him as a dictator and monster. But also refused to boo or heckle out of fear of being killed and destroy the United States. They simply stood there and looked at Premier Khruschev.

Upon arriving in Los Angeles to meet some of the biggest stars of Hollywood, Premier Khruschev complained about the cancellation of his trip in Disneyland due to safety reasons.

After Los Angeles, he was allowed to meet ordinary Americans. His trip after San Franciso was followed by a visit in Des Moines, Iowa to the farm of Roswell Garst. Part of the itinerary requested by Premier Khruschev is a visit in Garst’s farm in Iowa.

Khruschev-Nixon Kitchen Debate​

With the thawing of Soviet and United States relationship, the Philippines also began diplomatic and cultural exchange with the Soviet Union.

A Soviet Exhibition is planned in Quezon City while the Soviets allowed a Philippine exhibition in Moscow.

Before President Yulo and the thawing of the relationships between the United States and Soviet Union, Philippines treated any communist country with disdain and suspicion. Foreign policy is conservative more conservative than the United States due to the existence of Hukbalahap, their connections to the Communist Party in the Philippines, from World War until the early of 1950s.

Diplomatic ties with the Soviet Union began in 1959 along with all the Warsaw Pact allies. If the United States can open up cultural exchanges and have a more cordial diplomatic relationship with the Soviet Union why not the Philippines.

Trade was also established. President Yulo’s aim is less diplomatic and cultural but more economic. Raw materials that would bring down cost of finish goods are needed. The Soviet Union and her allies could provide some of those raw materials that Philippines did not develop or is lacking. The Sugar and Coconut bloc in Philippines Congress also pushed for opening diplomatic, cultural and economic relations with Communist countries. Sugar and Coconut exporters wants to get a slice of the communist market.

U.S.S.R. and the Philippines started exchanging artists, scientists and engineers.

Graphic artist Mars Ravelo had to create a brand character for the exchange. His creations Varga and Darna are deemed too alike with American super herocounterparts.

Mars Ravelo’s new creation is based on Philippine history and folklore that would be acceptable in the U.S.S.R.

The hero кузнец or Kuznets​

An ordinary human blacksmith, named Enteng, witnesses a meteorite landing near his home. He forges the meteorite into his new forging hammer. When he was testing the hammer, upon pointing to the sky, the hammer gives him superpowers. The character he created saves his town from abusive people mostly land owners and the wealthy, bandits and supernatural beings. The blacksmith always wears red vest, dark pants and boots.

The representation of the blacksmith gets the approval of the Soviet authorities. It is a story about an ordinary man, with hammer fighting capitalists while the influence is not American but coming from local folklore. The comic is allowed to be translated and distributed in the Soviet Union.

Besides Filipino comics, Filipino movies hits the Soviet Union. U.S.S.R. is strict on what can be shown. The first Filipino movie that is allowed to be shown the 1950 adaptation of Genghis Khan by Manuel Conde. It was not historically accurate but was given technical citations in 1952 Venice Film Festival. The movie Genghis Khan was given a Filipino twist that showed Genghis Khan having a more Filipino cultural trait of “Utang na Loob” or debt of gratitude. The fighting scenes were of a typical Filipino zarzuela. The interpretation of the movie showed the human side of Genghis Khan with human flaws, prone to anger and jealousy.

Filipino architects and engineers in awe of the industrialized mass construction process of the Khruschevka. The construction is cheap and could be built fast sometimes in 2 weeks.

Like the United States, Philippines signed a memorandum with the USSR State Committee on Peaceful Uses of Atomic Energy.

The exchange program also let the Soviets observed Philippine sugar and coconut industry. Philippines in exchange is allowed to observe and study Soviet heavy industry not limited to steel production.

The opening of diplomatic relations was not an issue with Philippine ally the United States but very much an issue in local politics. President Yulo is branded as a communist lover and the Liberal party and its current members branded also as communists or communist lovers.

 

[Namayan]

14. The World in 1959 - The Indies

The European visit of Secretary Macapagal was productive. His target to negotiate with the British and her South East Asian colonies did produce results. However, to Secretary Macapagal’s surprise, the Dutch Foreign Minister Joseph Luns wished to speak with Secretary Macapagal.

Foreign Minister Luns wants the Philippines to be involved in New Guinea where the Dutch still held West New Guinea. However, Indonesia made several attempts to wrest control from the Dutch including U.N. Resolution to intervene in the dispute. The U.N. resolution failed and Dutch companies in Indonesia were nationalized.

The Dutch government is already preparing steps for the Papuan people for self-determination. The Dutch tried to convince, Britain, Australia and the United States to give them military support in case of conflict with Indonesia. The involvement of the Philippine military and Philippine approach to Indonesia would help the Dutch case.

Secretary Macapagal did not give a commitment to Foreign Minister Luns except that he will forward the Dutch proposal to President Yulo.

Dutch Foreign Minister Joseph Luns​

Secretary Macapagal’s visit at the White House to meet President Eisenhower. Secretary Macapagal invited President Eisenhower to visit the Philippines for his farewell tour next year. President Eisenhower accepts not only as ally, but also of the friendships and memories he built during his Philippine assignment in the 1930s.

Both discussed many things. They started more of where Philippines is not involved. General information of how Castro’s takeover of Cuba and how President Eisenhower will deal with Cuba.

The discussion started to become serious when situation in Laos is discussed. Both also discussed the situation in South Vietnam if ever Laos falls to the Communist domino.

President Eisenhower and Secretary Macapagal discussed also Sarawak, North Borneo and West New Guinea.

The longest discussion is the economic investments and aid that Secretary Macapagal was hoping to get from the United States before arriving in Manila with another set of grants and loans that President Yulo was not able to get.

By the end of 1959, President Yulo is given an intelligence briefing of Indonesian military and plan purchases of Soviet equipment. President Yulo asked for the intelligence briefing of Indonesia military forces after Dutch Foreign Minister Luns met with Secretary Macapagal.

During President Yulo’s meeting with the military brass, Chief of Staff General Cabal is joined by other Chiefs of the Armed Forces. The Chief of the Philippine Air Force Brigadier General Molina is confident that Philippine fighters and pilots are sufficient against the current and potential Indonesian Air Force acquisitions. However, the Philippine Navy once the Soviet purchase by Indonesia is complete will be at the mercy of Indonesian navy. Indonesia navy will have cruisers and submarines. The Philippine navy, composed of destroyers and corvettes, would be outgunned and the sealift capability of the Philippines would be in jeopardy.

President Yulo was given recommendation to enlarge the navy assuming he is to help the Dutch in New Guinea and defend the Papuans as an independent nation.

Philippine President Jose Yulo​

In December 1959, the first South East Asian Peninsular games is held in Bangkok. Invited are South East Asian nations located in Mainland Asia (Malaya, Thailand, Burma, Laos, South Vietnam) including Singapore. Philippine authorities’ envy what is happening in the Asian mainland and want their own sphere of influence to conduct their own games.

Philippine Vice President Manuel Manahan​

During the Philippine midterm elections in November 10, Mayor Lacson dominated the mayor elections despite the backing of the Liberal Party to their local candidates. The Nacionalista party fully supported Mayor Lacson with fears of a Liberal Party takeover of Manila, the crown jewel of local governments. In return, Mayor Lacson campaigned for Nacionalista candidates nationwide due to his popularity. Mayor’s Lacson’s name is floated to become the next president of the party. But eventually, Senator Lorenzo Tañada is voted as party president of the Nacionalista Party.

Mayor Lacson’s running mate, Justo Albert, won by a narrow margin against the Liberal Party Vice Mayor candidate Antonio Villegas.

The policies of President Yulo affected the fortunes of the Liberal Party. In the Senate, out of the 8 seats up for election, 4 are elected from the Nacionalista Party.

The Labor Party dominated the top 3 senate seats with Raul Manglapus at first, Emmanuel Pelaez 2nd and Jesus Vargas at 3rd.

Fortunately for the Liberal Party they won the final senate seat, the former congressman from Ilocos, Ferdinand Marcos.

This reduces the number of Liberal Party Senators to 7. The Nacionalista Party has 14 senators, and Labor Party with 3 Senators.

Vice President Manahan declares it a victory for the Labor Party. It is clear to him the passing of the Labor Act of 1958, removing the security of tenure of tenants and demoting them to employees, did not sit well with mostly rural voting populace.

After winning again Mayor of the City of Manila, Mayor Lacson held a press conference. He disclosed his plan for the year 1960, such as the completion of the city slaughterhouse and stockyard along North Harbor foreshore area, the expansion of low-cost mass housing and the rehabilitation of all public market buildings.

Mayor Lacson deemed 1,000 units every 3 years to be slow. Using the additional funds, he acquired thru Manila’s port customs given to him by Congress and his financial management of Manila leading to budget surplus, he asked Manila’s municipal board to approve more low-cost mass housing projects to reach 2,000 units per annum enough to house the annual eviction rate of Manila’s squatters of 1,000 families per year and the excess to be distributed to low-income families.

 

[Namayan]

15. The State of the Nation (1960)

President Yulo’s State of the Nation at the beginning of 1960 emphasizes his ongoing electrification program with the continuation of Binga Hydropower plant and the start of the Angat and Marikina Dams. He asked again Congress for a larger budget for his highway program.

After his State of the Nation, the Yulo administration is criticized for the cancellation of low-cost mass housing project by the Labor party, the lack of land reform and failure to increase and amend the minimum wage act while the Nacionalista doubles down on Yulo’s lack of tariffs in other industries, adventurism and unnecessary irredentism.

Ordinary Citizens complain not only of rising prices of rice but higher taxes that was passed by Congress.

By February, cost of goods was increasing. Rice which is imported due to lack of local supply was paid in dollars. The sudden increase of the exchange rate between the dollar and peso resulted in higher cost of imported goods which included rice.

Some of the Filipinos, to which they believe Philippines as an agriculture country, complains about President Yulo’s focus on heavy industries instead on agriculture industries. President Yulo is branded as a very pro-American and under the pockets of American capitalists. The sale of Iligan Steel and the efforts made by the administration to help Iligan Steel Mill capital despite being it privately owned mostly by American Citizens. There are calls for Yulo’s resignation.

In March, sudden protest occurred due to the cost of market prices going up. An agitated crowd jeered and hurled at members of Congress and President Yulo pebbles and paper balls whenever they tried to enter or leave the Congress building or Malacañang Palace.

The Filipinos were not used to this kind of inflation and spoiled by the stable economic policies of President Quirino and Magsaysay. They blame the government both President Yulo and Congress for failing to put precautions during the devaluation and decontrol of the Peso.

The transfer of Congress and Executive to Quezon City is not yet complete. This made it harder to protect the Congress and made it easier for crowds to gather in protest. President Yulo orders the Philippine Constabulary to disperse the crowd.

Mayor Lacson, who did not issue a permit to protest, hurriedly sent Manila Police to help keep the peace and order within his city. It took hours for the Philippine Constabulary and Manila police to disperse the crowd with 2 protesters dead and several more injured.

After the March protest in Manila, Mayor Lacson, in one of his radio programs, tells his listeners that he warned Congress and President Yulo of the sudden and abrupt consequences of peso devaluation. He empathizes with the Filipino but tells his listeners not to be violent during protest and promises to keep the order in Manila.

President Yulo blames the recent agitation to the PKP, communist party for encouraging the violent protest.

While the March Street protests were ongoing, Philippine Atomics Research Center is established in Diliman, Quezon City.

Philippine Nuclear Research development continued after last year’s training program in nuclear science and technology, set of licensing rules and regulations, use of radioactive materials.

The demand for electrification further increases with more textile, footwear and garment companies established in Manila last year and more foreign Automobile Assembly plants are setup in Quezon City. The Luzon grid will be not enough.

U.S. already approved the technology transfer, while General Atomics is already building the nuclear test reactor thru a grant to the Philippines in 1955.

The recommendation of International Atomic Energy Agency is on top of President Yulo’s desk. However, President Yulo is kept busy by finding the culprits of the protest and rising cost of living resulting in the devaluation of peso and lack of precautionary measures to prevent runaway inflation.

International Atomic Energy Agency (IAEA) gave four cost comparisons a single 100 MW, two 100 MW reactors, 150MW reactor and finally 200MW reactor for the increasing Luzon Grid. All reactors are deemed feasible as long as fuel oil is more expensive at a certain amount. For a 200 MW, it may be competitive with an oil-fired plant using fuel-oil at 35 cents per million BTU. Based on IAEA’s studies, a nuclear power plant could be up and running as early as June of 1967. IAEA concludes that nuclear power for Luzon grid deserves serious consideration. [1]

[1] https://www.iaea.org/sites/default/files/publications/magazines/bulletin/bull3-4/03404701013.pdf