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This psychological warfare took place from 1950 to 1954 in the provinces of Pampanga, Nueva Ecija, and Tarlac.
Considering the rural nature of Philippine society in this epoch, belief in the aswang was strong, along with other supernatural entities such as the engkanto and the manananggal. Given the superstitious nature of Filipinos, some would argue that believing in these creatures continue to this day. Thus, the aswang became the perfect candidate for the CIA to take advantage of.
The plan was simple. A pile of dead bodies, usually deceased Huk fighters, would be left by the side of the road in a busy area in the province. And on those mangled bodies, holes were punctured to resemble animal—or aswang—bites. The terrible sight convinced anyone who came across it that it was the nighttime monsters of Filipino folklore that committed the atrocious act. […]
In his memoir, Lansdale recounted how they would kidnap one Huk, puncture his neck with two holes, hang his body by the heels, drain him of blood, and dump the corpse on a trail that other Huks would pass by. When the Huks discovered their dead comrade, they’d promptly pack up and relocate to a different hill.