Inlet of the South China Sea , southwestern Luzon , Philippines.
From 1901 it was the site of the U.S.-operated Subic Bay Naval Station, the largest naval installation in the Philippines. The area suffered heavy damage in World War II and was occupied by the Japanese in 1942–44. The base played a prominent supply and maintenance role in the Vietnam War (1955–75). Control of the bay was transferred to the Philippines in 1992, and it subsequently was redeveloped as a free-trade zone and recreational and tourist destination.