U.S. WILL AID THE PHILIPPINES, ON CERTAIN CONDITIONS

Wanganui Chronicle, 1 November 1950, Page 5

U.S. WILL AID THE PHILIPPINES, ON CERTAIN CONDITIONS

WASHINGTON, Oct. 28.—A report by the mission headed by Mr. Daniel Bell, former under-secretary of the treasury, which recently investigated Philippines economy for President Truman, recommended five year 250,000,000 dollar economic aid programme for the Philippines, provided that the Republic makes sweeping reforms in its Government. The committee on the basis of two months survey of the Philippines, made last summer, said that the Philippines had failed to deal effectively with its postwar problems. It said: “Inefficiency and even corruption in the Government service are widespread.” Mr. Truman, in .sending the report to President Quirino, said there must be a definite understanding on reform measures to be undertaken by the Quirino Government before the recommendations could be submitted to the American Congress. The report outlined a detailed seven point programme based largely on Filipino selfhelp and tight United States supervision over the spending of the 250,000,000 dollars. Officials in Washington said there already had been a firm pledge of cooperation from the Philippines Government. The committee urged steep tax increases, declaring that to balance outgoings with income the Philippines Government must boost its revenues by 60 per cent. The mission recommended the creation of a Philippines Development Corporation, to serve as a holding company for 34 existing Government-run business enterprises. The report said leaders in agriculture and in business have not been sufficiently aware of their responsibility to improve the economic position of the lower income group. The public lacks confidence in the capacity of the Government to act firmly to protect the interests of all people. The situation is being exploited by the I Communist-led Hakbalahap movement to ignite lawlessness and disorder