murders followed. Those who survived fled to the jungle and formed the Hukbong Mapagpalaya ng Bayan (the People's Revolutionary Army).". First president of the Third Republic (1946–1948) Roxas served as the president of the Commonwealth of the Philippines in a brief period, from May 28, 1946, to July 4, 1946, during which time Roxas helped prepare the groundwork for an independent Philippines. Roxas's term as the president of the Commonwealth ended on the morning of July 4, 1946, when the Third Republic of the Philippines was inaugurated and independence from the United States proclaimed. The occasion, attended by some 300,000 people, was marked by the simultaneous lowering of the U.S. flag and raising of the Philippine national flag, a 21-gun salute, and the pealing of church bells. Roxas then took the oath of office as the first president of the new republic before Supreme Court Chief Justice Manuel Moran. The inaugural ceremonies took place at Luneta Park in the City of Manila. On the Grandstand alone were around 3,000 dignitaries and guests, consisting of President Roxas, Vice President Quirino, their respective parties, and the Cabinet; first United States Ambassador to the Philippines Paul McNutt; General Douglas MacArthur (coming from Tokyo); United States Postmaster General Robert E. Hannegan; a delegation from the U.S. Congress led by Maryland Senator Millard Tydings (author of the Tydings–McDuffie Act) and Missouri Representative C. Jasper Bell (author of the Bell Trade Act); and former Civil Governor-General Francis Burton Harrison. Domestic policies Economy No sooner had the fanfare of the independence festivities ended that the government and the people quickly put all hands to work in the tasks of rescuing the country from its dire economic straits. Reputed to be the most bombed and destroyed country in the world, the Philippines was in a sorry mess. Only Stalingrad and Warsaw, for instance, could compare with Manila in point of destruction. All over the country more than a million people were unaccounted for. The war casualties as such could very well reach the two million mark. Conservative estimates had it that the Philippines had lost about two thirds of her material wealth. In 1946, the Filipino gross domestic produce was down 38.7% from where it had been in 1937. The country was facing near bankruptcy. There was no national economy, no export trade. Indeed, production for exports had not been restored. On the other hand, imports were to