September 11, 1945 Tuesday

My family again visited me. Roxas came again. He told us he could not pardon Osmeña for stating that Quezon would have preferred death than cooperate with the Japanese.

September 1, 1945, Saturday

I am sick. I have fever and eruptions cover my whole body. How I remember my wife and children! How I miss their loving care!

We learned that the drawing of lots to determine who of the Senators should serve 2 years, 4 years, and 6 years took place last August 23. They used a device -something like that used by the Sweepstakes Office. Those who came out for 6 years are Pedro Hernaez, Proceso Sebastian, Nicolas Buendia, Vicente Rama, Alejo Alonto, Domingo Imperial, Emiliano T. Tirona, and Eulogio Rodriguez; for 4 years, Melecio Arranz, Quintin Paredes, Ramon Fernandez, Esteban de la Rama, Manuel Roxas, Carlos Garcia and Rafael Martinez and myself; and for 2 years, Ramon Torres, Elpidio Quirino, Claro M. Recto, Jesus M. Cuenco, Jose Yulo and Vicente Madrigal. Evidently, the deceased senators David Maramba and Jose Ozamis were not included or assigned to 2 years. I do not believe this could be legally done; they should have been included. It is especially important as Ozamis might have died after the 2 year term was over. There is some criticism about the drawing. Fraud is insinuated. I doubt it, however; if the Sweepstakes system was adopted, fraud is impossible.

I am satisfied with the result. Now if I decide to quit politics as I have always wanted, I can. But I may be forced to continue in politics to seek vindication.

I would like to have the following for they contain important publications: (1) Daily News, August 24, 1945; (2) Daily News Magazine, August 1, 1945; (3) Gallego’s Economic Emancipation, published on August 17, 1945; (4) 7 papers published by the Pacific General Headquarters.

August 31, 1945, Friday

I have been asked many times how the Japanese financed themselves during their regime.

They came here bringing with them Japanese military notes. It can be assumed for certain that those notes are not backed by reserves. There is nothing behind it except the backing of the Japanese government. As a matter of fact, they are not currency or money. They are in reality requisition slips. Instead of forcing the Filipinos to give them food, equipment and materials, they found this indirect and less painful way of attaining their wishes. At the beginning the circulation of the currency of the Commonwealth was allowed. Following the economic law that bad money drives away good money, the latter soon disappeared in the market. Later, the Japanese made the circulation of the currency of the Commonwealth illegal. Those caught exchanging military notes for Commonwealth notes were taken to Ft. Santiago and punished for committing a hostile act.

The Japanese government then established the Southern Development Bank. They did not use the two Japanese banks, the Yokohama Specie Bank and the Taiwan Bank, except that the Taiwan Bank was used to liquidate the American and other foreign banks. As a matter of fact, the Southern Development Bank was not a bank but acted as a branch here of the Japanese Government Treasury. It was given the sole power of note issue. All the military notes were distributed through it. I had numerous discussions with the Japanese as to the nature of these notes. They have always insisted that they were Southern Development Bank notes, whereas I always maintained that they were Japanese Government notes. I did not feel it proper for the Philippine Government to deal with a private bank.

The Japanese, unlike the Americans, practically made the countries occupied by them defray all the expenses of their Army. They did this by means of the issuance of military notes. I also have no doubt about this as I happened to see the Japanese Government budget. In the statement of income, there was included what was called Contribution of the Southern Islands. (I was not sure what they called it, but I am sure that there were billions — 17 billion as I remember — provided as income from the Southern Islands.) As there was no direct request for funds, necessarily they must come from the proceeds of the military notes. They cannot ask for direct contribution because nobody or very few would give. This was shown when subscriptions were opened for the Philippines to buy and donate an airplane to Japan. Very little was collected and the project was stopped. It would not have been possible to collect a sufficient amount to buy even a small airplane unless force was used, as was done in many cases. As a matter of fact, those military notes were no more, no less than requisition slips. The whole financing of the Japanese, including the expenses of the Army and Navy and what they called war development companies, was exclusively handled by the Southern Development Bank.

This bank made every effort to exercise all the powers of a Central Bank and of a clearinghouse. It insisted that all the other banks deposit their funds with it, especially the reserves of the banks. I opposed this very strongly. I was willing to stake even my life to uphold my view. All the bank managers naturally were afraid to have any sort of issue with the Japanese. I told them that they need not assume any responsibility. I gave them orders not to deposit with the Southern Development Bank without my express authority and order. At that time, there were already on deposit in the Southern Development Bank funds of the different banks amounting to about 1000,000,000 pesos. About three-fourth or four-fifth of the funds belonged to the Philippine National Bank.

It must be stated in this connection that at the beginning I had no supervision over the Philippine National Bank. Supervision was being exercised by Malacañan. The reason was that the P.N.B. was a government corporation and Malacañan was in charge of all national companies. Later, I found out that it was Executive Secretary Pedro Sabido who was handling P.N.B matters. Even after his appointment as Minister of the new Department of Economic Affairs, he attempted to continue exercising the powers; as a matter of fact, after his appointment, he became even more insistent. He contented that the supervision of the Philippine National Bank properly belonged to his department since the bank was a government corporation and his department was in charge of all government corporations. He further contended that the Department of Economic Affairs should control the Philippine National Bank to enable it to realize the purpose for which it was established and also to facilitate the financing of the national companies.

Finally, he contended that, under the law, the Secretary of Finance is already the head of the bank, and it is not proper nor advisable for the Secretary of Finance to be also the Supervisor; otherwise; the Secretary of Finance would be supervising himself. I refused to devote much time and words to the discussion which was academic. So far as I was concerned, the argument I emphasized was that I found it impossible to supervise the banking and financing business unless all the banks were under me. Supervision over the P.N.B. was especially necessary since at least 70% of banking transactions in Manila was handled by the Philippine National Bank. I concluded in a memorandum to Pres. Laurel that if he decided to deny my request, I would strongly recommend that the supervision over all banks be transferred to the Ministry of Economic Affairs. After due consideration, the President told me that he fully agreed with me and he would immediately issue an order accordingly.

Days and weeks passed, the order did not come. I found out that the Minister of Economic Affairs was very insistent. So the President decided to submit it to the Council of State composed of Chief Justice Ramon Avanceña as President, and Don Miguel Unson, Don Pedro Aunario, Don Rafael Corpus, Don Ramon Fernandez and Don Jose Paez. The Council considered the matter very thoroughly and even heard the arguments of Minister Sabido. The President, and this was confirmed later by Don Miguel Unson and Don Rafael Corpus, advised that the Council upon preposition of Don Miguel Unson, decided unanimously in my favor. He assured me that he would issue the order forthwith.

Days passed; weeks passed, no order came. I decided to prepare the order myself and give it personally to the President. It was not signed and issued. I prepared another and left it with the President. After a few days, I asked him about it. He was surprised that I had not received it yet. I prepared another and this time I did not leave Malacañan without the President’s signature.

After the President signed the order, I immediately called Mr. Carmona, President of the P.N.B.. I must first state that under the order, I had all the powers of the Board of Directors of the Bank. I asked him about the deposits. He told me that he had submitted the matter to Malacañan and that no objection had been expressed on the part of Malacañan to the existing arrangement. When I asked for a written authority, he advised that he had not received any and that his experience was that he got no action from Malacañan on matters taken up by him, or at least action was delayed for weeks and even months.

I asked him to explain how he happened to have such a large deposit in the Southern Development Bank. He answered that from the very beginning the military people as well as the Manager of the Southern Development Bank requested him and even ordered him to deposit all excess funds of P.N.B., or funds not needed for ordinary daily transactions, with the Southern Development Bank. Pressure was used so that he had to make some deposit, but he assured me that it was far from what he could have deposited.

The Japanese reorganized the clearing house. Under the new system, all clearing balances were kept by the Southern Development Bank. There was no liquidation and the funds could be withdrawn only when the corresponding bank needed funds. So the deposit of P.N.B. in the Southern Development Bank increased everyday. This was also true as regards the other banks, Bank of the Philippine Islands and Bank of Commerce. They were also being required to make deposits. They said that they had to conform unless they wished their banks closed and their officers accused of a hostile act. I ordered them not to deposit. When they expressed fear, I told them that they should tell the Japanese that, per my order, they had to secure my approval. I also told them to withdraw their balances in the clearing house from the Southern Development Bank.

Mr. Hariguti Takahashi and the Manager of the Southern Development Bank came to me to request me to authorize the deposits. I flatly refused. This is one of many similar incidents I had with the Japanese. One instance was when a large Japanese sugar concern wanted to acquire the Philippine Refining Co., which was owned by the government and practically had the monopoly of sugar refining in the Philippines. An official of the company was told that an unfavorable recommendation from him would be interpreted as a hostile act. I told him to tell the Japanese to talk to me. The Japanese never came to see me. Another instance was when the Japanese Army proposed that the Textile Department of the National Development Company be constituted into a separate company and recapitalized with equal participation of the Philippine and Japanese governments. The participation was later changed to 40% for the Japanese and 60% for the Filipinos. I was made to understand that the plan had already been agreed upon by somebody in Malacañan. I prepared a memorandum strongly opposing the plan. The reason I gave was that the National Development Company, as any other national companies, was formed not for profit but rather to carry out national economic policies. Another time was when Colonel Utsonomiya, later promoted to General, approached me to ask me to allow the importation of opium. I told him that the laws prohibited the importation of opium and penalized its sale. Twice the Colonel approached me. I maintained my position. When it came to protecting our people and their rights, I ignored consequences absolutely.

In connection with the banks, a Japanese officer came to see me. He said that it had been reported to them that in the Ministry of Finance, there was somebody who was anti-Japanese and always worked against them. I knew it was merely a ruse. I answered that I assume responsibility for anything done in the Ministry of Finance.

Mr. Carmona wisely did his best to attain our purpose without unnecessary exposition. Carmona was so capable and prudent that he was able to withdraw a very good portion of the deposit and to maintain the deposit at a very low level.

My views and actions were fully reported to the President and he approved.

I had many other incidents. During a bombing raid, a boat loaded with military notes was blown up and all along Malate and Ermita, it rained notes. They were picked up by the people and spent. The Japanese who had the serial numbers of the notes prohibited the circulation. I protested on the grounds that the notes were already in the hands of innocent persons. For instance, there was Mrs. Mariquita de Ocampo who sold her furniture for 7,000 pesos as she needed the money. Afterwards, nobody would accept her money. What fault had she committed? Finally, the notes were accepted.

The Japanese wanted the administration to be self-supporting. They themselves prepared and imposed the approval of tax laws. From the beginning, my plan was not to change our tax laws; not to burden the people with more taxes than what they had to pay before the war. But how do we finance the government? Of course I had to make it look like I was trying to increase the income by means of assistance of our people. So I did not object to the increase in the income tax law, although I insisted that low incomes not be taxed and larger incomes not be taxed as heavily as in other counties. This is also the reason why I sold an amount of bonds instead from where I proposed to get the money.

Even during the time of the Commission, we borrowed money from the Army, It reached the amount of ₱23,000,000. During the Republic, I secured a credit of over ₱100,000,000 from the Bank of Japan, about ₱50,000,000 of which I got through the Southern Development Bank. When I submitted it to the Cabinet, there was some opposition. I did not argue, but after the meeting I explained to Minister Osias who was the one strongly opposed that my purpose was to charge to the Japanese as much of our expenses as possible. The Japanese Army after the establishment of the Philippine Republic tried to collect our previous indebtedness of ₱23,000,000. I declined on the ground that the Executive Commission was a mere instrumentality of the Japanese Administration. The amount was never paid.

Returning to inflation, I could do nothing as the Japanese did not want to give any power which would enable me to do something. I thought and thought about what to do until I came up with the idea of establishing a Central Bank if I could get the Japanese to approve my conditions. Some of them were: (1) That the Central Bank shall have the sole power of issue of notes. With this I meant to curb the unbridled issue of notes by the Japanese and the unlimited grant of credits to Japanese companies. (2) That the Ministry of Finance shall have jurisdiction and power of supervision over the Japanese banks. I demanded this most important power to control large credits given by the Japanese banks to Japanese companies and nationals. (3) That the Central Bank shall be the depository of the reserves of the other banks. And (4) That the Central Bank shall handle the clearing house balances.

The Japanese were opposed to my plan at the beginning, but in view of the fact that we were a Republic and they therefore could not openly deprive us of the right to exercise powers belonging to all independent states, they changed their tactics. They instead did their best to delay the establishment of the bank. They put up all kinds of objections and suggested many modifications. They wished preferential treatment or at least equal treatment for Japanese banks. I could not of course accept this. Mr. Haraguti, while I was speaking before the National Assembly about the establishment of a Central Bank, sent me a memorandum. I got the impression that he was opposed to it or wanted to delay it. I immediately suspended the proceedings and charged that Mr. Haraguti was out of line. He immediately saw me and tried to explain that such was not his intention. I know English well, I believe, and I had no doubt that my interpretation was correct.

The bill was approved by the Assembly but upon the request of Speaker Aquino a provision was inserted to it so that the establishment of a Central Bank would depend upon the promulgation order by the President. Aquino at the beginning was strongly opposed to the bank; later, he withdrew his objection but was evidently not interested in its establishment. However, the Japanese had not given up. We had no facilities here for the printing of notes and this had to be done in Japan. We prepared the necessary designs. We were told that all the printing presses were busy printing notes for other countries and that they could not begin making delivery until May, I believe of 1945. I went to Japan where I made every effort to expedite it but in vain. I was told that the delivery had to be periodic and the amounts for each period could not be very much. The matter remained in that state until hostilities in the Philippines began.

Another reason why I wanted the Central Bank was that I did not want to have a shortage of notes. We had a terrible crisis about the first months of 1944 because the ships used for transporting the notes were probably sunk or blown. The Japanese banks had no more available notes and the Southern Development Bank had only about ₱10,000,000 in notes of 10, 20 and 50 centavos. The Japanese banks suspended payment, and there was a run in all the banks as the public feared that the banks had no more funds. The Japanese banks, including the Southern Development Bank, wanted to get the notes of the Filipino banks. I refused to authorize the Filipino banks to loan their funds to the Japanese banks. I also instructed the Manager of the Philippine National Bank to withdraw a part of its deposit from the Southern Development Bank. We were all very much worried. Stoppage of payment of banks would paralyze business. All demands for withdrawal in Filipino banks were met. The Philippine National Bank, however, had to offer notes in small denominations. Generally, those wishing to withdraw big amounts desisted as the package of the money would be quite bulky. After a few days, shipment of notes came and the crisis passed. Because of this, I inquired about machines and materials in the Philippines that could be used in case of shortage of notes. We could print here but in limited quantities.

* * * * *

We heard on the radio that Truman had said that the Philippines might have her independence in 4 or 5 months. This means that we may have our independence by next January. I welcome it; I want to have it right now. We would have been spared the loss of billions of pesos and thousands of lives if only people ceased to be mentors of other people.

This means the election will have to be held soon. We may not even be able to take part in the elections. Until we are cleared, we cannot be of much service.

According to the radio, Ambassador Vargas was found in Tokyo and he is a very worried man. He was generally criticized for having been very weak with the Japanese. We were aware of it and we thought him a useless man and an incapable executive. But after we reflected, it may well be that under the circumstances, he did what would be of the greatest benefit to the people. Supposing that instead of getting the confidence of the known murderers, the Japanese, he had fought and defied them. He becomes a hero. But he sacrificed his country for w would have meant direct or almost direct rule by the Japanese. Instead of 200,000 dead, we probably would have had to mourn the loss of millions of our countrymen. Vargas has done much for our country.

August 30, 1945, Thursday

Taruc and Alejandrino left this morning.

It is reported that there is terrible inflation in Manila. Prices, especially of foodstuffs, are very high. Rice, for instance, is reported cost 200 pesos. There must be a great deal of suffering. How can employees live on the salaries they generally receive? And it seems that nothing is being done to combat inflation. At least we have not read of any. On the contrary, it seems that reckless spending and speculation are being tolerated. War always brings inflation. It is because of the enormous expenditures that have to be made in connection with the war effort. Inflation is caused by over circulation or by the fact that the money circulating cannot be absorbed by production and the requirements of business. It cannot entirely be eliminated but it can be minimized.

There are many measures that can be taken for the purpose. The first step is to go into the source of money — and this is the large expenditures for the Army and Navy in the Philippines. Steps can be adopted in this connection as I am sure the Americans will be willing to help and to cooperate. During the Japanese regime this was inpossible as they ignored absolutely any request for their assistance. Japanese companies and even individuals compelled the sale to them of Filipino businesses, and they invested lavishly in almost everything. Necessarily, the circulation became so enormous that the purchasing power of the military notes went as low as 1 peso for 500 to 1000 military notes. The U.S. Army and Navy can help very much absorbing a good portion of the payments made by them. The soldiers could be made to send more money home or to invest in government bonds, etc.

Since the inflation is a result of under-production and of the fact that businesses can not absorb the money in circulation, no effort should be spared to increase our agricultural and industrial production. Likewise, our commerce must be increased. Every incentive should be given to normalize and develop business. In this connection, the Filipino merchants should be given encouragement as much as possible. To increase production and facilitate the movement of commodities, transportation and communications must be restored and improved. Sufficient trucks should be assigned to the sources of production. Boats should be secured at once to resume the inter-island intercourse.

When there is inflation every conceivable means must be adopted to curb and regulate prices. When there is a big demand and very little supply, the prices increase and if there is no limit prescribed or stock limits are not enforced, prices soar to heights that most people cannot reach. Foodstuffs specially must be controlled. Our experience during the Japanese regime was that rice affected prices immeasurably; it practically regulated prices. Every time the cost of rice went up, prices of all other commodities and services followed. When a market vendor increased his price, he alleged that he has to pay more for his rice. When a “cochero” increased his fare, he alleged that he has to pay more for his rice. The worst sufferers, the employees, demanded better salaries and those demands had to be granted. But everytime increases were made, more money circulated and the result was the worsening of inflation — a vicious circle.

The best remedy is to enable the employees to acquire essential commodities at reasonable prices. They are more interested in acquiring what they need to live rather than cash which cannot buy what they need. House rents must also be regulated. But we must not be unreasonable about this. During the Japanese regime landlords were treated rawly. Rents were fixed at not more than 75% of pre-war rents. Most landlords suffered, especially those who belonged to the middle class with a fixed income. The worst feature of this order of rent control was that the order did not apply to houses and buildings newly rented which were rented out at exhorbitant rates. But the present landlords must not be allowed to charge very high.

Another necessary measure is the control of banks, insurance and other companies that receive and invest funds. Banks should be required to have a larger reserve so as to tie up a good portion of the money. Their investments should be controlled. Under no circumstances should money for speculation businesses be allowed. On the other hand, all investments which will increase production or which will develop business should be encouraged. Wisely managed, this may be a very effective measure against inflation.

Also, efforts should be made to import commodities for trade. The purpose is to increase commerce and thus more circulation can be absorbed. Arrangements must be sought so that more bottoms could be assigned to the Philippines.

Another hedge against inflation is taxation. Big incomes must be taxed higher than the ordinary so as to withdraw more money from circulation or speculation. Higher taxes should also be imposed on speculative enterprises. On the other hand, the taxes on production and transportation enterprises should not be increased.

Another means against inflation is the issuance of bonds. Every effort should be made to make the people save money by investing in bonds. Unlike previous sale of bonds purchases by banks, insurance companies and other investment enterprises should not be emphasized. Instead, the public in general should be invited to invest to the limit. But if the proceeds of the sale of bonds will be circulated again, then we gain nothing. They should be impounded and if spent, they must be invested in production enterprises or in the construction or reconstruction of public buildings and other permanent improvements.

When there is inflation the laborers and other persons rendering services do not suffer very much. It is because they can charge for their services as much as might be needed by them to live. A “cochero”, for instance, can increase his fare if necessary to live.

There are other measures that can be taken to combat inflation.

As to whether inflation is highly undesirable, there are some differences of opinion. Some contend that it is desirable. The great majority of economists, however, hold the opposite view. There is no doubt that it benefits debtors. It is heaven for debtors. Producers are also generally benefited. The only trouble is that they seldom learn the lessons taught by previous inflations. They generally expand greatly, and when depression comes, and depression generally follows at the wake of inflation, they find themselves with equipment and facilities that they have to scrap. They find that they cannot continue their business at the same pace without leading themselves to insolvency.

But there is no doubt that inflation is a curse, and evil which must be combatted with decision and energy. The great majority of the people suffer from it and if allowed to go unchecked the whole economy of the country will be dislocated.

August 29, 1945, Wednesday

Taruc and Alejandrino, the two communists or ex-communits and Hukbulahaps, were notified yesterday that they were leaving for Manila today. This morning they left by plane. We noticed that they left with a heavy heart and we felt exactly the same. Those two men have won the friendship and admiration of all of us. As friends and comrades they are as good as anybody can be. The impression they left is just the reverse of what they were pictured to us before. They were not quarrelsome, cruel and bloodthirsty as they were reputed to be. On the contrary, they are suave in manner, sociable and know how to get along with others. We do not know whether they have modified their views, but several interviews with them have convinced us that they are not the radical men who would forcibly deprive all the citizens of their right over their property. They harbor no ill-feeling or prejudice against the capitalists. They only insist that the masses be given such social protection and opportunity to enable them to live decently. They hate a dictatorial government; they will die for democracy. They are highly patriotic; they love their country above everything. They assured us that there would be no compromise as regards Philippine independence. They will fight even the Americans if they deny us our right to freedom. They are very willing to join hands with us in everything that would help our country and our people. They do not know what is in store for them. We hope that they will be released outright. They are not so optimistic, however. They fear that they will again be requested to surrender their arms numbering about 20,000 rifles and other arms. They were requested to donate these weapons to the Philippine Army for the reason that our Army had no money to buy arms. They refused. Before leaving they told us that they would not compel their men to turn in their arms. Let them do so on their own free will. They will remain in prison if necessary to uphold their views. Or they may be tried for some other cause. They are not collaborationists in the sense that they served or in any way were connected with the Japanese for the truth was that they fought the Japanese. They, therefore, should not have been placed among us. Perhaps the Americans prefer to dispose of their cases before the government is turned over completely to the Commonwealth.

Taruc and Alejandrino returned as they were not able to catch the plane this morning. They are scheduled to leave tomorrow.

Tonight the Class B quarters were inspected and searched. The Lieutenant found clothes supposed to have been stolen from the Supply Office. Some internees are implicated. They did not search the Class A quarters. Had they done so, they would have a large quantity of clothes, shoes, etc. which belong to the Army. These were acquired through donation or purchase. The Captain and the Lieutenant asked us to cooperate with them. I suppose what they were really saying was that they expect us not to receive or buy hereafter. They happened to see the Navy shoes of Arsenio Luz. They confiscated the shoes.

Recto is found to be positive for malaria. We are all scared as so many of us are already suffering from that sickness, we fear that if we remain here for a few weeks more we will all contract the disease.

My son Tony tried to land a job. He failed. He could not find a job — in some places, the employers expressed fear when they found out he bears my name. The Spaniards say, “No hay hien que formal no venga,” meaning that sometimes some good comes out of evil. Not being able to find employment, Tony was compelled to engage in business and he is quite successful. He makes enough money to support my family. He has already proven that he is an able merchant since during the Japanese regime he was also quite successful in business. After all, I am very happy that he did not become an employee. During inflation one of the worst sufferers are those with fixed income like the employees. But even under normal conditions I do not wish my sons to be employed, especially in the government service. There is too much injustice and disappointment. I have seen enough to dislike the public service. Furthermore, there is no future in government employment unless one is very lucky, as in my case. In so far as civic spirit is concerned, a person can also serve his country outside the public service. A merchant or a farmer serves his country just as much as politician, a government official or employee.

August 28, 1945, Tuesday

Our life within this prison is very monotonous. We do the same thing and see the same things everyday. Once in a while, however, there is great excitement. This is due to occasional fights among the internees. Yesterday, one whom we call Mike and the young boy internee fought and the former emerged from the fight with a broken nose. Today, Spaniard Gil had a scrap with a couple of internees. Gil suffered various contusions on the body. I think the fights are caused by restlessness; we have very little to do now and we are always in a nervous state because of our situation.

The construction of the new camp had definitely been suspended. This is undoubtedly due to the fact that soon we will be leaving this place.

We are still here. The delay in our departure is probably caused by the postponement of the signing of the surrender document from Friday to Sunday, September 2. Bad weather affected the preparation for the landing in Japan by American troops. The document is scheduled to be signed on board the dreadnought Missouri.

The delay was also due to lack of transportation. There are too many of us to go by plane. And there is yet no boat passing through Puerto Princesa. The Mactan expected here left Manila on the 26th and it has to pass through various other ports. At any rate, we expect to be out of this place by next week.

August 27, 1945, Monday

We have just received the Free Philippines of August 23. It is reported therein that the Chinese troops will occupy various areas, among which is Hongkong. In the same paper there is an item to the effect that Premier Attlee of Great Britain stated before the House of Commons that plans for reestablishment of British Administration in Hongkong “are fully prepared”. Do the British mean to return Hongkong to the Chinese or not? Apparently, there is no such intention. Japan is being ordered to return all the lands she had acquired by force. Hongkong was occupied by the British against the will of the Chinese. Why should not it be restored to the Chinese? Such inconsistency has absolutely no justification.

Domei reports by radio the following statement by Laurel:

“In view of the reoccupation of the Philippine Islands by the United States and the reestablishment therein of the government of the Commonwealth of the Philippines, the acceptance by Japan of the terms of the Potsdam Declaration of July 26, 1945 and the consequent termination of the Greater East Asia War, the Republic of the Philippines has ceased to exist.”

Gen. MacArthur on August 24, 1945 issued the following statement:

“On the 29th of December 1944, when I ordered the interment by the Army of the United States of citizens of the Philippines who voluntarily gave aid, comfort and sustenance to the enemy, I stated that the military would relinquish control of such persons to civil authorities at the conclusion of hostilities. On V. J. Day, or shortly thereafter, in keeping with that statement I have directed this transfer of jurisdiction from military to civil authority.”

“This step is taken in the firm conviction that the Philippine Commonwealth Government is prepared to deal justly with those persons accused of collaboration, the crime of treason. I am sure that the democratic principles of which the Philippine Commonwealth Government is based will guarantee swift punishment for the guilty and equally swift exoneration for the innocent.”

General MacArthur also pointed out that the Army’s prompt relinquishment of jurisdiction over persons accused of collaboration is “in conformity with my previously expressed view that civil authority should be completely restored as quickly as practicable after the cessation of hostilities.”

Acting on Gen. MacArthur’s announcement, Pres. Osmeña, in a special message to Philippine Congress on August 24, 1945, recommended the creation of a Special Collegiate Court to try all collaborators.

The President stressed that the Court should be composed of judges of First Instance “who did not work under the Japanese or engage, directly or indirectly, in the buy-and-sell business with the enemy.”

Osmeña also proposed the appointment of a staff of special prosecutors, headed by the Solicitor General.

Decisions of the Special Collegiate Court would be appealable to the Supreme Court. He added:

“In view of the fact that some members of the high tribunal may be disqualified under the requirements specified, the President recommends that judges of the Court of First Instance be authorized to sit in the tribunal in lieu of the justices who may be disqualified.”

The above news came like a bombshell in this prison. Everybody was dumbfounded. Everybody was disappointed. Everyone of us of course would prefer to be accused and duly tried so that when our vindication comes, it will be accompanied by a formal declaration of our innocence. But in view of the special circumstances, we thought that another course would be taken. As America won the war with hardly any loss of time, we thought that America would be more magnanimous and just forget everything. Also, all the Filipinos seem to wish unity and we thought they would want to finish at once the collaboration issue as this is dividing our people. But it seems that Osmeña wishes to go ahead with our cases. We welcome such a decision and we will fight to the last ditch. Our faith in him is waivering and I am afraid that we will not be able to be with him. What a difference in attitude between Osmeña and General Tito of Yugoslavia and General de Gaulle of France.

What could be his motive? Some believe that he is ill-advised by those who hate the “collaborationists”. Some think that he feels that we will prejudice his candidacy as he assumes that the great majority of the “collaborationists” would be against him. Others are of the opinion that there is imposition on the part of the Americans in which case we will have to conclude that he is a weakling. Few others assert that Osmeña’s mind is already far from what it used to be and his judgment is not as accurate as it used to be. For my part, I am willing to give him the benefit of a doubt by preferring to believe that it is his duty to push our cases to the end after passing through certain proceedings.

So there is no amnesty.

Why did he have to recommend to Congress the creation of a Special Collegiate Court? Has he no confidence in the regular courts? Why did he have to provide that judges who served during the Japanese regime cannot sit in this Court? If he has no confidence in their impartiality and honesty, why did he reappoint them? This requirement leads us to think that he is interested in our conviction and he does not want to take any chances by allowing men who served in the former regime to take part in the proceedings. At any rate, his plan would delay our cases. I am sure that such a bill cannot immediately be approved in Congress, or may be disapproved. What happens then?

From the beginning, I feared that we might become victims of politics. This is the reason why I had been saying that we would not be released until after the elections of November. Now it may be the plan to hold us until after the elections to eliminate us from the elections.

We demand that we be given an immediate trial and that in the meanwhile we be allowed to be out on bail so that we can prepare our defense. Now we see the necessity of getting together, of organizing our own party so as to protect ourselves and fight those who caused us this martyrdom.

* * * * * *

Autograph hunting continues. People asking for our autographs are not only our companions, but many ladies in this community whom we had not met. It shows their sympathy towards us.

I cannot keep track of all of them. I shall only copy one or two.

To Miss Pino: “Although I have not had the pleasure of meeting you, I have heard so much about you that I feel as if I had known you for a long time. We are here bereft of the warmth of the hearts of our families, relatives and friends. If our suffering had not been as intense as it could have been, it is because we found persons whose kindness and sympathy toward us make us forget our pains and worries. To you more than anybody else we owe this consolation.”

In the afternoons, we are allowed to play games at the plaza or Colony Square. There is a school along the way and we usually stop to look at the girls and the teachers. Evidently, they know who we are. Whenever the opportunity arises, we engage them in lively and friendly conversation. I recall a Miss Pino, a very pretty girl. She sent us many gifts.

Col. Torillo: “My greatest satisfaction during our forced stay in Iwahig is that it gave me the pleasure and opportunity of knowing persons who can be a credit to any country. Among them is you, Col. Torillo, whom I have learned to like and to admire. The work assigned to you here is a most difficult and delicate one. You certainly acquitted yourself admirably.”

August 26, 1945, Sunday

Radiogram received to the effect that “collaborators” be taken to Manila on the first available transportation. This is true and definite now. We are now packing. We hope we will be given an opportunity to thank and bid goodbye to the kind and very understanding people of Iwahig. We decided to have a plaque with our names placed in a conspicuous place in this our place of deportation and imprisonment.

A friend from Lian, Batangas, Alejandro Basila, offered to take some of my baggage.

August 25, 1945, Saturday

Laurel in Japan declared the Republic terminated on August 17, 1945. This is the date of surrender of Japan. This is the end of what in our history will pass as the Second Republic.

August 24, 1945, Friday

Information from the radio: A Japanese delegation arrived in Manila and left after all information required of them had been given.

The schedule is as follows:

MacArthur and staff will go to Tokyo on Tuesday, August 28.

Formal surrender document will be signed in Tokyo on Friday, August 31.

Truman announced V. J. Day will be declared upon signing of the surrender document. MacArthur announces that after V. J. Day, the collaborators will be turned over to the Commonwealth government, and he hopes that this government will forthwith take action to punish those who are found guilty and to exonerate those found not guilty.

I hope Osmeña will take action without any delay.

Noon: French, one of the internees working in the radioroom, reports that a radiogram has been received to the effect that many of us, the list of which will soon arrive here, will be taken to Manila to be delivered to the Bureau of Prisons now in Muntinglupa. Sison reports that someone told him that 14 of us will go by plane.

At about 10:00 p.m. when we were already in bed, Dr. Bunye came and told us that a radiogram had just been received from Manila asking how many M.P.’s are available to accompany collaborators to Manila. Many attach much importance to this telegram. To me it means nothing because it is the natural thing. The war having been concluded, we have to be taken to Manila to face trial or to be released. In case of a trial, I suppose we will be given the right to give bond.

We have become crazy here. Any significant affair is thoroughly discussed and given some significance generally favorable to us. We certainly indulge in a lot of wishful thinking.

August 23, 1945, Thursday

10:40 a.m. It was reported that the talk all over town was that we were all leaving on the 27th.

Serging Osmeña wrote a letter to his father about our views on his candidacy. It seems that he reported that everybody was inclined towards his father except two or three. As to Recto, Serging thinks he is opposed. Serging also doubts Alunan because of his relations with Roxas. Paredes, Zulueta and others have been joking Serging. They told him that we are all for his father, but that we insist Paredes be the candidate for Vice-President. The truth is that we have not made up our minds. All we agreed on was that we would endeavor to be united; that we would endeavor to vindicate ourselves; and that we would fight against everybody who had been against us. We will see the situation in Manila. We will also do our best to help in the rehabilitation of our country.

August 22, 1945, Wednesday

This is really a malaria-ridden region. Already over 30 of us are suffering from this terrible illness, among them Dean Bocobo and Mr. Abello. Some of them also suffer from some mental disorder probably as a result of the disease. If we are not taken away from here soon, I am afraid that we will all get sick.

I have read a magazine published August 13, 1945 by the Pacific General Headquarters of the U.S. Army. There is one very good article entitled “Facts Make for Friendship”. It praises the Filipino character. “Loyalty, courage and kindliness are virtues just as prized in the Philippines as in the United States. But considering the wide dissimilarity of racial backgrounds, climates, and environments, the wonder is that there is so much likeness between the two people…

“The great number of American servicemen spending lavishly increased the amount of circulation and this is of course the cause of sharp inflation. Military personnel can do much toward reduction of prices. Can anybody make deposits or send money home?”

The article praises the effective and valuable services of guerrillas. Regarding independence: “…but as the early terrible memory of Japanese cruelty recedes, it is probable that the full measure of statehood — unqualified by any of the restrictions inevitable under a dominion or commonwealth —will again become an almost unanimous desire.

“This is an old and popular misunderstanding among Americans, that our whole experience in the Islands has been an expensive, eleemosynary project. Nothing could be farther from the truth.

“From 1898 to 1940 the U.S. Government spent altogether somewhat more than a billion dollars on account of the Philippines. Spread over a period of four decades, this averages about $25 million a year — not too lavish a bounty. But $800 million of the total went to the American Army stationed in the Philippines; another $100 to the Navy; and our pacification of the Islands between May 1898 and June, 1902 cost $186,321,000. None of these large sums was spent for the direct benefit of the Filipinos. Other aid — 1903, $3 million for cholera relief; (they gave $10 million to Japan on account of the earthquake in 1923). For the Bureau of Insular Affairs and Resident Commissioner’s Office, $4 million, but the Philippine Government paid the salary and expenses of Philippine Governor General. Coast and Geodetic Survey got $6.5 million, and this is for benefit mostly of the United States. For Agriculture, a few hundred thousand dollars plus $6 million in benefit payments to sugar planters in 1934-1936. Refund of taxes collected in United States on Philippine goods average half a million a year. Excise tax is $120 for redemption of Philippine bonds. Aside from copra tax and the Military expenditures, these totals would hardly build a block on the Escolta. Even private American investment in the Philippines only total $200 million in 1935. Such figures do not justify terming the American experiment in the Philippines a past burden on the American taxpayer. For the future, whatever amount of aid the United States Congress decides to give them, one fact must be remembered. When the Japanese started their invasion in 1941, the Islands were American territory and entitled, as such, to American military protection. They didn’t get it, and our unpreparedness was the root cause of their desolution today.”

The article concluded with the following under the subheading: “They built up the Islands themselves.”

“Viewed in such a light, the Filipinos are sure to be seen as good, loyal friends of ours, who have suffered much in the common cause of rejecting aggression. They have maintained a regard as high as our own for the great heritage of Western culture. Their soldiers have fought bravely and well with pitifully meagre arms. Their people as a whole are now suffering the painful economic effects of price inflation, which weighs far more heavily on them than it does on the American Armed Forces. Finally, the terrific destruction visited on their cities and villages bespeaks our aid, not only on the ground of human sympathy, but of right.”

Coming from an American the above article is great. It does us justice.

The newspapers report that Marshal Premier Tito of Yugoslavia granted a general amnesty to all collaborators except war criminals. It is also reported that Marshal Petain was sentenced to death by the court but that De Gaulle commuted the sentence to life imprisonment.

The foregoing points the way to Osmeña. I believe he should issue a general amnesty. And this should be done immediately to further his presidential ambition. Some of us are getting impatient and it may be too late to win their sympathy if release is delayed. I believe there will be no objection to such action on the part of the Americans. At least I hope so. They have won the war almost without sacrifice of lives and they should be magnanimous to the Filipinos who in truth and in fact have always been their loyal allies.

This morning we all considered that everything was all over — finished. No more hope, no more illusions. Stock Exchange definitely closed as there were no more transactions. Zulueta remarked. “Tu gozo en el pozo,” It seems that the reported radiogram was a fake, a joke. It was certainly a bad, heartless and cruel joke. We suffer enough without it.

I regretted that I changed my attitude. I never paid attention to rumors before. I preferred to use my time doing something else like writing. I was happy. Now that I allowed myself to be carried or influenced by news, I cannot help but worry and suffer at times. My reason for changing was the fact that the war had ended abruptly without hardly any loss on the part the Americans and I thought the latter would be more magnanimous and just forget everything. Furthermore, Osmeña is an experienced, shrewd politician. I presumed that he would make a “master stroke” (goIpe) by just granting a general amnesty to all collaborators. This certainly will insure his election. I suggested to Serging that he write his father.

11:00 a.m. Zulueta arrived from the dentist’s office and he reports that Dr. Reyes, the dentist, said that last night while in the dance given in honor of Col. Gilfilan, Lt. Fernandez received a radiogram which he had not yet codified and which seemed to refer to us.

12:50 a.m. Paredes reports that the cook of Gilfilan stated that he had overheard a conversation to the effect that we were going to be released.

Notwithstanding the apparently reliable sources nobody paid attention to them.

9:00 p.m. Col. Gilfilan came to our quarters and bade us farewell. He was very nice and jovial but left no encouraging words. All hope vanished — general gloom.

August 21, 1945, Tuesday

7:30 a.m. The market was almost dead. There were no quotations for buyers. Sellers were getting sleepy as there was no movement. Don Vicente Madrigal, the President of the Exchange, was so disappointed that he ordered the temporary closing of the Exchange. The sellers left with bowed heads, some even with tears as if some near relations had crossed the Great Divide. But Bayan kept watching and surreptitiously or privately (outside the Exchange), he bought, but timidly and only very small lots.

At 9:00 a.m., Dr. Bunye came and reported that Col. Gilfilan was going by boat. Why not by airplane like others, others who were even minor officers? Immediately we concluded that Gilfilan was going to accompany us, as did Col. Superintendent Forbes when we were brought over here by boat.

At 10:45, Zulueta, who had gone to the hospital not to be cured but rather to smell for news, came back with the report that the Postmaster had certified that the radiogram was authentic. Zulueta considered his trip highly successful because some way or other he was able to connect himself with the cook of Col. Gilfilan and the cook assured that he had overheard a conversation with the Colonel in which the release of war prisoners was mentioned. Immediately the stock market was revived and there were brisk transactions. But Don Vicente persisted in not opening the Exchange, so all transactions had to be done privately — off the Exchange.

At 4:00 p.m., transactions suddenly stopped. It was learned that Col. Gilfilan and Lt. Reyes were going by airplane and not by boat. Consternation! Paredes endeavored to save the situation by stating that his interpretation is just the reverse — that the news was favorable. To show he meant it, he bought some shares. The action of Paredes elicited no enthusiasm.

But we were just like fools. There was too much wishful thinking. When it was found out that the S.S. Mactan had not arrived, some, including myself, illogically came to the astounding conclusion that we were leaving on that boat.

7:00 p.m. Cortez came and reiterated his belief. No reaction.

8:20 p.m. It was announced that MacArthur was going to Washington. More pessimism as it was suspected that in the meanwhile we would be forgotten.

Up to 10:00 p.m., conversations here and there — all pessimistic. Mr. Papa, who works in the Supply Office, said that the matter had been the subject of a conversation in said office among the Americans and themselves. They are all agreed that such a cablegram was received and that war prisoners could be no other than us. If we are not released or taken to Manila, then the word “war” must have been misinterpreted or erroneously codified. It might have been “Insular”.

Let us sleep and hope for a brighter next day.

* * * * *

The Pacifican newspaper states who will be considered war criminals. They are those who sold war materials; those who actually aided the military operations of the enemy; and those who otherwise gave aid to the enemy. We do not come under any of these classifications.

August 20, 1945, Monday

As usual, we woke up early in the morning, about 5:30. We used to go to the Mess for breakfast at 6:00 o’clock, but this time we went after 6:30. The stock exchange was opened also very early. Some transactions were immediately registered. But it continued to be weak. In the Mess, we noted that the usual truckloads of colonists that started here everyday for the construction site of the new stockade were absent. “Oh, there will be no work,” everybody remarked. The usual time for lining up came, but there was no “fall in” command for the construction workers. The sour face of the Sergeant was absent. We went into our quarters triumphant.

We had hardly rested when the bell for call for work sounded. To us it sounded like a death knell — bells tolling when somebody was dying or had died as practiced by the Catholics. We sank into our costs, as if we had “lost everything in a rapid stream” (a Tagalog expression when one is in a position of dejection, “Para kang naanuran”). We went out of our quarters and there we saw the hated Sergeant calling men for the new stockade construction. He had to do this because the men were not expecting that there would be work anymore. The stock prices tobogganed down. Unlike in previous hours, the descent continued, not halting even for a second. At 10:30 a.m., the lowest level until then was reached. The market was extremely weak. There were many sellers and hardly any buyers. There was only one brave fellow who continued buying, Mr. Bayan. His optimism continued.

The crisis did not come until 3:15 p.m. upon the arrival of Lt. Hagonberg. De la Rama, already very impatient to know the truth, asked him point blank, “Is the rumor now very strong, that we will soon depart for Manila to be released, true?” The Lieutenant answered without any hesitation, “There is no news about your release.” A heavy thud was heard. It was us like a log dropped over our beds. The market crashed. In the wake of the collapse we saw nothing but men with their chins rested on their hands. It was again reminiscent of the scenes at the stock exchange in Crystal Arcade Exchange when favorite stocks suddenly collapsed. We were lucky that although we claim to have already absorbed the American way of life, there was one feature of it that we had not imitated. In America, among the speculators in Wall Street, cases have been registered where reputed millionaires invested all they had and more in stocks hoping to be multi-millionaires. Sitting in front of the tickers, they watched the market constantly. They watched the value of their stocks go down and continue to go down to the point where if they sell, they would be headed directly for the poor house. A case was reported where the investor dropped the ticker’s lace paper, dismissed all his employees, entered the inner room to his private office, got a glass and the whiskey bottle, and began to drink. When already groggy but not yet completely drunk, he scratched a pathetic note of farewell to his family, laid it carefully on the desk, placed a paper weight on it so that it would not be blown by the wind; pulled out a revolver from his deskdrawer… the rest need not be told. The next day, there was the usual obituary notice. Many similar cases were reported. If we had imbibed this way of life, there would have been one or two for whose soul’s repose we would have been praying.

But something else was happening. At first attributed to Atabrine and to the malaria sickness itself, but later discovered to be the result of mental anguish caused by our unjust, illegal imprisonment, many became crazy and many more were showing signs of mental derangement. Three were already outright insane. Our prominent professor was becoming very eccentric and it is feared that he is going insane. A few others are said to be similarly situated. There is such fear and panic that everybody’s actuations are looked upon as a sign of lunacy. Zulueta said that he is afraid that he is also suffering from some mental illness due to the uncertainty prevailing as regards our release. In response to his remarks, someone related this story: The wife of a Chinese died and he was very much affected. He was continuously crying. While the coffin of the deceased was being lowered, he squatted on the border of the “fosa” (hole where body is buried) and cried: “Oh, take me with you, I want to die.” A man behind him gave him a push and he almost fell. The Chinese told the joker: “Huwag ka bilo bilo.” Translated, “Don’t be joking.” (“Bilo bilo” is really “biro biro” but Chinese cannot pronounce their R’s.) So we immediately told Paco Zulueta, “Huwag ka bilo bilo”.

The stock exchange continued to go down. But a faint pulse could still be detected. It was still breathing. But only Bayan continued vigilant. We noticed, however, that although his optimism had not died out, he was not effecting any actual transaction. At 5:30 p.m. an almost imperceptible reaction was noted. This is due to the fact that Reyes came and insisted in the genuiness of the radiogram. Cortez insisted that work at the new stockade was ordered stopped. Those who worked at the new camp arrived and they were besieged with questions from everybody. News were conflicting. Some said they continued working; some said they did all their jobs; some said they were merely ordered to clean and they were relieved of their responsibility for equipment, etc. As each one had his own version and nothing was clear, Rodrigo was called in as he is alleged to know more inasmuch as he had been talking with the Captain in charge of the construction. He reported that it was true that an order was received in the morning to stop construction work and the people who worked on the site that morning were ordered just to clean the premises. But in the afternoon, he said, the order was changed so that construction had to be continued. We passed the night with pessimism.

August 19, 1945, Sunday

We went to church and heard Mass. I went to confession and received communion for the second time here, the first time only a week and a half ago — the first time since I was married in 1914.

To express graphically our reactions on news pertaining to our release, our hopes, joys and disappointments, we continued to use stock exchange language. We take as par price an imaginary price of stock in London. From this comes the expression “A la par con Londres”, “at par with London.”

The night before it was 95% par. After Mass, undoubtedly sobered by intense meditation in Church, the excitement that had begun when the radiogram was first received, subsided. Instead a calm consideration of the import of the telegram was made. Somebody noticed that the words “Magic White” were used at the beginning of the radiogram. They also recalled that “Magic” is one of the favorite expressions of Moncado. The conclusion was that Moncado had invented or altered the radiogram. There was no way of finding out as he was not in the stockade.

The question arose as to whom the expression “war prisoners” refers. There could be four kinds of prisoners: (1) insular prisoners who were here when the war broke out and who continue to be here; (2) prisoners sentenced and imprisoned here during the Japanese regime; (3) Japanese prisoners whether military or civilian, and (4) us. There are still many here of those falling under the first category, the insular prisoners, but they cannot be considered war prisoners. As to the second, the interpretation could be stretched so as to consider them war prisoners, but it is not known if there are such prisoners here. The third class clearly are war prisoners, but our information is that there are no such prisoners here. As to the fourth — us — in a way we are war prisoners. Only future events will solve this quandary.

Earlier, radical change or movement in the prices of the stocks occurred only about once a week. Later, it became daily. Now it is hourly. The prices become bearish. Radical changes take place every hour. The extremes are quite far apart. The stockade is now a regular stock exchange with the usual huzzle and buzzle, the nervous demeanor of the traders, and the ticking of tickers. Men converge everywhere, asking one another of any new development. Whenever somebody new enters the stockade, he is immediately besieged with questions; even the American guards were submitted to thorough questioning.

Because of the fear that the radiogram might be a Moncado invention, the differences in interpretation and lack of confirmation, stock prices receded and continued going down every hour. Gloom was beginning to reign when suddenly big Cortez, a Chinese-Filipino who was one of those working in the kitchen, came running as if he was sprinting in a one hundred-yard dash. Everybody became excited and immediately surrounded him. After catching his breath, he told us that the Mess Sergeant had congratulated them because we would soon be released. The Sergeant said that in their barracks they discussed to whom the term “war prisoners” referred, and they concluded that it referred to us. The Sergeant said that the work of construction on the new camp had been ordered suspended by Manila. This happened at about 10:50 p.m. When Cortez came the price had reached already the low price of 50% below par. After the news of Cortez, it rose to 95% above par. Some even wished to offer 100% but desisted. A pandemonium was again about to break and much effort had to be employed to stop it. It was not an easy task to calm them down. We were all in high spirits. At 12:00 o’clock, we went to the Mess with much hunger but without any intention to eat as we were so happy in the thought that we will soon be able to join our families; we did not care to eat anymore.

I shall state that when the radiogram was brought to the stockade on the night of Saturday and when Big Cortez made his famous run, the scene was reminiscent of the scene in the New York Stock Exchange and the Manila Crystal Arcade Stock Exchange during the mining boom in the Philippines, Everybody was excited; everybody had their eyes wide open and ears cocked for any change in prices on the board or for any news; everybody was buying or selling to their financial limit.

In the mess hall (Sunday, August 19, 12:15 p.m.), it was noticed that many colonists were entering and leaving the recreation hall with their baggages. We were told that they were the prisoners who were released and were going to Manila on board the Mactan. The conclusion was that the word “prisoners” in the radiogram did not refer to us. Stock went down. Moncado was sought and he denied that he had falsified or altered the radiogram. He was of the opinion that the radiogram referred to us. Stock prices reacted. We found out that Nadres, the Acting Superintendent of the Colony, also received a radiogram similar in tenor as that received by Col. Gilfilan. Nadres has no jurisdiction over us; he only has the Insular prisoners under him, so that the word “prisoners” must refer to Insular prisoners only. It was explained that the Provost Marshall radioed Col. Gilfilan upon the request of Director of Prisons Misa, as the latter has no jurisdiction over Col. Gilfilan. Stock down. It was discovered that there was a difference between the two telegrams in that the one received by Col. Gilfilan referred to “war prisoners” and we are the only war prisoners here. Stock up.

While we were on our way to the mess hall for supper we met Dr. Reyes, the dentist, and he told us that he had been transferred to the General Headquarters in Manila. Since Dr. Reyes came with us and no substitute had been appointed for him, and since we could not possibly be left without a dentist, the conclusion was that we were going. Market became firm. In the mess at supper, Reyes, who brought the sensational radiogram, and Cortez, the sprinter, confirmed and insisted on the news. Upward trend observed.

Another point nobody could understand is the secrecy maintained by the Colonel and the Lieutenant. If there was such an order why should it be kept secret from us? It was suspected that these officers would not divulge the message to us until the time of our departure, otherwise the people would not work. Furthermore, such is the Army practice. I added that necessary precautions need to be taken — it will take time to notify Japanese subjects to surrender.

That afternoon and evening, the market was very variable— bearish. But all agreed that we will have more or less definite news next day. If work in the new stockade is continued there will be no hope; otherwise, our departure for Manila will be assured. Our night sleep was far from perfect.

August 18, 1945, Saturday

9:00 p.m. Since 8:00 p.m., a musical program has been going on to celebrate the birthday of Mr. F. C. de la Rama. In the midst of the intense celebration, Mr. Reyes, who with two other internees had been working in the radio office of the Army under Lt. Fernandez of the Signal Corps, suddenly broke into the crowd with a piece of paper in his hand. He beckoned aside Messrs. Paredes and De la Rama, and whispered to them that a radiogram had been decoded by them indicating that we would be released. He was looking for Chief Yulo who was not present at the party. When he went inside the quarters to look for Yulo, a few who were no longer interested in the program followed him. The radiogram as read by Chief Yulo went something like this: “Magic White. SS Mactan arriving tomorrow. Prepare war prisoners to be released.”

Great excitement! Everybody talking all at once! Pandemonium broke out, but everyone was prevailed upon to calm down as the news must be kept secret or confidential. Employees in the radio room are strictly prohibited from divulging contents of messages. The people could not contain themselves, however; they could not suppress their jubilation. But it was done as a part of the birthday celebration for Mr. de la Rama. The celebration became very boisterous and lively. The singers and poets became more inspired. De la Rama was requested to say a few words. He delivered a speech reminiscent of the Moriones meetings in Tondo. He was lavishly applauded. It was interpreted as a bid for election. It is known that he intends to present his candidacy for a district in Laguna. Some remarked that with his Tagalog oratory and his money he could be elected. He said something else which we appreciate very much. He counselled those in the B class to be united among themselves and with us, and to follow the leadership of the Filipino leaders with us. This seems to have impressed the crowd. The party ended with a grand rush for the cigarettes and cakes freely distributed by Mr. De la Rama.

After the program there were all kinds of comments. I stated that our release can be expected to come soon inasmuch as MacArthur clearly stated that we would be detained for the duration of the war as a measure of military security. Now that the war is ended, no further military security is involved.

It was also customary to recall past events to confirm, interpret or clarify the present event. It was recalled that while Col. Gilfilan was having an inspection this morning, he asked, “When do you want to leave?” This question was then taken as a joke. Now we believe that it was done in all seriousness as the Colonel already knew that we would soon be leaving.

We were so excited that very few of us were able to sleep that night. In the first class quarters, talk continued. I could have slept as I generally sleep well, but I purposely kept myself awake to hear a very important and interesting conversation — a conversation that may affect the future course of politics in the Philippines.

Yulo proposes that we be united, that we organize ourselves, and that we form a ticket for the next general election composed of Paredes for President and Alunan for Vice President. The others will run for the Senate or the House, preferably the latter. He said that he had already decided to retire from politics, but he was now determined to run because the leaders in Manila are hopelessly divided. If this ticket triumphs, our full vindication will have been realized. He thinks this ticket will be very strong. Osmeña and Roxas were both “pros” so that their forces would be divided. The people of Pres. Quezon are still intact and have not made their inclination known. They will rally behind the banner of this ticket. Doña Aurora de Quezon will be a very big factor in Philippine politics and she will undoubtedly support this ticket. Alunan and himself (Yulo) were rivals — if they got together there will be almost a unanimous vote in Negros. Paredes controls more votes in Ilocandia than Quirino who may be the vice presidential candidate in the Roxas ticket. A big percentage of the population is being accused of collaboration and this group will support the ticket. As to the platform, Paredes will draw in the radicals, whereas Alunan will attract the conservatives. Yulo and Alunan can count on the assistance of the Americans and other foreigners who also can wield powerful influence in the Philippines on account of their financial hold on Philippine economic life. Yulo reiterated that if this ticket is not launched and the leaders in Manila continue to be divided, he will retire from politics completely.

The reaction to Yulo’s plan was very favorable. Paredes and Alunan agreed that Yulo himself be the candidate. Alunan wanted to show that he is no less gallant than Yulo. Yulo, however, cut short all talk about his candidacy. Paredes was not displeased as he harbored ambition to be Chief Executive of the Philippines some day. Alunan also is not irrevocably opposed.

The entire group in the officer class, except two or three, is very enthusiastic. One of those who remains silent is Sen. Recto — he avoids the issue by just smiling. He continues to be a sphinx notwithstanding efforts to pump him. It may be that he also has political ambitions, although he insists that his intention is to quit politics and devote his time to his big law practice. Madrigal and Sabido not only are lukewarm, but have insinuated disconformity. This is probably due to the fact that they are too closely attached to Osmeña. They intimated that Paredes should be the vice president in Osmeña’s ticket.

Among the enlisted class, there is greater enthusiasm. Paredes has won their admiration with his virile attitude toward the Americans. They are proud of him because he has no inferiority complex towards the whites like many others, and he champions their rights and petitions even if his own privileges are endangered. There are some who show opposition, but they are very few. They are composed of professional non-conformists or “contrabidas” — always saying “yes” when everyone says “no”, and vice-versa, and those who for purely personal reasons hold a grudge against Paredes.

We got up early the next morning, all sleepy but full of hope.

August 16, 1945, Thursday

This morning, I modified my opinion as to when we will leave. I believe now that it will not be before the end of this month. It will be sometime in September or October. The reason for my change of view now is that I think Laurel, Aquino and Vargas, who are still in Japan, will be brought to the Philippines and I think their cases as well as the Ministers’ will be tried or investigated at the same time. Since the cases of those three or more serious, they may not be considered until after some time and, therefore, our cases will also be delayed.

It is reported by radio that Emperor Hirohito will fly to Manila, in a Japanese plane from Tokyo to Okinawa and in an American plane from Okinawa to Manila. MacArthur has been designated as Commander-in-Chief to receive the surrender of Japan. The representatives of the vanquished always come to the Headquarters of the Supreme Commander or to the place indicated by the latter. MacArthur’s headquarters is in Manila; therefore, the Japanese Representative should go there. But why Hirohito precisely. I can’t understand why it cannot be Premier Suzuki. I do not believe the United Nations will deal with the Premier, however; he will probably be one of those to be arrested and accused as a war criminal. But his cabinet can fall and a Pacifist Cabinet could be created under the Premiership of Konoye, Konoye can then sign the peace terms. But it seems it has to be Hirohito. What a humiliation! Before, he was a proud ruler, considered as god himself. His words were law and divine order at the same time. Now he is under the orders of MacArthur.

I suggested to Compadre Serging Osmeña that he write a letter to his father. I so suggested because it seems that they are already in good terms. I explained to him that his father is an experienced and shrewd politician. Serging ought to know that just now his father is at a disadvantage as regards the collaborationists inasmuch as Roxas has openly thrown himself on their side. I told Serging that he write his father that there is discontent here on account of his passive attitude. He should suggest to his father to do something; to make a “golpe” (sensational and radical act) which will boost his stock among the “collaborationists” and such “golpe” should be a general amnesty proclamation freeing everybody accused of collaboration. This may incline the collaborationists to his side or at least put him in a better position to approach them later. I found Serging rather reluctant for reasons which he explained. The reasons involved family relations among the father, mother-in-law and Serging.

* * * * *

Excerpts from a letter of Roy W. Howard, the principal owner of Scripps-Howard newspapers, dated at Manila, July 30, 1945 to Arsenio Luz:

My chief purpose in coming here, aside from a desire to confer with Gen. MacArthur and get a picture of the general situation, was to see if I could be of any help to you. I wish that it were possible for me to report success, but after pursuing every line that is open, and discussing your case with everyone I know who might be in a position to help, I am afraid that as far as your immediate release is concerned, my effort has been a failure.

It is my sincere belief, Arsenio, that in spite of any action that can be taken, including even legal action, the group held in Palawan now will be kept there until the conclusion of the war with Japan. I realize that this is going to be very tough, and I doubt whether were I in your place it would be possible for me to reconcile myself to the belief that remaining there is the best course. But in my efforts I have run into a few facts which, without in any sense justifying the action taken against you, throw a light on the situation which I want to pass along to you.

In my efforts I have talked to Gen. MacArthur, Gen. Thorpe, head of the C.I.C., Pres. Osmeña, Manuel Roxas, Phil Buencamino, Salvador Araneta, Manolo Elizalde, Chick Parsons, Paul McNutt, and others. They have all been very sympathetic and have helped me to the best of their ability. But we have all run into a stone wall in that Gen. MacArthur is embarked on a course which I am convinced he believes to be in the best interest of the Filipinos, and from which I do not believe it is going to be possible to dissuade him. As I see it, the situation boils down to about this:

MacArthur is fighting a war and doing a most magnificent job of it. However, the job is one calling for the most intense concentration, and despite what I am sure is his keen realization of a pot of political and purely domestic needs, he is having a straight line and giving no consideration to any proposition except killing Japs.

I have no doubt that he suspects there are men at Palawan who are entirely innocent, and many who have been guilty of nothing more serious than indiscretion or bad judgment. To attempt to sort those men out, however, would, if justice were to be done, be equivalent to bringing about trials at this time. I can see many reasons why this would be inadvisable, the chief one being that at the rate of which feeling is dying down, it is obvious that there will be much less emotionalism attaching to collaboration trials later on, than would be the case today.

If trials were to be held today, they would of necessity be trials before an American military tribunal. I suspect Gen. MacArthur feels that not only will Filipino courts be more competent to judge Filipino psychology, but that Filipinos, knowing the conditions existing in Manila and the pressure that put to bear on people like yourself, will be infinitely more lenient than would be the case with a hard-boiled, wholly impersonal military court. In any event, Arsenio, at the end of the week’s effort, in which I have thrown in everything I have without obtaining any redress in your case, I am forced to say that I think that is the way the thing stands, and while Gen. MacArthur has promised to have prepared for his own personal consideration a review of your case, I do not honestly advise you to count on much of anything happening in consequence.

The real purpose in writing this letter is this: I do not need to tell you, I am sure, that my own faith in your innocence of any action prejudicial to the United States has never waned. That will not be either news or a surprise to you. What is more important, however, to you… something which I am not sure you fully appreciate is that no one from Gen, MacArthur down has expressed to me the slightest belief that any action which you took under the stress of occupation conditions was in any sense an action aimed against the interests of the United States, and no one to whom I have talked has expressed the slightest doubt of your loyalty to the United States and to your American friends. That goes straight, Arsenio, and without any discount.

To give you a complete picture, however, I must add that some of your friends, even though they are understanding and tolerant, feel that you may have on occasion been a bit indiscreet and not used your head as effectively as might have been the case. Everyone realizes, however, that hindsight is sometimes better than foresight, and I haven’t the slightest doubt that aside from the discomfit and inconvenience of being held in custody for the very few months during which this war is going to continue, you will ultimately be restored to complete standing in this community and given a complete bill of health.

If your old sense of humor is still working, and I have no doubt that you still possess it even though it may have been scuffed up a bit, you may smile at a line of reasoning which I have given Carmen, and which I put forward in all seriousness. I realize the ridiculousness of a man on the outside arguing to the man who is detained, on the virtues of being in jail, and yet I think in your case there is some virtue in the situation.

Let me explain: If it were possible to exercise any influence to get you sprung at the present time, and I had an opportunity to do so, I would advise you to turn your back on such an opportunity. My reasoning is this: if you were to come out under such circumstances and without a trial, there would always be hovering over you a suspicion that may be you were at liberty not because of innocence, but because of some pull you were able to exercise. Such a situation would be a handicap to you and your family for the rest of your life. On the basis of what I have been told, and I am not going to attempt to state here which man or men most influenced my judgment (although I assure you they were among your best friends and American well wishers), I believe that the hearing which you will certainly get immediately upon the conclusion of the war and the turning of this whole problem over to the Philippines, will give you a clean bill of health and completely establish your innocence of any action that would prejudice your standing either with Filipinos or Americans. For whatever my judgment is worth, the value of this bill of health and official establishment of your innocence will over the long haul more than compensate for the few additonal weeks or months that you may be denied your liberty.

As I said, this argument, sound though I am convinced it is, may be one easier for me to make on the outside than for you to accept on the inside. I know, however, that you will not doubt my honesty, even though you should doubt my judgment, when I tell you my opinion of the tremendous value which I believe will attach to your exoneration, as distinct from the situation which might result if you were released in consequence of political pressure, even though there was the possibility of exerting political pressure, a possibility which I am sure does not exist.

I would of course have come to Palawan to see you, had it been possible to do so. I even made some efforts in that direction, but became convinced that not only could I have been of no value to you down there, but to have made the trip might have in some degree prejudiced your case.

Now for one more point, and then I’ll wind up this interminably long letter. In April, before his death on August 1st, I visited President Quezon at Miami, Florida. At that time he was on his death bed and I think fully realized that his number was up. He talked with extreme difficulty and only in a whisper, because the tuberculosis had reached his throat. I won’t attempt to quote all of his conversation, but merely that which has a bearing on your situation, and on his unshakeable faith in you and confidence in your loyalty and integrity. There had at that time come back to the United States varied stories of collaborative action being taken by Filipinos. Cases discussed with a number of these people, some of whom I knew and others whose names had slipped me, but whom he insisted I had met and who knew me. Finally, he turned to me and said:

Roy, I do not know about all of these people. I am worried about Jorge Vargas. The reports on what Jorge is doing are not good, though I find it very difficult to believe that any one so long associated with me would turn out to be disloyal to me, to the Filipino people, and to the United States. I must admit that I am having to reserve judgment. About some of your friends, however, I would advise you to have faith, just as I have. There are some of them to whom disloyalty would be impossible and I include in this list Alunan, Joe Yulo, Arsenio Luz, Phil Buencamino…’

In addition he named those several others — people whom probably I would recognize if I saw them, but whose names at the time did not mean much to me.

Quezon told me at that time the instructions that he had left with his friends, and added that he was now in touch with those men by clandestine short wave radio. He also told me that within a week he had received a call from one of his men, a Filipino doctor, who had returned to the States from Manila within the preceding forthnight.

At home I have a diary memorandum which I wrote that night, in which I have Quezon’s exact words. The foregoing quotation, however, is to all intents and purposes correct and accurate.

…I am no seventh son of a seventh son, but I venture the prophecy that this war will be over before the end of the year and that your complete restoration to your family and to the position which you have so well earned in this community, will have been effected before the New Year is many days old.

Mr. Howard is one of the two or three great newspapermen in the United States now living. The news above is the most authoritative we have received inasmuch as it is the result of his personal conferences with MacArthur in whose hands our destiny lies. Therein it is clear that we will not be released while the war lasts. He believes that even if we can go now we should not accept it as there will always be the suspicion that we got out as a result of influence. Whereas if we are acquitted after due trial, we will be given a clean bill of health, and, therefore, be restored to our old position in the community. Such was my opinion from the beginning. We do not positively know what we are charged of. But under the circumstances, we presume that it must be treason to our country and disloyalty to the United States. As to the latter, I have never been disloyal to the United States but if they insist, I would not mind it because after all deep in my heart I do not recognize loyalty to any country other than my own. But the charge of treason to my country is very serious. From all indications at the present time, only prejudiced Filipinos believe that we have been traitors and they constitute a very small portion of our population. But how about future generations who do not know the facts personally? If our declaration of innocence now is not recorded, they may get the idea that we have done something against our country. So it is preferable that we be submitted to a trial in order that our formal vindication may be decreed if we are found not guilty.

August 15, 1945, Wednesday

9:20 a.m. News came that Hirohito signed the surrender document. War is ended.

But it is not in so far as we are concerned. We are still in prison. I predict that we will be out before the end of the month. No military security needing our further detention. Surely MacArthur will immediately turn us over to the Commonwealth. Osmeña is an experienced, shrewd politician. He understands or should understand that just now Roxas is in an enviable position in so far as the “collaborationists” are concerned. Therefore, Osmeña should and I think will do something to bolster up his stock to the collaborationists. May God make Osmeña see our case in this light.

August 15, 1945, Wednesday

Three orders of Gen. MacArthur have been brought to our attention.

The first, as reported to us by a Colonel who inspected our prison, was that MacArthur gave the Military Police an order while we were in Quezon City to take us to Palawan within 48 hours. This explains why they were in such a hurry to take us to the boat. We were notified at 11:00 a.m. to get ready and at 1 p.m. we were loaded in an open truck with heavy guard. In that truck we were not allowed to go down until we embarked at a landing barge at about 4 o’clock. So that we were literally dried in the sun for three hours. There should have been no hurry to load us in the hold of a ship as anyhow the boat laid anchor and did not depart until the day after. The trip to Iwahig has already been described.

The second was under date of July 17, 1945. Therein we were prohibited from writing to our relatives about our case or from giving instructions concerning our political plans or financial interests. Correspondence was confined to subjects of personal interest and not subjects connected with our detention or to carrying on political and business activities. The explanation given is that the intention of detaining us is to separate us temporarily from the political and economic life of the Commonwealth. We noted this order on August 9, 1945.

Because of this prohibition, all that could be communicated to us and all that we could communicate was the state of our health and our personal activities. Our letters soon became repetitious and monotonous so that now we do not write as frequently as before.

The third order was contained in the Daily Journal, International Falls, Minnesota, Dec. 30, 1944.

Gen. MacArthur’s Headquarters, Philippines, Dec. 30 — AP. Gen. MacArthur today ordered military interment of Filipinos who ‘have given aid, comfort and sustenance to the enemy’.

A proclamation issued by his headquarters said that military necessity requires that such persons be removed from any opportunity to threaten the security of our military forces of success of our military operations.

As Commander of the Southwest Pacific Areas, MacArthur declared his intent to ‘remove such persons when apprehended from any position of political and economic influence in the Philippines and hold them in restraint for the duration of the war whereafter I shall release them to the Philippine government for its judgment.’

A spokesman emphasized that this was not punitive action, but merely military interment similar to action taken against the Japanese in the United States early in the war. He said the proclamation was directed particularly at persons in positions where their actions could be of military consequence.

MacArthur said ‘evidence is before me of such activity’. He gave no details.

There should be no quarrel about the order itself. I do not agree with MacArthur that we can endanger military security. But let us give him the benefit of the doubt.

What I cannot understand is why we were deprived of our liberty without due trial or investigation — without giving us an opportunity to be heard. The charge against us must have been that we gave aid, comfort and sustenance to the Japanese. Why did MacArthur convict us of this charge based on the evidence before him — evidence submitted ex-parte? We do not know what it consists of. Why were we not given an opportunity to examine such evidence and to give our side of the case? If we were found guilty after a trial, we would at least have had the satisfaction of having been submitted to due trial or investigation.

Why did MacArthur do such a thing? Many versions have been given as to the motive of MacArthur. One said that he is not as Pro-Filipino as he is alleged to be. Another said that it was personal ambition, He has his eye on the presidency of the United States and he thinks this will help him. Another said that it is just sheer stupidity on the part of MacArthur. Yulo even thinks that MacArthur is anti-Filipino and he does not care what happens to us. Personally, I believe that MacArthur is ill-advised.

I am afraid I will have to modify the opinion I expressed earlier when I wrote on MacArthur.

In this connection, many of us believe that the Philippines should not have been invaded at all. The Americans should have gone direct to Japan. With the superfortresses, the absolute predominance in the air, the absolute control of the sea, and the atomic bomb, there was not the least doubt that the mainland of Japan could have been invaded and Japan conquered in a very short time. But MacArthur had stated that he would return to the Philippines and he wanted to make his promise good. He suffered humiliation when he fled from Corregidor and he wanted to recover his prestige by returning to the Filipinos. He wanted to satisfy his personal pride because of his political ambition. This decision on the part of MacArthur has been very costly to us. We lost hundreds of millions in material wealth. But this is nothing compared with the appalling loss of life. I estimate that about half a million Filipinos died because of the American invasion. History will have something to say about this.

August 14, 1945

FLASH!

WAR IS OVER!

Japan has accepted all the terms of surrender. Now the announcement is official.

Rejoicing all around. Everybody believes that we will soon be out. I was asking myself however, “What will be the next step with reference to us?” I asked myself this question since in recent years, especially during the last months, we have experienced so many disappointments that I always fear that another one is forthcoming.

When the news came, I was out of the quarters attending the Tagalog class of Alvero. He had been giving very interesting lectures on the wealth and potentiality of the Tagalog language. I regret that the lecturers will have to be discontinued. But we are more interested in our liberation than anything else.

When the Potsdam ultimatum was issued and Russia entered the war and the atom bomb was first dropped, I predicted that the war would end in a week. The prediction of Paredes was more specific. He said it will come on August the 13th. I was right and he was right for the 14th here corresponds to the 13th in Washington as we are about one day ahead. Paredes and I both predict we will be out of here before the end of the month. Jokes were traded in connection with this glad news. To the radio report, De la Rama and Paredes added that those connected with the Japanese propaganda corps and the spokesman of the Republic would have to be deported and detained in Guam for a year. The two Luz brothers come under this and they were worried for a while. Later they discovered that it was all a joke.