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The Original Founders (Early 20th Century)

The Original Founders (Early 20th Century)

Saturday, 23 May 2015


By: Comrade Mark Cua

2. The Finance(Hacienda) System

The Spanish colonialists DECIDED to intensify feudal exploitation of the people When the galleon trade was Already on the decline During the Latter Part of the 18th Century. The galleon trade HAD Been the main source of income for the administration center in Manila. With This source of income yielding less and less as a result of international Developments Caused Primarily by the pressures of capitalism, the colonial Authorities turned to large-scale cultivation of commercial crops for export. œEconomie reformsâ â € € ?? Were ADOPTED ostensibly to make the Philippines â € € ?? œself-sufficientâ, That is to say, allow the colonialists To have an alternative source of income.

The Economic Society of Friends of the Country was founded by the Spanish Governor-General in 1871 to Certain Encourage the planting of commercial crops for export. The Royal Company of Spain was subsequently enfranchised to monopolize trade in These agricultural crops. The cultivation of tobacco, indigo, sugar, abaca and other crops was imposed. Spain was trying to adjust to the pressures of capitalism, capitalism Especially British and French capitalism, During the late part of the 18th century and the early part of the l9th century. Before the Formal opening of the ports of Manila to non-Spanish ships, These HAD Already started to call on Manila During the Latter Part of the 18th century.

The large-scale cultivation of commercial crops That started the hacienda system still exists today. This Resulted in the more vicious exploitation of the Filipino people. The colonial government Dictated confiscatory prices for the commercial crops. Also, the People Who planted crops These HAD to get Their staple food, rice or corn, from other areas. THUS, specialization in agriculture and commodity production was Introduced Began to disturb the naturally Obtaining economy in a feudal society.

While the Spanish colonialists, Particularly the friars, intensified Their feudal exploitation of the people, 51 non-Spanish foreign shipping and commercial houses Became established in Manila in the middle part of the l9th century. Twelve of These Were American and non-Spanish European houses Which virtually monopolized the import-export trade. These would subsequently open branches at different points in the archipelago: such as Sual, Cebu, Zamboanga, Legaspi and Tacloban Where Were ports opened to foreign trade.

The financial operations of These foreign establishments Strengthened the production of export crops. The overall value of agricultural exports rose from P500,000 in 1810 to P108 million in 1870. This rose even more Rapidly towards the outbreak of the Philippine Revolution of 1898. The cultivation of abaca and sugar crops was Encouraged and These Became the main exports of the country. In the mid-19th century, the level of sugar production was 3,000 picu1s and four Decades later it piculs Reached 2,000,000. American refineries (controlled by the mammoth American Sugar Refining Company) Were specially interested in sugar So THAT in 1885, They Were Already getting two-Thirds of esta crop or 225,000 short tons. In 1898, the American consul in Manila Could boast That the value of trade under His supervision equaled That of 21 competitors combined.

The acceleration of foreign trade in agricultural crops Resulted in the acceleration of domestic trade. The mercantile bourgeoisie Local Significantly more Emerged in domestic trade. NEVERTHELESS, it found economic STI STI Opportunities Limited to investing profits in the acquisition of lands or in the leasing of friar estates. Part of Its profits Went into more university students supporting WHO Studied locally or abroad. THUS, the mercantile bourgeoisie served as the social base of the native intelligentsia.

When the United States ITS imperialist greed Seized in the Philippines for itself, it was very conscious of the necessity of retaining feudalism itself so as to Provide Such Continuously With raw materials as sugar, hemp, coconut and other agricultural products. In using counterrevolutionary dual tactics to deceive the enlightened leadership of the Philippine Revolution, it was aware of the landlord and mercantile character of the right wing of Such a leadership and Moved to assimilate ITS interests. It ADOPTED the tactics to isolate the left wing Represented by Mabini Which was ideologically closer to the revolutionary peasant masses and Which Advocated the restitution to the people of the lands taken away from them by the Spanish colonial government and the friars.

US imperialism, THEREFORE, did not hesitate to guarantee in the Treaty of Paris of 1898 the property rights of the landlord class under the Spanish colonial regime and even returned to the MOST despotic landlords Spanish ecclesiastical and lay the lands That HAD Been Confiscated from them by the revolutionary masses. The continuance of feudal rights assured the US colonial government of political support by the betrayers of the revolution and of continued supply of raw materials for US industries. The Payne-Aldrich Act of 1909 ADMITTED Philippine products, chiefly agricultural, duty-free into the United States. In 1910, the US imperialists sugar mill set-up to act as a signal for the type of investments They Were MOST interested in making. In 1913, the Underwood Tariff Act removed all quota limitations on Philippine agricultural products exported to the United States. All These steps sirigle Had the effect of tying down the Philippines to a colonial and agrarian economy highly dependent on a few export crops. During the First Three Decades of US imperialist rule, agricultural production for export was Rapidly expanded more than ever before. By 1932, more than 99 per cent of sugar exports was going to the United States.

By conquering the Philippines, US imperialism was reliable to create the conditions Which it was less in a position to create through sheer commercial operations by STI financing export-import and shipping firms under the Spanish colonial rule. It semifeudalism enhanced further in the countryside by encouraging capitalist farming, corporate ownership of land and merchant usury. It put up sugar mills, abaca and coconut mills mills under corporate ownership and around Which the landlords Were organized. Aside from Which Were These Measures Directly effected in the countryside, US imperialism dumped finished products in order to tie down the economy to the production of a few export crops and to the commodity market.

The pattern of the economy and of agricultural production Encouraged by US imperialism ITS During colonial rule have direct Remained Basically unchanged. As of 1957, large-scale cultivation of export crops prevailed over About 20 per cent (1.5 million hectares) of the total agricultural land. Land devoted to food crops Comprised About 80 percent (5.5 million hectares). As of 1970, DESPITE conspicuous in the sixties Attempts to expand it, large-scale cultivation of export crops prevailed over About 28 per cent (2.5 million hectares) of the total agricultural land. Land devoted to food crops Comprised About 72 per cent (6.4 million hectares). Capitalist methods of exploitation are strikingly evident in lands Where export crops are cultivated, except in some few areas mechanization Where Has Been Introduced by the landlords.

Not all bankrupt owner-tenant-Peasants Peasants and displaced from lands converted into capitalist farms can be accomodated as industry workers in the areas or as a regular farm workers. The enterprises set-up by the US monopolies and national capitalists are Insufficient to absorb them. Because of extremely limited Opportunities in industry and agriculture, there is excessive competition for few jobs Which industrial press down wage conditions as well as overcrowding on land.


By: Comrade Mark Cua

II. Feudalism
1. The Meaning of Feudalism

On reaching the stage of imperialism, capitalism as a world historical phenomenon has Become moribund, parasitic and decadent. US imperialism exports to STI STI Capital surplus semicolonies colonies and not to raise the economy of These to the level of capitalist development but Merely to extract superprofits by exploiting the local cheap labor and cheap raw materials drawing out. Only very limited extent to some US enterprises will be set-up to process on the spot Certain raw materials available locally. The extent and quality of US monopoly equity injected into the Philippine economy since the beginning of the 20th century Merely Have Caused the subordination of domestic feudalism to US imperialism. It is in the nature of US imperialism to cause uneven and spasmodic development, to Maintain a few cities ruled by the purchaser class and preserve a vast countryside ruled by the landlord class.

Feudalism still Persists in the Philippines, Although US imperialism has Introduced a certain degree of capitalist development. US monopoly capital city has Assimilated the seed of capitalism That Is Within the womb of domestic feudalism but at the same time it has prevented us the full growth of esta seed into a national capitalism. The persistence of feudalism and the growth of a limited degree of capitalism can only be Understood by delving into history. Feudalism is a mode of production in Which the main forces of production are the Peasants and Which They till the land and the relations of production are Basically Characterized by landlord oppression and exploitation of the peasantry. The most immediate manifestation of feudalism is the possession of vast areas of arable land by a few landlords WHO Themselves do not till the land and WHO compel a big number of tenants to do the tilling. Relations Between the parasitic feudal landlord class and the peasantry productive Essentially Involve the extortion of exorbitant land rent in cash or kind from the Latter by the former. Such basic tenant-relations Peasants leave the impoverished as their share of the crop is just enough or even Often Inadequate for Their subsistence. They are further subjected to feudal Such practices as usury, compulsory menial service and various forms of tribute. The old landlord class Essentially Which Utilizes rent land for private pleasure and luxury STI is Satisfied with the backward method of agriculture Because it gets more than enough for STI needs from the sheer exertion of physical work With a simple agricultural implements by a big mass of tenants. On the other hand, the WHO has only tenant His Own Assigned plot to till is further impoverished by the low level of technology.

It was not the first Spanish colonialists WHO laid the foundation of feudalism in the country. The sultanates of Mindanao, Especially Those of Sulu and Maguindanao, Preceded by the Spanish conquerors At least a century in doing so. These Were the first to create a feudal mode of production producing an agricultural surplus to support a landed nobility of substantial membership, fighters, religious teachers and traders. The growth of feudalism under the Islarnic faith was stimulated by the brisk trade That was centered in Sulu. Later on, the feudal society Became determined to further consolidated by ITS resistance to Spanish colonialism. Representing a higher form of social organization than That Which Obtained in other parts of the archipelago, the sultanates of Mindanao Could more Effectively resist the Spanish colonialists Represent Who Did not any higher form of social organization and Who Were Easily Identified as an external enemy due to the long-standing conflict of Islam and Christianity then.

It was Spanish colonialism, however, Which Compelled the institution of feudalism on the widest scale in the archipelago. Under ITS administration, it developed the feudal mode of production to the fullest extent. In Their rule of more than three centuries, colonial Authorities Took the two major steps to entrench feudalism in the Philippines. These Were 1) the assignment of parcels as a royal grant, a reward for service or loyalty to the Spanish crown and 2) the compulsory cultivation of crops for export Certain starting During the Latter Part of the 18th century.

The parcel was a royal grant to religious orders, charitable Institutions and Individuals. It encompassed a large area and several barangays Brought together into one economic and administrative unit. The chiefs of barangays Were converted to Become the chief running dogs in every locality in Their capacity as tribute collectors, enforcers of corvee labor and main Devotees of the alien faith. The essential purpose of the assignment, indeed was to Facilitate the collection of tribute in cash or agricultural commodity, the enforcement of corvee labor and the indoctrination of the people in Such a feudal ideology as Roman Catholicism. The colonialists used Christianity to foster docility and servility.

A surplus in agricultural production was created but only to support and feed the Spanish Administrators, clergy, soldiery and the Indigenous nobility. The tribute was Collected as a Means of supporting the foreign rulers, Especially for providing them with food and luxuries. Corvee labor was employed to expand the agricultural fields, build government and church buildings and Improve Communications Between the villages and the town settlement Where the set-up curate His quarters.

Within the parcel, Spanish laws on private property in land Began to be applied arbitrarily By Both the clergy and lay trustees. Communalism was abolished in fully colonized areas. The Spanish encomenderos Claimed vast tracts of land as Their private property. Also the Indigenous nobility was allowed to lay claims on private agricultural lands and at the same time it was cajoled into making direct donations of land to the Catholic Church. In cases Where the people resisted, the colonialists cruelly Grabbed the lands from them by force of arms. All Conquered lands Were Considered property of the royal crown, subject to arbitrary colonial disposal by the Authorities. Systematically corvee labor was used to clear new lands or in cases Where the people on Their Own volition would create new agricultural fields for Their own needs, They would only be subsequently These Told That did not belong to them but to the royal crown or to some encomendero Who Had Gained title over these.

When the friars later Advocated the abolition of the encomienda system, it was not really With the view of having feudal abuses eliminated. Their intention was mainly to demand the application of Spanish laws Rigorous Within a more orderly administrative system So THAT clerical and lay landlords would not collide Too Often With Each Other In Their common landgrabbing activities. Friar entrusted criticism of the system Merely led to the creation of provinces under the Central administration of Manila. The system entrusts HAD Already taken deep roots. The religious orders HAD Already accumulated vast lands.

Either Spanish lay trustees chose to stay in the archipelago to breed successive generations of island and mestizos or to sell out to other merchants and landlords, bring gold back to Spain and Retain Their status as peninsular. The native landlords HAD Their Own Within the landowning class stratum. Some of them Became only landlords at the expense of fellow Indians Who Were Their dispossessed through sheer landgrabbing Who Fell into bankruptcy or through the due Processes of feudalism. 

By: Comrade Mark Cua

6 Democratic Forces Soldiers dies from an counter attack in Quezon Province. 21st Division Recconaissance Command was counter attacked as they are trying to retake the lost towns who revolted against the Philippine Democratic Government. 

The encounter happened in barangay Lalim, General Nakar, Quezon. The first encounter errupted on the 28th of April 2015 and the second encounter around 10 am a running battle. There had been a month long operations done for the dam Project in General Nakar in Quezon initiated by Democratic President Aquino. 

The Dumagat and Remontado Tribes or Ethnic Group had been displaced by the Philippine Democratic Government. The Dam Project would bring destruction to the ancestral lands and to nature. The Dumagat and Remontado Tribe joined and helped the NPA ((New people's Army) fight off the Philippine democratic Government. 

The Project will only bring profits to foreign and local Capitalists on the destruction of the environment and displacement of the Ethnic Groups. 

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By: Comrade Mark Cua

The 1st Red Bagani Battalion has successfully killed several dozens of soldiers in Calinan Davao. The Soldiers died on the tactical offensive and forcing them to move back from the revolutionary towns which revolted against the Philippine democratic Government.

The Oversized Platoon which is the combination of 69th Infantry Battalion, 84th Infantry Battalion, 71st Infantry Battalion, and the 10th Infantry battalion has dozens of Casualties. In which 12 immediately died from the Tactical Offensive. 

The incident happened in Barangay Dalgdag Calinan on the 6th of May 2015. The Gunfight happened for 2 hours and confiscated hundreds of guns from the Democratic Forces. M203 Grenade, Automatic Rifles, M16 Rifles, 600 pieces of M60 Amunitons, 200 pieces of K3 Ammunitons, 8 pieces of Army pack, Several Pairs of Army boots, 34 pieces of magazines, 10 pieces of Military Vests, various classified maps and documents, android tablet and cellphones. 

It is comprised of 15 columns of Democratic Forces Soldiers. 

The soldiers are involved on various landgrabbing from the Filipino Ethnic Groups, the acceptance of bribes in exchange for service to mining companies and logging companies, counter revolutionary activities. 

Rodrigo Duterte tried to talk out but ending the armed conflicts is not possible only by driving and toppling the Philippine democratic Government out of the Philippine by force is the only way to win the war for the liberation of the people and the Philippines from oppession and abuse of the Philippine Democratic Government. 

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By: Father Daniel Cogul

Democratic AMLC (Anti Money Laundering Commission) said they have froze 242 Binays Accounts and what weird is that there is no reaction from Binays. The Binays had neither reaction or comments which can be a lie from the Philippine Democratic Government. 

The Binays had at least 11 Billion Pesos of Stolen Wealth from the Filipino People and it is found on the numerous Bank accounts of the Binays. Some had been tracked with moeny movement 50 Million each movement. 

Whats more is that where did get the money to post an add on television if all his accounts had been frozen. Who is the woman in the Political ad and how much did the binays pay her to lie in front of the Filipino People. That is the question. 

This inlcudes those of Mercados and other involved in the Ill gotten Wealth in Makati and others. The Accounts include those of Elenora Binay, Nancy Binay, Junjun Binay and many others involved. 

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By: Father Daniel Cogul

Thousands of Filipinos Students marched and protested against the Philippine Democratic Department of Education and Higher Education over nonstop increase in Tuition Fees. This includes exclusive Schools public and Private. 

Getting more upset with the Philippine Democratic Government and thus with the Capitalist System of running the education system in the Philippines. Thousands of Filipino Students marched and threw paints on Philippine democratic Department of Education and Higher Education. 

Increasing the number of revolts against the Philippine Democratic Government for allowing Capitalist Schools to take advantage of the System and increase Tuition Fees. Students and parents also wants to remove K12 System becomes it is an additional expense in the pockets of the both. 

The Non Stop increase is causing a lot of drop\outs from Filipino Youths and unable to bear the expenses of education and thus becoming a capitalist business profit instead of becoming a right. 
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By: Father Daniel Cogul

Antonio Tiu however Denial he has no one believes him that he is not Binays' Sacrificial Lamb. Even his entire family had been affected and fired by the Philippine democratic Government over a Zarzuela Play. 

Although obviously guilty of becoming a Sacrificial lamb for the Binays and he is also the target of a zarzuela play staged by the Philippine Democratic Government. He was even denied by Binay although obviuosly they are previously in cahoots. 

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By: Father Daniel Cogul

US Issues Travel Advisories to travel to the Philippines due to extending hostilites to American Citizens all over the World in retaliation for the abusive and disrespect for sovereignity of the American Government. 

There had been several dead americans mysteriously died in the Philippine and many of them are shot or killed somewhere. 

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Saturday, 16 May 2015


By: Comrade Mark Cua

United States is once again getting more and more active and they are cooking something that China must be very careful of. They have been manipulating the Puppet nations like South Korea, Japan, and the Philippines. We all know what kind of Attitude United States have and these puppet nations have. 

This is also a report and intelligence Gathering for Beijing. 

The Military Activeness of United States in Asia
One of the main reasons why United States is wanting to make a restless fool out of these Japanese, Philippine and South Korean Nation is that he wants to create chaos. From Chaos United States had been trying to cook for an opportunity to get in. China must be very wary of this. 
United States is not to be underestimated when it comes to bloody Pivot Games. 

They are not to be trusted and always have daggers behind their backs holding it like Brutus. United States is not doing this for the sake of the Puppet Nations but solely and mainly for the interests of the American Government. 

They had been testing our motherland's Patience by doing some small actions that is considered violating the Sovereignity of our motherland.  I do trust Beijing knows about this and how to counter it. 

The Naval Exercises between Japan and Philippines

The Philippines moved to this pace is due to the request of United States. Philippines will never had this initiative of their own and there is always United States behind the Curtain so is Japan. The Military Exercises of Navy in the waters are not mere exercises. These have messages from United States. 

Japan is not in the Philippines for no reason at all. They know they are check mate in Diao Yu Dao Island so they are looking for ways to attract and shift the attention of China. Japan is not stupid at all they will do everything to get what they want to happen along with United States. Sooner or later when all else fails, they will abandon Philippines and get their advantage. 

I know Japanese People and Americans more as an Intelligence Officer. 

The Philippine democratic Government is going crazy shouting this and that for no reason at all. There is someone behind the curtain whispering these crazy words. It is United States. United States will stop at nothing and even will do everything including cheating just to purge their political enemies. This does not exclude China and Russia. 

By: Comrade Huang Hai

China and White Russia Signs Economic Deal worth 35 Billion USD and it is in relations with the One Region One Belt Silk Road Implementation. The two nation signed it as an economic Cooperation.  

Xi Jin Ping Visits White Russia for an Economic Tie up with White Russia and was warmly welcomed by many of the People there. This inlcudes the direct trading between the currency in White Russia and Chinese Yuan. 

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By: Comrade Mark Cua

Modi Visits Xi An, Beijing and Shanghai which warms up the places and millions of people flocked. Many of the places had cultural value between China and India especially with relations with Buddhism, Silk Road Trade Route and others. 

Modi then was welcomed by Li Ke Qiang in Beijing then flew to Shanghai to sign a deal with the Chinese Government. He was greeted with Chinese Tang Dynasty Costumes and garb in Xi An and visited the Qin Dynasty tomb sites. 

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By: Comrade Huang Hai

Beijing had spoken after a French Naval Ship had docked in Shanghai and said they will not buy French Mistral Naval Ships. The Said Naval Ships are supposedly are for Russia. 

Beijing declined the offer and politely thanked France for the offer of the Mistral Ships. Chinese and Russian Cooperation continuous not only Political and Economical but also by Military Cooperation. Beijing Said they can make and create their own Amphibious Naval Ships. 

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By: Comrade Huang Hai

Chinese Naval Ships entered the Black Sea where a major fleet of Russian Naval Ships docks. This is one of the main missions of the Naval Ships and it had pass through Syria. Months after United States sent Naval Ship into the Black Sea. 

The Port Call was one the main purpose of the Chinese Ship docking in Black Sea along with other Russian Naval Ships. 
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By: Comrade Mark Cua

More Corrupt Officials from China had extradite and sent back to China for punishment. The CPC (Communist Party of China) had already brought back more than 200 officials many of them hiding in Canada, Neighbouring Countries. 

Li Hua Po was one of the hundreds who escaped but later brought back to China for Punishment. Many of these Officials are sentenced to death for Corruption. 

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Wednesday, 13 May 2015

By: Comrade Huang Hai

CPC (Communist Party of China) Chairman Xi Jin Ping visits Russia and was warmly welcomed by Putin in Russia. He was in Russia for Political and Economic Visit. One of the main reasons was to join the World War II Victory Commemoration. 

A Victorious War against Japan and Germany 70 years ago and now celebrating the long time brothers in arms of China and Russia.
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By: Comrade Huang Hai

CPC (Communist Party of China) sends 250 troops to Russia to join the Commemoration of Victory in World War II Parade in Moscow. No Tanks and Planes from China was sent but only troops of soldiers. 

The Parade was in commemoration of the brothers in arms relationship between Russia and China and the victory on World War II after the defeat of Japan. Russia showed its newest technology and tanks in the said military Parade. 

The Parade also showcased the World War II Planes flown by Veterans. 

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By: Comrade Mark Cua

Chinese CPI (Consumer Price Index) had increased by 1,5% and Showing Chinese People had increased their purchasing power. This include all commodities in the Super market and food and beverages. 

The Chinese purchasing power had increased by 1.5% and that it is showing positive signs of improvement on Chinese Consumers. 

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By: Comrade Slovak Respovik

Japanese Borrowings on IMF (International Monetary Funds) had increased by 105 Billion Ren Min Bi and keeps on increasing. Many of the expenses of Japan was spent on Military Built up and ties with United States. 

Its Currency Japanese Yen is also going down by 119 Yen per 6 RMB. In 2014, Japanese Debt had reached all time high of 88 Billion Ren Min Bi and more bad news trade deficit had been continuing in Japan as more countries no longer wants to buy from Japan (Especially in Asia). 

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By: Comrade Mark Cua

India is increasing its imports of Chinese Products by 3 folds this first quarter of 2015. India has mostly purchased Chinese made Smart Phones and thus gained from it. 

Brands like Lenovo, Oppo, Vivo had been increasing seen on the Indian Market and even on the local stores of India. Showing India had increased its import of Chinese Brand Smart Phones. 

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By: Comrade Mark Cua

Bank of China had increased in total shares and income by 12.7% early this first quarter of 2015. It is richer and more stable than 2014. 

The total Income gained was 74.6 Billion Ren Min Bi and since 2014 there is a total of 41.5% increase in income and net assets. Another success story for CPC (Communist Party of China). 

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Tuesday, 5 May 2015


By: Comrade Mark Cua

II. US Imperialism
The Scheme to Prolong U.S. Domination

In the last 10 years, the crisis in the Philippine economy has rapidly worsened. This has been the result of the vicious maneuvers of U.S. imperialism to shift the burden of its economic crisis at home to its colonies and semicolonies and also to prepare for the termination of the Laurel-Langley Agreement and the Parity Amendment. The scheme of U.S. imperialism is to put the Philippines into such a desperate financial situation as to ensure the prolongation of imperialist privileges. At the same time, all-out military and police preparations and actual operations are conducted to counteract the revolutionary mass movement inflamed by the economic crisis. Counterrevolutionary reformist campaigns are also waged to sow confusion in the ranks of the revolutionary masses.

As a result of the full and immediate decontrol of foreign exchange at the start of the Macapagal puppet regime, U.S. business firms remitted profits heavily and the comprador-landlords used their dollar earnings as they pleased. The dollar reserves of the reactionary government were depleted and the peso sank in value from P2.00 to P3.90 per U.S. dollar in the absence of sufficient dollars to support it. To maintain the peso at its new level, the Philippine reactionary government was extended “stabilization�? loans at onerous terms. But these loans were mainly sucked up by U.S. firms and their comprador-landlord and bureaucrat allies. The puppet chieftain Macapagal promoted the “open-door�? policy on foreign investments and the idea of “joint ventures�? and allowed U.S. subsidiaries to grab the foreign loans in remitting profits, building up their local assets, taking over Filipino enterprises or overloading them with foreign loans in preparation for being taken over and the like.

During the first four years of the Marcos puppet regime, U.S. imperialism went high on aggravating the puppet policies of the Macapagal regime. The Marcos puppet regime was even more efficient in implementing the recommendations made by the International Monetary Fund and the World Bank as early as 1960. It was able to increase taxes ostensibly of those with the ability to pay, who in turn shifted the tax burden to the broad masses of the people in the form of steeply rising prices. The Marcos puppet regime profligately made expenditures on public works and other inflationary projects. The U.S. subsidiaries and the comprador-landlords were extended the biggest government loans and guarantees. There was a splurge on luxuries, buildup of sugar mills, mining projects and mining speculation. The bureaucrat capitalists exacted the most stupendous amounts of kickbacks on import-export contracts, especially in contracts with foreign machinery and construction firms.

At the beginning of 1970, it was clear that the Marcos puppet regime had succeeded in making the Philippines more bankrupt than ever before, with a big internal and external debt. The peso sank to another low level, at more than P6.00 per U.S. dollar. In only eight years, the peso suffered a devaluation of more than 200 per cent in relation to the U.S. dollar. The International Monetary Fund, functioning as the agency of U.S. imperialism, dictated the devaluation of the peso as a precondition for the rescheduling of loan payments and also for the granting of new loans by U.S. imperialism. The automatic result of the peso devaluation was the increase in the price of all commodities and the increase in value of all foreign debts.

In February 1970, the peso value of the $1.5 billion foreign debt rose from P5.85 billion to at least P9.3 billion (at the unsettled rate of P6.20 per U.S. dollar) excluding interest which also rose. In June, only five months after, the foreign debts reached $1.9 billion or at least P11.78 billion excluding interest. Annual interest payments alone on these debts consumed half of the dollar earnings on Philippine raw material exports. In this process, U.S. imperialism is the worst usurer in the whole world. The Philippines does not stop begging for foreign loans from U.S. imperialism because it has to import many vital commodities which its colonial economy does not produce and because it has to service previous foreign debts. The rapid increase in the value of such foreign loans can only concretely mean ever cheaper raw materials and cheaper local labor for U.S. imperialism and an ever higher cost of importing finished products from the United States and other imperialist countries. The working people are today suffering from the higher prices of commodities; their real income has gone down and no adequate adjustment has been made by the puppet government. The daily minimum wage has been refixed at P8.00 for industrial workers, a mere increase of 33 per cent, yet the devaluation is at least 60 per cent and continues to cut down real wages in a rapid way.

A puppet government that is bankrupt cannot be expected to undertake the expropriation of U.S. assets with U.S. dollars. It is both politically and economically impossible for that puppet government to do 90. The repeated devaluation of the peso has increased the vslue of these alien assets and has favored their buildup in 90 many related ways. As a matter of fact, the U.S. monopolies have deliberately increased their assets in the Philippines from $440 million in 196220 to at least $2.0 billion (book value) in 1969. They did so by bringing in only a small amount of direct investments and by borrowing heavily from local credit sources. They sucked up the very same laws that they had extended to the Philippine puppet government at onerous terms. The rapid buildup of U.S. interests, inside and outside the areas of “parity rights�? is obviously calculated to effect a firmer internal U.S. political and economic control of the Philippines. It is to prepare for the termination of the Laurel-Langley Agreement and the Parity Amendment and to nullify any notion that U.S. assets could be bought out within the framework of reactionary laws.

In the light of the financial bankruptcy of the reactionary government and the severe impoverishment of the Filipino people, it is clearly counterrevolutionary to advocate the “peaceful nationalization�? of the economy or to hope that the mere formal termination of the Laurel-Langley Agreement and the Parity Amendment would automatically inaugurate economic independence. Besides, the majority of U.S. investments (more than 50 per cent\ are now outside the areas of “parity rights�? and are therefore legally allowed to stick in business entities where U.S..investors can own and control more than 40 per cent.

In order to promote the acceptance of U.S. investments in the Philippines, U.S. imperialism is actually subsidizing counterrevolutionary organizations and movements spouting such nonsense as “peaceful revolution,�? “constitutional reform,�? “due process,�? “just compensation,�? “profit-sharing,�? “joint ventures,�? “hospitality to foreign guests�? and other such hogwash. These counterrevolutionary slogans are all intended to slur over the viciousness of U.S. monopoly capital and to head off the revolutionary mass movement clamoring for people’s war against U.S. imperialism and all its local lackeys.

Not even the national bourgeoisie can hope to increase its share in the exploitation of the Filipino people. This social stratum is daily facing bankruptcy. The few commodities that it produces locally cannot escape the rising cost of importing fuel, equipment, spare parts, raw materials and the like. The local sources of credit have practically dried up for the national bourgeoisie. More than this local stratum, the Japanese militarists and the Soviet social-imperialists have the better chance of joining up or competing with U.S. imperialism in the exploitation of the people.

The Investment Incentives Law was enacted to pave the way for the continuance and aggravation of U.S. economic control over the Philippines after the termination of the Laurel-Langley Agreement and the Parity Amendment. The Constitutional Convention now being played up by the counterrevolutionaries as a channel for “change�? in Philippine society is actually a step towards allowing the U.S. monopolies to own more than 40 per cent equity beyond 1974, even in the utilization of public lands, exploitation of natural resources and the operation of public utilities. As certain as dominance of comprador and landlord delegates in the Constitutional Convention, the accommodation of the Investment Incentives Law and an unequal treaty of friendship, commerce and navigation with the United States will be carried out by the most significant amendments in the colonial constitution.

The Investment Incentives Law empowers the Board of Investments, a mere agency of the puppet president, to allow U.S.-dominated enterprises to persist or be set up in the Philippines even without limiting their equity capital to a maximum of 40 per cent in corporations as per requirements of the present constitution. Section 19, Paragraph 3 of the investments law allows foreign investors to own even 100 per cent equity in local corporations provided that they merely signify their intention of selling shares of stock to Filipinos or “Philippine nationals�? within 10 years from the date of registration of such corporations. On the eleventh year, these corporations are supposed to actually offer for sale shares of stock in the stock exchange. But if Filipinos and “Philippine nationals�? fail to buy enough shares to reduce direct foreign equity to 40 per cent, so much the better for the foreign investors because they would be permitted to continue owning equity beyond 40 per cent for 20 years from the date of registration of the corporations. After one period of 20 years, these corporations may again be permitted to stay under unlimited U.S. ownership and control for another period of 20 years.

The Investment Incentives Law sanctifies the “Philippine national,�? a corporation with a maximum of 40 per cent foreign equity in its capital structure. Thus, there is so much talk nowadays about giving “national treatment to U.S. investments among the puppet politicians. The outlandish definition of “Philippine national “ is calculated to allow the U.S. monopolies to hold more than 40 per cent equity even in local corporations where they are restricted to a maximum limit of 40 per cent equity. For an illustration, let us have corporations A and B. If corporation A bears 40 per cent foreign equity and qualifies as a “Philippine national,�? it can acquire and hold 60 per cent equity in corporation B side by side with 40 per cent equity directly headed by foreign investors. In such an interlocking relationship, corporation A actually effects 64 per cent foreign equity in corporation B, if one were to do away with legal blinders. In turn, corporation B will certainly have an impact on corporation A in favor of foreign control.

It is already sufficient for the U.S.monopolies to own and control 40 per cent equity in order to control an entire corporation irternally. This is easily effected by keeping solid 40 per cent equity in the hands of foreign investors and keeping diffused through the stock market the 60 per cent among Filipino petty shareholders. It is an old trick of monopoly capitalists to use a small but solid block of shares to control a big mass of small shareholders. It is in line with this imperialist trick that there is a huge campaign for “profit-sharing�? (an obscurantist term for stock manipulation) to mislead some wage-earners and petty-bourgeois elements to surrender their meager savings and future earnings to the exploiters or allow the U.S. monopolies and the local reactionaries to rob the Social Security System (S.S.S.), the Government Service Insurance System (G.S.I.S.), the Development Bank of the Philippines (D.B.P.) and the Philippine National Bank (P.N.B.). The U.S. imperialists, rapacious as they are, wish to have more levers for retaining their political and economic power over the Philippines.

There are other ways by which the U.S. monopolies could continue controlling and enjoying ownership of more than 40 per cent of the capital in a corporation and also more than 40 per cent of the profits even after the termination of the Laurel-Langley Agreement and the Parity Amendment. These were obsequiously explained by the Philippine panel to the American panel in the negotiations on the Laurel-Langley Agreement. The U.S. monopolies could hold non-voting shares and bonds in corporations, exercise credit control, impose management contracts, manipulate purchase agreements and technical assistance contracts and so many others that reactionary power permits. Moreover, the Braderman-Virata negotiations have sought to perpetuate “parity rights�? by simply replacing the term with a new one, “national treatment,�? in the treaty of friendship, commerce and navigation now being cooked up. In the communique issued by the negotiators, it is evident that the U.S. imperialists and their local running dogs are willing to remove U.S. “parity rights�? only from the field of retail trade.

The Investment Incentives Law worsens the economic enslavement of the Filipino people and sells off every semblance of Philippine sovereignty to U.S. imperialism. The puppet state is bound by this law never to expropriate or requisition foreign assets. It is also bound to provide U.S. dollars to foreign investors for the repatriation of investment, remittance of earnings and payment of all foreign loans and contractual obligations. In addition to these basic privileges, the U.S. investors through their corporations registered with the Board of Investments enjoy such “incentives�? as capital-gains tax exemption, tax allowance, tax exemption on sale of stock dividends, deduction of organizational and pre-operating expenses, accelerated depreciation, net operating 1oss carryover, tax credit, tax exemption on imported capital equipment, employment of foreign nationals, deduction for expansion reinvestment, protection from government competition, preference in grant of government loans, absorption of G.S.I.S. and S.S.S. funds and special export incentives.

The Investment Incentives Law has set a pattern of legislation intended to perpetuate U.S. ownership and control of local firms to the extent of 100 per cent. The Export Incentives Law allows foreign equity up to 55 per cent in export industries and up to 100 per cent in pioneer industries engaged in export.

Following the dictates of their U.S. imperialist masters, the reactionaries have also taken to creating free trade zones, like the Mariveles Free Trade Zone, to let the U.S. monopolies have permanent economic enclaves where they are beyond the tax laws of the Philippine puppet government.

U.S. imperialism is using both peaceful and violent methods of suppressing the Filipino people’s clamor for national liberation and democracy. The C.I.A. and other subversive agencies of U.S. imperialism are subsidizing and manipulating various branches of the puppet government, “civic�? and “reform�? organizations, educational and cultural institutions and the reactionary mass media to wage a propaganda campaign designed to whip up a “climate for foreign investments�? and an atmosphere of anti-communist hysteria. At the same time, all-out violent efforts are being exerted to “nip in the bud�? the Communist Party of the Philippines and the New People’s Army, meaning to say, the broad masses of the people who have risen to shake off their colonial shackles. Increased military supplies and training in counterinsurgency techniques are being extended to local police forces through the A.I.D. Offlce of Public Safety and to the reactionary armed forces through the JUSMAG. So many fascist crimes are being committed in the name of anticommunism against the people. The Marcos fascigt puppet regime daily promotes the rise of fascism in an attempt to cow the people.

Whenever a dastardly crime is committed by U.S. military personnel and there are widespread demands for justice which find their way even into the reactionary press, the puppet government goes through the motion of asking the U.S. Embassy for renegotiations on the U.S.-R.P. Military Bases Agreement. When the din dies down, talk of having renegotiations also ties down. What is made to prevail is the treacherous idea that the foreign military bases provide a dollar income for the puppet government. A measly annual income of about $130 million to $I50 million from the U.S. military bases for the puppet government and vice lords is clearly not enough to pay for the transgression of Philippine sovereignty and territorial integrity and also the actual economic deprivation and sabotage resulting from the occupation of potential agricultural and mineral lands and the wanton smuggling of U.S. goods through the U.S. military bases.

Whenever U.S. imperialism wages a war of aggression against another country, the Philippine puppet government never hesitates to call for or join a war council under the direction of U.S. imperialism. The necessity for U.S. imperialism to hold on to its military bases in the Philippines becomes more clear. These military bases are the ultimate guarantee for the protection of its foreign investments in the Philippines and also for launching wars of aggression in Asia. Despite all talks of U.S. “withdrawal�? from Asia, U.S. imperialism repeatedly insists that it will remain a “Pacific power�?. Sham talk of “withdrawal�? is only intended to give Filipino running dogs an occasion to beg U.S. imperialism to stay. Whenever the demand for U.S. withdrawal is raised by the broad masses of the people, the local diehard reactionaries say that it is untimely to “renegotiate�? treaties when the Philippines is suffering from an economic crisis and is begging for foreign loans.

Being fast isolated as the Number One enemy of the world’s peoples and the Filipino people, U.S. imperialism is desperately trying to dissimulate its role as the principal oppressor and exploiter. As before, it wants to make the Philippine government appear to be begging of its own volition for investments not only from the United States but also from so-called international financial institutions and consortiums 21 and such other imperialist countries as Japan and the Soviet Union, among others. In imposing its imperialist policies on the Philippine puppet govermnent, the United States does not only make use of the A.I.D. and its other direct agencies but also the International Monetary Fund, the World Bank, the Asian Development Bank, international consortiums, various agencies of the United Nations and “regional�? organizations. But when an internal analysis is made of the accounts, it is U.S. imperialism that inevitably comes out as the principal bloodsucker.

Aggravating the old bilateral and multilateral treaties and agreements shackling the Philippines, U.S. imperialism encourages the Philippine puppet government to promote such new “regional�? arrangements as the Asian Pacific Council (ASPAC), the Association of Southeast Asian Nations (ASEAN), Southeast Asian Ministers’ Economic Council (SEAMEC) and others. These are ballyhoed as regional organizations independent of U.S. imperialism but are clearly composed of the puppet government bound to U.S. imperialism in so many ways. Efforts of U.S. imperialism to hide behind such farcical organizations are being intensified under the “Nixon Doctrine�? of “making Asians fight Asians.�? But U.S. imperialism can never conceal its aggressive nature; it will always keep and use its military personnel abroad as much as it can.

At any rate, U.S. imperialism is rapidly reviving Japanese militarism to serve as its principal Asian instrument and is accomodating it in the Philippines. It has the pipe dream of retaining Japan as its fugleman in Asia. In line with the wishes of U.S. imperialism, the Marcos puppet regime has been maneuvering to have the unequal Japan-R.P. Treaty of Amity, Commerce and Navigation ratified. Even without this treaty, Japan is being allowed to participate in the plunder of Philippine mineral, marine, forest and agricultural resources. It is being allowed to make investments and dump its goods in the Philippine market. It now ranks second only to the United States in investments and control of Philippine foreign trade.22 The reactionaries wish to give Japan the special privilege of moving as it pleases its fishing fleets as well as its naval vessels in Philippine territorial waters.

U.S. imperialism is also calculatingly compelling the Philippines to open diplomatic and trade relations with Soviet social-imperialism. Under the guise of being able to extend loans, especially in the form of capital goods, Soviet social-imperialism is trying to get a share of raw material products from the Philippines, dispose of its shoddy commodities in the Philippine market and impose usury. Like Japan, Soviet social-imperialism is being maneuvered by U.S. imperialism to overextend itself in the defense of the world capitalist system and share in the responsibility of maintaining reactionary governments that are basically puppets to U.S. imperialism.

U.S. imperialism is specifically interested in allowing Soviet social-imperialism to help the local revisionist renegades sabotage the revolutionary mass movement and help the reactionary government foster the illusion that there is democracy. Eager to benefit from the accomodation being granted by U.S. imperialism, the Lava revisionist renegades, the Philippine agents of Soviet social-imperialism, have on many occasions fed to the reactionary armed forces information against the Communist Party of the Philippines, the New People’s Army and the broad masses of the people. They have conducted slander campaigns and bloody forms of intrigue against the people.

The strategic alliance of U.S. imperialism, Japanese militarism and Soviet social-imperialism into which the Philippine puppet government has been drawn is basically directed against the people, revolution, communism and China. In this arrangement, U.S. imperialism makes use of Japanese militarism to keep in check Soviet social-imperialism and Soviet social-imperialism to keep in check Japanese militarism. While they ally themselves against their common enemies, they cannot but contend among themselves as imperialist powers for the redivision of the world. This is a self-defeating arrangement.

Though U.S. imperialism is relatively strong in the Philippines, it has actually become weak on a world scale. It can no longer postpone its collapse. This is now the era of Marxism-Leninism-Mao Tsetung Thought when imperialism is heading for total collapse and socialism is marching toward world victory.

Unlike in the last two world wars when it could take advantage of the disaster of other imperialist powers, U.S. imperialism now finds itself being pushed to its own total disaster by the worldwide anti-imperialist struggle. By overextending itself throughout the world in order to oppress the people, U.S. imperialism is now being struck hard by more and more people and in more and more places than it can cope with. People’s wars are raging all over the world, especially in Asia, Africa and Latin America. At this stage, when so many oppressed peoples have risen up to make revolution the main trend, U.S. imperialism is rapidly heading for total collapse. If it were to launch a world war, it would only hasten its own destruction. If it did not, it still would have no chance of winning its wars of aggression as those against the peoples of Vietnam, Cambodia, Laos and other countries. In the homeland of U.S. imperialism, the white and black proletariat are intensifying their revolutionary struggle against the bellicose impositions of the big bourgeoisie. U.S. imperialism makes alliances with other imperialist powers but the latter never fails to take advantage of its plight. Though it appears to be a huge monster, U.S. imperialism is in essence a paper tiger in the throes of its deathbed struggle.

While U.S. imperialism and its allies are heading for disaster, the Chinese and Albanian peoples are conso1idating socialism and ensuring a powerful rear base for the worldwide anti-imperialist struggle. The international united front is ever expanding to isolate counterrevolutionary diehards. All oppressed peoples can look forward to a bright future as they arm themselves with the same basic weapons with which the Chinese and Albanian peoples have achieved their glorious victories. The Philippine Revolution is today illumined by the great universal truth of Marxism-Leninism-Mao Tsetung Thought. The Communist Party of the Philippines, the revolutionary party of the Filipino proletariat, has become reestablished on a correct theoretical basis to lead the people to victory .


By: Comrade Mark Cua

II. US Imperialism
U.S. Monopoly Control of the Philippines

In an uneven and spasmodic way, U.S. surplus capital has been invested in the Philippine economy. At present the U.S. monopolies and their local subsidiaries own or control such businesses involving petroleum,14 tire and rubber, drugs, fertilizers, chemicals, mining, heavy equipment, marketing, transport facilities and others. The majority of the biggest corporations in the Philippines today are American. They control at least 50 per cent of the total business assets in the country. The book value of these U.S. private assets is at least $2.0 billion, according to available sources in 1969.15 The market value is several times higher. These assets represent at least 60 per cent of the total U.S. private investments in Southeast Asia. Of the total foreign private investments in the Philippines, U.S. investments constitute 80 per cent. The volume and value of U.S. investments in the Philippines are even greater today than during the period of direct U.S. colonial rule when U.S. private investments reached the level of P537 million or $268.5 million (based on Bureau of Census and Statistics figures).

The magnitude of U.S. investments is not the only thing that weighs down heavily on the Filipino people. It is also their strategic position. For instance. petroleum (supplied by Esso, Caltex, Mobil, Filoil and Getty Oil)16 is overwhelmingly, under the control of the U.S. oil monopolies. By this commodity alone, U.S. monopoly capitalism controls every other commodity transported or processed in the Philippines. The U.S. oil monopolies supply more than 90 per cent of the country’s energy requirements. Tire production, trade in construction materials, import-export and the wholesale trade are also controlled by foreign firms, chiefly American. They control bulk sales to end-consumers like big utility plants. Though U.S. capitalists appear to, have withdrawn from the field of public utilities, they sold a great portion of their shares in the Meralco (electricity) and P.L.D.T. (telephone) only after burdening these firms with U.S. loans and after securing guarantees from government financing institutions. These enterprises remain as sources of huge interest payments and are increasingly subject to being retaken over through bonds floated in Wall Street.

The U.S. imperialists own the largest commercial banks, insurance companies and other financing institutions. They therefore control the Philippine banking system. They grab the domestic savings of the people and utilize these to support U.S. enterprises here. In this regard, an oft-cited case ofYankee cleverness is the original capitalization of the Philippine-American Life Insurance Company at less than a million pesos and its rapid growth into a billion-peso corporation in a matter of two decades after the last war. U.S. firms secure credit not only from local U.S. banks but also from Philippine-owned banks. Another flagrant case of Yankee rapaciousness can be seen in gold production. For a long period of time under the Gold Subsidy Law, the Central Bank bought gold from Benguet Consolidated and other U.S. mining companies at $57 to $67 per ounce, that is to say, $22 to $32 above what was then the world price of $35 per ounce.

During the period of 1960 to the middle of 1969, foreign investors (principally American) borrowed P13.5 billion from local credit sources. For the period of 1962-68, U.S. firms alone were able to borrow P8.0 billion in clear pursuit of old imperialist practice and also in clear application of the U.S. policy of exhausting local credit sources in colonies and semicolonies so as to help ease the U.S. balance of payments crisis. A study of 108 U.S. firms supposedly accounting for 70 per cent of U.S. investments in the Philippines, reveals that 84 per cent of their capital and operational funds came from Philippine sources and only 16 per cent (including reinvested profits made in the Philippines) came from the United States in the period of 1956-65. During the same period, these 108 U.S. firms remitted home more than $386 million, close to seven times the actual total of new investments ($58.5million ) that they brought into the Philippines. The increase in paid-up capital of these firms was only $28 million from a base of $74 million in 1956 to a new level of $102.5 million in 1965 while their remitted superprofits was more than 1,300 per cent of such measly increase in paid-up capital.

Central Bank statistics show that during the period of 1960-69, foreign investors, mostly American, brought in $160 million in the form of new capital investments and brought out at least $482 million in the form of capital withdrawals and profit remittances. Huge profit remittances by U.S. firms are not a new development. When in the fifties there were foreign exchange controls and U.S. firms were encouraged to plow back their profits into the local economy, they invested the paltry amount of $19.2 million only to remit $215.1 million. U.S. statistics easily admit that the rate of profit from U.S. investments in the Philippines is more than 25 per cent higher than the average rate of profit from U.S. overseas investments in general.17

The profit remittances of U.S. firms were officially reported by the Philippine reactionary government as reaching tens of millions of dollars annually during the sixties, specifically an average annual rate of a little over $40 million. Nevertheless, there were unidentifiable transactions in Central Bank records amounting to several hundreds of millions of dollars every year, ostensibly for the payment of imports, travel abroad, and several other transactions involving the disbursement of foreign exchange. According to estimates made by the Economic Monitor, the U.S. firms holding $500 million investments in the Philippines made remittances arnounting to $2.2 billion from 1962 to 1969 or an annual average of $316 million. On top of this, dollar payments for miscellaneous invisibles totalled $2.7 billion or an annual average of $304 million. The Americans for Peace in Indochina, an association of Americans in the Philippines opposed to the U.S. war of aggression, claims that in 1969 alone, U.S. investors remitted $3.0 billion from the Philippines.

A clever method of profit remittance by overseas U.S. firms is the purchase of commodities and services from their mother or sister companies in the United States at an overprice. U.S. firms engaged in export and re-export business in the Philippines underprice their goods only to get the real prices and the real profits abroad. A variation of this involves the export by U.S. mining companies of copper concentrates and iron ores with substantial gold, silver, nickel and other components which are not fully accounted for in the country.

Because of the colonial and agrarian character of its economy the Philippines is highly dependent on a colonial pattern of trade that is to say, the exchange of local raw materials and foreign finished products, especially American. In a vicious cycle, the colonial pattern of trade which has been developed for a long period of time by U.S. imperialism through preferential trade and the quota system has in turn served to perpetuate the colonial and agrarian character of the Philippine economy. At first glance, it looks as if free trade has been favorable to the Philippines but on an examination of the accounts it is clear that only the U.S. imperialists and the comprador-landlord cliques in the Philippines have been favored. At the height of free trade under the Bell Trade Act from 1946 to 1954, the United States exported to the Philippines $2.0 billion worth of goods duty-free and the latter exported to the former only $889 million worth of goods duty-free.

By the nature of its exports the bulk of which comprises sugar, logs, lumber, coconut products, abaca, tobacco and unprocessed minerals, the Philippines cannot earn enough U.S. dollars to pay for the importation of foreign manufactures coming principally from the United States which command higher prices. As of 1968, only 8.3 per cent of Philippine exports could be categorized as manufactured goods. The Philippine economy is so uneven and lopsided that it has to import even such agricultural products as poultry and dairy products, cereals and cereal preparations which are still in the bracket of the ten top imports. In the world capitalist market, the foreign monopolies consistently jack up the price of their manufactures and other products and force down the price of raw materials that they purchase from the colonies and semicolonies like the Philippines. The result is chronic deficit in the foreign trade of the Philippines. The annual foreign trade deficit rose from $147.1 million in 1955 to $249.7 million in 1967 and to $301.9 million in 1968. The rapid rate of increase in deficit is due to the effects of U.S. imperialism and all other imperialist powers to squeeze out more profits from their foreign trade as a measure of facing up to their own balance-of-payments problem. They are now viciously trying to pass on the burden of their general crisis to their colonies and semicolonies by stepping up their own exports, by exporting inflation, by forcing weaker countries to devalue their currencies and by practising usury.

The economy has no capital-goods industry and the structure of local manufacturing has not changed at all.18 As of 1968, 75.5 per cent of manufacturing output went into non-durables like food, beverages, cigarettes and cigars, textiles, footwear, paper, rubber, chemicals and the like. Twenty-four and three-tenths per cent went into the manufacture of such durables as furniture and fixtures and mere reassembly of machinery, metal products, appliances, motor vehicles and the like.

It is bandied about that during the last two years, the Philippine reactionary government made heavy dollar expenditures because it imported mainly machinery, transport equipment, fuel and raw materials for domestic processing. What is falsely implied is that the Philippines is rapidly industrializmg. This is a big lie because these imports have been mainly for public works projects, construction of office buildings and sugar mills, mineral extraction, spare parts, motor vehicle and home appliance reassembly and other such so-called intermediate industries as textile, flour and steel mills that rely on imported yarn, wheat and steel sheets.

Maintaining the colonial economy in an artificial way, the Philippine reactionary government has incurred an internal debt of at least P6.0 billion and an external debt of $1.9 billion (as of June 1970)19 mostly from U.S. banks at high interest and on short term basis. These debts have resulted in a steep inflation and devaluation. As a semicolony, the Philippines cannot continue to operate without an adequate supply of U.S. dollars. And yet, as it tries to acquire such, it is bogged deeper in colonial exploitation and crisis. Because of the chronically inadequate dollar earnings of Philippine raw materials, the reactionary government has to beg the U.S. monopoly banks and the international financial institutions under U.S. control for more loans at increasingly onerous terms. The Philippines is mortgaged and auctioned off so easily. The critical point has been reached in foreign borrowings so much so that devaluation has been repeatedly imposed on the peso currency and the reactionary government has already become hysterical even only on the matter of “restructuring�? its old debts. But it must still get new loans on more onerous terms in order to be able to import the finished goods which its colonial economy does not produce. The Marcos puppet clique is bent on increasing the foreign debts of the Philippines by asking for the authority to borrow another $1.5 billion within the next four years.