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 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 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.


March 25, 1936

Busy morning at office. Miguel Unson has seen Quezon and has received instructions that I shall work with the Government Survey Board. He came in and outlined their work. The office is at the Heacock Building, and he spends most of his time there. Is worried by the belief that insufficient revenue is obtained from the customs, and is trying to work out a scheme for improvement; he says that every time the customs bureau is investigated the revenue receipts leap up!

We talked over the issue of railway vs. roads in Mindanao: he says the plan is to take down there that useless railroad outfit in Cebu, and perhaps in Iloilo as well, and to build roads as feeders. I also saw Osmeña for a moment before the Cabinet meeting and he talked on the same subject: says the time has come to decide either for railroad or roads, and not to make the same mistake as in Luzon, where they run parallel.

Hartendorp came in, and reported that he had recently called on General MacArthur, who has an office in Santa Lucia barracks. The General told Hartendorp that he was the first editor who had called on him, and expressed surprise; he also voiced regret that Quezon’s address on National Defense at the University had not been better received, and that the press does not support the plan. He said that his plans are extremely well forward, and that the Philippine army is going to get munitions and equipment at one-quarter cost from the United States Army. In ten years, the Philippines, he believes, will have a force making it necessary for another country, if attacking, to lose a great number of men, and to spend perhaps a billion dollars, which will make them hesitate to attack. This would be very different from the picnic the Japanese had in walking into Manchuria. Hartendorp asked whether the Philippines were not rich enough to make this “worth while,” and whether these islands are not a prize because “strategically located”? The General replied that the strategic situation would bring in other allies–especially the United States. Seemed positive of that. He also remarked that Quezon was one of the five great statesmen of the world.

Hartendorp reported that Quezon had cut his Friday press audiences four times running–“doesn’t seem to care a damn about the press,” and, of course, is being criticized by the newspaper men.” Hartendorp observed that in the opinion of people with whom he talked, there were too many United States military reviews and parades going on (n.b. Quezon is reviewing troops at Fort McKinley this p.m.).

8 p.m.--Negros left Manila with a large party as guests of Don Andres Soriano headed for Masbate, to inspect his mines there: Masbate Consolidated and IXL. Quezon, Roxas, Sabido, Confesor, Babbitt, Belden, Correa, Dewitt, Spanish Consul, Fairchild, Fernandez (Ramon), Fox, Hodsoll, Ingersoll, Kerk, Le Jeune, Peters, Selph, Whittall, Wolf and many others. Fine ship of 1900 tons and everything aboard de luxe. Bridge with Quezon, Babbitt, Ingersoll, Peters, Wolff etc. at all hours. Conversations with many aboard on mines, sugar, etc. The general impression as to the latter is no basis for the buoyancy and optimism as to the present prices of sugar shares and their future prospects. No one can answer the question: why this optimism? Not only are Filipinos buying up sugar mills, but haciendas also in the sugar districts are changing hands at prices much higher than before. Ramon Fernandez says they have just found that they can produce sugar at four and a half pesos a picul, whereas five and a half has been the cheapest heretofore. But the real reason for the situation is probably that the Filipinos know the sugar game (some have already made fortunes out of it), and they would rather stick to something they do so well than venture into new fields. Many of the gold mines are in an experimental stage still, and the general public is waiting to see what happens.

Duggleby states that up to date, no proof exists that the Paracale district is as rich as the gold vinds in Baguio. However it was formerly the chief seat of Spanish mining. Says that under American rule no new mines have been discovered in the Philippines–yet every creek in the islands has traces of gold. He doubts whether sufficient gold will ever be produced to satisfy the world, since production is not increasing, in spite of very high present price of gold as a commodity.

The general opinion is that very little foreign capital has as yet come into Philippine gold shares.

Talked with Fairchild, Fernandez and Alunan on sugar: the latter sold his own sugar shares in Negros. Babbitt is bewildered by the high prices of sugar shares, including those of his own company.

I asked Quezon if he couldn’t do something to ease off the dismissal of Hartendorp. He replied “we are going to make him a Professor of English.” Quezon was tired out when he came aboard, and the next morning he was as fresh as a daisy, and very gay. I heard him dictating in his cabin–next to mine, at 6:30 a.m.


March 11, 1936

At office. Hartendorp uneasy because his appointment is as “technical assistant,” and not as “adviser”; fears he will be reduced to mere routine work, and is upset because he can’t see Quezon. Told him I had been unable to see Quezon myself for three weeks. Appointments are out for the Boards of Directors of the Philippine National Bank and of the National Development Co. They are completely Filipinized: even Colin Hoskins is ousted! Bank directors henceforth are to consist only of Government officials, thus freeing the bank from business interests of a private nature. Sorry about Colin who is one of the best directors the bank has had.

Saw Rafael Palma coming to take the oath of office as President of the National Board of Education. He seems pleased, and I am really glad Quezon took care of him–rare magnanimity on the President’s part!

At Manila Club for bridge, but Peters, entering the card room slipped and fell cutting his head badly and fracturing his wrist–took him to doctor’s. Only a few days ago called on General and Mrs. Holbrook and found her with a broken wrist from a fall on a slippery floor. This is a common accident here.

Admitted by affiliation as a member of Bagumbayan Lodge N° 4; I heard that our former efforts to make Americans fraternize with Filipinos had now been replaced by the necessity of persuading the poor Filipinos (Plaridel Temple) to fraternize with the “aristocratic” lodges which contain Americans–a schism is threatened–trouble seems to have been created by Masterson, an ex-soldier who is ambitious and speaks a few words of Tagalog.

Soriano told Doria that he finds it more profitable to sell his copra (Laguna) in the open market than to send it to the nearby (San Pablo) dessicated coconut factory.


February 22, 1936

Holiday. An hour with Sam Gaches in his office where he told me at my request the whole story of the Mineral Resources Mining properties. Excellent and vivid 40 minutes talk by him on rediscovery of the ancient Chinese mines of 500-1,000 years ago in Camarines Norte. Gave all the difficulties of mining in that region (Labo) and said it might be a “flop” “but”–with a gesture–“it drives you crazy it looks so good.” Said all mines in the Philippines except those in actual operation, like Benguet Consolidated, were “hooey,” meaning, a speculation only as yet–but added he believed the Paracale–San Mauricio–Labo district was destined to become the great gold fields of the Islands.

Had a talk yesterday with Palting, who has made a survey of the executive offices at Malacañan since inauguration, and he reports four times the volume of business compared with the days of the Governors General–but, he added, this was mostly due to the different boards engaged in reorganizing the Government.

Saw also Colonel Antonio Torres, Municipal Councillor, candidate for appointment as first Filipino Chief of Police of the City of Manila. He seemed downcast and said to me “My career is ended”–I replied “No! it is just beginning”–that afternoon’s papers carried the announcement of his nomination to head the Police Department.

Saw also Dr. Calderon, Director of the Philippine General Hospital–he is old and failing–walks with a stick. He is the senior surviving appointee to office made by me as Governor General.

Long talk with Colin Hoskins on currency problems in the Philippines. He had two hours with Weldon Jones this morning on the silver purchase. We also went into constitutional questions; the United States under Roosevelt; and the administration. Colin asked why Jim Ross and I could not support Roosevelt.

Doria’s dinner here tonight. Colette Guest, Kuka Guest, Mr. & Mrs “Shiny” White, Andres Soriano, Jim Rockwell, Paco Oleaga, Evelyn Burkhart who is to marry Paco in a few days, Tony McLeod, Young Hoover, Florence Edwards and Commander MacDowell. Dinner not well cooked. Orchestra dismissed by Doria as no good, so we went on to the Polo Club dance and had a gay evening. Mr. & Mrs. Gaches had a large dinner party there on the lawn–with the Rectos and Buencaminos. Doria said the Army crowd mournfully regretted that the last stronghold of the Palefaces was now invaded. Mrs. Gaches told Doria how difficult her social-political work on the committees was, because the Filipinos with whom she served were so casual–not to say rude!


February 19, 1936

Colin Hoskins called with Biggars, manager of the Chase Bank at Hong Kong to discuss the possibility of the Philippines buying silver, with a large seignorage profit, and putting the currency on a silver basis, with gold credits for foreign trade accounts. Biggars advocates this and says he thinks the United States would approve; and he would be glad to see a solvent nation going on silver. Said the United States had driven a very hard bargain with England on silver.

In p.m. at work at office on a speech for tonight. Saw Quezon for half an hour–in his pyjamas after siesta, and looking tired, but in his usual vitally active mood. I told him I had suggested to Unson before the latter saw him the setting up of a budgetary bureau within the framework of the Act creating the Survey Board on the reorganization of the Government–let the Survey Board serve for 2-3 years or until they had finished a scientific standardization &c. Let the members of the board plan the consolidations etc., for immediate use. He said “Oh! I thought that was Unson’s own idea.” The President wants me to work with the board.

Then I took up the subject of Landlord & Tenant and he said no special session was to be called. Told him the more I went into it, the more suspicious I was of the existence of a racket on part of both landlords and tenants–he agreed, and said he must have some plan by which the small man would get his lands–and to beat the speculators. I told him two of the Friar Estates were on 60-90 year lease to outsiders, and that these lessees were demanding 1-2 million pesos for their interests–we must put penalty taxation on all estates larger than 1000 hectares, to squeeze them.

Then I told him of my morning’s talk with Biggars and he at once wrote me notes to Roxas, Weldon Jones and Vicente Singson Encarnacion to consult them on this subject.

Then he arranged on the telephone a trip to Masbate with Andres Soriano for March 25-30, to see the mines; he invited Doria and me to come and some lady to accompany Doria. His conversation with Soriano was gay and courteous. Soriano is chartering the Negros for the trip, and Quezon begged him to go light on the food, so as not to threaten “mi ulcera de estomago.” Quezon also fixed up with the Japanese consul dates for the trip to Davao, April 1-10, inviting Doria and me to accompany him on the Arayat.

Quezon Said he was tired and needed recreation, so we arranged for two bridge games.

He told me of his speech to the executive chiefs at Malacañan that morning; telling then how he had been getting all the credit for their work, and while this satisfied his vanity it hurt his sense of justice, and if anything went wrong he would get all the blame!

I spoke that evening before the Foreign Relations Club of the University of Manila–good audience and it went off well. Constitution Day. The Dean (Gallego) in introducing me referred to Quezon as the “Father of the Constitution” and to me as its “Grandfather” which pleased the students and brought a big laugh. Usual anemic musical program.


February 12, 1936

At office, Hartendorp, who has been appointed Adviser to the President on press matters, came in to see me–he has the next room. He suggested that Roxas had tried to drive a sharp bargain with Quezon and had been repulsed.

He told also the story of Quezon’s visit of a few days ago to the Lian Friar estate. The President asked an old man there why the tenants had burned the residence of the manager for the Friars. The old man replied that this had not been done by the tenants, but by the estate managers in order to get up a case against the tenants. Quezon replied “I am not an American Governor General–don’t tell me such nonsense. As a matter of fact, I am a Filipino, and not from Manila–I was born and brought up in a small place just like this.”

Hartendorp also told me of last Friday’s Press Conference: how somebody asked whether Judge Paredes’ petition for a rehearing of his sentence of dismissal would be entertained by the President, and Quezon had replied that since he had read a whole column editorial in the Bulletin commending his act of dismissal, this being the first time in his life he (Quezon) had not been attacked by the Bulletin, he would not forfeit this new found favor by rehearing the sentence. Then Hartendorp later advised Quezon that Robert Aura Smith had been very much flattered, and the other newspapers were jealous. Would it not be well for Quezon to compliment the other editors? (Quezon told me later he had replied: “You ass! I was sarcastically running the knife into Robt. Aura Smith–not flattering him!!!)

Quezon came back and asked me to go for a ride with him–the usual ceremonies took place which he has established for leaving Malacañan–motorcycle cops etc. Quezon went to see the High Commissioner, who was very cordial to me. Do not know the purport of their half hour talk. I chatted with Franks, Ely, Teahan, the a.d.c.’s and others of the High Commissioner’s office until Quezon and I started back to Malacañan for lunch-alone together, and about as pleasant a time as I have ever had with him; we had at least twenty hearty laughs.

He explained the whole Roxas business: he had arranged with Don Manuel to accept the post of Secretary of Finance and on February 8 wrote him a former offer of this plus power to vote Quezon’s powers of control in the Manila Railroad and the National Development Co. To his intense surprise, on his return from taking his children out for a drive at 5 p.m. (which drive he didn’t want to take) he received an answer from Roxas, which he read to me, in which Roxas thanked him but stated that in as much as he had been elected, in accordance with his own wish, a member of the Assembly from Capiz, he could not leave his constituency unless called on to do so by “unavoidable duty of the Government.” This was a shock and surprise to Quezon who at once sent him a letter saying that he (Quezon) had believed that Roxas could be more useful as Secretary of Finance than as a member of the National Assembly; that Roxas was entitled to his own opinion on the matter, and since he (Roxas) had decided against it, Quezon would accept his decision not to be a member of the Cabinet, but with regret. Thereupon Roxas hurried around and tried to chip in–said he would withdraw his letter and would serve as Secretary of Finance, but Quezon replied it was “too late” as he had already appointed de las Alas. Then Osmeña came to see Quezon and Quezon says that if he (Osmeña) had then offered to resign as Secretary of Public Instruction, he (Quezon) would have interrupted the opening of his first sentence with “I accept”; but Osmeña had no idea of resigning. Quezon says Osmeña is an “old snake, but a non-poisonous snake.” He said “I licked those fellows only a year and a half ago, but they won’t stay licked.” I told him he had enough loyal men around him to run any government, and it was unwise to count upon loyalty from his opponents. He said that the night after he got rid of Roxas he was so happy he could not sleep–he wanted to call up an old friend (me) to come and talk to him; that after staying awake until 3 a.m. he got up and worked at his desk until 6.

Next I asked him about his acceptance of “Mike” Elizalde’s resignation of the presidency of the National Development Co. He replied that “Mike” had been the largest contributor to Quezon’s campaign fund in the election for the Presidency; that “like the Republicans in the United States, he had expected in return to run my administration, and so I dropped him.”

Next Quezon described his recent interview with Hausserman, Marsman and Andres Soriano, the three leaders in gold mining here. He told them he was in favour of developing the natural resources of the Islands; that he was also in favour of a fair return to investors. That all three of them had contributed to his campaign fund but if they believed that gave them a right to do as they pleased under his administration they were in for a rude awakening. That if they found existing laws unfair or unworkable, they should come to him and they would find a “sympathetic” listener when they were proposing amendments, but that if they or their clever lawyers tried to evade the law, they would go to jail. He said from the aftereffects of this conversation, they seemed to be very well pleased with the outlook.

Next, I took up with him the question of his attitude to the newspapers–a point on which he and I seem to be entirely congenial. He said he had agreed to the Friday interviews, and enjoyed them. That when he had been questioned and had answered, and another question was put he had “refused to be cross-examined” which produced a sympathetic laugh. I urged him to bend a little to avoid the nibbling of squirrels which might impair the confidence he was gradually inspiring in his own people. But he continues to scorn the press. I said I was just like him and had never crooked the knee to the newspapers.

Then we reverted to Hartendorp, and Quezon said he had received news from him a day or two ago that Scandal was going to publish an article about him and Miss. “That sweet girl” Quezon added. He told Hartendorp to let it be published, and I recalled the Duke of Wellington’s answer: “Publish and be damned.” Quezon replied that he never objected to this sort of scandal “because they always get the wrong woman or the wrong place.”

Then Quezon told me that the law permitting him to reorganize the Government had been drafted by Roxas who was to have undertaken the job. That he regretted he had allowed this to happen, because Singson told him it had taken six months of the hardest work of his life to reorganize only the Department of Agriculture and Natural Resources–and even then his doorstep was always crowded with weeping wives and children. So, Quezon asks me to draft a “superficial reorganization,” so as to have something to show to the Assembly when it convenes in June; he will give me the appropriation and personnel. “We” he added, “will really reorganize the government two or three years hence.”

His mind is set on our vacation trip in April to Moroland when he “will be through establishing his Government firmly and can relax.”

Golf at McKinley later with Doria and call on Felicia Howell.


December 22, 1935

Talk at the lunch table with Foley of Philippine National Bank; said he had seen the President the afternoon before; Quezon was much preoccupied with the Friar Land crisis. I asked Foley whether the Philippines could raise money on a bond issue to purchase these lands; he said it would be very difficult and that the Philippine National Bank would have to stand ready to take up the issue –he added that the rich men like A. Soriano and the Elizaldes would have to take part of the issue “and they won’t like it.”