February 14, 1950

To lunch at Lion’s Club as guest of Pio Pedrosa, Secretary of Finance. 9-10 had conference with Pedrosa, Jacinto, Jastram and Knight. Handed my memorandum re relationship between Commissioner of Customs and Collector of the Port of Manila to the Secretary. We had general discussion of the two alternatives I proposed, and the Secretary asked me to work out details of the two proposed, which he can submit to the Legislature. In the course of our talk, it was made shockingly clear how much the Customs is involved in politics. The present Deputy Commissioner and ex officio Collector at Manila (Fabros) has far more power than his nominal superior (Jacinto), and has placed relatives in several of the key posts in the Customs. He has very powerful political connections, and is, I fear, a thorough-going rascal.

The discussion at the Lion’s Club was about the desirability of creating a free-port, or foreign trade zone at Manila, and I have seldom heard more uninformed and half-baked ideas. It was a nice affair, however. The service clubs (Rotary, Lions, etc.) seem to be very popular in the Philippines. There must have been 150-200 men at today’s lunch. Called on Col. Soriano, president of Philippine Air Lines, San Miguel Brewery, etc. – one of the world’s rich men, I’m told. He was once a Spaniard, then a
Filipino, and is now an American citizen. We had half an hour’s talk about the Customs. Like everybody else, he says get politics out of the Customs and pay the staff a living wage. With Foster Knight, inspected the two principal piers with Delgado, the Arrestre contractor. The storage sheds are very capacious and well-built, and the stacking and handling of cargo are very well done. Lift-trucks and other mechanized equipment was in full use. Delgado took over the Arrestre contract last month, and his predecessor company did everything possible to sabotage the property and equipment. A very disgraceful performance. I had following to dinner here: Dr. and Mrs. Ray Moyer; Jim Ivy; Doris Bebb; Mrs. Pedigo. We had amusing time watching the dancing (it was Valentine’s Night). Many of the young Filipino couples were dancing the ?, which consists chiefly of facing each other 2 feet
apart and wiggling their behinds. Most of them kept very sober faces, and seemed to be taking their pleasures sadly.