Accession 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 due to an
airplane crash on March 17, 1957, Garcia was heading the Philippine delegation to the
SEATO conference then being held at
Canberra,
Australia. Having been immediately notified of the tragedy, Vice President Garcia enplaned back for
Manila. Upon his arrival, he directly reported to
Malacañang Palace to assume the duties of president. Chief Justice
Ricardo Paras of the
Supreme Court administered the
oath of office, which took place at 5:56 PM
PHT on March 18, 1957. President Garcia's first actions were to declare a period of national mourning and to preside over the burial ceremonies for Magsaysay.
1957 presidential election President Garcia won a full term as
president with a landslide win in the
national elections of November 12, 1957. Garcia, the Nacionalista candidate, garnered around 2.07 million votes or 41% of the total votes counted, defeating his closest rival,
Jose Y. Yulo of the Liberal Party. His running mate,
House Speaker Jose B. Laurel Jr., lost to
Pampanga 1st district Representative
Diosdado Macapagal. This was the first time in Philippine electoral history where a president was elected by a plurality rather than a majority, and in which the winning presidential and vice-presidential candidates came from different parties. Garcia took his oath of office on December 30, 1957, at the
Independence Grandstand in
Manila, commencing his second consecutive and only full term. The oath of office was administered by
Chief Justice of the Supreme Court of the Philippines Ricardo Paras. Juan Pajo, the then-
governor of
Bohol, held the
Bible which Garcia took oath on, breaking the tradition wherein it is held by presidential spouses.
Administration and cabinet Anti-communism After much discussion, both official and public, the
Congress of the Philippines, finally, approved a bill outlawing the
Philippine Communist Party. Despite the pressure exerted against the congressional measure, Garcia signed the aforementioned bill into law as Republic Act No. 1700 or the
Anti-Subversion Act on June 19, 1957. The act was superseded by Presidential Decree No. 885, entitled "Outlawing Subversive Organization, Penalizing Membership Therein and For Other Purposes", and was later amended by Presidential Decree No. 1736 and later superseded by Presidential Decree No. 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 No. 1975. On May 5, 1987, Executive Order No. 167 repealed Presidential Decrees No. 1835 and No. 1975 as being unduly restrictive of the constitutional right to form associations. On September 22, 1992, Republic Act No. 1700, as amended, was repealed by Republic Act No. 7636 during the administration of
Fidel V. Ramos, which legalized the
Communist Party of the Philippines, other underground movements and
subversion, though
sedition remained a crime.
Economy The Garcia administration's pro-nationalist stance on the country's economy was disliked by foreign countries especially by the United States. To counter Garcia's economic controls, as early as 1957, the
International Monetary Fund (IMF) pressured the Philippines that if the country did not lift their controls, then the Philippines shall not receive any loans from the IMF. According to central bank governor
Miguel Cuaderno Sr., the United States rejected the Philippines' request for a stabilization loan of 25 million USD. The passage of the
Filipino First Policy further worsened the relations of the U.S. with the Philippines.
Filipino First policy Garcia 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 his speech as senator during a joint session of Congress on September 18, 1946, Garcia said the following: Despite deteriorating relations with the U.S. as a result of this policy, the Philippines utilized it to induce industrialization and put Filipinos in control of industry and economy. The Philippines' manufacturing sector grew to 29 percent per year from 1949 to 1960. The manufacturing sector was considered the fastest growing sector accounting for 8.1 percent of the Philippine economy in 1949 to 17.7 percent by 1960. During his term, a wider push for machinery was introduced, especially by nationalist entrepreneurs and the industrial working class.
Bohlen–Serrano Agreement 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. This favored non-U.S. aligned Asian countries including
China. Aside from that, Garcia also forged close relations with Asian U.S. allies like
Taiwan,
South Korea, and
Japan. However, these moves by the Philippines did not sit well with the U.S.
Austerity program In the face of the trying conditions in the country, Garcia 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.
Creation of the International Rice Research Institute President Garcia, with the strong advocacy of Agriculture and Natural Resources Secretary Juan G. Rodriguez, invited the
Ford Foundation and the
Rockefeller Foundation "to establish a rice research institute" in
Los Baños, Laguna. This led to the establishment of the
International Rice Research Institute in 1960.
Republic Cultural Award 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.
Opposition The Garcia administration faced opposition from the United States and Magsaysay supporters. Within his own
Nacionalista Party, two prominent senators, Senate President
Eulogio "Amang" Rodriguez Sr. and Blue Ribbon Committee Chairman
M. Jesús Cuenco, were openly critical of Garcia's policies. Magsaysay supporters, on the other hand, wanted to restore the "spirit of Magsaysay’s honest and energetic administration". Magsaysay supporters were divided into two parties: the
Progressive Party and the Liberal Party.
1961 presidential election Towards the end of his first term, he expressed his intention to run for re–election, with him being unanimously nominated as the Nacionalista Party's presidential candidate on June 3, 1961 for the
1961 election. He proclaimed Senator
Gil Puyat as his official running mate after two contentious ballots for the vice presidential nomination had extended the Nacionalista convention for three more days but was unable to provide Puyat with a 60% majority vote from delegates. Garcia and Puyat were defeated in the presidential election by Vice President
Diosdado Macapagal and
Emmanuel Pelaez respectively, both of whom belonged to the rival
Liberal Party. ==Post-presidency and death (1961–1971)==