The development of large-scale plantations faced a labor shortage, and workers were contracted from Luzon and the Visayas (including Japanese laborers from the Baguio, Benguet road construction). Many Japanese became landowners, acquiring lands by government lease or buying American plantations. The first two decades of the 20th century found Davao a producer of exports (abacá, copra and lumber).
Japanese entrepreneur Kichisaburo Ohta exploited large territories, transforming them into abacá and coconut plantations and developed large-scale copra, timber, fishing and import-export trade.
People from all over Luzon and Visayas settled in Davao. As a result, they outnumbered the indigenous Manobo, Tagacaolo, Guongan and B'laan tribes in the area.
Because of increasing Japanese influence in the region's economy, on March 16, 1936, congressman Romualdo Quimpo from Davao filed Bill 609 (passed as Commonwealth Act 51), creating the City of Davao from the Town of Davao (Mayo) and Guianga District. The bill called for the appointment of local officials by the president.
Davao was inaugurated as a charter city on October 16, 1936 by President Manuel L. Quezon. The City of Davao became provincial capital of a united Davao Province. It was one of the first two towns in Mindanao to be converted into a city (the other was Zamboanga). By that time, the city's population was 68,000.
On December 8, 1941, Japanese planes bombed the city and the Japanese occupation began in 1942. In 1945, American and
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