The original 1947 military pact between the Philippines and the US has been amended. The year 1979 witnessed a turning point for both countries - Philippines claimed a sovereign rule over the base and the US area of responsibility was reduced from 24,000 hectares to 6,300 hectares. What followed was a series of events that would change the course of Subic Bay forever. On June 15, 1991, volcanic ashes and debris rained over the base, devastating Subic Bay and neighboring provinces. Mt. Pinatubo's fury has left the US Navy and Air Force no option but to evacuate all their dependents. When Pinatubo's rage came to a halt, and American and Filipino personnel restored the base, bringing it back to business in no time. Uncertainty continued hovering the Philippine Senate with regard to the termination of the 1947 treaty. Months-long discussions were held; parliamentary proceedings were organized; and a pro-bases rally was staged, but to no avail. September 16, 1991 surfaced a conclusion - The US had to withdraw its forces and equipment from Clark and Subic, having received the rejection of 12 senators on the earlier proposed new treaty. The lowering of the Stars and Stripes followed suit. The Navy bid farewell to America's nine decades of military presence on Philippine soil.
Surprisingly the departure of the Americans did not spell doom. Subic Bay was converted into a commercial zone largely through the efforts of some 8,000 residents of nearby Olongapo City, under the leadership of their mayor, Richard Gordon, who volunteered to protect and preserve 8
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