Philippine Government shall be in conformity with the provisions co subdivision 1 of this subsection.

(g) (1) The Philippine Government shall pay to the Secretary of ury of the United States, at the end of each calendar quarter, all of t received during such quarter from export taxes (less refunds), im collected in accordance with the provisions of this section, and sa shall be deposited in an account with the Treasurer of the United shall constitute a supplementary sinking fund for the payment of bo Philippines, its Provinces, cities, and municipalities, issued prior to M under authority of Acts of Congress: Provided, however, That money from any export tax imposed on any article which is shipped from the to the United States prior to July 4, 1946, and which is entered, or from warehouse for consumption, on or after July 4, 1946, shall be re the independent Government of the Philippines.

(2) The said Secretary of the Treasury is authorized to accept the the proceeds of the export taxes referred to in subdivision (1) of this in accordance with the Act of June 11, 1934 (48 Stat. 929).

(3) The Secretary of War of the United States, with the appro Philippine Government, is authorized to purchase with such sup sinking-fund bonds of the Philippines, its provinces, cities, and mur issued prior to May 1, 1934, under authority of Acts of Congress such bonds are not available, to invest such fund in interest-bearing of the United States or in obligations guaranteed as to both princip terest by the United States. Whenever the Secretary of War finds fund is in excess of an amount adequate to meet future interest an payments on all such bonds, he may, with the approval of the Philippi ment, purchase with such excess any other bonds of the Philippines inces, cities, municipalities, and instrumentalities. For the purpo subsection obligations may be acquired on original issue at par, or b of outstanding obligations at the market price. Any obligations a the fund may, with the approval of the Philippine Government, be s Secretary of War at the market price and the proceeds of such sa proceeds of the payment upon maturity or redemption of any oblig in the supplementary sinking fund, as well as all moneys in any man by such fund or on any obligations acquired by said fund, shall be pa said fund.

(4) During the three months preceding July 4, 1946, the Philippi ment, the Secretary of the Treasury of the United States, and the S War of the United States shall confer to ascertain that portion of th the Philippines, its provinces, cities, and municipalities, issued prior 1934, under authority of Acts of Congress, which will remain outs July 4, 1946; and the Philippine Government shall turn over to the S the Treasury of the United States for destruction all such bonds the held, canceled, or uncanceled, in any of the sinking funds maintain payment of such bonds. After such outstanding portion of this inde thus determined, and before July 4, 1946, (i) there shall be set u Treasurer of the United States a special trust account in the name of tary of the Treasury of the United States to pay future interest an payments on such bonds; (ii) the Philippine Government shall Secretary of the Treasury of the United States for deposit in this s account all of the sinking funds maintained for the payment of such (iii) the Secretary of the Treasury of the United States shall transf special trust account all of the proceeds of the supplementary si referred to in subdivision (1) of this subsection. Any portion of s trust account found by the Secretary of War and the Secretary of th of the United States on July 4, 1946, to be in excess of an amount meet future interest and principal payments on all such outstanding be turned over to the Treasury of the independent Government of pines to be set up as an additional sinking fund to be used for the liquidating and paying all other obligations of the Philippines, its cities, municipalities, and instrumentalities. To the extent that s trust account is determined by the Secretary of the Treasury of States to be insufficient to pay interest and principal on the outstan of the Philippines, its provinces, cities, and municipalities, issued pr 1, 1934, under authority of Acts of Congress, the Philippine Govern on or before July 3, 1946, pay to the Secretary of the Treasury of States for deposit in such special trust account an amount which sai

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of the Treasury determines is required to assure payment of principal and i est on such bonds: Provided, however, That if the Secretary of War and Secretary of the Treasury of the United States find that this requirement u impose an undue hardship upon the Philippines, then the Philippine Govern shall continue to provide annually the necessary funds for the paymen interest and principal on such bonds until such time as the Secretary of Treasury of the United States determines that the amount in the special account is adequate to meet interest and principal payments on such bonds (5) On and after July 4, 1946, the Secretary of the Treasury of the U States is authorized, with the approval of the independent Government of Philippines, to purchase at the market price for the special trust account b of the Philippines, its provinces, cities, and municipalities, issued prior to 1, 1934, under authority of Acts of Congress. The Secretary of the Treasu the United States is also authorized, with the approval of the independent ernment of the Philippines, to invest all or any part of such special trust aco in any interest-bearing obligations of the United States or in any obliga guaranteed as to both principal and interest by the United States. Such ol tions may be acquired on original issue at par or by purchase of outstan obligations at the market price, and any obligations acquired by the sp trust account may, with the approval of the independent Government of Philippines, be sold by the Secretary of the Treasury at the market price, the proceeds of the payment upon maturity or redemption of such obliga shall be held as a part of such special trust account. Whenever the sp trust account is determined by the Secretary of the Treasury of the U States to be adequate to meet interest and principal payments on all outsi ing bonds of the Philippines, its provinces, cities, and municipalities, issued to May 1, 1934, under authority of Acts of Congress, the Secretary of the T ury is authorized to pay from such trust account the principal of such outs ing bonds and to pay all interest due and owing on such bonds. All such t and interest coupons paid or purchased by the special trust account sha canceled and destroyed by the Secretary of the Treasury of the United St From time to time after July 4, 1946, any moneys in such special trust acc found by the Secretary of the Treasury of the United States to be in exce an amount adequate to meet interest and principal payments on all such i shall be turned over to the Treasurer of the independent Government of Philippines.

(h) No article shipped from the Philippines to the United States on or January 1, 1941, subject to an export tax provided for in this section, sha admitted to entry in the United States until the importer of such article present to the United States collector of customs a certificate, signed competent authority of the Philippine Government, setting forth the value quality of the article and the rate and amount of the export tax paid, or give a bond for the production of such certificate within six months from date of entry.

SEC. 8. (a) Effective upon the acceptance of this Act by concurrent resol of the Philippine Legislature or by a convention called for that purpos provided in section 17

(1) For the purposes of the Immigration Act of 1917, the Immigration of 1924 (except section 13 (c)), this section, and all other laws of the U States relating to the immigration, exclusion, or expulsion of aliens, citize the Philippine Islands who are not citizens of the United States shall be sidered as if they were aliens. For such purposes the Philippine Islands be considered as a separate country and shall have for each fiscal year a of fifty. This paragraph shall not apply to a person coming or seeking to to the Territory of Hawaii who does not apply for and secure an immigr or passport visa, but such immigration shall be determined by the Depart of the Interior on the basis of the needs of industries in the Territor Hawaii.

(2) Citizens of the Philippine Islands who are not citizens of the U States shall not be admitted to the continental United States from the Terr of Hawaii (whether entering such Territory before or after the effective of this section) unless they belong to a class declared to be nonimmigran section 3 of the Immigration Act of 1924 or to a class declared to be nond immigrants under the provisions of section 4 of such Act other than subdiv (c) thereof, or unless they were admitted to such Territory under an i gration visa. The Secretary of Labor shall by regulations provide a metho such exclusion and for the admission of such excepted classes.

135630-39- -2

(3) Any Foreign Service officer may be assigned to duty in the Islands, under a commission as a consular officer, for such period necessary and under such regulations as the Secretary of State may during which assignment such officer shall be considered as stati foreign country; but his powers and duties shall be confined to the pe of such of the official acts and notarial and other services, which s might properly perform in respect of the administration of the in laws if assigned to a foreign country as a consular officer, as may be by the Secretary of State.

(4) For the purposes of sections 18 and 20 of the Immigration A as amended, the Philippine Islands shall be considered to be a foreig (b) The provisions of this section are in addition to the provisi immigration laws now in force, and shall be enforced as a part of and all the penal or other provisions of such laws not inapplicable, s to and be enforced in connection with the provisions of this section. although admissible under the provisions of this section, shall not be to the United States if he is excluded by any provision of the im laws other than this section, and an alien, although admissible provisions of the immigration laws other than this section, shall not be to the United States if he is excluded by any provision of this sect (c) Terms defined in the Immigration Act of 1924 shall, when us section, have the meaning assigned to such terms in that Act.

(d) Pending the final and complete withdrawal of the sovereign United States over the Philippine Islands, except as otherwise provid Act, citizens and corporations of the Philippine Islands shall enjoy in t States and all places subject to its jurisdiction all of the rights and which they respectively shall have enjoyed therein under the laws of t States in force at the time of the inauguration of the Government of monwealth of the Philippine Islands.

RECOGNITION OF PHILIPPINE INDEPENDENCE AND WITHDRAWAL OF AM SOVEREIGNTY

SEC. 10. (a) On the 4th day of July immediately following the exp a period of ten years from the date of the inauguration of the new Go under the constitution provided for in this Act the President of th States shall by proclamation withdraw and surrender all right of p supervision, jurisdiction, control, or sovereignty then existing and exe the United States in and over the territory and people of the Philippin including all military and other reservations of the Government of th States in the Philippines (except such naval reservations and fueling s are reserved under section 5), and, on behalf of the United States, sh nize the independence of the Philippine Islands as a separate and selfnation and acknowledge the authority and control over the same of the ment instituted by the people thereof, under the constitution then in 1 (b) The President of the United States is hereby authorized and en to enter into negotiations with the Government of the Philippine Isl later than two years after his proclamation recognizing the independen Philippine Islands, for the adjustment and settlement of all questions r naval reservations and fueling stations of the United States in the F Islands, and pending such adjustment and settlement the matter of na vations and fueling stations shall remain in its present status.

(c) (1) Whenever the President of the United States shall find that erties in the Philippines, owned by the Philippine Government or by persons, would be suitable for diplomatic or consular establishment United States after the inauguration of the independent Government, with the approval of the Philippine Government, and in exchange for veyance of title to the United States, transfer to the said Government o persons any properties of the United States in the Philippines. Titl properties so transferred to private persons, and title to any properti quired by the United States, shall be vested in fee simple in such person United States, respectively, notwithstanding the provisions contained in tion (a) of this section.

(2) Whenever, prior to July 4, 1946, the President of the United Sta find that any properties of the United States in the Philippines would able for diplomatic and consular establishments of the United States inauguration of the independent Government, he shall designate the sam

COMPLETE INDEPENDENCE OF PHILIPPINE ISLANDS

issuance of a proclamation or proclamations, and title to any properti designated shall continue to be vested in fee simple in the United State: withstanding the provisions contained in subsection (a) of this section.

(3) Title to the lands and buildings pertaining to the official residences United States High Commissioner to the Philippine Islands in the citi Manila and Baguio, together with all fixtures and movable objects, shall cor to be vested in the United States after July 4, 1946, notwithstanding the sions contained in subsection (a) of this section.

(4) Administrative supervision and control over any properties acquir designated by the President of the United States pursuant to this subse and over the official residences in the Philippines of the High Commiss shall, on and after July 4, 1946, be exercised by the Secretary of Sta accordance with Acts of Congress relating to property held by the United & in foreign countries for official establishments.

TARIFF DUTIES AFTER INDEPENDENCE

[SEC. 13. After the Philippine Islands have became a free and indepe nation there shall be levied, collected, and paid upon all articles coming the United States from the Philippine Islands the rates of duty which required to be levied, collected, and paid upon like articles imported from foreign countries: Provided, That at least one year prior to the date fixed in Act for the independence of the Philippine Islands, there shall be held a ference of representatives of the Government of the United States and Government of the Commonwealth of the Philippine Islands, such representa to be appointed by the President of the United States and the Chief Exec of the Commonwealth of the Philippine Islands, respectively, for the pu of formulating recommendations as to future trade relations between the ernment of the United States and the independent Government of the P pine Islands, the time, place, and manner of holding such conference determined by the President of the United States; but nothing in this pr shall be construed to modify or affect in any way any provision of thi relating to the procedure leading up to Philippine independence or the upon which the Philippine Islands shall become independent.]

Sec. 13. (a) Notwithstanding any provision of law in force on July 3, the importation into the United States, on and after July 4, 1946, of any ar the growth, produce, or manufacture of the Philippines shall be subject t customs laws of the United States in the same manner as articles the gr produce, or manufacture of other foreign countries generally: Provided, ever, That during the period in which the executive agreement provided f subsection (b) of this section is in full force and effect, any Philippine a shall be entitled to such preferential customs treatment as may be provide in the said agreement.

(b) The President of the United States is hereby authorized to enter an executive agreement with the President of the Philippines, to become tive on July 4, 1946, providing for the gradual elimination, during the p July 4, 1946, through December 31, 1960, hereinafter referred to as the pendence period, of preferential customs treatment accorded by the U States to Philippine articles and by the Philippines to American articles: vided, however, That no such agreement shall be made unless the Pres of the Philippines shall have been duly authorized by act of the Nat Assembly of the Philippines, to make and enter into such agreement. In tion to the inclusion of such provisions as the President of the United S and the President of the Philippines may consider to be appropriate to guard to each party the advantages granted under the agreement by prov for the termination of the agreement at any time, upon not more tha months' prior notice, in the event of the adoption or application by the party of measures or practices which would tend to nullify or impair any advantage, and such other provisions as the said Presidents may consid be reasonable and necessary to assist in the administration thereof, the agreement shall contain provisions to the following effect:

(1) During the period July 4, 1946, through December 31, 1946, exce otherwise hereinafter specifically provided, every Philippine article sha entitled to an exclusively preferential reduction of 75 per centum of the U States duty. During the same period, except as otherwise hereinafter sp cally provided, every American article shall be entitled to an exclusively p ential reduction of 75 per centum of the Philippine import duty. On succeeding January 1 thereafter, these preferential reductions shall be

gressively diminished by an additional 5 per centum of the United and of the Philippine import duty, respectively. No third countr Cuba, shall be entitled to any benefits arising under this Act or agreement made pursuant thereto.

(2) Notwithstanding subdivision (1) of this subsection, no Ur duty may be levied, collected, or paid upon any of the following articles within its respective quota as hereinafter provided:

"a. cigars (exclusive of cigarettes, cheroots of all kinds, and 1 and cigarettes, including wrappers);

"b. scrap tobacco, and stemmed and unstemmed filler tobacco paragraph 602 of the Tariff Act of 1930;

"The exclusive preferences provided for in subdivision (1) of this shall not apply to any of the foregoing Philippine articles entered, or from warehouse, for consumption in excess of its respective quota. "(3) For the period July 4, 1946, through December 31, 1946, e said quotas shall be the same as the corresponding quota provided division (3) of subsection (b) of section 6 for the period Janua through July 3, 1946. For the calendar year 1947 each of the said q be the same as the corresponding quota provided for in subdivision section (b) of section 6 for the calendar year 1945, less 5 per cen corresponding original quota provided for in the said subdivision. calendar year thereafter during the independence period each of the shall be the same as the corresponding quota for the immediately calendar year, less 5 per centum of the corresponding original quota. "(4) The annual quotas provided for in subsections (d) and (e) o for Philippine sugars and Philippine cordage, respectively, shall be throughout the independence period: Provided, however, That for July 4, 1946, through December 31, 1946, the quota for Philippine su be four hundred and twenty-five thousand long tons, of which not twenty-five thousand long tons may be refined sugars: Provided, fur for the period July 4, 1946, through December 31, 1946, the quota for cordage shall be three million pounds. The exclusive preferences pr in subdivision (1) of this subsection shall not apply to any Philipp or Philippine cordage entered, or withdrawn from warehouse, for co in excess of their respective quotas.

(5) In determining the dutiable value of Philippine embroideries bre the United States, an allowance shall be made equal to the cost-cost, and freight the Philippines-of any cloth of United States origin us production thereof.

(6) The rate of the United States tax on the processing of coconut o of Philippine production or produced from materials wholly of Philippin or production, shall be no higher, throughout the independence period, rate applicable to the processing of palm kernel oil or to the taxable p of palm oil.

(7) The quotas hereinabove mentioned shall continue to be allocated, out the independence period, in the same manner as is provided for in s (f) of section 6.

(8) Where any article the growth, produce, or manufacture of the Ph brought into the United States from the Philippines, upon which an States duty has been levied, collected, and paid, is used in the manuf production of articles in the United States, on the shipment of said to the Philippines, within three years after the arrival of such mer in the United States, the full amount of the duty paid upon the mer so used, less 1 per centum of such duty, shall be refunded as drawbac such rules and regulations as the Secretary of the Treasury of the Unite may prescribe. Where any article the growth, produce, or manufactur United States, brought into the Philippines from the United States, upo any Philippine import duty has been levied, collected, and paid, is use manufacture or production of articles in the Philippines, on the ship said articles to the United States, within three years after the arrival merchandise in the Philippines, the full amount of the duty paid upon chandise so used, less 1 per centum of such duty, shall be refunded as dr under such rules and regulations as the Secretary of Finance of the Ph may prescribe.