June 9, 1936

Chat with ex-Speaker Roxas: he said that there is a copper mine in Capiz which has contracted to sell the whole of its output for one year to the Japanese; he further stated that the vast iron fields which I set aside by Executive Order in 1915 as a government reservation had aroused the interest of Marsman who was now contesting the validity of this action; in Roxas’ opinion, Marsman will not put up a real struggle against the government. I suggested to him that it might be better for the government to lease this iron field to Marsman on a royalty basis. Roxas says he asked the High Commissioner before he left to get the consent of the President of the United States for the Philippine Government to (a) give Quezon flexible tariff rights to raise or lower 100% on any item of the custom’s tariff; and (b) to negotiate commercial treaties (under supervision of the American State Department) with foreign powers.

Quezon made an excellent talk to the Assemblymen just before our arrival at Davao: he spoke in Spanish and first called attention to their visit to Cotobato, and said that the former army post at Parang should be the capital not only of Cotobato but of all Mindanao. That it was equidistant from Zamboanga, Lanao and Davao. He then turned to the Davao question giving a very carefully worded exposition of the burning question of the day: he said “there is no Davao question,” and that the press had been guilty of irritating public opinion both in Japan and the Philippines. “It shows how the newspapers can embroil nations, even to the point of war,” he said, “but there is nothing in Davao which threatens Filipino rights nor the economic position of the country. If there is no Davao question there is a Davao situation, which is not to be sneezed at. By their handling of this matter, the Filipinos will be judged as to their ability and sense of justice in dealing with foreign nationals.” He went on to say that: “The Executive branch of this Philippine Government has examined the situation very carefully, with a determination to solve this matter with the Assembly. It is not desirable, nor is it necessary for the legislators to examine into this matter today.”

When the Negros docked, Quezon again put Osmeña to the fore, and the latter received the plaudits of the crowd and the Constabulary honors. Osmeña was to be in the front all day. (Very wise!) Quezon knows Osmeña would like it very much.

Wolff, Major Speth and I went with the procession to the end of the (plank) motor road, but there was not sufficient railway transportation for all the party, so we slipped back to lunch and to shop at Davao.

Swim with Quezon and Speth–water muddy and warm, but Quezon enjoyed himself with great zest. He went over his reasons for taking Assemblymen into his confidence:–to make them more nationally conscious and give them “a sense of responsibility to their country.” “These young men will be the statesmen of the future–but I am making it very hard for my successor.”

I asked Quezon whether the absence of Japanese on the streets etc., today in Davao was not on their part an act of policy (so this would not look like a Japanese colony), and he whispered that this had been staged by the Japanese Consul General.

June 8, 1936

Slept until 11 a.m. The party went up to Cotobato and Quezon, Speth and I swam at the mouth of the river. Formerly, General Wood’s favourite army post in Mindanao, was near here but is now abandoned and fifty squatters are on the reservation. Quezon says he will put them off, as he wants to make this the principal Philippine army post–just half way between Zamboanga and Davao.

Argument over airplanes,–posts and travel. The President complains they are very expensive. Discussion of the relative merits of land and sea planes for use in the Philippines. (Asked Capt. Bradford in Davao–he rather favours land planes–says that amphibious planes are too heavy to carry pay loads.)

Talk at lunch over exercise of the pardon power. Quezon quoted Chief Justice Taft as ruling that this power extended to one even before the judgment of the court, which surprised me. He spoke of pardons for those sentenced for adultery, and told of a case of long ago decided by Judge Borja in Tayabas, in which he (Quezon) was wrongly accused of using influence for a pardon. The accused were the father of Don Miguel Unson and another man’s wife. Unson was then 70 years old, and the facts were clear. The woman pleaded guilty, and was sentenced, while Unson was tried and acquitted! Quezon stated his views of pardons (which are the same ideas as those which actuated me when I exercised this power)–crimes of cheating and stealing and meanness deserve no pardon, while crimes of violence, if unpremeditated, deserved sympathetic consideration.

Off for Davao. Bridge and early to bed.

June 6, 1936

Arrived at Iligan, route having been changed by Quezon in accord with news from the Manila Weather Bureau. The visit to Culion is now to be at the end of trip.

Before making wharf at Iligan, Quezon addressed the Assemblymen, asking for funds for the development of Mindanao. He used maps, and said that an electric railway was to be built from Misamis, via Bukidnon to Davao, the water power for this project coming from the falls in Lanao. Only four or five of the Assemblymen had ever been in Mindanao before. The gathering seemed to be willing to vote the money, but wanted to know how they were to get the colonists? Quezon replied “Open roads, and they will come of themselves.”

Sabido is opposed to agricultural colonies, when established with government money.

I told Quezon, Osmeña and Roxas that economic plans for the Philippines were blanketed until either they decided, or circumstances decided for them, on their future economic relations with the United States. (I find many here agree with this feature of the difficulty of the sugar situation.)

Quezon talked of Elizalde and the Polo Club incident; he insisted that the refusal to elect Nieto a member had been due to its race discrimination against Filipinos; he added that Saleeby is an Assyrian Jew; that the Assyrians had for centuries allowed the Turks to trample them; that people of that type could not insult the Filipinos.

Osmeña is subdued and triste. He has, I am told, money and family troubles, as well as political.

There is no drinking whatever aboard the ship; the steward complains that he had stocked up, and nobody uses it! Sharp contrast indeed to the last voyage on Negros when Don Andres Soriano was host to the American mining magnates.

Drive from Iligan to Dansalan (Lake Lanao)–surely one of the most beautiful bits of scenery in the Philippines. Through Maranao Botanical Gardens, where there is a waterfall; past the fine fields at Momungan, where in 1914 we established an agricultural colony for “down and out” Americans, of whom there were originally about fifty but now there are only eleven left; all the other colonists today being Filipinos. Then Lake Lanao with mountains in the background which is as fine a scene as any in Switzerland. The buildings, however, have run down since American army days here. The Constabulary who now compose the garrison are splendid picked troops: big, athletic men.

The President’s speech of the day was made at Camp Keithley, where most of the Lanao Moro Datus were present. This made a brilliant scene with their vivid costumes. Quezon, instead of flattering them, as his predecessors had done, talked straight from the shoulder of what his government proposed to do to develop their country; and stated that now they would be required to expect no further consideration as Moros; that they must remember that they were all Filipinos, and that this is their own government. He stated very positively that he wanted no more disorders, adding that: “Life is precious everywhere, but in such beautiful surroundings as Lake Lanao, life is doubly valuable,” and then finally cautioned them that: “thus it would be wise of them to be good”!!

This was new talk for the Moros, and one of them remarked to a friend: “he is hard on us.” All this will do inestimable good. Quezon spoke very carefully, selecting each word. It was badly translated by a native into the bastard Arabic which the Lanao Moros are supposed to use.

Luncheon was served as the post club. It suddenly became dark and began to rain. The meal had been laid for one hundred and twenty, but many more were there, and the food disappeared in ten minutes–as in a visitation of locusts!

After lunch, Wolff and [I went to the house of Lt. Ormai, of the Artillery. He is a small man and a killer.] He said he had two stokes mortars, two mountain guns (3.2) and a sub-machine gun; that the last time he took a cotta (about two months ago) he found their bolt holes, and described how he shelled the Moros there. He said the Lanao Moros are cowards (Cooley says ditto). They oppose everything proposed by the government, but are divided into numbers of petty sultanates. These “Sultans” are selected, if of the blood of the former sultan, for their personal bravery. They get a share of the religious receipts. The older Moros present today had, no doubt, been leaders of the Pirate Empire existing from ancient times which fell after the American occupation; until that, they used to raid the northern islands of the Philippines for slaves and plunder. Their reign is at an end.

Visit to Reina Cristina falls; a magnificent site, and the best hydro-electric proposition in the Philippines. This will certainly suffice to run an electric railway. Quezon has ordered the Bureau of Public Works to give no more franchises for water power in the Philippines; all are to be reserved for the government.

Camp Overton, near Iligan has been entirely abandoned. I first came there with General Pershing in December 1913.

Left Iligan for Zamboanga. At dinner with Quezon, Santos, Roxas and Sabido. Roxas and I pressed hard for reforestation and a campaign against forest destruction for clearings (caigñins). Quezon heartily agreed with our arguments. Someone remarked that Cebu had been so ruined by destruction of its forests, that in a century from now it would have hardly any population. I mentioned what the Government of Japan was doing for reforestation; how Germany, France, Switzerland managed it by communes. Quezon said he was confident he could make the people understand why they should not burn the forests for homesteads (caigñins).

The President added that this was the first visit to Lanao he had ever enjoyed, because he didn’t have to listen to Datu Amanabilang; that the last time this old Moro had spoken in his presence he had argued that they did not want to be governed by Filipinos but wanted the Americans there; but today a Datu had protested against the American Superintendent of Schools, and wanted a Filipino. He, (Quezon), thereupon “went for him”; and told him his threat of closing the schools by withholding children would not be listened to by the government; that if the schools here were closed, the money would go elsewhere, where people were clamoring for schools. Quezon further admonished this man that the Datus were no better before the law than the poor man–that even he as Chief Executive was not above the laws. That the Moros, though in a minority, had equal rights with the Christian Filipinos; that if the Moros developed a great leader, as he hoped they would, this man would be available for election as President. Quezon also denounced their petition for Moro Governors of provinces and Presidentes of villages, and said the best citizens would be selected where he was a Moro or a Cristiano.

Later, the President told me he now thinks the Lanao Moros will gradually “come into camp,” when they see that the government is in earnest; that they are good farmers, and he was going to build a fine road right around Lake Lanao, to help to civilize them, “instead of killing”; and if they won’t be “good” they will eventually meet the same fate that the American Indians did.

The President was rather sharp with his a.d.c., Major Natividad, for trying to get him to read a paper at dinner, when he wanted to talk.

In the absence of the Governor, Quezon called up the Colonel commanding the Constabulary here, and ordered him to remove the squatters from around the reservation at Reina Cristina falls. He also told Roxas that he would wire the President of the United States asking that the remaining Army reservations near Camp Keithley be turned over to the Commonwealth Government, so that henceforth settlers on these lands would not be evicted.

I had a talk with Assemblyman Luna of Mindoro about his bill to protect tamaraos, a unique small buffalo, found on his island and nowhere else today. He told me that the game reserve I had created by Executive Order on Mt. Calavite, Mindoro, was of no use because no game wardens had been appointed. He said the peculiarly malignant malaria found on this island had been eliminated at least from around San Jose. He added that he himself, has never been in the interior of the island, and it is almost uninhabited. Naturally, he wants this great province, just opposite Batangas, developed. I told him I thought the malaria in the past had practically ruined the island, since there had been a large population there in ancient times, to judge from old Chinese records.

A geologist named Belts, a great traveler and good observer, said a special brand of English was being developed here in the Philippines. The teachers had a bad accent and the pupils worse. (This is why I now find it more difficult to understand my servants,–and indeed all Filipinos, especially over the telephone.)

Talk with General Paulino Santos, the head of the Philippine Army, who is my cabin mate. More than twenty years ago I appointed him to be the first Filipino Governor of Lanao, and now he comes back as Chief of Staff, naturally, very proud he is of his rise in life. He is very conscientious and is fiery tempered about his work; he has no patience with political or personal promotion seekers. He is quick on the trigger about resigning if he meets a serious obstacle in administration–as he did with General Wood. He finds General MacArthur to be the cleverest American he has met, and very broad-minded. Santos intends to have all supplies for the new army made if possible in the Philippines. He will tolerate no interference with his official authority, and recently “sat on” General Valdes and Major Ord, MacArthur’s assistant. He does not get on well with Osmeña, but has a fine relationship with Quezon, who he says, was very cold with him at first. Santos is utterly and completely devoted to the service of his country,–and is not afraid of anyone nor of any nation. He remarked: “I honestly believe that next after the Japanese, the Filipinos are the greatest of the Asiatic peoples.”

Comments I have heard upon the Lanao Moros by my companions are: vacant expression, open boob mouth, stained with betel nut–(Malay type). These Moros do not bathe, and one is glad to avoid shaking hands with them. Their poor physical appearance is variously ascribed to inbreeding, hook-worm, and opium.

A passenger on the Negros who is a much-traveled geologist said that in the Dutch East Indies the third generation of Mohammedan Malay were quite tractable, and he thought these Moros would develop in the same way.

Talk for one hour with Vice-President Osmeña:–recollections of old times when he was the undisputed leader of his people, and we had worked so closely together. I asked him about Palma’s report on education; he said he hoped it could be put into effect but was not sure. I next asked him about the high price of sugar shares in the Philippines. He thought the market level far too high, but said the sugar people had so much money they put it into more shares and high-priced haciendas. Next I recalled how with backing he had founded the National Development Company, eighteen years ago and it had accomplished nothing. Asked if all economic plans were not paralyzed by the sugar question, and he agreed.

Then I enquired about the reforestation of Cebu and he expressed himself as enthusiastic over the idea but at once diverted the conversation into a eulogy of planting fruit trees, and increasing the export of fruits. Said it was almost impossible to induce the Chinese to eat more sugar but in fruit: “can do.” He eloquently pictured millions of Chinese eating Philippine bananas which he thinks far superior to those from Formosa. I called attention to the recent exclusion of mangoes from importation into the United States on the old dodge of thus preventing the introduction of the “fruit fly”! (Recalled my speech in Congress on this subject, and the cynical smile of Speaker Cannon.)

I asked Osmeña about the future of their free trade market in the United States. He agrees with me this cannot be held. (So does Tommy Wolff, who comments: “none so blind as those who will not see.”)

Next I asked Osmeña about Nationalism in the Philippines. He said it was growing greatly, but that “it is wise to preserve some local sentiment or culture.”

Osmeña commented on the political strength of agricultural organizations in the United States, and said Secretary of State Hull told him: “These people are very powerful.” I asked him why United States spokesmen are now “delivering so many kicks against the Philippines.” He replied: “because of (a) the economic situation in America and (b) they have lost interest in the Philippines; the old generation, many of whom had altruistic feelings towards Filipinos, are gone.”

He agreed that the period before complete independence would be shortened by the United States if the Filipinos asked for it.

Osmeña then expressed feelings against the taking of teachers camp in Baguio for the army; said the teachers made the best soldiers anyway since they were so conscientious, and had such a sense of responsibility towards their country.

I reminded him of how we carried through the plan for civil government in Mindanao and Sulu in 1914, to which the War Department agreed because Pershing joined in the recommendation; Pershing’s motive being support for his own record–he wanted to rank as the last Military Governor of the Moroland and to show that his administration had pacified those regions in order that the army could be withdrawn etc. Osmeña then told a story of Pershing on a visit with him to Cotobato just before I came to the Philippines in 1913, when the proposal to establish a colony of Cristianos there was under investigation. Osmeña added that Bryant (?) was taking photographs of Pershing, explaining that he wanted a record of the one who would be “respondible” for the project, and Pershing at once said he would have the plates broken. Quezon said they have by now spent a million pesos on this plan, but agrees that it was worth it, since, right where there is the largest Moro population, the purpose has been accomplished in Cotobato of “settling the Moro question.”

Osmeña also talked of the Japanese: thought them very clever, and thoroughly disciplined. He expressed surprise that though the Japanese did not talk good English [while] their government statements in the English language were always so perfectly expressed. (I think former Consul General Kurusu is this “foreign office spokesman.”)

Short speech by Quezon to the Assemblymen as we approached Zamboanga. He believes that the town is ended (commercially) because of its geographical position. He asked the respective committeemen to visit the schools and leprosarium; but the great object of interest is of course, San Ramon prison colony (founded by Don Ramon Blanco in 1870 for political prisoners, and developed by us into an agricultural and industrial penal colony). He stated that the time had now come for the Assembly to decide (a) whether to sell this hacienda to private parties, or (b) to sell part of it and keep part (piggery) or (c) to keep it as training school for the Davao penal settlement. There are 1300 hectares at San Ramon, and 27,000 at Davao.

Tommy Wolff told us how, during one of his earlier political campaigns Quezon had been savagely attacked as a mestizo–especially in the provinces of Tarlac or Zambales. Quezon at once went to a meeting there and stated in his speech that his mother was a Filipina, he was born in the Philippines, and that he is a Filipino–he “didn’t know what mestizo meant.”

In Zamboanga, Osmeña made the address at the Plaza Pershing. It was said to have been extremely eloquent. He spoke con amore of the development of the former “Moro Province” and made polite allusions to my work there. The President and I played truant and went out to San Ramon with Speth and swam on the beach there. All the rest of the party joined us there at tea-time. Quezon persuaded me to eat for the first time balut, i.e., eggs containing chickens about to hatch! It is really quite a delicacy. The President at once noticed the prettiest girl there and danced with her; there was a lot of amusing chaff over his writing in her autograph book. Quezon then told us a lipstick story of a Hollywood girl he once met on the steamer crossing the Pacific:–he was giving her a cocktail and remarked: “I wonder why girls use that hateful lipstick?” She instantly replied: “Don’t be afraid, I’m not coming near you.” (But she did.)

Talk of the bad English accent of the young Filipinos of today; Quezon said he was going to try to have English instruction eliminated from the primary grades, and get Americans to teach in higher grades. I asked: why not get teachers who really speak English–namely, the English themselves?

Then had a talk with Quezon about Secretary of War Newton Baker. Listening to my account of my own slightly strained relations with him, he said “I thought the atmosphere of the army in the War Department was affecting him.”

Quezon told me of High Commissioner’s insistent dwelling on the necessity of balancing the budget. Quezon had heard that Murphy stated the Philippine Army was unbalancing the budget, “and that was one of the reasons I accompanied him on the boat as far as Hong Kong but we never had a chance to discuss it.” When Quezon returned to Manila, he sent for Weldon Jones to talk this over, and said to him: “before we begin to talk, let’s agree on the term ‘balanced Budget.'” This was then defined as: “the ordinary expenses of the Government falling within the ordinary revenues.” Agreed. Then he told Jones that the recent income of the Philippine Government was not “ordinary,” because “we have had a row of Governors General here who didn’t collect the taxes.” He added that he would collect five million pesos a year more than his predecessors had done from the present taxes, and “in the first quarter of this year I have already collected two millions more than were received last year; moreover, I am going to impose new taxes: an inheritance tax (where there are no children) to confiscate all estates over a half million pesos, and heavy income taxes on all those having over 100,000 pesos income which is “enough money for any human being.” Weldon Jones expressed himself as delighted with this form of taxation, and, added Quezon “Murphy himself would be delighted but had not the nerve to risk public disapproval here; he will be glad to be absent while this is done”!

I commented to the President on his advantage with the legislature in being a Filipino himself, and, unlike his predecessors, he was thus able to deal directly with them, and not thru an intermediary. He replied: “I know the (sotto voce) Goddamn psychology well enough.”

Quezon asked Colonel Stevens commander of the local Constabulary (Army) at Zamboanga whether he would like to be transferred to Manila. Stevens, who was driving the motor said slowly: “Well, Mr. President, I would really rather stay in Zamboanga.” Quezon replied: “Well, next year you will have to come to Manila anyway for six months,–you can’t get to be a General without doing that. I will attach you to Malacañan and then you can get a per diem.” Stevens said “Very good, Sir.” He has about the nicest house in Zamboanga. We went there to play bridge later. Quezon explained to Stevens that he wanted the Non-Christians to “get accustomed” to Filipino officers and had moved Dosser from the Mountain Province, and Fort from Lanao accordingly.

Interesting talk with Quezon over my landlord and tenant propositions. He told me of the bill introduced to lay progressive taxes on large landed estates, as I had recommended in January. He said that Assemblymen had been in touch with him on this; that the savage attack in the Bulletin against this bill convinced him of its merit, if before that he had had any doubt that the idea was sound. I then talked about the Irish Land Laws with him, and asked him if Roxas would oppose, after lamenting in his University of the Philippines commencement speech that “the land in the Philippines was passing from the peasantry to large land-owners.” Quezon said “Yes, he will object, on account of his wife (a De Leon from Bulacan) but we shall beat him.” Told him I wanted to consult with members of the Labour Committee now on board about the bill, and he said “Yes–you’d better.”

After dinner I stayed on board writing up these notes, while all the rest went to the dance at the Zamboanga Club and returned at 11 p.m. in high spirits, but with no signs of alcohol.

Bridge with Quezon, Roxas and Sabido, from 11:30 to 4 a.m. Then sat talking with Quezon and Sabido until 5. For the first time, with Quezon, I raised the Japanese question. He said his first preference would be for the Philippines to stick to the United States, if possible; if not, to England. If those alternatives are not available, he would come to an arrangement with the Japanese, and “I can do it–I know how.” Sabido said that the Japanese individuals who he knows are all afraid of Quezon–that the President was the only man who could handle that question. Quezon said that a few years ago, in Shanghai, he brought Chinese and Japanese leaders together, and the success of those negotiations was temporarily such that the Japanese people at home were for a time annoyed with their army for treating the Chinese so harshly. Like every one else, Quezon has grown tired of trying to help the Chinese “nation,” but now says it would be the best thing for China to recreate her country with the aid of the Japanese. “The Japanese despise the Chinese” he said “but admire the Filipinos for setting up their own nation.” He then told some of the recent history of North Asia with a sympathetic understanding of Japanese problems; described how, at first, all they wanted in Manchuria was to protect the interests of their railroad there. The Chinese had agreed to Japan’s building this railroad, thinking it would be a dead loss but when, instead, it became profitable, “They threw stones at the Japanese.” He recounted the extreme aggressions of the Chinese which had harassed the Japanese so sorely–how the Chinese propaganda had brought the European powers to her side as had also the missionary propaganda in the United States. He added that the successful war of Japan against Russia had been brought by them as a purely defensive campaign, if ever there was one.”

Quezon believes in the good-will of Japan towards the new Filipino nation. He remarked: “I have acquaintance with a large number of Japanese, but have hardly ever been able to make friends of them”–an exception is Marquis Tokugawa–the grandson of the Shogun. Another friend is the present Japanese Consul General in Manila, who replaced an arrogant and trying man, and is more like Kurusu. The President said he is getting constantly closer to the Japanese Consul at Manila; that the latter is now learning to trust him, and actually gave him more information about the strained Davao situation than “any of my own fellows”–“I telephoned him recently and told him that the question which caused real irritation against Japan among the Filipinos was not Davao, a question the people at large really do not understand, but that of their invasion of our fisheries, a matter the Filipinos do understand, since it affects their own food supply.” The Consul replied that he saw the point clearly, and would ask his government to draw off the invading fishermen. President Quezon admitted that the reported “incident” on his recent visit to Davao was true: namely, that the Japanese Consul had suggested that there might be “grave consequences” in the outcome, and Quezon had replied: “You can’t bluff me.” We then talked of our old friend Ambassador Hanihara of long ago in our congressional days in Washington–Quezon said the incident which caused his recall as Ambassador, was very unjust: “Hanni,” (as we used to call him), showed the “offending” letter to Secretary of State Hughes before he sent it and Hughes said “fine”:–then, the fierce public reaction in the United States frightened Hughes, and Ambassador Hanihara was recalled by the Japanese Government and Hughes permitted this injustice in silence.

I asked Quezon what he proposed doing to stop the Moros from smuggling in Chinese coolies and opium? (A matter apparently entirely neglected nowadays) and inquired why he didn’t get a fast gunboat. He replied that in a couple of months he would have five of Mussolini’s fast “torpedo type” boats capable of going fifty miles an hour.

To bed at 5 a.m. after a more interesting day and night.

May 31, 1936

Sunday. Day reserved for bridge with Quezon but early in the morning a message came through from Nueva Ecija, that he would not return. Went to a tea dance at Bay View Hotel given in honour of ex-Senator Torralba, now an adviser at Malacañan.

May 30, 1936

Many telephones out of action due to yesterday’s small flood.

Talked, however, with Quezon on the telephone.

Press carries a statement that the President opposes the transfer of Provincial Treasurers to the Department of Finance, but will submit the question to his Cabinet on Monday.

Received the May 1st copy of the Japan Times from the Japanese Consulate here, containing a special issue on Japan-Philippines relations with a very frank article by Debuchi, former Japanese Ambassador to the United States analyzing commercial and political difficulties of the Commonwealth. Also an article by Marquis Tokugawa expressing friendship and desire for more intimate relations with the Philippines. Also a plea by a Japanese businessman for tariff revision in the Philippines. Likewise, two very sensible articles putting forward Japan’s side of the Davao case, and estimating the investment there by Japanese variously from 50 million to 100 million yen. Also an article and speech by Manuel A. Alzate, chairman of the committee on Foreign Affairs of the Philippine Assembly. He begins by acknowledging their cultural debt to Spain and to United States and their economic and political debt to latter, but “This state of things, nevertheless is not bound to continue. Several forces are now at work tending to bring the Philippines into closer communion with the other countries of the Far East.” He analyses trade as it now exists between Japan and the Philippines and shows how one-sided it is, and insists Japan must buy more Philippine products: “Your country by reason of her geographical proximity and her present industrial development is an ideal market for Philippine products.”

The local papers here, print increasing accounts of “good-will” visits of Filipinos to Japan; also visits there of other prominent Filipinos in consequence of the “T.V.T.” newspaper contests here for “popularity” etc. All this movement and activity has sprung from the general belief outside the government circles here that the Philippines are a part of the Orient and had better make the best of the situation.” The recent coldly hostile attitude of the United States Congress etc., is having its effect, and underlying government influence here is no doubt stressing the necessity for an earnest study of their relations with Japan. The Japanese are making an evident attempt to show courtesy and consideration for the visiting Filipinos. All of the above shows that the Filipinos are making a real attempt (rather under cover) to face their fears and meet the dragon with out-stretched hand.

Received a wire that Doria is back in Shanghai; I hope the increasing troubles and public disturbances in China due to Japanese activity in the North will remain comparatively innocuous while she is there!

May 29, 1936

A. D. Williams at my office. A few days ago, he was called before the Cabinet to advise on new taxation. Quezon wants a transportation tax on all forms of travel. Cabinet members wish to devote the cedula tax to school purposes only, thus making it more popular.

The President went today to Cabuyao, Nueva Ecija to see a new church dedicated. A. D. Williams is to take him on Monday to Silang to see the route of a new road to Tagaytay thus cutting thirteen kilometers off the run. Quezon stopped this road construction several years ago (not to favour the wishes of Aguinaldo?). Now he wants to see it go through, but says he apprehends a “kick-back” because he (Quezon) is interested in the land syndicate at Tagaytay!

Luncheon with William Shaw at Wak-Wak for Andres Soriano–about 150 men–terrific din of talking and later of noisy jazz music. One’s voice is strained trying to converse. Say with Clyde Dewitt, and had a very interesting talk over the Archbishop and his business interests here. His Grace appears to be losing all along the line.

Hoskins greeted Secretary Rodriguez as “Governor” (he was formerly so in Rizal) and remarked that a governor of a province had more power than a Secretary of Department. “Yes” said Rodriguez “especially nowadays”! He has just been replaced by Secretary Alas as President of the National Development Co.

Small dance in the new downstairs cabaret at Malacañan. The heavy rain from 5-8 p.m. had flooded parts of the Palace, which we entered on planks. Quezon appeared late. He asked me if I noticed the speed with which he signed the Executive Order proposed by Unson for transferring Engineer Island and the lighthouse service to the Bureau of Customs. This is the second time lately he has emphasized his rapid executive action–Why?

May 28, 1936

Survey Board. I gave Unson a message from Quezon about the Provincial Treasurers. Advised him to bring up at once for Executive Order the transfer of these officials and also that of Engineers Island and the lighthouse service to the Bureau of Customs–in fact all the reorganization they have already decided upon. I think he is afraid he may prematurely make decisions which might have to be changed later in a more general reorganization.

Talked with Unson about nationalizing the Municipal police. He said a comment by Posadas was that if they were nationalized, the President would be blamed for all mistakes. In fact, Unson wishes to take away all administrative responsibility from Quezon–for example, he wants to put the Philippine Army under the Secretary of the Interior!

In Unson’s office I met General Alejandrino–he is no longer an “Adviser to the President”–left some weeks ago, apparently, from what he says, because he could never get to see Quezon!

Luncheon at Wak-Wak--despedida for Andres Soriano. Colonel Hodsoll asked me whether he should advise his friends to accept the government’s offer of $350 for their Philippine Ry. bonds–or go to foreclosure? I told him they would not get that much out of a foreclosure.

Sat between Dr. Tuason and Shultz, manager of the great Roxas estate at Calauan in Laguna. He has from three to four thousand employees–and in twenty-five years has had no labour troubles–never a case in court–there is now no indebtedness from his tenants to the plantation; has no bother from the Department of Labour officials. Says copra is a better price than the dessicated coconut factory pays–thinks the Philippines should stick to exporting raw materials, as they are not prepared for industrialization.

May 27, 1936

Luncheon alone with Quezon at Malacañan. He appeared in very good spirits; is swimming daily in his tank, and played golf at Wak-Wak at 5 o’c. this morning. Spoke with pleasure of my appearance of good health and asked me to go with him on the Negros trip to the Southern Islands June 3-15, with the members of the Assembly. I accepted. He spoke also of the speed with which he had acted at once on Miguel Unson’s recommendation for the creation of a budget commission and had appointed Marabut at the head. I said the Governor of Leyte would think this was the result of his public complaint when we were in Catbalogan in April because no Leyte men were high in government office–a complaint which the President had denounced blisteringly before the crowd (advocating a national, not a local outlook). Quezon said this was so, and as he had so many sound reasons for doing so, he would suspend that Governor for one month, to avoid his increasing his undesirable influence over his province thru the appointment of his friend Marabut.

I spoke to the President of the good time we had had at the dance at Masbate–he invited me to a small dance at Malacañan Friday night–said he had sent for Corpus from Masbate to come to Manila on government business, but the latter had not had the sense to bring those charmers with him!

I asked him (for Unson) what his attitude would be on the question of the transfer of the Provincial Treasurers from the Department of the Interior to the Department of Finance (Quirino?). He said that was a subject as to which as much might be said on one side as the other–that he would accept the recommendation of the Survey Board. (Later I told this to Unson, thinking he would act at once as I advised, but Unson began to deliberate!) I enquired of Quezon about the repeated kicks emanating from the United States Congress towards the Philippines nowadays, and whether they could not later be reasonably straightened out. He seemed doubtful, but evidently is not ready to talk about it. (Nazario tells me that at the last press conference he said it was “up to the American businessmen,” and hinted at reprisals by the Filipinos.) I told him the simile of American psychology–when a son grows up the father does nothing more for him; Quezon liked that. I said that some Americans appeared to be peevish now because after all that had been done for them the Filipinos had insisted on separation. He replied: “Well! then why did they give us independence?”

I called Quezon’s attention to the controversy over appropriations for the Department of Labour between Secretary Torres and Miguel Unson, in which Torres called Unson “not interested in the poor man”–Quezon at once said Unson was extremely interested in the welfare of the poor. He added that he had one Cabinet minister who was “useless” and “worthless,” namely Torres; that he had nearly fired Torres several months ago; that Torres kept calling up (3 times) in a recent Cabinet meeting the proposal to build four story concrete tenement houses for labourers. Quezon finally snubbed him, and explained that tenements to house 100 families would only make the other 900 families wild; that a four story building was “too much work” for a labourer to climb; that concrete as a material in this climate was too hot–“why not leave them in their nipa houses?”

An article in the Bulletin, May 29, described a quarrel between officials of the Department of Labour and some labour leaders as to which group should get the credit for the “higher wage” movement. Apparently, government officials claim the labour leaders are “trying to steal the show.” “There is no reason for this sudden antagonism” a high labour official stated, “as in the past we have always sided with the labour element.” This displays an utter lack of public responsibility, similar to the debates in the Municipal Council of Manila over the cochero registration ordinance–these speeches are only cadging for the cochero vote.

Quezon spoke highly of Sandiko–as did I–I told him Sandiko wishes to go to America to study the labour question there. He was interested.

A. D. Williams was brought in by Vargas, to receive instructions about air-conditioning the President’s room at Malacañan Palace. Was asked to have the work finished in two weeks–Quezon adding: “I don’t want to do it for my successor.”

We talked of Geo. White’s visit and of our old friends in Congress–Quezon said he had liked the Ohio delegation of that day, except R. J. Buckeley who had voted against independence for the Philippines offered in the Clarke Amendment (1916).

Quezon agreed with me about the type required for “Public Defender.”

May 26, 1936

Conference at the office of Paez, who had just returned from an air trip (his first) to survey transport possibilities in Mindanao. He showed me all plans for his suggested legislation in the coming session. I made an approving report thereon to Quezon. Paez told me was proceeding slowly and unit by unit to buy bus lines competing with the Manila Railroad, instead of announcing a general plan therefor. He said that the road which replaced the Tay-Tay–Antipolo branch of the Manila Railroad (taken out in my time) was now the most profitable section of the bus company–they carried 18,000 people to the shrine at Antipolo the other day–this being a month of pilgrimages. The railroad company will replace Cavite and other unprofitable railroad lines in the same way.

May 25, 1936

At the Survey Board and office, discussing the Bureau of Science etc. Bridge in the p.m. at the Manila Club.

May 24, 1936

Conflict between Don Vicente Singson, head of the Rice and Corn Corporation, and Collector of Customs Aldanese who insists on duty being paid on imports of rice from Saigon. Singson refuses to pay. Aldanese says that the Corporation makes a profit and must pay duty. (No doubt this is on the side of Chinese dealers who control the rice market here.) Later, Quezon, after consulting Secretary of Justice Yulo, ruled that the Corporation need not pay customs duty. (The Herald on May 27 gave a front page leader on this as “a menace to constitutional Government” because Quezon decided this point himself instead of letting it go to the courts.) It is evident that all signs of dictatorship will be resisted here.

May 23, 1936

Trip to San Pablo with Colonel Craig, Mrs. White and Miss Wolfson. The manager of the dessicated coconut factory there (Stofford) told of periodic visits from four or five agents of the Department of Labour, enquiring of workmen whether they had “any complaints.” As a matter of fact there were none, since the eight hundred employes receive one peso a day and good treatment. This is the wrong way about for these agents: they should be schooled now to make proper enquiries, like life insurance agents. There was also a complaint by Stofford of the administration of justice in San Pablo.

Marguerite Wolfson told how, before Murphy’s arrival, they all had been prejudiced because what she called a “Mick” had been appointed, but at her very first meeting with him, he won immediately her support and championship by his modesty and simplicity. He said to her: “My sister and I are very simple people, and have never been used to all this social life. We didn’t appreciate the complexity of this position.” So she turned in and helped all she could. She said T. Roosevelt was a disaster because as Governor he was too undignified in his relations with the Filipinos.

Conversation at luncheon at San Pablo about Japan. Stofford and Mrs. White very friendly to Japan and full of admiration for its accomplishments.

May 22, 1936

Newspaper blast purporting to come from Secretary of Labour Torres to the effect that the Department of Labour could not get funds for its expansion from the Survey Board, nor from the Budget Commissioner–that “Miguel Unson was not interested in the poor man”! This was followed later by a contradiction from Unson and a disavowal by Torres; nevertheless I believe Torres was quoted correctly. A few days later they printed rumours of a “general strike” with an editorial in the Bulletin questioning whether this complaint did not come from the Department of Labour because they couldn’t get all the funds they wanted. Next this was denied by Torres, who went so far in his denial that the labour leaders became balky. It is evident that the Department of Labour under Torres considers itself the political leader of the discontented.

May 21, 1936

Called on Dr. Victor Clark at the Manila Hotel; he is the new economic adviser to this government. He is employed by the Library of Congress of the United States. A great traveler and observer. He is well-balanced, but perhaps a little timid. Has been here before for several visits. He now advises the Filipinos to be cautious is asking for amendments to the Tydings-McDuffie law, and adds that they may get amendments in Congress they do not want. He asked me particularly about the Rice and Corn Corporation–whether all the sales could not be taken over by one organization; I called attention to the fact that most of the rice mills and sales agencies were in the hands of the Chinos. He also told me that formerly he had been disinclined to pay any attention to “chatter politics,” but he had seen them come true in Manchukuo and in Abyssinia. He added that if the Filipinos did not develop Mindanao, some cub reporter today might suggest that that island is just what the Japanese need, and in the end they might get it. I told him of Quezon’s extreme preoccupation with this problem.

Acting High Commissioner Weldon Jones called me to his office to present his report (which I asked for on January 27th!) concerning Colin Hoskin’s proposition that the Philippine Government should purchase silver at 45 cents with some of their dollar deposits in the United States and thus make millions by seignorage. Jones had come to a definite conclusion in opposition. He said the world was too unsettled for such a move, and that any tampering with the currency in the Philippines would alarm businessmen here. He declared the Philippines must not be put on a “silver basis,” since silver is too fluctuating in value as a commodity, and the world is “moving away from it.” He added that China has just gone off silver and has joined the dollar exchange. We then discussed the possible effects of this latter move upon the Japanese. I expressed regret that England’s strenuous attempt to bring China into sterling exchange had failed. The Chinese are sticking like leeches to us, hoping to embroil us with Japan, and England is now willing to have America pull the chestnuts out of the fire; our trade with China is not worth it; Japan has already started a counter-block by setting up local customs houses in the North China block–charging only one-fourth of the standard Chinese duties, and thus intending to flood China with Japanese goods, and so threaten the stability of all loans to China held by foreigners.

Bridge in the p.m. with Nazario, Tobangui and La O.

Big dinner at the Manila Hotel given by Mr. and Mrs. Tommy Wolff as a despedida for Don Andres Soriano who is off on a visit to St Jean de Luz. Both Soriano and Colonel Hodsoll told of telephone conversations by wireless in the last few days with Juan Figueras in Biarritz!

Talk with Benito Razon just back from the United States. He had been recently with a group of Americans who expressed disapproval of the apparent change of heart in the Philippines over independence since the passage of the Tydings-McDuffie law; that this change was no doubt due to the same influence which was causing America to withdraw from activities in the Orient–i.e., the power of Japan; that the demand for free markets for the Philippines in America was based on unfairness of the sanctions in the Tydings-McDuffie law by which America keeps her free market here for ten years, and Filipinos get a free market in the United States for only five years. He agreed with me that the new series of kicks by Americans against the Philippines is based on general indifference (“we never had any good reason for being there anyway”) plus an irritation that Filipinos should have preferred independence to retaining American protection.

May 20, 1936

Quezon issues a statement that passage by the United States Senate of a bill repealing the authorization to pay the Philippines $23 millions for gold devaluation of Philippine Government deposits in the United States banks was a “great injustice to the Filipino people,” and that the “loss of the money to the Philippines was directly due to the refusal of an American Secretary of War to convert convert Philippine Government deposits in the United States into bullion, despite the urgent requests of Philippine representatives”; and that: “The said funds were in the keeping of the government of the United States and held in trust by its officials and America has profited by it as much as we have lost.”

General Santos said, quoting MacArthur, that judging from the registration for military enrollment, the present population of the Philippines is 18,000,000. This is 4 million more than is usually given, but seems probable. It is 18 years since we took a census.

Victor Buencamino told us there is a daughter of Governor Frank Carpenter employed in the Philippine Education Co. I asked him about mestizos. He said those part Spanish and American blood exhibited all the worst traits of both races–that the Chino-Filipino was the best–(n.b. he is one himself)–the real reason (in my opinion) is that the half-blood of one of the dominating races tries to “belong” to the social caste above him and is rebuffed and embittered by his partial failure. The Chinese, on the other hand, have never dominated politically nor socially here.

At the Survey Board, Unson who had proposed abolishing the “home economic division” of the Bureau of Science, had today been interviewed by Miss Olora, head of that division. He was all of a twitter, and couldn’t keep off the subject of what a great work she was doing.

May 19, 1936

Three nice letters from Doria at Peking. She is thrilled by sight-seeing, but bored by all the “Main Street” personalities she meets.

Papers carry a statement by Quezon that he has arranged with the High Commissioner for a preliminary trade conference after the election in Washington. Papers guess that (Speaker) Roxas and Alunan will be sent (??).

3-5 p.m. with Survey Board–officials of the Bureau of Science there. I questioned them as to the failure of administration of the fish and game law.

Dinner at Colin Hoskins for Weldon Jones and Major General Santos; Jim Ross, Carlos Romulo, Dr. Valdes, Victor Buencamino there–all in barong tagalog. Conversation after dinner chiefly about General MacArthur and later about Japanese relations with the Philippines. Jim Ross said MacArthur was a brilliant soldier but had Napoleonic ambitions. Hoskins added he was sorry to see him here, as something always happened when MacArthur was present, and that the general only wanted or organize the Philippines Army to help the United States. Santos thinks Japan’s expansion is to continue on the mainland, and that she doesn’t want political sovereignty here.

May 18, 1936

Long talk with Unson about the reorganization of the government. Query: how to get funds from the Legislature for research scientific work? We finally decided the only way by which we could avoid alarming the legislature is to strengthen the Bureau of Science, instead of turning over its researchers to the University, or trying to secure a large appropriation for the Council of National Research (Dr. Roxas); Unson says Governor General Murphy considered Dr. Roxas something of a spendthrift. We talked of the American attitude of growing indifference and severity towards the Philippines. He commented that it was American psychology for a father to cut loose entirely from a grown-up son! Unson expressed doubt of the Philippine Army.

Quezon returned from Hong Kong and after a day at Malacañan left for Baguio. His office work is greatly in arrears and is in confusion. Vargas handed me a memorandum prepared by Quezon dated April 14 in Iloilo, addressed to me, (and unsigned) asking me to prepare papers to carry out the recommendations of the annual report of the Manila Railroad Co. This I received May 18!! Vargas says he found it “on the boat” (Arayat?). I hardly think it was meant for me, anyway, but probably for Paez who is away inspecting the line for the proposed railroad in Mindanao. Quezon cannot stand the racket at Malacañan Palace–when he finally does receive his visitors he gives three times the time necessary for each interview. He is too restless for office work anyway, and while there feels like a bird in a cage. He gives himself so thoroughly to each visitor that this kind of work wears him out. He cannot, however, let his underlings run their offices, so all of them are simply terrified of him, and the administration becomes paralyzed.

I asked Unson why the United States Army officers thrust themselves to the fore continually in the press, giving “full military honors” and exchanging so many visits of ceremony, so that the public must have an engorged idea of militarism in the Philippines. He said this was not so from Taft to me, but dated from General Wood as Governor General.

Unson is anxious to have the Bureau of Printing print all textbooks for Philippine schools; but is opposed by the Bureau of Education. I advised him to include this recommendation in the Survey Board’s report on the Bureau of Printing, thus advocating giving more employment to Filipino printers.

Golf alone at McKinley at 5 p.m.

May 17, 1936

Sunday. Quiet day at home–golf alone at McKinley at 5 o’c.

May 16, 1936

Asked A. D. Williams about hydro-electric power: he said the Meralco expended double its estimates on the Pagsanan site. He explained that under the constitution all water power is the property of the Government and can only be leased; not sold; that the only good sites left in the Philippines are:

(a)  Maria Cristina Falls in Lanao

(b)  Angat River ten miles above the new water works dam

(c)  possibly the Agno River.

There seems to be no opportunity in the circumstances for outside capital. He also said, speaking of the gold mines in the Paracale district, that because of mining; Paracale in 1840 was a town of 84,000 people; now it has only 2-3,000.

In p.m. golf alone at McKinley.

May 16, 1936

Abolition of the Bureau of Non-Christian Tribes is announced pending a commission which is to be substituted. It is alleged that the Moros (and Pagans?) object to the designation!

Two articles in the Press show the difficulty of running a government on Quezon’s method of never consulting newspapers:

(a)   Memo. by General MacArthur, in answer to Press criticisms, explaining that the selection of Generals for the new Philippine Army was made without any influence from Quezon.

(b)   Vargas’ explanation of a suggested new yacht for the government, was not merely for Quezon but to replace the Bustamante, the old cable ship, which became more expensive to repair than to substitute a new ship. An editorial in the Bulletin showing that “if a frank statement of intent had been made in the first place etc.”–and concluding: “no apologies are needed.” Quezon gives himself most reluctantly to the press–tho he is not nearly as neglectful of it as I used to be!

Ambrosio–for the past twenty-five years N° 1 chauffeur at Malacañan Palace, came to see me; he says Murphy will not return–(he is now High Commissioner Murphy’s chauffeur); this may be “servant’s gossip” but Ambrosio is in a position to hear a lot!

One hour and a half with Dr. Roxas and Unson at the Survey Board; Roxas expounding the necessity for a fixed and sufficient income for research work–says we must prepare for the “diversification” of industries. He and Unson ridicule the idea that the Philippine Government cannot exist without the fat sugar industry.

After Roxas left, Unson told me confidentially that “something very important” was pending in top circles, and that Quezon would have to return from Hong Kong by the 18th. It is a discussion of the relations of the Philippines with the United States and Japan. If Japan will not undermine the sovereignty of the Philippines, but merely wants trade here, it might be a good idea, according to Unson, to make some arrangement with Japan, in view of the “wobbling” of the United States’ attitude towards the Philippine problem. “We are here in the Orient, and here we stay.” This all-important question was possibly brought to the front by the Davao land muddle. Unson says that he and Vicente Singson wrote recently withdrawing from a dinner group at Wak-Wak because they found at the first dinner held that it was intended for them all to be committed to using their best efforts at whatever cost to secure retention of the United States’ market. Unson says there are plenty of other leading Filipinos who are restive under “too much sugar” in politics. They want to prepare for independence by planning the economic future. (Dr. Roxas is apparently of the same view.)