Cloma, owner of a fishing fleet and a private maritime training institute, the PMI Colleges (formerly known as Philippine Maritime Institute), aspired to open a cannery and develop guano deposits in the Spratlys. It was principally for economic reasons, therefore, that he "discovered" and claimed islands in the Spratlys.[4]
On May 11, 1956, together with 40 men, Cloma took formal possession of the islands, lying some 380 miles (612 km) west of the southern end of Palawan and named them Freedomland. Four days later, on May 15, 1956, Cloma issued and posted copies of his "Notice to the Whole World" on each of the islands as a manifestation of unwavering claims over the territory. On May 31, 1956, Cloma declared the establishment of the Free Territory of Freedomland, ten days after he sent his second representation to the Secretary of Foreign Affairs informing the latter that the territory claimed was named Freedomland. On July 6, 1956, Cloma declared to the whole world his claim and the establishment of a separate government with its capital on Flat Island (also known as Patag Island). Cloma introduced a distinction between his Freedomland and the Spratlys further west. This distinction later became part of the Philippines' foreign policy. This distinction was never fully clarified. It seems that Freedomland encompasses most of what others call the Spratly Islands, but not Spratly Island itself, nor the banks and reefs lying to the west of it.[5]
Cloma's declaration was met with hostile reactions from several neighboring countries, especially the Republic of China, or Taiwan. On September 24, 1956 the ROC reoccupied nearby Itu Aba Island (also