Fifth President of the Philippines

Era Third and last President of the Commonwealth

First President of the Third Republic
Constitution Amended 1935 Constitution
Predecessor Sergio Osmeña
Manuel Roxas Successor Elpidio Quirino
First term: May 28, 1946 – July 4, 1946 May 28, 1946, Legislative Building, Manila (aged 54)
Second term: July 4, 1946 – April 15, Inauguration July 4, 1946, Independence Grandstand, Manila (aged
1948 54)
Capital Manila
Vice-President Elpidio Quirino (May 28, 1946-April 17, 1948)
Chief Justice Manuel V. Moran (July 9, 1945-March 20, 1951)
Jose Avelino (May 25, 1946-July 4, 1946; July 5, 1946-
Senate President
February 21, 1949)
Eugenio Perez (May 25, 1946-July 4, 1946;
Speaker of the House
July 5, 1946-December 30, 1949)
Manuel Acuña Roxas (January 1, 1892 – April 15, 1948) was the fifth President of the Philippines, the
last of the Commonwealth of the Philippines and the first of the sovereign Third Philippine Republic. He ruled
as President from the Philippines' independence from the United States of America on 4 July 1946 until his
abrupt death in 1948.

I. Politics (Administration)

Prior to the Philippine national elections of 1946, at the height of the last Commonwealth elections,
Roxas became Liberal Party’s candidate for President. The Nacionalistas, on the other hand, had Osmeña for
President. Osmeña refused to campaign, saying that the Filipino people knew his reputation. On the April 23,
1946, Roxas won 54 percent of the vote, and the Liberal Party won a majority in the legislature.

II. Economics

Since the country was severely damaged by the war, the economy was struggling because of low
output growth and high unemployment rates. Production became low because farms and factories were
ruined. Unemployment rates were rising at a fast pace; because businesses were closing, there were no more
jobs available for people. The reconstruction cost of these buildings reached 126 million pesos. Also, there was
an annual lack of budget of about 200 million pesos.

III. Programs (Reforms)

The approval of the Bell Trade Act (The Philippine Rehabilitation Act and the Philippine Trade Act); the
US congress offered 800 million dollars as rehabilitation money in exchange of this. The act states that U.S.
citizens and corporations were granted equal access to the natural resources of the country.Treaty of General
Relations recognizing Philippine independence as of July 4, 1946 includes establishment of US bases and hand
over American sovereignty over the Philippines.

Laurel granted a General Amnesty to the guerrillas imprisoned during World War II and to
thosearrested for conspiring with Japan.

IV. National Issues

Although Roxas was successful in obtaining rehabilitation funds from America to repair what has been
destroyed in the Philippines, he was still criticized for his approval to the Bell Trade Act. Graft and corruption
did not stop in the government. Scandals such as the surplus war property scandal, school suppliesscandal and
Chinese immigration scandals appeared during his time.
 People were infuriated at Roxas to the point that there were plans of assassinating him. Fortunately
for the former president, he escaped an attempted murder by a Tondo barber, Julio Guillen, who threw a
grenade on the platform at Plaza Miranda after the President addressed the rally of citizens.

V. Transnational Issues

World War II paralyzed the whole country; its effect is excessive that $ 800 million is needed for the
recovery of the Philippines. However, the president managed to find a resource for this amount.

One criticism in Roxas’ administration is his friendship with the Americans. He was too close to them to
the point that he allowed US military bases in the country, permitted trade restrictions for Filipinos, and gave
special privileges for US property owners and investors.

THIRD REPUBLIC
The Third Republic of the Philippines was inaugurated on July 4, 1946. It marked the culmination of the peaceful
campaign for Philippine Independence—the two landmarks of which were the enactment of the Jones Law in
1916 (in which the U.S. Congress pledged independence for the Philippines once Filipinos have proven their
capability for self-government) and the Philippine Independence Act of 1934 (popularly known as Tydings-
McDuffie) which put in place a ten-year transition period during which the Philippines had Commonwealth
status. The Third Republic also marked the recognition by the global community of nations, of the nationhood
of the Philippines—a process that began when the Commonwealth of the Philippines joined the Anti-Axis
Alliance known as the United Nations on June 14, 1942, receiving recognition as an Allied nation even before
independence.

Thus, the inauguration of the Third Republic marked the fulfillment of the long struggle for independence that
began with the Philippine Revolution on August 23, 1896 (recent scholarship suggests, on August 24) and which
was formalized on June 12, 1898 with the Proclamation of Philippine Independence at Kawit, Cavite.

From 1946 to 1961, Independence Day was celebrated on July 4. On May 12, 1962, President Diosdado
Macapagal issued Proclamation No. 28, s. 1962, which declared June 12 as Independence Day. In 1964,
Congress passed Republic Act No. 4166, which formally designated June 12 of every year as the date on which
we celebrate Philippine independence. July 4 in turn has been observed as Republic Day since then.

President Roxas takes his oath of office during the Independence Ceremony of July 4, 1946. Administering the
oath is Chief Justice Manuel Moran.

The Roxas Administration (May 28, 1946 – April 15, 1948)

President Manuel Roxas, in his first State of the Nation Address, detailed the challenges the country was
facing in the aftermath of war: A government “without financial means to support even its basic
functions,” scarcity in commodities especially of food, hyperinflation, the “tragic destruction” ] of a productive
economy, and still-ongoing rehabilitation among the different sectors of society.

In an effort to solve the massive socio-economic problems of the period, President Roxas reorganized the
government, and proposed a wide-sweeping legislative program. Among the undertakings of the Third
Republic’s initial year were: The establishment of the Rehabilitation Finance Corporation (which would be
reorganized in 1958 as the Development Bank of the Philippines); the creation of the Department of Foreign
Affair and the organization of the foreign service through Executive Order No. 18; the GI Bill of Rights for
Filipino veterans; and the revision of taxation laws to increase government revenues.
President Roxas moved to strengthen sovereignty by proposing a Central Bank for the Philippines to
administer the Philippine banking system which was established by Republic Act No. 265.

In leading a “cash-starved government” that needed to attend a battered nation, President Roxas campaigned
for the parity amendment to the 1935 Constitution. This amendment, demanded by the Philippine Trade
Relations Act or the Bell Trade Act, would give American citizens and industries the right to utilize the
country’s natural resources in return for rehabilitation support from the United States. The President, with the
approval of Congress, proposed this move to the nation through a plebiscite.

The amendment was necessary to attract rehabilitation funds and investments at a time when public and
official opinion in the United States had swung back to isolationism (the Cold War, and a corresponding
reversal in what had been heretofore a return of isolationism, would only come a few years later). On March
11, 1947, a total of 432,933 (78.89% of the electorate) voted in favor of the parity amendment. The approval
of the amendment had provided the nation with $620 million in war damage compensation, through the
Philippine War Damage Commission.

A major initiative arising from preliminary wartime discussions about the future security of the Philippines was
the US–Philippine Military Bases Agreement of 1947, which gave the United States the right to retain the use
of sixteen bases, free of rent, with the option to use seven more for a term of 99 years.

The Roxas administration also pioneered the foreign policy of the Republic. Vice President Elpidio Quirino was
appointed Secretary of Foreign Affairs. General Carlos P. Romulo, as permanent representative of the
Philippines to the United Nations, helped shape the country’s international identity in the newly established
stage for international diplomacy and relations. During the Roxas administration, the Philippines established
diplomatic ties with foreign countries and gained membership to international entities, such as the United
Nations General Assembly, the United Nations Educational, Scientific and Cultural Organization (UNESCO), the
World Health Organization (WHO), the International Labor Organization (ILO), etc.

On April 15, 1948, following a speech before an audience of assembled airmen at Clark Field Air Base,
President Roxas died of a heart attack. Vice President Elpidio Quirino assumed the presidency on April 17,
1948.

The Roxas Administration (1946–48)

Manuel Roxas, president from 1946–48

When the Congress of the Philippines was convened in 1945, the legislators elected in 1941 chose Manuel
Roxas as Senate President. In the Philippine national elections of 1946, Roxas ran for president as the nominee
of the liberal wing of the Nacionalista Party. He had the staunch support of General MacArthur. His opponent
was Sergio Osmeña, who refused to campaign, saying that the Filipino people knew his reputation. In the April
23, 1946 election, Roxas won 54 percent of the vote, and the Liberal Party won a majority in the legislature.
When the Philippines gained independence from the United States on July 4, 1946, Roxas became the first
president of the new republic.
Although Roxas was successful in getting rehabilitation funds from the United States after independence, he
was forced to concede military bases (23 of which were leased for 99 years), trade restrictions for the
Philippine citizens, and special privileges for U.S. property owners and investors. His administration was
marred by graft and corruption; moreover, the abuses of the provincial military police contributed to the rise
of the left-wing Hukbalahap (Huk) movement in the countryside. His heavy-handed attempts to crush the Huks
led to widespread peasant disaffection.
During Roxas' term of office administration of the Turtle Islands and Mangsee Islands was transferred by
the United Kingdom to the Republic of the Philippines. By an international treaty concluded in 1930 between
the United States (in respect of its then overseas territory, the Philippine Archipelago) and the United
Kingdom (in respect of its then protectorate, the State of North Borneo) the two powers agreed the
international boundaries between those respective territories. In that treaty the United Kingdom also
accepted that the Turtle Islands as well as the Mangsee Islands were part of the Philippines Archipelago and
therefore under US sovereignty. However, by a supplemental international treaty concluded at the same time,
the two powers agreed that those islands, although part of the Philippines Archipelago, would remain under
the administration of the State of North Borneo's British North Borneo Company.[11] The supplemental treaty
provided that the British North Borneo Company would continue to administer those islands unless and until
the United States government gave notice to the United Kingdom calling for administration of the islands to
be transferred to the U.S. The U.S. never gave such a notice. On the 4th of July, 1946, the Republic of the
Philippines was born. It became the successor to the U.S. under the treaties of 1930. On the 15th of July, 1946,
the United Kingdom annexed the State of North Borneo and, in the view of the United Kingdom, became the
sovereign power with respect to what had been the State of North Borneo. On 19 September 1946, the
Republic of the Philippines notified the United Kingdom that it wished to take over the administration of the
Turtle Islands and the Mangesse Islands. Pursuant to a supplemental international agreement, the transfer of
administration became effective on 16 October 1947.
Roxas did not stay long in office because of a heart attack as he was speaking at Clark Air Base on April 15,
1948. He was succeeded by his vice president Elpidio Quirino.

Independent Philippines and the Third Republic (1946-1972)

In April 1946, elections were held. Despite the fact that the Democratic Alliance won the election, they were
not allowed to take their seats under the pretext that force had been used to manipulate the elections. The
United States withdrew its sovereignty over the Philippines on July 4, 1946, as scheduled.
Manuel Roxas (Liberal Party), having been inaugurated as President as scheduled, on July 4, 1946 before the
granting of independence, strengthened political and economic ties with the United States in the controversial
Philippine-US Trade Act, In Mar., 1947, the Philippines and the United States signed a military assistance pact
(since renewed) which allowed the US to participate equally in the exploitation of the country's natural
resources—and rented sites for 23 military bases to the US for 99 years (a later agreement reduced the period
to 25 years beginning 1967). These bases would later be used to launch operations in the areas of Korea,
China, Vietnam, and Indonesia.
During the Roxas administration, a general amnesty was granted for those who had worked together with the
Japanese while at the same time the Huks were declared illegal. His administration ended prematurely when
he died of heart attack April 15, 1948 while at the US Air Force Base in Pampanga.
Vice President Elpidio Quirino (Liberal Party, henceforth referred to as LP) was sworn in as President after the
death of Roxas in April 1948. He ran for election in November 1949 against Jose P. Laurel (Nacionalista Party,
henceforth referred to as NP) and won his own four-year term.
During this time, the CIA under the leadership of Lt. Col. Edward G. Lansdale was engaged in paramilitary and
psychological warfare operations with the goal to hold back the Huk Movement. Among the measures which
were undertaken were psyops-campaigns which demoralized the superstition of many Filipinos and acts of
violence by government soldiers which were disguised as Huks. By 1950, the U.S. had provided the Philippine
military with supplies and equipment worth $200 million dollars.
The huge task of reconstructing the war-torn country was complicated by the activities in central Luzon of the
Communist-dominated Hukbalahap guerrillas (Huks), who resorted to terror and violence in their efforts to
attain land reform and gain political power. They were finally brought under control (1954) after a dynamic
attack introduced by the minister of national defense, Ramón Magsaysay. By that time Magsaysay was
president of the country, having defeated Quirino in Nov., 1953. His campaign was massively supported by the
CIA, both financially and through practical help in discrediting his political enemies. He had promised sweeping
economic changes, and he did make progress in land reform, opening new settlements outside crowded Luzon
Island. His death in an airplane crash in Mar., 1957, was a serious blow to national morale. Vice President
Carlos P. García succeeded him and won a full term as president in the elections of Nov., 1957.
In foreign affairs, the Philippines preserved a firm anti-Communist policy and joined the Southeast Asia Treaty
Organization in 1954. There were difficulties with the United States over American military installations in the
islands, and, in spite of formal recognition (1956) of full Philippine sovereignty over these bases, tensions
increased until some of the bases were dismantled (1959) and the 99-year lease period was reduced. The
United States rejected Philippine financial claims and projected trade revisions.
Philippine opposition to García on issues of government corruption and anti-Americanism led, in June, 1959,
to the union of the Liberal and Progressive parties, led by Vice President Diosdado Macapagal, the Liberal
party leader, who succeeded García as president in the 1961 elections. Macapagal’s administration was
marked by efforts to combat the mounting rise that had plagued the republic since its birth; by attempted
alliances with neighboring countries; and by a territorial argument with Britain over North Borneo (later
Sabah), which Macapagal claimed had been leased and not sold to the British North Borneo Company in 1878.

THE THIRD REPUBLIC: ROXAS, QUIRINO AND MAGSAYSAY ADMINISTRATION

Finally, freedom was in the hands of the Filipino people. The Third Republic was formed and headed
by a succession of presidents. On July 4, 1946, the Republic of the Philippines was inaugurated and Philippine
independence was proclaimed in Luneta, Manila.
Philippines as a new-born republic sprang out of the ashes of war. The following were the problems:
1. Economic rehabilitation
2. Cultural rehabilitation
3. Financial poverty (Annual deficit of over Php 200,000,000)
4. Peace and order
5. Distorted moral values of Filipinos
Moreover, of the Asian countries, Philippines was the most devastated by the Japanese and incidentally by the
Americans during the World War II. The total war losses of the Philippines reached the staggering amount of
$8,079,624,000 (Php 16,159,243,000). This included the monetary value of 1,111,938 human lives lost,
appraising each human life as worth $2,000.[1]
Let us look back the biography, achievements and the problems encountered of Presidents Manuel Roxas,
Elpidio Quirino and Ramon Magsaysay.
I. ROXAS ADMINISTRATION (Term: July 4, 1946 – April 15, 1948)
Laws and Programs:
1. Rehabilitation and Reconstruction of War-Ravaged Philippines
2. Adoption of pro-American Foreign Policy:
a) Adherence to and support of the ideals and objectives of the United States
b) Preservation of the ideals and objectives of the United States
 c) Maintenance of friendly relations with other nations of the world, except communist nations
d) Signing of treaties and Agreements: Treaty of General Relations, War Surplus Property Agreement,
Military Bases Agreement and Military Assistance Agreement
3. Bell Trade Act
4. General Amnesty
5. Rehabilitation Finance Corporation
6. Parity Rights Amendment
Although he was successful in his objective to obtain rehabilitation funds from the Americans to repair what
has been destroyed in the Philippines, he was still criticized for his subjective decisions concerning policies
implemented in the country.
1. Roxas’ friendship with the Americans
2. Graft and Corruption
3. Failure to stop the HUKBALAHAP in the government
4. Revisions in the Philippine Constitution

ROXAS ADMINISTRATION
Manuel Roxas - President of the Third Republic of the Philippines July 4, 1946 at exactly 9:15 am-High
Commissioner Paul V. McNutt read President Harry S. Truman’s proclamation announcing to the world with
the withdrawal of American Sovereignty and the recognition of the independence of the Philippines.

Paul V. McNutt - “he was the one who recommended to the United States government that we are capable of
running ourselves and thus we are capable of having independence”

Treaty of General Relations/ General Relation Treaty -It states that the US will pay us $630M provided na
mabibigay yung 3 items:

1. Parity Rights

- Right of the American nationals (person, corporations, cooperatives, and other legal entities) to own, use,
and exploit all Philippine natural resources. (It will also include all the public utilities: electricity, water,
transportation, mining, grains and rice, etc)

2. Bell Trade Act (Philippine Trade Act)

- Economic Trade relationship between US and RP (republic of the Philippines)

- For 20 years, there is free trade (no quota, tariffs, taxes in all products) between two countries (from RP->
US, and vice versa)

- After 20 years, 5% tax will be imposed on RP products to US. There will also be an increase of 5% annually
until 100% tax on RP products to US. (So sa 21styear, 5% tax will be imposed to the Philippine products.
22ndyear magiging 10% tax. 23rdyear magiging 15%. Hanggang maging 100% on all RP products to US)

Manuel A. Roxas (1946-1948)

CONDITION OF THE PHILIPPINES

When Manuel Roxas started his term as the first president of the third republic of the Philippines, the country
was paralyzed because World War II just ended. Commerce was experiencing recession because farms and
factories were ruined. Transportation efficiency was down due to the bombed roads and bridges. Many
people were massacred and towns and cities were burnt down. 80% of the school buildings were ruined which
weakened the educational system. The reconstruction cost of these buildings reached 126 million pesos. Also,
there was an annual deficit of about 200 million pesos. There was a crime rate hike because some Filipinos
patronized the “American gangsters”. The reconstruction of the post-war Philippines fell into the hands of
Manuel Roxas.

PRIMARY PROBLEMS

Since the country was severely tarnished by the war, the economy was struggling because of low output
growth and high unemployment rates. Production became low because farms and factories were ruined.
Production of rice, sugar, coconuts, abaca, coconut oil, cigars, tobacco, gold and chrome, and manganese and
lumber was put to a halt because of the destruction of manufacturing facilities. Because businesses were
closing, there were no more jobs available for people. Unemployment rates were rising at a fast pace.
Education also severely weakened. School buildings were destroyed and instruments to teach children were
obliterated. In the government sector, there were too many interference by the American government.
Policies done by Roxas were highly influenced by US officials. These policies mostly benefited the welfare of
their country. Because of the existing Western influences allowed by the former president, the HUKBALAHAP
movement still created immense riot and commotion in the country.

PROMISES DURING THE ELECTIONS AND INAUGURATION

Since the country was devastated by the war, Roxas centralized his promises around the rehabilitation of the
Philippines. Economically, he wants to concentrate on production. He wants an income from exports to buy
machines, hire technically skilled people, and buy food. He wants to revive the production of rice, sugar,
coconuts, abaca, coconut oil, cigars, tobacco, gold and chrome, and manganese and lumber. For employment,
he wants to give encouragement to Filipinos to participate in the new economy.

He believes that the foundation stone of national rehabilitation can be achieved by:

Feeding the hungry, healing the sick, caring for widows and orphans, waging war against inflation and
unemployment (by increasing higher wages and production).

Besides asking help from the International Monetary and Rehabilitation Bank, United Nations Relief and
Rehabilitation Administration for financial aid, he wants assistance from America. He believes that the United
States is the source of most finances of all these organizations.

A new tenacy law will take effect and usury will be halted. “Lands will be purchased by the Government and
resold to tenants; new agricultural areas will be opened to settlement and modern method of agriculture will
be taught. It is his aim to raise the status of the farm worker, to increase his earnings, to spread wide the
benefits of modern technology.” (Roxas, 1946)

LAWS AND PROGRAMS

In 1946, the US congress offered 800 million dollars as rehabilitation money in exchange for the ratification of
the Bell Trade Act. It was passed by the US congress specifying the condition of the Philippine economy
governing the independence of the Philippines from the Americans. A system of preferential tariffs was
implemented which discouraged government officials to control the country’s import-export market. The
Philippine peso followed the US dollar currency. Aggravating the Filipino citizens, U.S. citizens and
corporations were granted equal access to the natural resources of the country. Many nationalists were not in
favor of the bell trade act because it was “a curtailment of Philippine sovereignty, virtual nullification of
Philippine independence” as said by former president Sergio Osmena.

Roxas supported the acceptance of two important laws passed by the Congress of the United States to the
Philippines. These laws were The Philippine Rehabilitation Act and the Philippine Trade Act (Bell trade act).

On August 5, 1946, the Treaty of General Relations was ratified between the Philippines and the US. It
recognized Philippine independence as of July 4, 1946 and relinquished American sovereignty over the
Philippine Islands. The establishment of US bases was also included in this treaty. On March 14, 1947, the
Treaty of General Relations was signed.

On September 7, 1946, Manuel Roxas granted a General Amnesty to guerrillas who were imprisoned during
World War 2. On January 28, 1948, General Amnesty was given to all those arrested for conniving with Japan.
An earlier amnesty hindered Roxas because of his fear that the Americans might stop rendering financial
assistance to the country.

On January 1, 1947 under the Bell Trade Act, the Parity Amendment was introduced. It gave American citizens
and corporations equal rights to Filipinos to utilize natural resources and operate public utilities. On March 11,
1947, it was ratified in a national plebiscite.

BENEFICIARIES OF THE LAWS AND PROGRAMS

The Treaty of General Relations was both beneficial for both countries (America and Philippines). It is an
advantage for the Philippines because their independence was recognized and the Americans surrendered
their rule over the country. When it was ratified in 1947,

the Military Bases Agreement became advantageous to the Americans because it allowed them to have US
military bases in the country. 23 of those bases were leased for 99 years which means that they can leave the
Philippine soil only by 2045.

General Amnesty was beneficial for the people who were caught conniving with Japan during World War II.
Guerillas and people who served in key positions during the Japanese occupation may be reinstated in the
government like Jose P. Laurel who was the president during the Japanese occupation.

The Bell trade act (the inclusion of the Parity Amendment in the constitution and the signing of the 1947
Military Bases Agreement) was dominantly an advantage for the American citizens and businesses. As
mentioned, they were given equal rights as Filipinos to exploit the country’s natural resources. There was a
great interference by the US government to the management of the economy of the Philippines. Roxas was
highly criticized by nationalists for the ratification for this act.

HOLES AND SHORTCOMINGS OF THE LAWS

Manuel Roxas failed to speculate the consequences of his decisions manipulated by American government
officials. In the Bell Trade Act, conflicting interests were compromised. Policies under this act, as reiterated
were mostly beneficial for America than for the Philippines. For 800 million dollars, the Philippes’ resources
could already by exploited by US citizens and business; their economy will also be closely tied to the United
States economy. Roxas did not consider the real cost of signing this Philippine Trade Act. Although
rehabilitation money was important to revive the country, the preservation of what’s left in the country was
more vital to the Filipinos. The Military Bases Agreement was also one of the flawed policies because it gave
the Americans military control in the Philippines. Because of this, there is still no absolute freedom for the
Filipinos. The country was again put at stake because of his reckless westernized decisions. Although his
policies were made to remedy the country’s post war state, there were motives and controversies surrounding
his decisions.

ISSUES AND CONTROVERSIES

Although Roxas was successful in his objective to obtain rehabilitation funds from America to repair what has
been destroyed in the Philippines, he was still criticized for his subjective decisions concerning policies
implemented in the country.

One criticism in Roxas’ administration is his camaraderie with the Americans. He was too close to them to the
point that he allowed US military bases in the country (23 were leased for 99 years), permitted trade
restrictions for Filipinos, and gave special privileges for US property owners and investors.

Graft and corruption did not stop in the government. Scandals such as the surplus war property scandal,
school supplies scandal and Chinese immigration scandals emerged during his time.

Roxas’ attempts to destroy the HUKBALAHAP created a negative notion to the masses. The people believed
that he was not able to manage the HUKS and failed to halt the movement.

The citizens felt that he surrendered the country’s freedom to the Americans because of the revisions in the
Philippine constitution. The new law gave parity rights to the Americans in exchange for rehabilitation money
to fix the country. People were aggravated because most of his policies were dictated by General Mac Arthur
and Commissioner Paul McNutt.

People were infuriated at Roxas to the point that there were plans of assassinating him. Fortunately for the
former president, he escaped an attempted murder by a Tondo barber, Julio Guillen, who threw a grenade on
the platform at Plaza Miranda after the President addressed the rally of citizens.

SUMMARY OF GOVERNANCE

When Manuel Roxas started his term as the first president of the third republic, he was left with the post-war
state of Philippines. Production decreased, education diminished, unemployment rate increased, interference
from America heightened, and the HUKBALAHAP movement intensified. Since this was the state of the
country, his inauguration speech centralized on the rehabilitation of the country. In exchange for 800 million
dollars of rehabilitation money, the Bell Trade Act or the Philippine Trade Act was signed. Along with that
policy, others like the General Amnesty and Military Bases Agreement was implemented. Most policies were
manipulated by American government officials who made the policies more beneficial to the American
citizens. Issues like the Bell Trade Act were highly criticized by people because it allowed Americans to exploit
the Philippine’s natural resources. The countrymen felt bought because that right should have been exclusive
to Filipino citizens. The Military Bases Agreement further angered the people because it allowed the American
military to have their leased bases in the Philippines till year 2045. Roxas had a hard time managing people
who did not agree with his policies. People attempted to murder him, but fortunately for him, he was able to
escape death.

Although he was able to obtain rehabilitation money to repair the country, the welfare and the nationalism of
the country and the countrymen were jeopardized. He was highly influenced by the American government and
failed to see the consequences of agreements he made (like the Bell Trade Act). He allowed the exploitation of
resources and the establishment of military bases until 2045 which is highly absurd. Behind his “great caliber”
is a puppet controlled by the American government. He depended too much on the aid of the United States.
Ulterior motives involving policies were grave during his administration.
Manuel Roxas, (born Jan. 1, 1892, Capiz, Phil.—died April 15, 1948, Clark Field, Pampanga), political leader
and first president (1946–48) of the independent Republic of the Philippines.
After studying law at the University of the Philippines, near Manila, Roxas began his political career in 1917 as
a member of the municipal council of Capiz (renamed Roxas in 1949). He was governor of the province of
Capiz in 1919–21 and was then elected to the Philippine House of Representatives, subsequently serving as
Speaker of the House and a member of the Council of State. In 1923 he and Manuel Quezon, the president of
the Senate, resigned in protest from the Council of State when the U.S. governor-general (Leonard Wood)
began vetoing bills passed by the Philippine legislature. In 1932 Roxas and Sergio Osmeña, the Nacionalista
Party leader, led the Philippine Independence Mission to Washington, D.C., where they influenced the passage
of the Hare-Hawes-Cutting Act. Roxas was later opposed by Quezon, who held that the act compromised
future Philippine independence; the Nacionalista Party was split between them on this issue. In 1934,
however, Roxas was a member of the convention that drew up a constitution under the revised Philippine
Independence and Commonwealth Act (Tydings-McDuffie Act). Roxas also served as secretary of finance in the
Commonwealth government (1938–40).
During World War II Roxas served in the pro-Japanese government of José Laurel by acquiring supplies of rice
for the Japanese army. Although a court was established after the war to try collaborators, Roxas was
defended by his friend General Douglas MacArthur. Roxas was elected president of the Commonwealth in
1946 as the nominee of the liberal wing of the Nacionalista Party (which became the Liberal Party), and, when
independence was declared on July 4, he became the first president of the new republic.
Although Roxas was successful in getting rehabilitation funds from the United States after independence, he
was forced to concede military bases (23 of which were leased for 99 years), trade restrictions for Philippine
citizens, and special privileges for U.S. property owners and investors. His administration was marred by graft
and corruption; moreover, the abuses of the provincial military police contributed to the rise of the left-
wing Hukbalahap (Huk) movement in the countryside. His heavy-handed attempts to crush the Huks led to
widespread peasant disaffection. Roxas died in office in 1948 and was succeeded by his vice president, Elpidio
Quirino.

Manuel Roxas (1892-1948) was the last president of the Commonwealth and the first president of the
Republic of the Philippines. His administration demonstrated decisively that political sovereignty
without economic independence encourages reaction, perpetuation of social injustices, and
exploitation.
Manuel Roxas was born in Capiz, Capiz Province, on Jan. 1, 1892. In 1914 he graduated from the College
of Law of the University of the Philippines. In 1916 he became provincial governor. In 1922 he was elected
to Congress, becoming Speaker of the Philippine Assembly.
In December 1931 Roxas, together with Senate president pro tempore Sergio Osmeña, left for the United
States to secure the Hare-Hawes-Cutting Act from the U.S. Congress, which would grant Philippine
independence after a transition period of 10 years. This bill was rejected by the opposition forces led by
Manuel Quezon. In 1934 Roxas was elected to the constitutional convention. In 1938 he was appointed
secretary of finance by Commonwealth president Quezon and then became his trusted adviser. In 1941
Roxas ran for the Senate and won.
On Dec. 8, 1941, at the outbreak of the war, Roxas served as lieutenant colonel in the U.S. Army Forces in
the Far East (USAFFE). He refused to join Quezon in fleeing to the United States because he wanted to
preserve the morale of the Filipino soldiers fighting in Bataan and Corregidor. He was captured in 1942 by
the Japanese forces in Malaybalay, Bukidnon, and was forced to serve in the puppet government of José
Laurel. Roxas accepted the position of chairman of the Economic Planning Board in Laurel's wartime
Cabinet. During the Japanese retreat he allegedly escaped from the Japanese high command in Baguio on
April 15, 1945.
Because of Gen. Douglas MacArthur's unexplained intervention, Roxas was never tried as a collaborator,
though he had served officially in Laurel's Japanese-sponsored administration. When the Philippine
legislature convened during the liberation, Roxas was elected president of the Senate on June 9, 1945. He
broke with President Osmeña and formed the Liberal party, which he led to victory as presidential
candidate on April 23, 1946. Roxas thus became the last president of the Commonwealth and the first
president of the Republic of the Philippines when it was inaugurated on July 4, 1946.
Owing to the unfair demands of the Bell Trade Relations Act of 1945, which called for a revision of the
Philippine constitution to give parity rights to Americans in exchange for rehabilitation money, Roxas
found himself surrendering his country's freedom and its right to determine its own destiny. Faced by the
unified opposition of workers and peasants, the majority of the people, Roxas sided with the oppressive
landlord class and the colonialistic merchants to put down by force the legitimate aspirations of the
electorate.
It is public knowledge that most of Roxas's policies were dictated by Gen. MacArthur and U.S. high
commissioner Paul V. McNutt. Not only did Roxas lack the vision to foresee the causes that would strain
Philippine-American relations later (for example, the Military Bases Agreement of March 14, 1947), but he
also failed to sympathize with the plight of the majority of the poor.
Roxas was committing the Philippines to the side of the United States at the start of the cold war in a
speech at the Clark Air Force Base when he suffered a heart attack on April 14, 1948. Loyal to the United
States to the last, he died on American soil.

Creating a Central Bank for the Philippines

A group of Filipinos had conceptualized a central bank for the Philippines as early as 1933. It came up with
the rudiments of a bill for the establishment of a central bank for the country after a careful study of the
economic provisions of the Hare-Hawes Cutting bill, the Philippine independence bill approved by the US
Congress.

During the Commonwealth period (1935-1941), the discussion about a Philippine central bank that would
promote price stability and economic growth continued. The country’s monetary system then was
administered by the Department of Finance and the National Treasury. The Philippines was on the exchange
standard using the US dollar—which was backed by 100 percent gold reserve—as the standard currency.

In 1939, as required by the Tydings-McDuffie Act, the Philippine legislature passed a law establishing a
central bank. As it was a monetary law, it required the approval of the United States president. However,
President Franklin D. Roosevelt disapproved it due to strong opposition from vested interests. A second law
was passed in 1944 during the Japanese occupation, but the arrival of the American liberalization forces
aborted its implementation.

Shortly after President Manuel Roxas assumed office in 1946, he instructed then Finance Secretary Miguel
Cuaderno, Sr. to draw up a charter for a central bank. The establishment of a monetary authority became
imperative a year later as a result of the findings of the Joint Philippine-American Finance Commission
chaired by Mr. Cuaderno. The Commission, which studied Philippine financial, monetary and fiscal problems
in 1947, recommended a shift from the dollar exchange standard to a managed currency system. A central
bank was necessary to implement the proposed shift to the new system.

Immediately, the Central Bank Council, which was created by President Manuel Roxas to prepare the charter
of a proposed monetary authority, produced a draft. It was submitted to Congress in February1948. By June
of the same year, the newly-proclaimed President Elpidio Quirino, who succeeded President Roxas, affixed
his signature on Republic Act No. 265, the Central Bank Act of 1948.

“The New Republic” – Agrarian Reform

After the establishment of the Philippine Independence in 1946, the problems of land tenure remained. These
became worst in certain areas. Thus the Congress of the Philippines revised the tenancy law.

President Manuel A. Roxas (1946-1948) enacted the following laws:

 Republic Act No. 34 -- Established the 70-30 sharing arrangements and regulating share-tenancy contracts.
 Republic Act No. 55 -- Provided for a more effective safeguard against arbitrary ejectment of tenants.

 The Third Republic of the Philippines was inaugurated on July 4, 1946. It marked the culmination of the
peaceful campaign for Philippine Independence—the two landmarks of which were the enactment of the
Jones Law in 1916 (in which the U.S. Congress pledged independence for the Philippines once Filipinos
have proven their capability for self-government) and the Philippine Independence Act of 1934 (popularly
known as Tydings-McDuffie) which put in place a ten-year transition period during which the Philippines
had Commonwealth status.
 Manuel A. Roxas Last President of the Commonwealth Term: May 28, 1946- July 4, 1946 First President of
the Third Republic of the Philippines Term: July 4, 1946- April 15, 1948
 In an effort to solve the massive socio-economic problems of the period, President Roxas reorganized the
government, and proposed a wide-sweeping legislative program. Among the undertakings of the Third
Republic’s initial year were: The establishment of the Rehabilitation Finance Corporation (which would be
reorganized in 1958 as the Development Bank of the Philippines); the creation of the Department of
Foreign Affair and the organization of the foreign service through Executive Order No. 18; the GI Bill of
Rights for Filipino veterans; and the revision of taxation laws to increase government revenues.
 President Roxas moved to strengthen sovereignty by proposing a Central Bank for the Philippines to
administer the Philippine banking system which was established by Republic Act No. 265.
 The Roxas administration also pioneered the foreign policy of the Republic. Vice President Elpidio Quirino
was appointed Secretary of Foreign Affairs. General Carlos P. Romulo, as permanent representative of the
Philippines to the United Nations, helped shape the country’s international identity in the newly
established stage for international diplomacy and relations. During the Roxas administration, the
Philippines established diplomatic ties with foreign countries and gained membership to international
entities, such as the United Nations General Assembly, the United Nations Educational, Scientific and
Cultural Organization (UNESCO), the World Health Organization (WHO), the International Labor
Organization (ILO), etc.
 Roxas Administration

 He died of a heart attack on April 15, 1948, while he was visiting Clark Air Base in Pampanga.
 He had a very pro-American policy. He had no choice because the United States was the only country
which could help us with the terrible problems then.
 The Americans agreed to help the Filipinos. But there were strings attached to the American aid. The
Filipinos agreed to ratify the Parity Amendment to the 1935 constitution. This was approved on March 11,
1947.
 He asked the Congress to pass the law giving tenant farmers 70% of the rice harvest while the landlord got
the 30% of it.

1. Clark Air Base

2. Subic Naval Base
3. Camp John Hay in Baguio