The groups just mentioned and other groups and items comprising about 77 and 75 per cent of United States domestic exports to the Philippines during 1928 and 1929, respectively, are given below, arranged in order of importance according to value during 1928, with percentages showing the proportion of the total export value of each item shipped to the Philippines. Table 28 gives further details for 1928 and 1929, covering 109 groups and items of United States domestic exports to the Philippines, valued in 1928 at more than $100,000 each.

Exports from United States to the Philippines-Major items and groups 1928, 19291

United States Exports of Agricultural Products, Manufactures of Agricultural Products, and Other Products to the Philippines, 1910-1914 to 1924-1928; and 1929 27

The average annual value of United States primary agricultural products shipped to the Philippines, including raw coffee,28 during the five calendar years 1924-1928, was $1,548, 040,29 or 2.29 per cent of all United States exports to the Philippines; as compared with 3.19 per cent or $720,902, annual average during the five fiscal years 1910– 1914, immediately following the inauguration of duty-free trade with the islands in 1909. For domestic manufactures of agricultural products, including roasted coffee, the annual average during 1924

27 The trade figures discussed under this heading do not include reexports of foreign products. 28 Shipped principally Hawaii.

29 Among these, the only items valued at more than $5,000, annual average, during 1924-1928, were: Poultry and game, $5,564; apples, green or ripe, $213,748; fresh grapes, $92,224; lemons, limes, oranges, grapefruit, and other subtropical fruits, $251,751; fresh peaches, pears, and other fruits, $9,916; fruit stocks, cuttings, etc., $7,196; nuts, $5,157; dried beans, $15,249; dried peas, $5,671; crude drugs, herbs, and roots, $6,227; onions, $12,136; potatoes, $14,071; other vegetables in natural state, $52,597; hay, $41,514; hops, $7,560; spices, $8,151; tobacco, unmanufactured, $534,228; green coffee, $229,282.

1928 was $28,306,763, or 41.89 per cent of the total, as compared with $9,661,702, or 42.84 per cent during 1910-1914. Although the average annual values of United States primary agricultural products and manufactures of agricultural products combined, shipped to the Philippines, thus increased greatly from 1910-1914 to 1924-1928, their proportion to the total United States export trade with the islands declined slightly from 46.03 per cent to 44.18 per cent.

The values of Philippine agricultural products, including both raw and manufactured, shipped to the United States were, during approximately the same periods compared above, very much greater than the corresponding exports from the United States to the Philippines, and the proportion of these products to total exports was also much greater in the shipments from the Philippines to the United States than in the reverse movement; this fact may be noted from Tables 11 and 12.

United States exports to the Philippines of primary agricultural and manufactures of agricultural products during 1929, practically all benefiting by the tariff preference incidental to duty-free admission of American products, amounted to about $33,395,000. During the same year Philippine exports of primary agricultural and manufactures of agricultural products to the United States and possessions amounted to about $115,101,000.30 Of this amount, sugar, coconut oil, desiccated coconut, tobacco products, cordage, and hats, entering duty-free, because of Philippine origin, comprised about $90,765,000, or 79 per cent; the remaining $24,336,000, or 21 per cent, was made up of copra, manila fiber, copra meal or cake, and maguey fiber, which enjoyed no tariff preference, because they were on the general free list of the United States tariff.

Table 29 presents a comparison of the exports from the United States to the Philippines, distinguishing agricultural products, manufactures of agricultural products, and eight other leading economic groups, during the five fiscal years 1910-1914, and the six calendar years 1924-1928, and 1929.

A somewhat different segregation of major economic groups of United States exports to the Philippines during the calendar years 1928 and 1929, showing the proportion of each group to all shipments from the United States to the islands, appears in the following table: United States exports to the Philippines by economic groups, 1928 and 1929 a

30 Excluding embroideries shipped to the United States, which are largely made up of American materials.

Relative Importance of Increases in United States Export Trade to the Philippines and to Selected Countries, 1910-1914 to 1925-1929, and 1930. During the 5-year period 1910-1914, immediately following the inauguration of duty-free trade between the United States and the Philippines, the average annual value of total United States exports to the Philippines was $22,556,000, or 1.04 per cent of United States world export trade. During the five calendar years 1925-1929 the corresponding figures were $72,785,000, or 1.47 per cent. Compared with the pre-war period 1910-1914, exports to the Philippines during 1925-1929 increased 223 per cent, while total United States exports to all other countries increased 129 per cent in value. Comparable figures for the individual years from July 1, 1909, to December 31, 1929, are shown in Table 30.

In comparing the progress of American exports to the Philippines with those to other specific regions, Java, Madura, the Dutch East Indies, China, and Japan, all relatively near the Philippines, have been selected.

Two widely separated 5-year periods, the five fiscal years 19101914 and the five calendar years 1925-1929, have been chosen for this comparison. The first was the period immediately following the inauguration of duty-free entry of American goods into the Philippines, during which the first effects of the preferential tariff treatment were manifested. The last is a period of equal length following long after the initial impetus of the preferential treatment had passed.

Average annual values and percentage increases in American exports to the Philippines and to the other destinations named, are shown in the following table:

United States exports to the Philippines and to selected countries, during stated

periods

1

1 The exports here discussed represent exports of products of the United States, excluding reexports of foreign products.

It will be especially noted from the foregoing tabulation that American exports to China, starting in 1910-1914 at a figure not much smaller than the annual average value then shipped to the Philippines, increased $88,580,000, or 418 per cent during 1925-1929, as compared with an increase of $50,229,000, or 223 per cent for the Philippines. The increase of $214,244,000, or 487 per cent, in American shipments to Japan was even greater. The large increase to China and Japan is notable because both are oriental countries, not differing greatly from the Philippines in distance from the United States, and in neither of these countries did American goods receive

31 During 1930 United States exports to the Philippines increased by 0.5 per cent in value over the average of 1923-1928, but decreased 24.1 per cent as compared with 1929. Concurrently United States world exports decreased 17.4 per cent in relation to the average of 1923-1928 and 26.7 per cent as compared with 1929.

tariff preferences, as they did in the Philippines. Of course, the population of either China or Japan is much larger than that of the Philippines and the per capita import trade of either country from the United States is much smaller.

United States exports for 1925-1929 and 1910-1914, to such oriental markets as the Philippines, Java, Madura, the Dutch East Indies, China, and Japan, considered as a single group of countries, shown in the following table:

are

Value and proportions of United States exports to the Philippines and selected oriental countries, during stated periods 1

1 The exports here compared represent exports of products of the United States, excluding reexports of foreign products:

It thus appears that among the markets enumerated above, over the periods indicated, the relative importance of the Philippines as an outlet for American goods declined 7.2 points, while the importance of Japan increased about 10.6 points, and the others also increased somewhat, by 3.6 and 2 points, respectively.

Philippine Reexportations to Asiatic Points of Imports from the United States 1910-1929.

Expectations that Manila, the principal port in the Philippines, or some other Philippine port might become an entrepôt for American export trade with Asia have not been realized. There was little movement of American goods from Manila to other non-Philippine Asiatic points before reciprocal duty-free trade was established, nor has trade of this character attained more than minor importance under the more favorable conditions attending the duty-free entry of American goods into the islands, except during the World War and the postwar years 1917-1921, when either normal world shipping conditions were disrupted or goods were reshipped possibly to salvage overshipments and cancellations.

From the inauguration of duty-free trade with the islands in 1909 until the earlier World War period, the greatest reported annual value of American goods reexported from the Philippines to foreign Asiatic points was $135,444, in 1915; which was about 0.5 per cent of all Philippine imports from the United States; in 1922, these reexports were $783,414, or 1.6 per cent of all Philippine imports from the United States. For 1929 the corresponding figures were $178,344, or 0.2 per cent. Figures for individual years, from 1910 to 1929, are given in Table 31.

Dutiable Trade between the Philippines and the United States, 1924-1929.

In the provisions of the different acts of Congress establishing duty-free trade between the Philippines and the United States there is no limitation as to the amount of permissible foreign material content in products or manufactures of the United States entitled to duty-free admission into the Philippines, but for articles produced or manufactured in the Philippines and entitled to duty-free admission into the United States the foreign (non-Philippine and non-American) material content is limited to 20 per cent of their value. In addition the duty-free movement of United States and Philippine products in either direction is conditioned upon nonallowance of drawback and direct shipment.33

Since the inauguration of duty-free trade from the United States to the Philippines in 1909, there have been importations into the islands from the United States which were subject to duties. These included goods which were dutiable because of allowance of drawback or nondirect shipment, or simply because they were foreign merchandise withdrawn from bonded warehouse and reexported to the Philippines.34 But the proportions of total Philippine imports from the United States represented by these classes have been small-they ranged from 0.4 to 0.9 per cent during the calendar years 1924-1929. The amounts of duties collected in the Philippines on such importations from the United States can not be ascertained from published Philippine customs statistics.

The following tabulation indicates the reported value of dutiable imports into the Philippines from continental United States during the six calendar years 1924-1929.

Philippine dutiable imports from the United States, 1924-1929 1

1 Source: Annual reports of the insular collector of customs, Manila, P. I.

Relatively small amounts of Philippine shipments to the United States also have had to pay duty because of not conforming to the conditions as to nonallowance of drawback, direct shipment, maximum permissible foreign natural content, or Philippine origin. The minor importance of this trade is indicated by the following table for goods received from the Philippines upon which duties were levied during the six calendar years 1924-1929.

32 United States tariff act of Aug. 5, 1909, sec. 5; congressional Philippine tariff act of Aug. 5, 1909, sec. 12; United States tariff act of Oct. 3, 1913, Sec. IV, C; United States tariff acts of Sept. 21, 1922, and June 17, 1930, sec. 301.

33 Rice was first included in the mutual duty-free provisions under the operation of sec. IV, C of the tariff c1of Oct. 3, 1913.

34 Philippine import statistics do not specify whether or not the reported "dutiable" importations from the United States also include shipments from the United States transshipped to other destinations at Philippine ports.