The dam breaking?
Media
Part of The American Chamber of Commerce Journal
- Title
- The dam breaking?
- Language
- English
- Source
- The American Chamber of Commerce Journal Volume XXV (No. 4) April 1949
- Year
- 1949
- Rights
-
- Abstract
- Editorial
- Fulltext
- country, which the Government is otherwise trying to induce to come in. It would perhaps not be a flight of capital so much as a throwing of it out. The former owners of all the liquidated real estate would practically be forced to remit the money to the United States, and this would not only deprive the Philippines of the use of this capital, now here and still so badly needed, but would seriously reduce the country’s dollar balance in the United States, which the Government, on the other hand, is trying to conserve in various ways, as by import control! And all this would come just at the time when the Philippines will be faced with the complications which will result from the cessation of much of the present American financial aid! And what would a man and all the members of his family feel and think when they are forced to sell, among othei' things, a beloved home? Will any of such people, robbed of their dearest possession per haps in the world, have an iota left of respect for and confidence in the Government of this Republic? In addition to the more immediate effects of the new land-policy as it concerns those aliens who in vested their capital in lands and buildings during the past fourteen years, we must consider the inevitable long-term future effects as to capital investment and the economic development of the country. The pro spect is appalling. Already it has been reported that a number of foreign corporations in Manila have cancelled plans for erecting buildings here because it appears that it will not be possible for them to ac quire ownership of the comparatively small tracts of land which would be necessary. In such, cases there went months of productive and profitable work for Philippine architects, engin eers, steel workers, masons, carpenters, glaziers, plumbers, electricians, painters, furniture makers; there went business and profits for the importers of all sorts of materials and equipment and for the local stone, gravel, sand, cement, and lumber companies. There went fine buildings, which would have added to the wealth and dignity and sky-line of Manila and which would for years to come have afforded housing for many business offices and their hundreds of em ployees of this and coming generations. There went phut just a bit of the potential enter prise, activity, achievement, and continuing oppor tunity making for national advancement and progress, of that whole incalculable total which this new “nationalistic” land-policy will cost this country if it is not altered. We hope that Senator Tanada will withdraw his bill and that he and other enlightened Filipinos will see that it’is impossible to carry out a nation-wreck ing land-policy in a constructive manner, an unjust policy in a just manner, an immoral policy in a moral manner. We hope that Senator Tanada and other Filipino statesmen, instead of attempting futilely to carry out wisely this unwise and self-defeating policy, will take determined steps to wipe it off the books. According to a Malacanan statement, issued months ago, the decision in the Krivenko case does not affect Americans, under the “parity” principle. We, therefore, do not speak for ourselves but for what we believe is the good of the country. Is the dam of government competition and inter ference with business, which has been so disadvantageously effective in discouraging the The Dam investment of much-needed foreign caBreaking? pital, breaking? To the long-anxious gaze there seem to be signs that it is beginning to crack. For one, President Quirino’s recent announce ment that the Government is prepared to sell or to turn over to private management a number of govern ment corporations. For another, the consideration being given in the National Economic Council and in Congress, too, to liberalizing the Philippine Flag Law. As to the latter, the proposal made, even if en acted—to reduce Filipino capital participation from 75% to 60% in those firms entitled to the benefits of the Flag Law, would as to its practical effect mean little or nothing, but, at least, it is a gesture in the right direction. These developments are to be looked upon as im portant because if carried out they would strike at the foundations of the unwise politico-economic policy which is so largely responsible for the alarming re luctance which foreign capital has shown in investing in the otherwise inviting Philippine field. Since the establishment of the Republic, business here has looked upon the opening of each session of Congress only as the beginning of a new open season for the enactment of all sorts of crack-brained na tionalistic legislation, bound to defeat what should be the aim of true nationalism, the building of a great and prosperous country. Now Philippine business, at least the more intelli gent and responsible part thereof, is watching with bated breath what may be a return to reason and statesmanship. It may be that the policy-makers will turn to the right road leading to what we acknowledge was always a rightful objective, but which they were departing from even while they believed they were approach ing it. Nationalistic through the people properly are in this young Republic, we believe that they would sup port a policy which would successfully enlist the aid of outside capital in the development of the country, the creation of employment and opportunity, increas ing government revenues and strength and spreading wide a general prosperity. We advocate no “foreign exploitation” to the dis advantage and harm of the country. We advocate what the United States itself did during the great building-period of the nation,—welcome and offer rich opportunity to outside capital. Outside capital and foreign entrepreneurs- constitute, from the point of view of any undeveloped but sovereign country, only a means, an instrument, the need for which gra dually and naturally disappears as domestic capital takes its place. Philippine capital will later, in its turn, seek opportunity for investment in. other unde veloped regions, and there, as here, it would work the miracles of human enterprise. 147