Foreword This is one in a series of country handbooks designed to bring together in convenient form basic information useful to investors and foreign traders, both potential and active. The Philippines has long been an area of special interest to American investors, and American investment has been important in the development of the Philippine economy. Private investment from abroad can continue to make a significant contribution to the future economic development of the Republic of the Philippines, a newly independent nation which is still relatively undeveloped. This study is presented in three parts. Part 1 provides a brief overall summary of the investment situation, past and present foreign investment, and general background information about the country. Part 2 deals in some detail with important aspects of the economy. Part 3 contains detailed information concerning taxation and some aspects of Philippine law. The appendixes give statistical data, other details on industries and investment, and additional sources of information. Since it is not possible to anticipate the needs of all potential investors, the study is devoted to matters considered to be of general interest. The Bureau of Foreign Commerce will welcome requests for additional information or assistance which individual investors may require. Such inquiries may be addressed to the Far Eastern Division, Bureau of Foreign Commerce, U. S. Department of Commerce, Washington 25, D. C., or to the Department's Field Offices. The information furnished in this study is not intended to serve in lieu of the legal, financial, or business surveys which businessmen customarily make before investing abroad. This study was prepared by Ada V. Espenshade, Chief of the Philippines-Southeast Asia Section, under the supervision of Eugene M. Braderman, Director of the Far Eastern Division. Mary A. Pugh, formerly of that Division, earlier prepared an overall report which was heavily used in the preparation of the present study. Others, particularly Dorothy Flynn, a former employee, contributed to many sections. Although the volume was planned and written in the Bureau of Foreign Commerce, many individuals and agencies have contributed to it. Special mention should be made of the assistance provided by the economic staff of the American Embassy, Manila, and the Manila staff of the Foreign Operations Administration. Swanderson SAMUEL W. ANDERSON Assistant Secretary for International Affairs FEBRUARY 1955. iii |