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December 1, 1936

Glad November is over–somehow or other this is nearly always a worrisome month;–this year it was even worse than usual both because of Doria’s illness, and by reason of the lack of discretion, not to say greediness of some of ay associates in business.

At Malacañan at 9:30. Quezon was in the barber chair, just finishing an interview with Cuenco, former Assemblyman from Cebu whom he introduced to me as the new Secretary of Public Works and Communications. Three days ago, Cuenco had been announced as the new Mayor of Cebu, but it appears that Osmeña as the Boss of Cebu was obliged to offer some opposition, to the appointment of one of the opposing party. Vargas was present with Quezon and handed him Cuenco’s appointment as a Cabinet member, explaining that Osmeña had intimated his acquiescence in that rather than having to consent to Cuenco’s being Mayor of his city–never believing Quezon would agree. It looks as if Osmeña had been out-jockeyed!! The President told Vargas to get this appointment right into Cuenco’s hands, so that nothing could happen to interrupt it. When, a half hour later I reported this appointment to Claro Recto and Rafael Corpus, they both said: “This will break up the coalition!” but when I replied that Osmeña had already agreed, Corpus remarked “That’s the trouble–Osmeña is too easy.”

I then reported to the President my recent conversation with Foulds, British Consul General, in which I gained the information that the heads of foreign states such as Kings and President were not invited to the Coronation. To this Quezon made no comment:–he had probably learned this himself from Foulds, but he was obviously disappointed. My last point for Quezon that morning was a report of a conversation with Tommy Wolff last Friday night in which he stated that by accepting Filipino citizenship I had “not a friend left”–“except you, Tommy” I interrupted, at which he began to stammer. Quezon told me “not to let these fellows get under my skin.” I went on to say that Wolff was getting in the frame of mind of the late Paul Reinsch, American Minister of China, who had come to believe that the inhabitants of the country wished him harm (and went mad). Quezon at once said that Wolff’s mind was weakening from too much conviviality. He then observed that he “could not stand seeing any of his friends under the influence of liquor.”

I told Quezon about the troubles caused to newly forming mining companies by the excessive zeal of the promoters–that I had joined the Central Exchange under the urging of Speaker Montilla believing he was back of it–that I never heard of Prats until then–that I had induced Don Ramon Fernandez to join with me and we had gone to work to secure a Produce Exchange as something of real value for the future, and thanks to Quezon’s assistance had obtained it. Shortly after this conversation Corpus reported to me that the President had vetoed the bill on exempting Produce Exchanges from more than one sales tax–thus making them impossible except when run by the government. (This I doubt).