Conference at Malacanang — 11:00 to 1:15
Present — Sec Sison, Valdes, Francisco, Lim, Garcia, Segundo, [illegible], De Jesus
Subject — Justification of proposed cut of budget. Loss of confidence in MacArthur expressed by the Pres. He expects MacArthur to pull out when budget is reduced.
McA failures — He failed to tell Pres. that 16 million is only for training purposes. He failed to explain Mindanao defense. He places too much confidence on contingencies that may not happen.
Trend of the President’s thoughts —
1. Country can not defend itself under present plan
2. Money could be better used by altering present plans.
3. Peoples that have interest in the govt must be the ones to be prepared as then they shall defend the govt.
4. Interest of American armament — to be able to dictate terms of peace at end of war.
5. Japanese interest — to share in wealth of country, to be master of the Orient. Pres. Q does not believe Japan will come to the Phil and risk a war with America as America is one of her best trade customers.
Pres. Q. requests the General Staff to exert its utmost to provide the countrys defense after McA. leaves.
Pres. Q. argues with Gen. Staff memo on reduction of budget. The Army needs as presented are considered vital by him.
Played Polo today —