Carlos P. Garcia

Vice-President Carlos P. García (right) was sworn in as President upon Magsaysay's death at the Council of State Room in the Executive Building of the Malacañan Palace complex. The oath of office was administered by Chief Justice Ricardo Paras.

At the time of President Magsaysay's sudden death on March 17, 1957, García was heading the Philippine delegation to the SEATO conference then being held at Canberra, Australia.[4] Having been immediately notified of the tragedy, Vice President García enplaned back for Manila. Upon his arrival he directly repaired to Malacañang Palace to assume the duties of President. Chief Justice Ricardo Paras, of the Supreme Court, was at hand to administer the oath of office. President Garcia's first actions dealt with the declaration of a period of mourning for the whole nation and the burial ceremonies for the late Chief-Executive Magsaysay.[4]

After much discussion, both official and public, the Congress of the Philippines, finally, approved a bill outlawing the Communist Party of the Philippines. Despite the pressure exerted against the congressional measure, García signed the said bill into law as Republic Act No. 1700 on June 19, 1957.[4][5]

Republic Act № 1700 was superseded by Presidential Decree № 885, entitled "Outlawing Subversive Organization, Penalizing Membership Therein and For Other Purposes." This was amended by Presidential Decree № 1736, and later superseded by Presidential Decree № 1835, entitled, "Codifying The Various Laws on Anti-Subversion and Increasing the Penalties for Membership in Subversive Organization." This, in turn, was amended by Presidential Decree № 1975. On May 5, 1987, Executive Order № 167 repealed Presidential Decrees № 1835 and № 1975 as being unduly restrictive of the constitutional right to form associations.[6]

On September 22, 1992, Republic Act № 1700, as amended, was repealed by Republic Act № 7636.[7]

García exercised the Filipino First Policy, for which he was known. This policy heavily favored Filipino businessmen over foreign investors. He was also responsible for changes in retail trade which greatly affected the Chinese businessmen in the country. In a speech during a joint session of Congress on September 18, 1946, García said the following:

We are called upon to decide on this momentous debate whether or not this land of ours will remain the cradle and grave, the womb and tomb of our race – the only place where we can build our homes, our temples, and our altars and where we erect the castles of our racial hopes, dreams and traditions and where we establish the warehouse of our happiness and prosperity, of our joys and sorrows.[8]

In the face of the trying conditions in the country, García initiated what has been called "The Austerity Program". His administration was characterized by its austerity program and its insistence on a comprehensive nationalist policy. On March 3, 1960, he affirmed the need for complete economic freedom and added that the government no longer would tolerate the dominance of foreign interests (especially American) in the national economy. He promised to shake off "the yoke of alien domination in business, trade, commerce and industry." Garcia was also credited with his role in reviving Filipino cultural arts.[3] The main points of the Austerity Program were:[4]

1. The government would tighten up its controls to prevent abuses in the over shipment of exports under license and in under-pricing as well.
2. There would be a more rigid enforcement of the existing regulations on barter shipments.
3. Government imports themselves were to be restricted to essential items.
4. The government also would reduce rice imports to a minimum.
5. An overhauling of the local transportation system would be attempted so as to reduce the importation of gasoline and spare parts.
6. The tax system would be revised so as to attain more equitable distribution of the payment-burden and achieve more effective collection from those with ability to pay.
7. There would be an intensification of food production.

The program was hailed[4] by the people at large and confidence was expressed that the measures proposed would help solve the standing problems of the Republic.[4]

During his administration, he acted on the Bohlen–Serrano Agreement, which shortened the lease of the American military bases from 99 years to 25 years and made it renewable after every five years.[9]

In addition to his laws and programs, the Garcia administration also put emphasis on reviving the Filipino culture. In doing so, the Republic Cultural Award was created. To this day, the award is being given to Filipino artists, scientists, historians, and writers.[10]

At the end of his second term, he ran for re–election in the Presidential elections in November 1961, but was defeated by his Vice-President Diosdado Macapagal, who belonged to the opposing Liberal Party (the President and the Vice-President are elected separately in the Philippines).