In January 1968, W.E. Knight, counsellor for economic affairs at the U.S. Embassy in Manila, visited Mati, the capital of the newly-created province of Davao Oriental, to attend the inaugural luncheon. The appearance did not only afford him the opportunity to observe first-hand the problems the new territory was confronting, and the resources available for exploitation.
As expected, he talked about relevant US interest in the country and the policies the American administration had adopted towards “lessening aid programs,” an aspect of diplomatic language that is usually not understood in depth by people in the know. He told the audience, as a diplomat and an agent of his country, with authority saying:
“The problems of the Philippines today are basically problems of development, and while development is interesting even from a theoretical point of view, it is more interesting still to come to see these problems in concrete form in provinces like Davao Oriental. This is where the work is really being done, and where the economic theories come to life in terms of people…
“I have already seen in Mindanao many enterprises which are perfect examples of Philippine capital and Philippine enterpreneurs pushing ahead with projects that are of importance to Philippine progress. Your Government realizes, and we all realize, that the problem of building the Philippines of the future must fundamentally be solved by Filipinos: by Philippine money, Philippine workers and Philippine skills. Outsiders will help, but basically this is a task that you will perform. (Italics not mine.)
“I am convinced that you have reached a position where you will be able to do this job. You have great resources of capital, great talent, a tremendous education program and an active and energetic work force. You have great assets, and your future will be accomplished. It will not, however, be easy.
“We Americans watch all efforts of this kind with what I would call “affectionate enthusiasm”, because we are what might be called growth-oriented. We feel that economic growth, in itself, solves a great number of problems, and those it doesn’t solve in itself it makes much easier to solve. We believe that a strong, healthy, and growing Philippines can play an important role in showing how democratic government and economic progress can go forward together.”
Knight’s attendance was also graced by the presence of newly-installed governor Leopoldo N. Lopez and the province’s first congressman, Constancio P. Maglana who discussed with the diplomat the challenges Davao Oriental was expecting to hurdle in order to reach its development goals. Knight said:
“The very kinds of things that your Governor and Congressman have talked about today are the matters that are engaging the attention of Governments throughout the world. Governments everywhere, in fact, are, acting as if their very existence as Governments depended upon development. They feel, in the first place, that they must make their economies grow rapidly, and in the second place that they must spread the fruits of this growth throughout their population as a whole.
“But often, as we discuss these matters in general terms, the real reason for their importance is buried under a mass of economic jargon – words and phrases that economists learn as they go through college. These terms do not mean much to most people and they often tend to obscure what is really involved in the issues.”
Knight also debunked claims the American investors were seeking special privilege for the money they would bring in, adding that the decision to accept foreign investments is not US’ judgment but the preference of the country hosting the businesses. He also bragged that American policy on investments has been successful in regions where these are made available.
“I want to assure you of one thing, to begin with. The U.S. does not seek a position of special privilege for American investments here. Also, I would say, in general terms, that most Americans are convinced that there is nothing that can match the record of progressive, energetic, technologically-advanced, private American investment in helping to speed the growth of developing countries. I want to make this quite clear. We are proud of the record of our private investors. We think they make a tremendous contribution to the quality of life almost wherever they go.
“However, we also are convinced that the degree to which new investment is to be welcomed in each country is a decision which each country must make for itself. No one is going to try and force it down the throat of any country which doesn’t want it. We generally don’t inject ourselves into this discussion. If we are asked, we do comment on the kinds of measures that have proven effective elsewhere throughout the world in the competition to attract new investors. Because there is a competition under way, and it is a vigorous one.”
Knight, who was noncommittal, ended his message by saying:
“I will say that I will take away with me a much better understanding of the tremendous opportunities of this province, and of Mindanao as a whole, and also of the problems that you personally face. I don’t want to hint for one minute that there is a likelihood of large-scale new U.S. Government economic aid programs in the future. The history of our international operations in the last decade has been one of gradually lessening aid programs, as you know, and this is likely to be the case in the future as well. However, understanding your situation in Davao Oriental will make it more easy for me to understand the situation, and the problems, of the Philippines as a whole.”
