problem confronting the U.S. government after the takeover of the Philippines from Spain in 1898, concerning the disposition of large landed estates owned by Spanish monastic orders on the islands.

For more than 300 years the Roman Catholic Church had been intimately involved with Spanish colonial government in the Philippines. During that time three religious orders—Dominicans, Augustinians, and Recollects—had acquired about one-tenth of all the improved land in the islands. The discontent of the Filipino peasants with this situation had been a contributing factor in the Philippine Revolution of 1896–98.

In the Treaty of Paris (1898), which settled the Spanish–American War, the U.S. government agreed to protect the friars' property rights, but it was clearly dangerous to allow them to return to their lands. An agreement was eventually reached under which the U.S. purchased 410,000 acres (about 170,000 hectares) for a sum of $7,000,000. The land was then resold to tenant farmers on an installment basis. This solution was not entirely satisfactory; numerous disputes arose over the accuracy of surveys and terms of repayment. Continued monastic possession of certain parcels of land has been a source of contention ever since, as has the issue of land reform in general.