Philippine Society and Revolution

Chapter Two: Basic Problems of the Filipino People



Basahin sa Pilipino

Amado Guerrero
July 30, 1970


II. U.S. Imperialism

1. The Meaning of Imperialism

At the time that the United States decided to seize the Philippines together with other colonial possessions of Spain towards the beginning of the 20th century. American capitalism had already reached what Lenin called the final stage of capitalism which is monopoly capitalism or imperialism. Free competition had given rise to the concentration of production and capital in the hands of a few. Unless it engaged in imperialist expansion, the American ruling class of monopoly capitalists would not be able to cope even temporarily with the crisis of overproduction. Imperialism is the last way out for the monopoly capitalists to postpone their revolutionary overthrow. It means the extension of the class oppression and exploitation within the United States into the oppression and exploitation of other nations and peoples abroad through the export of surplus products and surplus capital.

Lenin gave the most precise definition of modern imperialism when he described it as the monopoly stage of capitalism and pointed out five of its basic features: namely, 1) the concentration of production and capital has developed to such a high stage that it has created monopolies which play a decisive role in economic life; 2) the merging of bank capital with industrial capital, and the creation on the basis of this "finance capital," of a financial oligarchy; 3) the export of capital as distinguished from the export of commodities acquires exceptional importance; 4) the formation of international monopoly capitalist combines which share the world among themselves; and 5) the territorial division of the whole world among the biggest capitalist powers is completed.

The Spanish-American War of 1898 was inevitable as colonial Spain stood in the path of U.S. imperialist expansion. U.S. imperialism had already spread its hegemony over the northern part of South America and all of Central America. It was determined to grab Puerto Rico and Cuba from colonial Spain and monopolize the whole of Latin America as its backyard. U.S. imperialism found it convenient to declare war on a decadent colonial power so as to get the excuse for seizing the Philippines and getting an important stronghold for long-term aggression against China and the whole of Asia. As a newly-risen imperialist power then, the United States found its enemy an easy pushover.

Imperialism means war. Wars of expansion are in themselves profitable big business for the U.S. monopoly capitalists although these are disastrous for them upon failure in the end. These unjust wars constitute the worst kind of oppression and exploitation for the American people and also for other peoples abroad. The imperialist state pretending to pursue a "manifest destiny" or, in later parlance, defend the "free world," forces millions of American workers to intensify monopoly production and conscripts them to fight in foreign lands. The imperialist objective is to widen the field for monopoly investments abroad, make possible the disposal of huge amounts of manufactured commodities and seize sources of raw materials. It is to exact a higher rate of profit abroad in colonies and semicolonies.

Contrary to the idealist-view that the United States became a reluctant guardian of the Philippines by some "quirk of fate," such as the explosion of the Maine that supposedly ignited the Spanish-American War, the American conquest of the Philippines -- directed not only against the Spanish colonialists but also against the Filipino revolutionaries -- had long been determined by the internal laws of motion of U.S. capitalism. The imperialist appetite for superprofits brought the U.S. aggressors to the Philippines and to Asia. The expansion of U.S. imperialism was a policy cold-bloodedly decided by the monopoly capitalist interest behind the American state.

It was principally with the use of counterrevolutionary violence and secondarily with deception that U.S. imperialism managed to impose its power on the Filipino people. At first, it insinuated itself into Philippine affairs by pretending to assist the Filipino liberal-bourgeois leadership in fighting Spain. At the next turn, it suppressed the Philippine revolutionary government and the revolutionary masses by military force. Never abandoning its counterrevolutionary dual tactics, it offered negotiations, peace, wealth and a share of power to the bourgeois leadership of the old democratic revolution even while unleashing the full force of its imperialist might to attack the revolutionary masses.

Only after succeeding in its war of aggression was imperialism able to hold the Philippines under its direct colonial rule. During the period of its direct colonial rule, U.S. imperialism took a firm hold of the material base of Philippine society. It saw to it that sugar mills, coconut refineries, cordage shops and mines were established to tie down the country to raw material production for U.S. monopoly firms. It did not develop local manufacturing extensively because it was already able to draw superprofits from direct investments in colonial trade and in a few factories engaged in slight processing of local raw materials and also from the disposition of loan capital and local taxes mainly for public works to facilitate the colonial exchange of raw materials from the Philippines and finished products from the United States. The free trade formalized by the Payne-Aldrich Act of 1909 and the Underwood Tariff Act of 1913 thoroughly made the Philippines dependent on raw material exports and manufactured imports.

U.S. imperialism took a firm hold of the superstructure correspondent to its control of the material mode of production in Philippine society. The Political activity of its Filipino puppets was governed by a series of laws it enacted abroad, like the Philippine Bill of 1902, the Jones Law of 1916 and the Tydings-McDuffie Law of 1934. It extended administrative responsibilities to its local underlings in the colonial government only insofar as it had succeeded in training them under its cultural and educational system. It was always alert with its guns to quell any movement genuinely fighting for national independence and democracy. In the whole society, it relied on the collaboration of the comprador big bourgeoisie, the landlord class and the bureaucrat capitalists.

By the time that U.S. imperialism considered granting bogus independence to the Philippines during the 1930's, it anticipated the resurgence of the revolutionary mass movement for national independence and democracy in the Philippines. The crisis of imperialism that eventually led to a global war and the rapid spread of Marxism-Leninism as the beacon light for the liberation of all oppressed peoples clearly imperiled the very existence of U.S. imperialism. Thus, it had to make a pretentious pledge of granting independence that only the sovereign Filipino people could actually fight for.

After World War II, it was even more clear to U.S. imperialism to make no delay in granting sham independence to the Philippines. Otherwise, it would risk being buried under the tidal wave of a national liberation movement as was already the case with other colonial powers in other countries. At any rate, though the world capitalist system had weakened as a whole due to the interimperialist war, the growing strength of the first socialist state and the prairie fire of national liberation movements, U.S. imperialism emerged as relatively the strongest power among the imperialist powers which had fallen into shambles in the course of World War II. In dealing with the people's demand for independence in the Philippines, therefore, U.S. imperialism could still cleverly employ dual tactics of coercion and chicanery. Besides, it had long gotten the commitment of the bourgeois reactionary gang of the Lavas and Tarucs to support the sham independence it was willing to grant. In that case, it had its saboteurs in the revolutionary mass movement.

2. Bogus Independence and the Unequal Treaties

U.S. imperialism did grant "independence" to the Philippines. But the Philippine Constitution came into full operation without any expressed prohibition against imperialism, colonialism and neocolonialism. On the very day that this bogus independence was granted, the puppet president signed the U.S.-R.P. Treaty of General Relations which recognized the perpetuation of U.S. property rights and the U.S. military bases in the Philippines. A furious struggle concerning the Bell Trade Act and the Parity Amendment ensued and exploded into a civil war. Not satisfied with what is a already a colonial provision in the Philippine puppet constitution allowing 40 per cent foreign equity in corporations exploiting natural resources and operating public utilities in the Philippines, U.S. imperialism dictated on the Philippine puppet government the amendment of the colonial constitution so as to allow U.S. investors to continue controlling such corporations without any restriction of equity. This amendment, known as the Parity Amendment, aggravated what had already been an inequitous situation where the constitution allows U.S. investors including other foreigners, to control local businesses and corporations to whatever extent as they please in extensive fields outside the flimsy restrictions made by Article XIII and Section 8 of Article XIV. The constitution thus became a senseless scrap of paper completely contradicting the principle of national sovereignty and national patrimony it so hypocritically avows. The Parity Amendment was dictated by the Bell Trade Act which comprehensively laid down the continuance of the economic enslavement of the Filipino people by U.S. imperialism. Aside from imposing the Parity Amendment, the Bell Trade Act extended the period of free trade and spelled out the subordination of the Philippine peso to the U.S. dollar.

Until today, there is a set of unequal treaties and arrangements reflecting the undiminished control of the Philippines by U.S. imperialism. These are the shackles on the nation which are known as "special relations." Let us make a review of them.

  1. The Laurel-Langley Agreement (Revised Bell Trade Act), 1954. This reflects the economic vassalage of the Philippines to U.S. imperialism. It does not only reiterate the Parity Amendment but it also unconstitutionally extends its meaning to include "parity rights" in all kinds of businesses, including the acquisition and utilization of private agricultural lands. The revised tariff schedule and the quota system still basically encourage the export of raw materials to the United States and the import of finished products from the United States. While in this agreement the United States formally relinquishes control over the Philippine monetary system, the entire Philippine economic reality is such that it is extremely dependent on foreign loans, that the U.S. firms in the Philippines can convert their huge peso earnings into U.S. dollars and that all export-import transactions are in terms of U.S. dollars. Because of the actual colonial control of the economy by U.S. imperialism, the peso sinks the moment that the Central Bank does not have enough U.S. dollars. A mere euphemism in legal verbiage does not change a material fact to its opposite.

  2. The U.S.-R.P. Military Bases Agreement, 1947. Under this agreement, U.S. imperialism retains its control over the entire Philippine territory. The Filipino people are literally in a large prison surrounded by strategically located U.S. land, air and naval bases. The U.S. Air Force hovers above them. The U.S. Navy patrols Philippine waters as it pleases. As of 1969, apart from those in transit to or from the Vietnam War, at least 50,000 U.S. troops were reported to be stationed on U.S. military bases. As of now, U.S. imperialism has more than 20 military bases occupying close to 200,000 hectares.11 On these bases, U.S. military personnel enjoy extraterritorial rights. Off these bases, they are also beyond the jurisdiction of the puppet government by simply claiming to be "on a specific military duty." The U.S. military can commit crimes against the people and ignore any subpoena from the puppet government. Under the U.S.-R.P. Military Bases Agreement, the U.S. military bases could even be expanded as U.S. imperialism may deem necessary. At any rate, the present U.S. military bases are large enough and contain enough troops to prove that U.S. imperialism holds the Philippines by armed force. These U.S. military bases are launching grounds for aggression against the Asian peoples. These bases contain nuclear, chemical and bacteriological weapons of genocide.

  3. The U.S.-R.P. Military Assistance Pact, 1947. This unequal treaty further ensures U.S. imperialist control over the Armed Forces of the Philippines (AFP). Through the Joint U.S. Military Advisory Group (JUSMAG), U.S. imperialism extends strategic and staff direction, logistics, training and intelligence coordination to the reactionary Armed Forces of the Philippines. U.S. military advisers exercise direct control over the A.F.P. Most of the military equipment and facilities of the A.F.P. are granted on a loan basis by the JUSMAG. Within the reactionary armed forces, puppetry to U.S. imperialism is thoroughly built in. Under a counterinsurgency program, the reactionary armed forces are continually goaded to attack and abuse the revolutionary masses on behalf of U.S. imperialism and the local exploiting classes. The JUSMAG is actually the mastermind behind the creation of such murder units as the "Monkees," BSDU, Home Defense Forces, "special forces," and the like. U.S. military personnel in the JUSMAG are conspicuously present in campaigns of "encirclement and suppression" against the people, the Party and the people's army.

  4. Economic and Technical Cooperation Agreement, 1951. Under this agreement, the U.S. government makes the pretext of extending economic and technical programs of assistance to the Philippine puppet government. U.S. advisers are planted in every strategic branch of the puppet government to direct and influence policies, conduct imperialist propaganda, gather economic and political intelligence and see to it that "aid" results in quick profits for private U.S. firms on foreign loans, grants and peso counterpart funds through huge purchases of U.S. commodities and through excessive payments for U.S. contractors and experts. Agents of the A.I.D. (and its predecessor agencies) have been characteristically agents of U.S. monopolies and even of the U.S. Central Intelligence Agency. Under the A.I.D. Office of Public Safety and its direct local agent, the Police Commission, local police forces are equipped and trained to attack and disperse patriotic mass actions against U.S. imperialism, feudalism and bureaucrat capitalism. The A.I.D. is actually the mastermind behind the creation of "anti-riot squads," "rondas," and "provincial strike forces" and the like.

  5. The U.S.-R.P. Mutual Defense Pact, 1951. This unequal treaty allows the United States to use its aggressor troops to interfere in the internal affairs of the Philippines under the pretext of securing "peace" and "mutual security." It is a redundant piece of imperialist document because there are already ample provisions in the basic military treaties on U.S. military bases and military assistance allowing U.S. imperialism to conduct aggression against the Filipino people at its whim. It is nonsensical for some reactionaries to beg U.S. imperialism to include an "automatic retaliation" clause in this treaty. Whenever its own selfish interests face extinction, U.S. imperialism never hesitates to launch aggression against the people as in Vietnam, Laos, Cambodia, Palestine, Thailand, Dominican Republic, Cuba and so many others.

  6. The Manila Pact, 1954. This treaty created in Manila the Southeast Asia Treaty Organization (SEATO) for the "regional defense" of Southeast Asia. It includes two puppet governments of U.S. imperialism in Southeast Asia: namely, the Philippines and Thailand. It is dominated by imperialist powers headed by the United States. Under this treaty, U.S. imperialism can bring along the Philippines to its wars of aggression in Southeast Asia. Conversely, U.S. imperialism can bring along other puppet governments to conduct subversion and aggression against the Filipino people. It has been proven in the Korean War and in the Vietnam War that with or without direct reference to a specific regional defense treaty, U.S. imperialism can easily command the Philippine reactionary to dispatch Filipino mercenary troops abroad.

  7. The Agricultural Commodities Agreements. These are governed by U.S. Public Law 480, otherwise known as Agricultural Trade Development and Assistance Act. Through these agreements, the United States disposes of its surplus agricultural products by dumping them on the Philippines. These are utilized to keep under control certain "intermediate" industries like flour and textile mills which depend on imported raw materials. These are also used to manipulate local agricultural production to serve the policies of U.S. imperialism. The proceeds from the sale of these agricultural products have been used to support propaganda campaigns and educational exchange programs administered by the U.S. Embassy in Manila. Previously, the sale of U.S. war surplus materials had in the main supported these programmes to poison the thinking of key elements among the Filipino intelligentsia.

  8. Agreements Pertaining to Culture and Education. U.S. governmental agencies like the A.I.D., the U.S. Educational Board, the Peace Corps and foundations like Asia Foundation, Rockefeller Foundation and Ford Foundation have a decisive say in the cultural and educational system. Exchange programmes for various sectors and travel, study and research grants are used to glorify the "American way of life" and propagate anti-national and anti-democratic ideas. The special educational fund drawn from the remaining war damage payments has been set aside to reinforce U.S. imperialist control over the Philippine educational system. In extending certain loans to the University of the Philippines, the World Bank has been used by U.S. imperialism to help keep pro-imperialist educational policies.12 Such a sinister agency as the C.l.A. directly or through "cover" institutions recruits Filipino agents in the educational system and mass media. Cultural and educational institutions are being increasingly used for intelligence and counterinsurgency research. Since U.S. monopoly firms are the biggest advertisers, they are in a position to dictate on the local mass media and to influence the political thinking of a great number of people. Reading materials, the radio and such audio-visual entertainment as Hollywood and TV films are systematically used to corrode the patriotic and progressive spirit of the people. Certain reformist and religious organizations are also subsidized by various imperialist institutions to spread ideological confusion. New and old sinister arrangements are too many and diverse for us to exhaustively relate here.

All U.S. expenditures in connection with the above unequal treaties and arrangements are categorized as "aid" to the Philippine puppet government. In one accounting, it is claimed that U.S. imperialism extended "aid" to the tune of $1.9 billion during the period of 1946-67. This "aid" is supposed to comprise military assistance, non-military loans, war damage rehabilitation and such loans and grants that include U.S. expenditures for the Peace Corps and fellowship grants.

Military assistance amounted to $512.4 million and it included the proceeds in the disposal of World War II and Korean War military surplus, the cost in the lease of military equipment, compensation for U.S. military advisers and Filipino mercenaries in the Korean War and the Vietnam War, support for the suppression of the revolutionary mass movement and further training of the A.F.P. in defending U.S. imperialist, comprador, feudal and bureaucrat interests. The non-military loans amounted to S375.5 million and were used mainly for U.S. propaganda activities under the "Food for Peace" program and the A.I.D. (and its predecessor agencies) and for supporting the dollar reserves of the Central Bank under the Export-Import Bank. War damage rehabilitation amounted to $473 million and was extended mainly to U.S. firms, religious organizations, the bureaucrat capitalists and the local exploiting classes. The other loans and grants amounted to $352.2 million and were used mainly for supporting U.S. advisers and missions, for training a few Filipinos in puppetry through fellowship grants, for conducting a wide range of counterinsurgency activities under the guise of economic and technical assistance and services for agricultural development, for supporting the Peace Corps and for purchasing U.S. commodities at an overprice through the A.I.D. and other U.S. organizations. Even the propaganda activities of the U.S. Information Agency and the Voice of America are considered "aid."

The operations of the A.I.D. and its predecessor agencies expose the utter chicanery in American "aid." During the period of 1951-68, the A.I.D. and its predecessor agencies made a grant of $54.1 million to the Philippine reactionary government. The latter was required to put up a peso counterpart fund amounting to almost P500 million during the same period. The American advisers and experts dictated the use not only of their meager dollar grant but also of the huge peso counterpart fund. They overpriced the commodities that they ordered exclusively from the United States, overcompensated themselves for their services as U.S. propagandists and sales agents, gathered important data from the country, influenced further the local bureaucracy to stick to its puppetry, trained key police officers and agencies in counterinsurgency 13 and publicized the lie that the U.S. government is altruistic.

In the Philippines, enemy colony or semicolony dominated by U.S. imperialism, there is the "country team" that coordinates and oversees the various agencies of U.S. imperialism. It is composed of the U.S. ambassador as head and the C.l.A. chief of station, U.S.I.A. director, U.S.A.I.D. director and the JUSMAG chief as members.

In addition to its direct agencies, U.S. imperialism manipulates various agencies of the United Nations, regional arrangements and Philippine bilateral arrangements with third countries. These supplement the direct agencies of U.S. imperialism in subverting the national-democratic interests of the Filipino people.

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11 These are apart from extensive areas occupied by the Voice of America. Radar stations, satellite tracking stations and airfields which are outside of U.S. military bases but are under direct U.S. control.

12 The World Bank is bent on aggravating foreign indebtedness of the Philippines through “educational loans” and using these loans to ensure U.S. control of the Philippine educational system. Together with U.S. foundations and agencies, it has masterminded the Presidential Commission to Survey Philippine Education (P.C.S.P.E.) in order to reorganize state universities and colleges and make Philippine educational policies, programs and projects conform to imperialist demands.

13 All police agencies, including the Philippine Constabulary, have been made to follow the 1967 Walton Report of the A.I.D. Office of Public Safety.

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