This is a very rare perforated example of the Philippines Japanese Occupation "President Jose P. Laurel" regular issue, Scott N37, from January 12, 1945. This series of three stamps (5s, 7s, and 20s) were printed in the Philippines and issued imperforate, ungummed, on unwatermarked paper.
According to Eugene A. Garrett's masterwork, "A Postal History of the Japanese Occupation of the Philippines, 1942-1945", the Philippine Bureau of Communications originally intended to issue these stamps perforated and gummed, and apparently attempted to perforate a few sheets. However, the poor quality of the paper and dullness of the perforating machine pins prevented these stamps from being issued perforated and gummed.
Only a few sheets of the 5s value (some references state at least 2 sheets of 50 stamps), perforated 12x12-1/2 and without gum, were kept as proofs in the vault of the Manila Central Post Office.
During the battle to liberate Manila in February 1945, these few perforated sheets of the 5s Laurel issue were looted from the Manila Central Post Office when it suffered extensive damage.
The 7s and 20s values are also known perforated 12x12-1/2 and these are very rare. It is known that at least 2 sheets each of the 7s and 20s value were specially perforated to order for Col. William Peck of the U.S. Army Air Corps, after the liberation of Manila.
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