This report discusses key issues in U.S.-Philippine relations and developments in Philippine politics, economics, society, and foreign relations. Global terrorism concerns have brought the United States and the Republic of the Philippines (RP) closer together, but they also have produced some bilateral tensions and highlighted weaknesses in Philippine economic, political, and military institutions. The RP faces terrorist threats through alleged cooperation among three groups — Jeremiah Islamiah (JI), the main Southeast Asian Islamic terrorist organization with ties to Al Qaeda; Abu Sayyaf, a small, violent Muslim separatist group which operates in Mindanao and the Sulu Archipelago in the southern Philippines; and the Moro Islamic Liberation Front (MILF), an armed separatist group with alleged ties to both JI and Abu Sayyaf. President Gloria Macapagal-Arroyo has strongly supported the U.S.-led war on terrorism.

Front: Text describes action on various war fronts: German offensive gains momentum, "Greatest Japanese Defeat," Soviet forces in action, Fighting bitter on Italian front. Maps: [German offensive] -- Mindoro -- Philippine Islands -- Leyte, Samar battle area -- Czechoslovakia, Hungary border -- Northern Italy near Bologna. Back: 1945 calendar with advice: "Every day be careful what you say or write!"

Front: Text describes action on various war fronts: German Salient Compressed, Red Army in Full Scale Offensive, Tarlac Falls - Pacific Air Action Continues. Maps: European fronts -- South from Lingayen -- Formosa -- South China Sea. Back: Color poster highlights the importance of saving.

Interview with John Wilson, an officer in the U. S. Army during World War II. Wilson was born in Illinois but attended high school in the Philippines after his father accepted an engineering position there. He graduated from high school in 1939 and then enrolled in the University of Wisconsin, where he participated in the Reserve Officer Training Corps (ROTC) program. He graduated and took his commission in the Army in 1943. After Officer Candidate School (OCS), he was assigned to an engineering unit slated to participate in the invasion of the Philippines. He eventually landed on Luzon. On Luzon he was assigned temporary duty with a small Philippine Civil Affairs unit that was made up of officers and men who had relatives interned by the Japanese in the Philippines. His small unit made their way to Santo Tomas where he liberated many friends and old school mates. A few weeks later, Wilson liberated his father, a civilian internee at Los Banos. Wilson remained with his unit constructing hospitals in the Philippines in anticipation of the casualties expected from the invasion of the Japanese home islands.

Interview with Glenn E. McDuffie, an Armed Guard in the U. S. Navy during World War II. He discusses lying about his age in order to join the navy at 15 and his experience in boot camp. He served as an Armed Guard on merchant ships that transported supplies across the Atlantic and remembers being in London while German bombers flew overhead. He transported German prisoners out of Marseilles and Naples shortly after the liberation of those cities. He remembers going to Times Square upon hearing that the Japanese had surrendered. He claims to have been the sailor in the iconic photo of the sailor kissing the nurse in Times Square on V-J Day. He describes how he proved he was the sailor in the photo, what he did after the war, and how he learned that his brother survived the Bataan Death March.

Interview with George Holcombe, a Methodist pastor and civil rights activist from Houston, Texas, and his wife and associate Wanda, from Sims, Texas. The Holcombes discuss their family origins, initial exposure to racial problems and civil rights, their respective educations, pastoral work in Baton Rouge and Chicago, the Ku Klux Klan and dangers encountered, work with the Ecumenical Institute of Chicago and empowering black communities, the 1968 Chicago riots, Fifth City, and similar work in Australia and the Philippines.

Interview with Volnie S. Burk, an Army veteran and survivor of the siege at Fort Hughes near Corregidor, concerning his experiences as a prisoner-of-war of the Japanese during World War II. Burk discusses the fall of Fort Hughes and his capture, Bilibid Prison in Manila (1942), Cabanatuan (1942-1943), the Manila port area (1943), his return to Bilibid Prison (1943-1944), the fall of Manila (1945), and his liberation.

Interview with Onnie Clem, Jr., Marine WWII veteran and POW from Dallas, Texas. Clem discusses his time as a Marine in Northern China before the war; his transfer to Cavite Navy Yard in the Philippines; the Japanese invasion; the Battle of Bataan; his capture and internment at Camp O'Donnell, Cabanatuan, and Davao; escaping from a sinking transport off the coast of Mindanao; and reuniting with American forces.

Interview with Howard L. Patton, a Army WWII veteran from Flora, Illinois. Patton discusses his family background, commissioning into the Army through ROTC, training with anti-air artillery, his marriage, deployment to New Guinea, the assault on Wakde Island, the battle of Leyte, operations at Zamboanga, and the end of the war.

Letter from George Perutz to Harris Kempner discussing international firms in the Philippines and Hong Kong.

Letter from Carlos Cheng to George Perutz discussing the upcoming consolidation of the H. Kempner Cotton Company.

Letter from Dillon Anderson to Harris Leon Kempner thanking him for his letter of January 6, enclosed with a copy of he Foreign Policy Bulletin on Laos which is of his interest. So, Anderson requests Kempner to suggest any names of the people who are living in The Philippines, South Vietnam, Burma, Laos, Cambodia, and Thailand so he could ouch bases with them.

Letter from Harris Leon Kempner to Dillon Anderson handing a copy of letter that they have written to their contact in Bangkok, Mr. Lyman. If he couldn't help, he'd at least provide leads. And Kempner mentions that he's working on Philippine letters currently and would send them over once he's done.

Script from the WBAP-TV/NBC station in Fort Worth, Texas, relating a news story of the south Vietnamese government who said that the Chinese Task Force that drive Vietnamese forces from the Paracel Islands may be preparing to head for the sparkly chain farther south.

Interview with William Taylor, an executive at Caltex Petroleum Corporation from New York, about his experiences working for the company in the Philippines and Thailand, the joint venture refinery in Thailand, expansion of the company, and the move of headquarters from New York to Dallas.

Transcription of letter from Chester Nimitz to his mother in Kerrville. Nimitz sends birthday greetings and mentions he has been participating in target practice in Manila Bay. He mentions potential trouble in China and a possibility of having to go there. Nimitz also indicates the British fleet will be arriving soon in Manila Bay and he expects to be doing a lot of entertaining soon.

Handwritten letter from Chester Nimitz to his father in Kerrville. Nimitz mentions the upcoming target practice competition. He also mentions the possibility of returning to China in case of trouble there. At the end, Nimitz asks for Kerrville's newspaper, the Mountain Sun, to be delivered to him.

Transcription of letter from Chester Nimitz to his grandfather in Fredericksburg. Nimitz discusses preparing for target practice in Manila Bay. He mentions the ship's cat being thrown overboard by the concussion of the 12-inch guns being fired. The cat was recovered. He also mentions entertaining officers of the British fleet.

Transcription of letter from Chester Nimitz to his father in Kerrville. Nimitz mentions the upcoming target practice competition. He also mentions the possibility of returning to China in case of trouble there. At the end, Nimitz asks for Kerrville's newspaper, the Mountain Sun, to be delivered to him.

Handwritten letter from Chester Nimitz to his mother in Kerrville. Nimitz sends birthday greetings and mentions he has been participating in target practice in Manila Bay. He mentions potential trouble in China and a possibility of having to go there. Nimitz also indicates the British fleet will be arriving soon in Manila Bay and he expects to be doing a lot of entertaining soon.

Handwritten letter from Chester Nimitz to his grandfather in Fredericksburg. Nimitz discusses preparing for target practice in Manila Bay. He mentions the ship's cat being thrown overboard by the concussion of the 12-inch guns being fired. The cat was recovered. He also mentions entertaining officers of the British fleet.