Manuel Roxas became the first president of the Republic of the Philippines when independence was granted, as scheduled, on July 4, 1946. In Mar., 1947, the Philippines and the United States signed a military assistance pact (since renewed) and the Philippines gave the United States a 99-year lease on designated military, naval, and air bases (a later agreement reduced the period to 25 years beginning 1967). The sudden death of President Roxas in Apr., 1948, elevated the vice president, Elpidio Quirino, to the presidency, and in a bitterly contested election in Nov., 1949, Quirino defeated José Laurel to win a four-year term of his own.
The enormous task of reconstructing the war-torn country was complicated by the activities in central Luzon of the Communist-dominated Hukbalahap guerrillas (Huks), who resorted to terror and violence in their efforts to achieve land reform and gain political power. They were finally brought under control (1954) after a vigorous attack launched by the minister of national defense, Ramón Magsaysay. By that time Magsaysay was president of the country, having defeated Quirino in Nov., 1953. He had promised sweeping economic changes, and he did make progress in land reform, opening new settlements outside crowded Luzon island. His death in an airplane crash in Mar., 1957, was a serious blow to national morale. Vice President Carlos P. García succeeded him and won a full term as president in the elections of Nov., 1957.
In foreign affairs, the Philippines maintained a firm anti-Communist policy and joined the Southeast Asia Treaty Organization in 1954. There were difficulties with the United States over American military installations in the islands, and, despite formal recognition (1956) of full Philippine sovereignty over these bases, tensions increased until some of the bases were dismantled (1959) and the 99-year lease period was reduced. The United States rejected Philippine financial claims and proposed trade revisions.
Philippine opposition to García on issues of government corruption and anti-Americanism led, in June, 1959, to the union of the Liberal and Progressive parties, led by Vice President Diosdado Macapagal, the Liberal party leader, who succeeded García as president in the 1961 elections. Macapagal’s administration was marked by efforts to combat the mounting inflation that had plagued the republic since its birth; by attempted alliances with neighboring countries; and by a territorial dispute with Britain over North Borneo (later Sabah), which Macapagal claimed had been leased and not sold to the British North Borneo Company in 1878.
