Carlos P. Garcia

“ It is therefore urgent that we develop as fast as possible the tourist industry which bids fair to become an important source of dollar income as it did in many countries. The need for promotional and publicity services abroad, the improvement of hotel and transportation services, the modernization of our airports for jet planes, and the preservation and development of our numerous tourist attraction spots—all these require a sizeable outlay which I ask Congress to provide. ”

“ I am glad to announce that the relative success of our stabilization measures has made it possible for us now to start planning carefully a move for gradual decontrol as envisioned in Republic Act No, 2609, more popularly known as the Dollar Margin Law. We should never lose sight of the fact that some of these economic control laws or regula­tions are yet vital to our development efforts. For instance, our new infant industries still need a protective climate against foreign competition. ”

“ The port of Manila, which is the port of entry and exit of about 75 per cent of our imports and exports, must have modern port facilities to make it the best in the Far East.
In this connection may I inform Congress that air trans­portation need be developed with a capacity to connect our 7,000 islands. Our international airports must rise to the needs of the jet age. We must encourage free competition among responsible air transportation companies. Our asphalt roads should be gradually converted into concrete roads. In the long run it is more economic that way. ”

“ We should explore the possibility of price adjustments on our products to make them more competitive with similar products of other countries. The method open to us in our campaign for higher export receipts are indeed many and varied, among which are the institution of quality control, the encouragement of more intensive processing, a more in­tensive development of by-product industries in order to utilize what is now waste, and stepped-up specialized ex­ploration to find more industrial uses of our sugar, abaca, coconut, tobacco, etc. ”

“ We have successfully conducted a peaceful, free and honest election in which the Filipino people reiterated confidence in the present Nacionalista administration. It was an untrammeled expression of the popular will and the overall result was the strengthening of the fabric of Philippine de­mocracy. We have just laid the cornerstone of a Nuclear Center made possible by the United States granting us an Atomic Reactor. We have thus been ushered into the thres­hold of a spectacular industrial revolution with the use of atomic energy. ”

“ It should be clothed with broad preventive powers to forestall the commission of graft and corruption and should be endowed with sufficient per­sonnel to watch government corporations, banks, financial institutions, tax collecting offices and agencies, offices dis­pensing privileges, franchises, permits, licenses, quota alloca­tions and the like; and with such other offices as may be determined by the Commission.
Nothing will satisfy our people less than a total war against corruption. I have full faith that Congress will rise equal to the task demanded by the situation. ”

“ It is also necessary for labor to acquire the modern technology so much needed in modern industry. It is gratifying to know that in Asia our manpower has the better technological training with the exception of Japan, but there is much room for improvement demanded by our expanding agro-indus­trial economy. The establishment this year in the Univer­sity of the Philippines of an Asian Educational Labor Center for the training of labor leaders in Free Asia is a blessing to our economy. ”

“ A diversified market will enable us to sell our products at the best possible price and thus maximize our income. As United States duties become increasingly heavy on Philippine goods under the Laurel-Langley Agreement, the problem of diversification becomes more marked.
A significant development in this regard is the fact that half of our trade is now conducted with countries other than the United States, particularly with Western Europe and our Asian neighbors, whereas ten years ago, three-fourths of our trade was exclusively with America. ”

“ We piled up bigger surpluses in. rice and corn, thus firming up our success in the campaign for self-suffi­ciency in food. We have achieved favorable balance of trade for the first time in postwar years which is a definitive index of our economic growth. The nation was thrilled by the discovery of oil in Cebu which, together with steel, will give revolutionary impetus to our agro-industrial econ­omy. Oil will soon be a mighty pillar of our economy. ”

“ The ”Filipino First” policy of this administration re­ceived a resounding popular indorsement in the last election. Politically we became independent since 1946, but econom­ically we are still semi-colonial. This is especially true in our foreign trade. This policy is therefore designed to regain economic independence. It is a national effort to the end that Filipinos obtain major and dominant participa­tion in their own national economy. This we will achieve with malice towards none and with fairness to all. ”

“ In our effort to pursue our fiscal stabilization program and to minimize the inflationary pressures generated by large-scale public spending of the proceeds of bond issues, we have effected cutbacks in public works and economic development projects. ”

“ In the field of crop loans for small farmers underwritten by the ACCFA and the Development Bank of the Philippines to the tune of P50 million, there is need for more aggressiveness and liberality in credit mechanism to shake off alien control. ”

“ The social security coverage for the workers continues to expand under the Social Security System for the private sector and under the Government Service Insurance System for the government sector. Three and a half million Filipinos are now enjoying the protection and benefits of our social security systems. ”

“ We should expand the scope of the activities of the Philippine Charity Sweepstakes Office so that its proceeds could be utilized to provide rural areas with artesian wells, barrio waterworks, public toilets, and other sanitary and health facilities.
V. CONSERVATION OF FOREST AND OTHER NATURAL RE­SOURCES
A rigid enforcement of our forest conservation laws is a crying need of the country if we want to stop the insane and vandalistic despoliation of our forest resources. ”

“ The establishment of an integrated steel mill will supply the missing link in our industrial development. Private enterprise should undertake this project in joint venture with the government. It is also necessary that sufficient leeway be allowed for the negotiation of necessary credit for the project so that we may tap resources in the United States and other countries. ”

“ The success of our program of self-sufficiency may be gauged by the increasing surpluses of rice and corn. Such surpluses have not only introduced price and marketing problems but also necessitate the reorientation of our production policies along the following lines: (1) redirection of our research activities towards high-yielding varieties suitable to the needs of foreign markets ”

“ An auto­matic reforestation system should be instituted by requiring forest concessionaire to plant five trees for every tree they cut. It is therefore recommended that any violation of the forest conservation laws committed by concessionaires or their agents should be made a cause for the revocation or suspension of their license, permit, or concession. ”

“ The policy of improving the rural health centers is being pursued without letup. To supplement the services which have been made available to the rural areas, the help of private persons and firms has been enlisted. Efforts are being exerted to expand hospital services in the rural areas.
Labor
The problem of unemployment continues to be a major national concern. ”

“ I am still of the firm belief that the ideal solution to this problem is the intensification of our industrial development program to multiply job opportu­nities. For instance, the organization of more than 4,000 industrial and commercial firms in 1959 has absorbed a sizeable portion of the unemployed. ”

“ In my last message to the Congress I appealed for the enactment of appropriate measures to strengthen further the unrelenting drive against graft and corruption. Con­gressional decisive action is eagerly being awaited by our people. According to the latest figures available, we inves­tigated during the anti-graft campaign period 12,233 cases of various corruption in office of which roughly 50 per cent were decided and 4,024 respondents were found guilty. ”

“ For instance, some Virginia tobacco lands in the Ilocos provinces, in the face of a soaring tobacco surplus, may be shifted to cotton production needed by our expanding textile mills.
We must now take bold and definite steps to improve the mechanism for internal marketing and distribution and develop a sound credit structure that will sustain the growth of agriculture and the agricultural industries. ”

“ During the past year, I consistently advocated the dispersal of industries to the provinces to halt the dangerous tendency of overcrowded population in cities and to stop inflation of monetary circulation in Manila and suburbs while there was scarcity of money in the provinces. ”

“ Our revenues have increased consistently from year to year, from P530.8 million in 1953 to P789.4 million in 1959. Yet these increases have not been sufficient to cover the rise in government expenditures required by an expanding economy and a rapidly growing population. ”

“ In the case of other public works financed with dollar loans being extended both by the U.S. Export-Import Bank and the Development Loan Fund for transportation projects—air, land, and water—committed under the Eisenhower-Garcia communique on the occasion of my last state visit to the United States, legislative measures are necessary to make available sufficient peso support for projects already submitted to, or approved by, these lending institutions.
Health
The health of the nation has been maintained at a satis­factory level. ”

“ But all these surpluses cannot be profitably sold for dollars abroad. The NARIC has failed, for lack of adequate financ­ing, in the price support program for rice and corn. It is increasingly becoming difficult for the Central Bank to finance the tobacco price support under the present law. In rice and corn, prices have gone down lower than production cost. It has therefore become imperative that we decisively act to find the solution to these problems. Meantime barter for these surpluses seems the only way to provide a. incentive directly to producers. ”

“ It is my considered opinion and I recommend that where the activi­ties of these government corporations can be taken over by private enterprise, and whenever their pioneering objectives have been basically accomplished, such corporations should be sold and transferred as soon as possible to private enterprise under reasonable terms and conditions, except those performing mainly social or governmental functions many of which can be converted into regular government offices or agencies. ”

“ In the event the annual appropriation act for an ensuing year is not approved, the general appropriation act for the current fiscal year should be deemed continued in force until such time as the new fiscal year’s budget is passed ”

“ The birth rate has shown a considerable increase whereas the death rate has decreased. Mortality rates from the ten leading causes of death have been re­duced. All of these facts indicate an improvement in the cleanliness and sanitation of our communities. ”

“ It is attainable through an improvement in the efficiency of our tax collection machinery, a revamp of the existing tax system and rev­enue structure, and a coordinated effort on the part of both the Legislative and the Executive branches in formulat­ing and implementing an equitable tax system. ”