B32F2 - OFFICE OF ECONOMIC COORDINATION (1951)

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fros so of isolatlon The threat of rf,r, the possibility goois tirat fill the deficlency in our production, ihe need to\ ('.'..n/ social problens that are dooply rooted ln the paet and to redu eaploSnrent to the lrinl.ou.n, should alert us to the need for fim declsions tc carry out a bold progren of soeial r€fomaLion and econornlc pr€p{irallncss. Since the Philippinee lE not, an indusLrlal country and defenoe, cannot be expect€d to produce riar naierialg for its ntlltary our mobiliaat,lon shoul"d be g€{rr€d to abLain for our people the benefj.ts of hlgh enploylront, naxinul producilon of food not only for our onn needs, but a19o for the needg of our allies and friends' anci the The creatlon of such establishs€nt of tbe ,eost esseniial industries. j.mperativo. an agency reaaihg urgent, and A very i-nportant probJ"ea which has recently arlsen l.s the col.lection of r|ar reparations fron Japan. The Sane h4$ to be eynchronJ.zed |"ith ECA s.id and with the progral} of econonLc developoent at pretent being e&rried out by ttre dlfferent depa.rtnenLs, agencles, and governThe effectlve collection of war reparat ions from nent corporations. Japan olght a1,so require huge finsncing in the fora of ren Baterlels to be Bupplled t,o Japen Lo be converted lnto capital goods and othe r of beasures for The plannlng crd ixplcaentation finlsh€d Frcducts. the coll-ection of sal-d 16'r reparations wi.ll requlre the solution of coor{ination of necessitate .effectlve nany other problens vhich rill and by gove cononlc developnent to be undertaken by privaLe lnitlative ihls fu another rea!$on nhich erkes inperaern@nt, inst "uaent al,ltl€s. ilve the cr.eatlon as goon as posoible of an Scononric Mobilization Bo:rrd. The problen of land dlstribution as folloYs:

rlas etressed in tho BeJ.J.Report

n2. x x x; that the openlng of new l-ands for settl-enent in h@esteads b6 expedited and the clearance of lard pronptly assured; that a progran of land redistritltl€s butlon be undertaken lhtbugh tlre purchase of large 6st&teg and that neasures b€ underfor reaaLe to grnaLI faEers; taken t'o provide ienante rdth reagonable sccurity on their Iand &nl an equilable ghsr€ of Lhe erops they produce." The study of ways 8nd FeanE of carrylng out the above reconlaondatlons of the Be}l Xisslon ls one ot the pr€sslng probl€60s that rernilres overall consideaation by a Board of Cabinet level and the seue cotild b€ assigned to the Eccnomic Mobillzation tso:Lrd. Enclosed herewitb iE a draft of an execuLiv€ order creaLing the gaid Board. The prcvisi ons ol the previous bill rhlcb r*ould req,rire Leglslative onactnent hav6 been elinLna,ted frcn the porders to be granted the Bo.rrd by executlve decree. Sone of Lhs porrers which were proposed lc be vested in Lhe sald Board and whicb ;rr.o now vested in t,he several departments and agcnciea


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directly to the steam power station by belt confeiors. Limestone is also mined nearby. The manufacturing proeess is illustrated by the attached JIow sheet. Three and eight tenth (3.8) tons of limestone, containing g8 per cent CaCO3 rhixed with 0.38 tons of coke is burned in a lime kiln, liberating 1.9 tons of COz of which one-half is usedin the carbonatingtower and the other half is discharged into the air. The lime is slaked to produce Ca(OHz. 2.3 tons of salt at 90 per cent NaCI is dissolved,mixed with the Ca(OH)2, passed, through NH3 absorberand the Carbonating tower, centrifuge, converter, agitating tank, thiekener, evaporator (to 35 per cent), evaporator (to 50 per cent) to Lhe causitic tank for liquid caustic soda, or to evaporator (to 70 per cent), caustic pot fol' caustic soda solid. The product then is one ton of caustic soda with 1.9 tons of CaCI (after 30 per cent loss). In this process3 tons of 3500 Cal coal is used to produce 10T of steam at 1.4 kglcm' and 600 KWH is required for power, while 0.7 T of 4000 Cal coal is usedto fire the caustic pot. For producing soda ash, the Sodium Bicarbonate is passedfrom the centrifuge to a rotory calciner. In this case1.35 tons of sodaaah is producedfrom the aboveraw materials. but less KWH and coal is required than for producing caustic soda. The amount of cooling water used by this plant is 2000 T per hour (capacity is 3.500 T/hr) with temperature of water in summer at 29'C. The number of workers employedis 1,500of rvhich 1,200 are at the factory. Of the factory workers, 30 per cent are women.

The contact process produces concentratedsulfurii acid at 98 per cent. The efficiencyin conversion from SOzto SO3is 93.4per cent while that for conversionfrom S to HzSOI is 84.4 per cent. In this process,0.281 T of 37.3 per cent pyrite ore gives 0.5?1H2SO398 per cent. In the tower process 0.201 T of 42.5 per cent pyrite gives 0.4 T. acid, and 0.126T of 32.1per cent pyrite gives 0.190acid, both of which are of 50'Be. The flow sheet for the amrnoniumnitrate plant is also shown in the attacheddiagram. The ammonia gas is producedfrom the coking of coal, and hencethis plant is diferent in this respectfrom the one being constructedin the Philippines. Attention is therefore emphasizedon the production of ammonium itlate starting from ammonia. Ammonia gas is diluted with air to 13 per cent and processedby the Fauser'ssystem. It is passed successivelythrough a mixer, NH3 converter, gas cooler,oxidationtower, compressor,oxidation tower, cooler,and absorptiontanks to producedilute nitric acid. This is mixed with ammonia, in a reaction vesseland then dried to produceamrnoniumnitrate. The exhaust gases from the absorption tanks are used to produeeNaOz and NaOs. The capacity of the ammonium nitrate plant is 20 tons per day in two units. 0.188 tons of ammonia gas u'ill produceI ton of nitric acid. On the other hand, 1.350 tons of nitric acid mixed with .228tons of ammonia,producesI ton of ammonium nitrate. The requirement for cooling water in this plant is 1 to 2 tons/min. The plant is run by ll men per AMMONIUM NITRATE FERTILIZER PLANT shift of 8 hours including bagging. The product This.inspection was conductedon February 27, contains 36 per cent nitrogen. 1951 of the UBE Chisso Factory of UBE Koshan BAYON PLANTS Co., Ltd. This factory is a huge one, engagein the mining Two plants belongingto Shinko Rayon Co., Ltd. and processingof UBE coal. It produce$a large were inspected. The rayon staple fiber making variety of chemicalssuch as ammonia, ammonirlm plant is at Otakeand the RayonSpinning and weavsulfate, sulfuric acid, 50"C Baume, nitric acid 62 ing Plant is at Koda. per cent, ammonium nitrate, naptha, creosoteoil, The history and production facilities are shown para,ffin,cresol and pitch. During the inspection in the attached outline. Very meager data could particular attention was given to the ammonium nibe obtained from the staple fiber factory because trate plant and to the pyrite burning plant for the of the reluctance of the men in chargeto talk about production<ifsulfuric acid. The,tayoutof the plant the rayon-making process. But some idea of this is shown in the attachedPlan. may be gained from the attachedpamphlet entitled The flow sheet for the different manufacturing "Cuba Enters Rayon Production Industry." processe$used in this plant is also attaehed hereThe spinning and weaving is quite simple and a with. The production of HzSOr is shown. Two good deal of additional data were securedfrom the and methods are used, namely by the contact system works as follo*'s : by ttrretower systâ‚Źm. For the contact system, there Spinning Plant-1 0,000 spindles. are eight columns of roasters with a capacity of Capacity output-2?,000 lb8. per 16 hours based on 30 tons per day of pyrites each. For the tower ' 30 count yarn. system, there are three units at 17 Tons per day Approximatâ‚Ź cost of yarn output-810,000 or 93,000 and six unita at 20 tons per d*y. The plant pro. per 100 lb. ysrn. Cost of Plant-10,000 or f30 per spindle or 92,100,000 cessesapproximately 12,000tons per month of 35 content per cent sulfur PYrites, L12l fol plant of ?0,000 spindles.

































































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Sunilu Mey 17, 1951

l,i$l0d AJTIDUM forHis 5xcelJ,ency Tha

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I beg to recotrmend that Your f,xcellency certifies to Congress the urgency of the enclosed biIL in substitutlon for H. No. 2L32 "All ACT T0 RIiGUIATEI}iPORTSAlit FOROTllER and S. No. 286, entltled PURPOSES RiiPEA],INGREPIJBLICACT NIJ}tsEREDFO{JRHUNDRED A}.IDT'MNTYqTYl|

The enclosed bill was drafted by Congressnan Marcos substantial1y i:r l-ine ldih the agreemert reached two nights ago 5rl a conference, lrherein the foll.owlng were present: l. 2. 3. 4. J. 5.

Senator Quintin Paredes CongresomanFerdinand t"larcog CongressmanHernenlgildo Atienza Secretary Cornelio Balnaceda 0overnor Miguel Cuaderno, Sr., and the undersigned.

Section 22 (2) af Article VI of the Constitutlon provides that rrThe Congress rnay by J.ar authorize the President, subJect to such ljmitations and restrictions as j-t may impose, to fix, r,rithin specified ljnits, tariff, rateo, i.Eport or export quotas, and tonnage and rharfage duesrr. In vie.o of ihis provision lt was felt that the Inport ControJ- Ieu should provide that the power to control 5mports should be granted to the Fresident r*ro could exerclse the power throueh any existhg Board or any other Board that nay be created by tour lJxcellency. This ag"eemâ‚Źnt reached that evening does not appear correctly ilcorporated in the attached draft, but l urderstand from Senator Paredes that he wiIL i-nsist i.n the lncorooration of the eald provision. I utderstand also that the conference committee of the two l{ouses will neeN this noon, and in view of the pressure of iime, I recommendthat lour Excel-lency cortifies to the urgency of the enclosed r4easure. Eespectfrrlly

subnitted,

SAIVADORARANETTI Admi-nlstrator of Econo,nic Coordinatl-on EncL.As stated above.


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April 17, 1951-

ffi

Mr. President: The problem of balancing the budget and using frrnds, under stress of extreme need, for purposes other than those for which they are earmarked, seems to he nothi-rrg peculiar to the Philippines. This paragraph frorn rrTheBritish Approach to Politicsrl p. 87, by }lichael Stewart, is of p.rtinent interest: 'rx x x The growbh of trade and the increase of motor iraffic have nade the task of naintaj-njrr$ proper roads increasi:rgly expensive, and so more suita.ble for. control by the Central Government. To-ciay al_I main roads are under the direct control of the Mini-ster of Transport. The money required to repair and develop them comes fron the taxes paid by private motorists and commercial vehicles. Until 1936 these taxes forrned a separate Fund, but Chancellors of the Exchequer, shori of noney to balance the Budget, frequently rrraidedrr the fund, to the indigration of notorists. The taxes and the expense of roads now go ilto the national accounts with the other l-tercs of income and expenditure; but it is probable that there wlll stil_l be some relation beivreen the anount that owners of vehicles pay a.ndthe benefit that they receive. The amount of road developnenNis not, lherefore, deternined by the lli-nister o:1 Transport, but, b;'the Cha.ncellor. The lulinister cloes, however, decice what use shall be made of the money at his disposal, whether on the roads under his control or by making qrants to local authorities. He can obtai_n fron the DevelopmenL Corunission pourer to compel landor,rrnersto sel1 l_and needed for roads at a reasonable orice.tl

p /Au^"4/"4-rr^r,

SAI,VAIO}],A}iA}JETA Adninislrrtor of lconomic CoordinatLon


$ryrLlir of

@fftunf.

@grrlinatirn April

18

IA(l

l"llli',0tiAirDt,M for ltis Hxcellency, the Pres ident Malacafian, }'lanila t

(lhe latest radio ehat of lour .&xcelleney has elicited favorable reaction in nan)' quarters, partlcul_arly that part which underscored the need for fiobilizing the manpowerresources repr€sented ir)- our youth, including young women, for prnoducti_veuses. ?o take advantage of the irope and interest raised by the appeal of Your -dxcellency, may 1 su€€est the formatj.on of a coradttee !o Look into the practical aspects of this probien, with a yiew to L,orking out a coordinaLted, systenatic and praetical progrs.n of actj-on? the conmlttee nay be conposeci of the followirrg goverrunent ofticials or their representatives; l. 2. 3. d. l. 6. J. L

the ihe ihe the The The The The

$ecretar). ol aducati-on Secretary of Agr j.culture & I\ia.tural .ltesources oecretary of Corutterceand Industry oecretary of I'latlonal lerense Administrator of irconornicCoordination Aanrinistr.ator of Jocial r;elfare Chairman of the rrehabilil,ation Fjranee 0orporation President of the Philippine National Eank

and heads or representatives of lhe following 1. 2. J. 4. 5. 5. 7. 8. 9. 10.

civic

organizations:

fianila taotary Ciub National ! ederation of .,,,lomenrs Cl-ub hnights of Oolumbus Cathofic womenr s J,eague l,ianila Li.ons Ulub loung Plenrs Lihristian Association toung r/onenls Christian Assocletion J r.trior Chanber of Uomnerce(JAYCI,iS) aoy Scouts of the ?hilippines Girl Scouts of the Philippines

$AI,VADOKATTANUTA Administ rator of Econonic Coordination


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MT,LACAfrAN PJTLACE 14ANTLT

Ma]'1?, 1951

G€nilencn of the Coagress: PurEu€Bt to the provisions esraph (2),

of the Conetltution,

s!"ty of the i.@Bdi.ate €lactn€rxt

of ArLicLe VI, Sectlon 2I, parto the neces-

I hereby certify of the altached

tutl.on for H. No. 2l-32 end S. No. 266, entitled

bi 1I ln substit

ItA}.]ACl ?O NEC{JIAIE IMPORTSA},IDFON O?HERPI]RPOSES ACT MIItsENEDFOIIB i]I'NDRED NSPEAIINGRE.PUBIJ.C AI,IDTI{EI{TY-SIX.II Ro.psctfirlJJt

The }louse of Bepre aeitatlvea Congrcso of the PhilS.PPiaeo M a n l .l a Eacl.

As stated.


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@ffireof Trrrnsmir "dilmtiln

Hi-s Fxcell.ency The I'resideni oli the FhiJ.ippines 1,1a.l,acafian,l'ianj.la Your lxcell-ency: i have the honor to submit, pursuant to the prouisions of Secf{on 3, Lxecutive Crder No. 386, dated Decernber 22, I95C' the nanes of the follor^ring persons who are recon"lended for appointment to the corporations r:nder this (.rfficeI Board of DirecLor:s of the following lrice

Stabili

zat,ion Corporaiion

To fill the vaca.ricy creai"ed by the resignat:ion Agu:inal do in the I',1, -lC'l (a) ilr. (b) llr. (c) ttr.

(d) lfr. Cebu l ortlaryL

of 0irector

Dan:iel.

Isrnael l4athay, P. Ausiria & Qo., I'resident of lfa,nila. lietai-l- (rocers Association Jose Sanvicbores, Presideni;, Ph:ljppjne fnpor't;ers Association Facjljco Ledesna, l.ianageri' f,ed esma Comrnercial Co., Inc., forrnerly President, Ilanlla Stock !xchange '.i.!ading Co. Sonzelo Vasquez, Vasquez Cenent Conpanv

To fjlI the vacancy cresLed b: li.o i.lontincl.a in the CIPCC -

Lhe resj ln'tj.on of iljrector i

Aure-

( a) t:r. lenetri.o A(lre$, Llirector of I'iines (b) l'fr. l,eonj.das de la Llana, financial Assis l,ant in thi.s Of J:ice Nationaf

l)evs.lorrneni, Co,nnanv

llonorabl,e !'ernando Lopez i.s occupyin;1 lris present losj tj-on as appointI'DC, under an ex-offj.cio Chaj ruan of the Board of lireciors, \iDC i:he old charprovi of sions nrent extended to hirn pursr:ant ta tl'Ie d I'Jo. Order a|ed pronrul-gation of Oxeeutive )99t ter. In view oi the governfor charter a uniforrn corporate January 5, !95L, prescribing


- 2 ment corporatj,ons and-alrerding the said provi-sion, it

is re

suggested that a regular appointrnent for the s a,naetosition to Vice-Pregident l.opez. Metronolltan

be

rfater Distriet

Hon. Manuel- de Ia Fuente as l.lbyor of llanila qras an ex-officio director of the Hr{D. He continuee acting ae _director and it }rould be in order, eitirer to extend a regul-ar appointnent i-n his favor or to appoint his substitui,e. If Your F,xcelleney believes that the Bureau of Fublic Works should be represented in the Ml,'lD,the undersigned reconmends the narne of }ir. l"lanuel- Gonzales, Chief, ii.laterarorks Engl-neers, Dlvj.sion. Lrrigation Hon. Vl-cente orosa, Undersecretary of PubLic lJorkg and Connnunications is already a menber of the Board of Directors of the Phil"ippine Eleetri cal- tr{anufacturlng Cornpany(pg,[C0), and in confontrity u'ith the policy leid down by Your Excell-ency of li-lniting to one the er of directorates nr:rnb any individual- ,'nayoccupy, it would not seem advisable to appoLnt hirn as director of the lff{D. Very respectfuJ-Iy, L/

t/Am.nu-f,,"^,< Y SALVA"OORJIRA]M|IA of Economic ' Adminj.stcator OEordination

*'. e


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I'x x x. *hen thr governmn! began gg5!gl!!gg lert April, qulu he nors than ],5u0 eplo:roo; stgsed &qae dohoqatrsto g blr brek, had to tt"€ hLE !L9,S,r ond tlr6 goalrnent,, (llndrraeorlng aupplted) a lggg herd.i ls insccutlsLc, ulolcading

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Ln order to provldo ths odltora of, ?lIG yl.th e laetual aed ccepletG statan€nt of t,he oihcr arpccto of thlr EALt€r, oopy is fu&lehed hor.exi!h, of the oinutea of, tho noritng he.l.d on Xay ?, 1951, of tbc Netional ltevelolr troni 0oqlpsnjr, a govarnaent corporat ton rdrl oh holdt thc cougrollrn6 etock ln the Phlltppino Air L1neo, Lnc, (PAJ,), and thc proaa rsl.aa€ rdrich thc Adalnistrtltor of bcon*ic CoordLr:au.on issuod on Aprtl 29, 1g51.

rald docur..rtr, lt oa; that 1n tgrrgr &fj b€ ..rn ..rn that t{r. Sorlnso .ptilr9, l&r_ggflgp f'rour the gsretTlBnt progchGd hGd tho (a) Xlnancl,aL tha ssretTlBnt lor for (a) Xlnancl,aL draist&noa draist&noa in ti}8 adolmt. adolmt. ('f ln ti}s (b) ot.!h, cmrl,derattme lnvolvlng wriyor of lrnding leee st ryrfiOt(fr) a1l airporlr ueod ,,n thc lntc!-lsl.ind qf sorvlcc toeotbr lntc!-lsl.cnd rdth ths r*ovsl e1L royaltLos ehargod for glrsolinG srd o11 ln thrt acfrico, (c) fr* relca*c fr@ hl"s pcrconel. guara$t ce to obllgallonr of thr PAL io tJre Reh,,billtatlon flnanse 0orporatlon in tb rlrn of, l€r000rso (tl), and (d) an lncrcase ln the alr uall pgnents s! Pl.O0 pcr alr aih florm. Al.J tb:so roqu.stc !,orc grllnied but tbr n.H r.ate flxed lrr the atr nell conirtct nc to be pald, lubjeet to ttrc arallabtttty of frmda. Alr poatage ratea rcrc l'trcrc8E6d to tho extont thr. t, Ptr11t**" a,lr xall portag6 ls acr:ng ilo hlghost clrar!. ln lhe vorld rnd in rxcasc of Unlraraal fctat-Unfon ilates. In aeklng for !h3r, rapraseat:l 'rg hvsatnot pay lasi

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t,o tho follo

ing portion

88. finally, lbe Ohafuarn inf,or*d tJro SoorC that 8i3 Excellcrcy, thc Progldantr h.s roltcptrd hla pollcy of kceping the contrql of the 0orer:rnrai bvllr fbc flLL for ths {o1loxlng roarona: nr) tba President r€eerlJ-€d tha bac\ground {hlch bror€ht about, thc aald coit$el, of,fcr*d by Co}. Sorlrno rcluntarll,y yr&r Iast r*hen he asked frcl tho Oovernnont subate,ntlal asslttanco in ihe fore of, Lncfocssd elr aell fac, nalrer of lsndlng ard prrkh8 feeo, further anb€crlptlon on the pari of the Gwgrrmni to t ts capital of tho corporlat ioli, and his r€Lo.Bs frrra tbe bereoeal guamn!€r fbe! he had aubocrlbcd to obltgstlons of, tlie PA^Lrdth tbr tsfC ln the total cu6 of frl 6i111on. Tbo Preg ldent b.tl.evd that hc could not very rel1 ranctlon rcllnqutshlng ruch a control el'f€r the Oovernaeatr bil a rosolutlqr of the Cou$cl]' of Stete, hed accoded to all thc Feqrnst s of Col.. iiorlaaei nb) thr P!.sidrd, polnted out tbat FlI. bas &n iliportant mle eE ar lnslrur.nt of naticnrl poltcy Ln leNt€r8 *ffocting natLor:sl socud,ty ed d6feria., aed fhsl ln vien of, lha pr$r.nt Lnt€Ial3tional crisls, it rcu].d no! bo prudent to tral/a tl|3 Govorrcnt 1os6 th6 said control; oa, th' Prc.iri.n! furthar stsl.od t hsr Jurt, aa lrst yaar he fel,i it rpuld b€ unfal r io kccp holdlng Co1. oorlano on hlE perlon&l 6uarantac of the obllgatlonr of PAL to the ltotiebliltstion Flnanoc Cor?F&t,l.onr rhlch et th&t tL&s r&o\intcd to 6ight all];lon Ir3Bo.J so todey, lf, furi,so erd his esro' clat€r aro nlltlng to obtain bsak th. conlr.ol of PlLl thoy theuld alro 6tand Fady to rmdsrtske b&ok tb! Eusmntr6 of th6 asl.d ob'1rgat,1ql., xhlch rcra a$ut€d byte lrtlonal DcveLogacnt goapany vhcn Col. $orirao rar roloaaed f!"orE 1t ln 1950. llorcwr, tho Prcaldent r&td thst 1f CoI. $orirao and hla a6so€Lat r mni to obiah th. control, lt nwt bc qr the basiE of buyr 'rg out ths bnttra espd"t8l of, tt* llDC b lhc PlL. rHon. Po::rpcyoDlac, SoltclLor Araaeie, Ads*nietraior of licofialc

Ocncral, and t{cn. Sslrsdof, Coordlnatic,ri, r{ho nrrc

of


lunpT€ard to puE ?u.Nstu.Aot euTddlTTqd etn to sff'l86Jd .t{1 ol eollanf uT 1?rll {esJ f 1nq te?cntr aost{l uoTtrollr rno,( o1 &r}rq ot 1el8er I -rac Tr!roT1"ur.1uT slT uT oo'ocoto6e{.f,1e1ecp<anddt 8u1e<rye11qx tt";::* ecTAras prt?tsT-J./*uT e1T trt 0o'ot0'o/,66 Jo llJard I€t?.s u" epsE 1?d ta?ou o1 8u!xs6r6$sI e! 1t 'ofi)'ool*{ !req1 a.rou e'[xlTT t Jo ?€ql .JaJreroq tlJand 1alt18t n SuT:t"E lunoccy Tltleod pTdun Jo Ool')'OOgdf1o1e.ugxo.:d -de fq pecnprr .q pTncils t{oTr*r 'T(6I Jo st{1uofi x!8 I$JTJ all .rcJ: 1gg ifq '1fe Jo 8'lepToq:po16 6q? Jo pagoder iTJord eql to pT"€ eq ,fau aBEa tqi 'tuTt!3ea 'euoo 1rt[Ire 1*r1 oq1 m pe oldd€ 1oU e4{ qoTqr{ ?aeq8 eou?tq e -uT penJ3C" UB S! Tyil Jo 1€eqE gau?t"g I?at:{n eql uT p.!JJ€3 trsl{ 1unofim ,Till puB tlueseJd 1e eTqBuoT,laBnbsT .nT€r Ttq.B .3q { ff!'OOOrO89t{4 Jo llns rqx uT s"}8od Jo nsalng tq1 uqlJ .Tq€1T6t6.1 alrmotta pTnBaJoJ€ eql pepnTcuT ?TJard poFod.r eql, 'feuoa xeol f,{Taqae 1I '0661 uT ?TJord " "ou1 tseutrT rTy .utddT1Tttd €i{l 6atrorf{ 1tt|q ?no lugod o1 11an p.$od.r eq iter 11 twd lq petrr?e glTJiold 81q pa8e11e ,q? 01 oolreJeJe.l t{1Tp ' sJolce.rT0 fo p.'Eog fll1 fq lo.lluot pu" uoTlt'uTtrrool t Ttsou 'oog Jo soIJJO a{1 qtlrorql 1yd Jalo qoTsIA;edns arrTi+rrr?€Tu?tpt ptle TrscsTJ euTE,}ar Sua6roJaao0eq1 '1ar.r1uoa 6Tqtr Jc en1.r1,r f,g 'rflTcidtc T€ltosJad FTq ug ouslJog 'JH q?TA lueaa*r9r luss8sueir aq1 !rr;1r91o3arl ,tq polTuft *ran r.rep1oq1co1e 3ug6or1uo c aql eT ou€TJo$ '.rn qo?qli .Io,fimd$oa ?uTpTott ? teTl I ottsTJoq 'y 01 ralrrsJ8 .{1.reano;l ;Jtr46d {tql .to arorrs I euTf rT? aq? Jo luauat?uee sq1 JoJ ou"1.rog 'qd qlTil la"J'trnoc nou e Brrlt€1e u1 .e:e?eua1; eql 01 Tbre{11Tcloct 1ou fTm??rea t?ri 1?.1t1to"{uoc luermSetrau r puc ,:fvd rca6 uo'tsrArdnr ef,TaJexe o? SuTnuIluoc acTJ.to rFtl lRT. .errei{l saa11t1uecardar BlT u! eSrnqa lttnr ?no,]lF t sJoloslT{l Jo FJeog aqt Jo ToJ?uoo .,f1lrofeu e1T qlTr{ penuTluot lUdudraAoo eql aenJ eloqtr . suoTrm .roqal frredeoc q'no.rqt ,fT?5s.tTpst lo .ft?5*rTp ep"! eq1 r€lJy leqlTo 'cpr@ap c rorrT.Ios 'JH to TaTuep a aJen qtlqi '6eu6?.sTq unop uese aq ITTI{ 1T "Titd 01 {rtq aEo3 o? oul?to$ 1es ouIJTnh lucpTssJd lqql'pe1ur:l 'rg aJa]r Gpupasp 3caq1 to euou 5rre tluo;c *8upcuoc. r[oJJ ra, -Jooc esaql fq ponoc eq ?su pTnor ort!.rTnl lu.plse.rd 1nq tTgd rsao uoTr -rffedns s?T $oJJ po^eTTeJ rq aSTJJO sTtll 1Bq1 pue psAeTId eq sIolOaI -TG TIA luotltlr.log g€Jq.+ 1Br{1 cuoT?lled pelueee.rd puE 6Bul?eow s6€E pTaq - paJtdsu! lueueSotral - ruoTrin.roqel ,firafuog 1tq1 8 16T ?f .JepToq -{"o18 SuFfTcrluo t .ql 8uT3q slT nT luaregnT eeT?ap pur elq?fJ eq? Jo teltrmarcop aq? !!oJJ ftersill .6TaJtxs s1ilf11t lraqtt!trr T t{1 peln1lleuoo ' luat! -e! aq ira lr ,luaranrtto3 eqtr Jo auogltt at{? r.ttaeJiog tfTttnlrf -rue oc aqt rfq ogsTTtrDsB,rpot.{Te r{1 otu! '|qt4sfr.f mt arTt ?u1ot*oJ: eql

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n.lurpr saJd sql ,{q F.onnottrB ,fcTlaaf FretatoJB 8tt? tuT 'troagod plre ulBt T6qg eq1 Jo €lumr.lsle .ql porrltuot ar{? paotmourrt 1rrepToerd .ql uoqr 9o11cm eq1 1t lrcce:d

-e*l ' "

\ssnr'r \1- . /


tt tr onlf Sroprr thrt, tbr sl.dr of, the Oonrtaent Qrlrlrc, pb11clled rgccrruont mddllpgr irr thi effrlrr of PA&1r yixlr rh$1d b. tlv|Il to lnerLoe Frbllc. corrfrolLrd oerporttiâ‚Źl, 8td.3 p:|rtci8tion ol tb elds of tbr &srortwnt on tb tatd nrttcrg h*lrtr, dort no! lcaaa our prlde tn t,h6 rah!.vn aia of PlI., nd6 por.lbl6 t,hrolr8h thi 6@ttrucd tuppot't, of th. Philitpplnr Owrmasrt. Y.ty tru\r

yourt,

srLYlmSr8rNma l&blrlfrtsr d fcw& uoudlnrtlm


ruE rlolzrs

(Aug$t 2?, 19tI)

€oRPCRt?IoilS llnr

of thl

Ielrndr

Irr Xanrlerg bloa&-l,ong Sorteno lutldlnt, the erployrcr hevc r rlpring l tPlok up any p16cr of papGr vtth yritlng on lt llon rny drrrrql.gr trble, ead yourll flnd 9orbnore talttrlc on it,.' Oon lndns Soriano not ely Lcay.t blr Erk on a Bratal$ of pepe xork, but keopo lle lt r thurb on Jurt cbout c"erJrBhing that bv.r tn thc Fhillpptner. I bsrthror,m bur!*eagrnan, blggcat ph1Llthropist, t}r lclldr nur ut lndurtrlcJ. crpl.rc rhlch provld.r for 80,OOO Plllpho th. Ilvclihood llls ctrrpri*rt fstl:lea. ta&a (close to $3O ntlll,oq r ycar) raka up J.0f, of the gorrcrruant |r iatr1 lax rcv6on6. llls fortuni 1! mtr,rrt.d to be as hlgh ar S3O nt11ton. fhls rerk Don ladrar Sorl,atro, 53, brd mnc good nrra about one of bls biggoat -rnt.rprlser: Fbtllpptlr llr Llncr, nhlch ho nnro rs Jrunlor pertacr ( 2tlll onacr ) rrtth thr govcrna*rt (5*). Decp ln tho rcd tn ego, P-I.t, broko tnto th. blect lrlt f.rrr tlar ylth a SJ50,0OOproflt,, thle year cblkod up a fl$t-haLf nct ef 1636,000, JJ ttror u d.rch ar i! tbo fisr 1950 pcrtod. Uaxt to glant Prn ln, lt Le nsr tbr aorb profl.tebb interaetl,onel al,r}lnr in the rorld. It has 43 plrner, routel fron Xanlla ovcr tm-t hlrdr of thc globo to the Far srst, SpelD, Errg]'and aad thc !{ert Coart of thc U.3. Sorieno is 1ts unqueetlonod bocr. i{hm the Cav€rrl!4nt bcgen n*dd't llIg lerf lpriJ,, be rytt; nrc than IoJ60 rnployccr rtagrd na!! d{onrtratlons, alrd thc gov€ranat, to coax hin brek, had to g!.vc hln e frrc hend. Babbllpr Sqdc. Sorlrno, a U.3. cilLta daeo lglr5, began hlo cnpln-bulldrpg rl r 2l yerr-old rcaount.rNt ln l{rnllr rc $sn }llguol BrcrerJr. Sltbin clx t!!rs hq rore to ten6ra} nanaEor r Bo plorcd noat o.f hls ralsry ald alt thr rcacy hc could borrsr lnto *prntttng tho buslnola. Todry thc brcrort grossol mc then l3a !ei:B1m e tr lrr netted $],10O,00O 1n l951tr firrt half, lflth hl,r bramry prefltr, $or{+eo klr bought rl.nca, delrica, facbori..r, _forrats, a radlo atatl,on, ornr the ihtrd lriort, 0oor CoIa bottllng francblse th the vorld, act! 8! phtllpptni agent for fLvc lasur.nee flrra, dittrlbutsr for pb .tp ffofffu- elg*citar ena tror"d eelvcrt thiehoy. ilor ur hh lntcreot pura$r local' " He csnXrnorr Oltyrt Georgc kchlcbacb Brrrdng eo., boeael 6o1d r{ner S,r 1n Britlstr East lfrlce, a d.wlaret colp.qy ia Spcln. Blc holdtnge str€tch so f.r & 11Lll ibai oas top cxccutlvr, rho hee b66n ?rtth hLr 15 ycars, raJrr r tI attll hrvemrt bca eb:'e !o mnoflse evrn lhe nart sf a1I the eotpenLtr ynt.r

I


f-$

NEmnl"fiEli HAGAZIX!; (May ?, 1951)

tfruJ Qdt-'*9

PHIIIPPINF.S Air lines

BataLk

There are rnore than T'OOOPhllippile islands, sorre ,frOCOof them inhablted.. iocal bustnessnen island-hop regularty. In !,lareh 191+1, they set up an air line to nake the trip in hour s instead of days. It was short-lived. tsut it planted a seed in the brai-n of Philipotne industriallst Col. Andres Sori-ano. As gecretary of finance to the governrnent-in-exile durl.Irg the r*ar, Sorianc and Philipptne Presirlent Manuel rlrezon had dreaned of and planned r*hat they would do for the islands when peace cane. One of thej.r dreams uas an ilternationaL air line which would keep the name of the Bhllippine ilepublic before world eyes. In February J-t!6, Iioriano reJuvenated the Phtlippine Alrr Llnes. Six nonths later it becane an i.nternational carrier through bhe addltion of a San Fran cisco-}{anila hop. Today, PAL is the njrth lar4est line 1n the r*orld, flying 2l,OO0 route niles. Its western terujrus is San Frsnciscoi l"ts eastern-via Calcutta, Karachi, tydda, ilone, and l.radrid-is London. It ha6 spurs serving Tokyo and liong Kong, piscord !, During PALtg flve years of elcpansion, the govemnent gave .. the line moral and, later, flnan ctal aid in nal} "utsiafJu anO funds for ourchasing equipoent, for which the government waa paid in stock. Today it holds a J2 pat cent interoet; prosident of the line soriano controla 27.5 per. cent. And PAlts fl-nancial position haa lnproved. Afber a net loss of $112501000in 1949r the line earned gJJdrl{b last year. But six weeks ago, Soriano decided fhe governnent was trying to tai<e a hancl ln nanagenent. One of the governnen!-aDpointed board nenbers, Serfio OgrneflaJr., son of the islands I second President anri head of the De Ia Rana Stean_ ship Co. * il which the government also has an interesi - requbsted the innediate df$ni sssl of a pAL executive r.ho was abroad et the time. Other ripples ln Lhe once cooperative soa soon appeared. Find-ly, at a board meeting last week, one of the governnerrt men noved that osnefla be authorlzed io inspect pr,Lr e foreigi offr.ces. sorlano protnptly resigned. Four other executiwe followed Juit. Then the non-operatjng employees!, ra.diorcenrs, and pllots r organlzations adopted resolutions threatening to quit en nasse unloss Sorianors rnanagement vas. rel-nstated and the goverrlment stock sold. The 1oca1 n"r""pip.rs took up the cudgels for Soriano. So far the govornnent haa blen sLl"ent. But observers feeL that a settl_enâ‚Źnt (some even s&y goverrulent capitulation ) is bormd .to resul,t.


- 2 -


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fryarrrc

7,/(

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Fb. l{. Fr*xlea Itdlto{'id ff$illrbr &. fh&tpplsr tbrld ltslilr

sr.rt ru.3r. r!il* d th! 3ltu rltb,

ta t&c .d1teLl, csn€n* ,r ib rAtth r..ar r| fall(r!

rfh!|"lppln!.

lbrrldr

aCqL lndrrl Socfrar, tt ult]' 5. r.orlld, sqlct *ad !c na d* af th. tHftptntJffnw ln tl|:s*xt plr l''r ld*r lh r& b'r poL* rad Dr b{ rd. tpd s lt b'J r}!rg chr.' s il|*'n la a n*t rc}fitl* 8rn e-rt pFoftf af ?\2?2196,, t* thr tlrrt rLr r.irtbr of lhs :&F. grre}lrcrt Iaort thr. r t..rrc 6ofFs|tlfd?r !t*r bI|.fc Slo Of,ttar c rt thrr tL., to trke trss rith th. trot drrlr, dttor-lal c{i!a! leroctr" rr lt tnt!* t6r il3t t&*e e. rbdlt btergEs3 d th, Fhlltpfar..aaa I th. Flt ol tb Ccffit '3 thr ptra Atr Llnra, Iul. (PfL) ild tbrt ggil.r t|orfir3 E hl| pctit. h* gsrFcat ti|3 l$sottr &| tL ro-rf |tryb. o4?o*tt G. ts l|'*ft Itslttnto ol tle tawna} t*r Sfllcr cf &to$t$ctrtrl6 th[8h elc 0erdlsr tia, :.lli to pot*. €6 tb folienla6t tr rql, yFr!|, lhr PlL rng*nt Irr f*rylm dtil Ed clrlr trvtng rrf,J$Fd, .ny rsiu ttrrd )'rt tlF l&t*tararsr .a thr Fr!! af th: fuerud,, *5lI" {tf tr thr lid ds.lt\S t5r l|.t t|o trrtr. Esfir, for th Fiod trer &ncrry to *rflr tt'lr tlr ryte*o *c PlI. nrr Flll.il dt' 6t ilr. ry, rtctag lrtllr! sc 1lrllod Pff alberd efrrrrrme lrrictf,arraat, F*; rallcrtr r p**1|, It Gf b. tr*r tlro$ tbt, I*rAcr r gdrd*rt or.trd G omtrtdllrd 6rF6refls er nlca a .roflt s ncb, dcr n t, dtfsnd rtnrlly of g{rafiFnt rtrpr*trla d lft rffrlil' &.ti ths r*ure ead ctet oprritlas af a ar|r fny other faalord *'lqb LBflsuc. tlp flnsalrl g(rt$rEont r}ttrlrl,r&. l.!lc tho Srltorl try Swqffiml, ocpo,rroloal Cryay1 ttr tlag;6s11 sbtfq..r CeFomtlc, €s$ tl3 Cdr6 PF$rd Lrtil &lilrlrt, sld thc Insulaf 116! &lirfieSr 6yrtn, tb btFopolttrrr 51r€cr taafidn8 C*po{*tl€'' *rrtc, rre arbjaat !a m(rl fEr.ftlcn! glh.t 8Er pori.t*r ed ttl,Il |rb lx^oflt . It rbanH ba n€t.. l furtj*r *tfit1

csre.rmtr ror.3 tlra

1r Gtttlrd

to tc*

pro.ftt


/

*ita

I

I

- 2 thr

govoraci,

orGid !gr?outi"6r.

!$lth rlflrrc.s

to th.

df.S.d

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of flrfT2rm0

by tb FAt for thc flrct rrtlc to notl,er sf, lhk t el, I rrtpt thlt th. rlr lnolcdtt rlmt b*tt e nt trllon pfr.r. st portal rccm! t*hleh le noi $r &.oll*. 6l,1grtl.e of, thr Qonrlin!, .lncr tlro dr rll o*trrct brt*a tha Ortrcrtm! of fubile *hr*r & Cowrleirtlocn i&d PAL r6prrctlgr proylder ihri lt pprat of llrr forrl;n *lr netrl &cooqg lr fib rqct to th! rr$LrbtLl,t' of fi.dr. th on erf bc 'rtd of thc dLa3td prttltr f,or Lert F.a Ef P?09r{&9.O0, *rtoh forrit psrt of rbout Flr6O0r00O of, rrtf.td pott*t rscmrt. fh. ErFriti porf,e]' ri:colet of Llrt yctr .trl ?b. tll,r* rmlc €t thr.s Frr, Ir th. total rur ol ??rl,GOr00Q, rualar upeld, lon lrot of ssr;h tsoml tn rtr ne3.I poatrgr, sd drrsrt bc prtd ldt.bort Cf,l{rl|'dffi} .pBnopd,atlon. It t.s s6t raburlnr'rl'lke rad crdr oottrrry t* E66d rceaatlng preot'tcc to !.6rrd rr *rnid proflt, utrprld *c*6nt, 6d.f aeh ctrawt,arro.t. fftrr daducttng hllt . dlltm prrot fmr t&r dlcecd prts flt for tb flr.lt rx.tGr of, thtg yrlr:, lt p.'l.r tpF*r A.os rnctrttflr{ rrportr arbltt.d blr ?lL, tbt ltr nsf.lrrtld*I r.r.rlc. rr.trlaod a locr of tellr0gO, !.btlr tb* !at*-lrl"sd, mopotl*lc rrrvacr prodnard ! ptFollt of fffir$O0. Ar the peoftb uafa* rrportoq b|r th! PA* lt DFG|.nt rrr dsrlv.d lla tt! triorl,rlrag opaetLa, tt ,r rtgnttt o.as t6 ntl,oa thr,t pdl lrer oiltlala€ to alurge rrla ir tn criair af thon ehsaad by -It drl,lnar off,rrlag r rtdlsr urrlor tn at$* prrlr of th *r{Ld. esy ba reell to Po:At €et ihal rdrtb firntlia $.r ld.ncr, an inndar otrr'1cr, ainrgct mff eppuf.let lt ?.9 / pr palragor aib, tho rrtr cb.rgsd bt PAI. rvrre*cd I I pcr d.L, |t of ircdcrr t}rrrb* l9l0. prelod nn*$o Ltn*r lLn p." oolbct d, t€r d^li, rftil. ,j I !1. 11,* tha FAl,_-oo1}atrd *8.39 per lan rlL, fsr $ri lefrfi*r of tntcrirlend Btl. It 1r nrth nrttng thut itiiirtte &r Linr! flprt d a pdLt thrcr tls' rr rw frfod. Srr.t r thm thc PAt dlrftrg It rtll b. H,StlJ eppda*rd aould br brmgt to th. .ttutl,o6

It th.r. 6m?r rrd obr!nat!"{n1s of yo?ir rtrf,f aad tctrr frad|rr.

Y:ry rcrprctltlly,

8fiiYl:Jm An ilg?t {ibtntstrrlor cf Scmsdc Co*dtnetlrrr

8*#tryl$

I


S.Efublicuf tlp S$Iigginer

@fficeuf Ecmcsmic Gusrliratirn *ptr'lffi*itu

llovember 6, I95L

H1s Excellency The Presidmt of the Phil-ippines Malacuran,lfanila

1, l,,P tf{*'

Your fixcellency s SupplenentS-nga menoranduryr,dated October 30, L95L, of this Office, on s ome outstanding aecomplishnents of the 0ffice of Economic Coordination and the corporations and instituLes under it, I have the honor tc s.rbnit hereulder anoth* si.qnificant accomplishrnent of tte Cebu Portland Cement Conpany: 9. L,Iith the transfer of the heretofore rinprofitzrble operalions of the lialangas Coal- Mines from the IDC +.o the Cebu PorLland Cenent Compa.ny,as recomrendedby this Office, a reduction of /7.OO per ton in the nr-irring cost at llelangas' has been obtained. This wiLl represent a net saving of CI;POChas in its favor rnany letOrOOO.OOfor this year. years of experience in coal. rn:j-ni.irgoperations in Cebu, and was the biggest customer of the l'lal.angasCoal ltines. It is, therefore, the logical operator thereof. Simila rl3, a like saving has been accomplished by takling over the managenent arrd op.--rrtion of Lhe Ar6ao Coal Min es in Cebu, and consolidating i.t,s operation iulth otler iiines or^nedby the Company. Very respectfully,

\..,A.UtntnJ.t-*",^

<

SAIVADORARAIMTA Adndnistrator of Economic Coordination