October 11, 1972

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1

12:00 PM

Oct. 11, 1972

Wednesday

Malacañan Palace

Manila

The Cotobato (North) leaders, Moslem Tururays and Christian alike, have pledged to keep the peace and support me in the proclamation of martial law and the reformation.

But since fighting has broken out in the Magsanoy, Ampatuan, Pikit area I have called them to Manila — (all the provincial and municipal officials). I personally asked Cong. Salipada Pendatun to come over the telephone when I told talked to him after my opening appeal wherein I told the leaders that Mindanao is Moslem land and we, the Christians, are there because of their tolerance and their invitation; that the Christians should therefore help their brother Moslems and other minorities who are less prepared for an exacting modern world; that the policies I have established favor the Moslem areas; most of the money we have borrowed from abroad go to Mindanao, the seaports and airports being developed are in Mindanao; the “Investments below the typhoon belt policy” means investments will pour in for Mindanao and Sulu, and the oil exploration program will favor Mindanao and Sulu, the number of schools being constructed now in these islands are double that of the Luzon and Visayas areas.

So I concluded “I am ready to wipe out all past records and start out with the slate

2

Oct. 11th (Con’t)

Malacañan Palace

Manila

clean provided that there will be no repetition of the past offenses.” And pointed out to how I had personally gone to Buldon to stop the Armed Forces of the Philippines from decimating that Moslem town under Mayor Aratuc (his son Tonatic had been sent by the father who was taken ill campaigning for the people’s support of martial law) with artillery fire notwithstanding the seven casualties suffered by the government troops.

We ended up with Cong. Salipada Pendatun reiterating support for my program and agreeing to head a mission to contact Ex-Gov. Udtog Matalam whose MIM forces have started the fighting to come to see me in Manila. But we have to stop the operations of the AFP against his band in the meantime.

And Datu Akilan Ampatuan will contact the two Sanki brohers, Abdullah and Balacat and son A   to also come and see me. So too with the old man Datu Kadanding who have apparently joined Datu Udtog Matalam.

The Disumimba band which threatens Dinaig is composed of outlaws and will have to be destroyed.

3

Oct. 11th (Con’t)

Malacañan Palace

Manila

Met Congs. Armi Gustilo of Negros and Eduardo Cojuangco of Tarlac. They report 105 armed men have gone up the mountains in Negros and their transit point to Panay where they have contact with some other subversives is through Guimaras through a certain Jayme.

We will mount a special intelligence and search and destroy operations.

They also showed a telegram of Sugar Administrator Jose Unson for all sugar people on planters and millers to pass their sugar through the Producers Cooperative controlled by Ex Sec. Alfredo Montelibano by a voting trust agreement who is apparently trying to corner the sugar market.

I have called all planters and millers next Wednesday at 10:30 AM so I can organize a government sugar commission to handle exports and domestic sales.

I met with Justice Fred Ruiz Castro. He has told the Chief Justice of my request that there be no direct confrontation between me and the Supreme Court. Justice Castro called attention to the fact that in all the cases they have studied, the U.S. Supreme Court decided the cases after martial law was over. I believe they will do this.

4

Oct. 11th (Con’t)

Malacañan Palace

Manila

I have asked the Justices to help in preparing a list of CFI and CAR judges whose resignations should be accepted.

And reforms in the judiciary –or for that matter the whole society.

But I believe we still should look into how the Lopez interests (Meralco) have been paying the children and relatives of the justices.

And the payrolls are in the Meralco offices  of the comptroller, the treasurer and personal secretaries of Mr. Eugenio Lopez.

The last article of Richard Critchfeld in the Washington Star is most laudatory: It is about the book (my book) calling it the best analysis of why I imposed martial law “It is a brilliantly-reasoned manifesto calling for a government-led 1. non-violent revolution to fundamentally remake Philippine society xxx The book provides the political theory and the blue-print of what Marcos is doing now xxx”

5

Oct. 11th (Con’t)

Malacañan Palace

Manila

“It is perhaps one of the most extraordinary theoretical documents ever produced by a contemporary non-communist head of state.”

xxx

“Marcos book, taken together with all he has been saying and doing since he declared martial law, puts the present crisis into an altogether different perspective. Far from being a short-term emergency or a routine power play, it is a far greater and more dangerous enterprise.”

“Marcos is pitting himself, the Army, the technocrats and other modernizing forces against the entrenched oligarchy, the communists, the radical left and the Philippine criminal underworld in a prolonged struggle to decide whether this country can afford to remain an open society.”


October 1, 1972

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11:30 PM

Oct. 1, 1972

Sunday

Malacañan Palace

Manila

Guns, Gangsters, and the reduction of the Meralco rates –these are the news that have gone big in the United States.

17,000 guns captured and surrendered is a massive number indeed which has struck the attention of the world that is preoccupied with terrorism.

So too with gangsterism since it is a risk to take a stroll in Central Park or Rock Creek Park even in the daytime.

And the move to dismantle the hold of the oligarchs on our economy and thus our society and government –starting out with the Lopezes’ Meralco.

So we must continue the raids on the NPA safehouses for the explosives and arms we know they have.

And the heroin laboratories.

2

Oct. 1st (Con’t)

Malacañan Palace

Manila

I issued the decrees on meat prices and on undeclared income.

And called in my information production group including Blas Ople, Romy Diaz as well as Kits Tatad and the operating officers, the Dept of Education with its 270,000 public school teachers and 70,000 private school teachers, Dept of Agriculture with the APC, ACA, Bureau of Plant Industry, Bureau of Lands, Bureau of Forestry etc., the Dept. of Health and its Rural Health Units, the Dept of Local Govts and Community Development, for the organization of an information campaign that must reach every man, woman and child in the country.

Conferred with Jess Tanchangco on the rice problem. Directed him to clean up the RCA.

 


Sept. 30, 1972 Saturday

Marcos Diaries 1972_158 Marcos Diaries 1972_159

(1)

11:15 PM

sept. 30, 1072

Saturday

Malacañan Palace

Manila

Tillwan Durdin of New York Times has now reported favorably on the developments in Manila contrary to his initial reports. I attach cabled report on his story and other stories.

Since the New York Times is the bell weather of American newspaper sentiment, this should mark the generally favorable reaction to martial law.

This morning at 9:30 I met all the generals at Camp Aguinaldo. I cautioned them against complacency arising out of the euphoria of easy victory; to watch October a it may be the crucial month; that the reform movement and the creation of the New Society is our principal objective and keeping down criminality and prices is the urgent and immediate objective; that it is easier to win a war or a revolution (for no matter how peaceful or constitutional it is, it is a revolution) than it is to run a government; but that I am confident in their capacity to continue the excellent performance.

Increased allowances of enlisted men and pay of officers.

 

(2)

Sept. 30th (Con’t)

Malacañan Palace

Manila

Decreased the rates of Meralco to 20.9% from 36%. This is the crying need of the people. I attach the order as well as other orders I signed today.

Antonio Roxas Chua and the other sugar dealers and traders were apprehended for hoarding and profiteering. They were also getting ₱10 a bag of sugar sold to industrial users.

He has offered to sell all his sugar at controlled prices. So have the others.

I attach his offer through Ralph Nubla whom I authorized to see him.

The Meralco oligarchs are trying to see me. The head of the clan, Eugenio Lopez Sr., has been trying to get me by telephone. Now the son (Junior) has asked to meet with Gov. Kokoy Romualdez. They sent Tony Ayala. They are also going to see Bobby Benedicto who has arrived.

I am sure it is about the rates.

I intend to review all power rates thoughout the Philippines.


February 10, 1969 — Monday

At 10 a.m. attended the meeting of the Board of Directors of Meralco, on the 13th floor, Lopez Building. It was announced there that the inauguration of the Lopez building will be held on March 14, which is the anniversary of the day when Meralco was granted its franchise (March 14, 1903).

The theater will be inaugurated on March 22, 1969 with a special program, for which invitations will be issued. The meeting adjourned at 11:15 a.m.

Attended, at 5 p.m. the annual meeting of the Philippine Cancer Society. The Board of Directors was reelected with two changes — the Secretary of Health is to take the place of Secretary Paulino Garcia, and Dr. Pio Pedrosa who will take the place of Mr. Ramon Ordoveza who resigned due to his inability to attending the meetings.


July 3, 1942

Today I shall delve into the confused structure of the industrial sector. Most business establishments were either voluntarily closed or sealed, while those that are still operating are under Japanese control, because in the first place, all industries capitalized wholly or partly by enemy countries have automatically passed on to Japanese hands. Among these are the mining firms and some sugar centrals, the Meralco, and many small factories in Manila and the provinces.

Our gold mines which are the riches in the world are now inactive, with no known plans for them. As for other metals like iron, chromium and manganese, they are still waiting for experts from Japan to arrive and set up mining establishments.

Sugar centrals have started operations since the end of January, under Japanese management. Even the factories which were subsidized only partially by American capital had been confiscated by the Japanese army. The plantation and sugar central in Canlubang was a case in point. It was purchased by Madrigal from an American firm before the war of ₱5,000,000.00. The Japanese took possession of it, promising to pay him back. In this case, the Japanese showed a little respect and consideration. In others there was none.

Almost all the sugar centrals, whether owned by Filipinos or Spaniards, are operating as usual. Some were allowed to sell sugar during the disposal of their sugar, with the price fixed at ₱5.00 a picul. The price in the market was ₱20.00 or more, and it is hard to determine who has the upperhand in this transaction. Meanwhile, molasses, which used to command an excellent price, is now being commandeered by the Army for use in the manufacture of alcohol.

Meralco, and other owned companies by the Americans, British or Chinese have passed on as spoils to the victors, although most of the people working in these firms were retained.

In this connection, the following notice to the public appeared in yesterday’s papers:

The undersigned company takes the pleasure of announcing that by the expressed order of the Japanese Military Administration, the operations and management of the public electric utilities of the Philippine Islands have been assigned to it, and that operations under our administration will commence on July 1, 1942.

The Taiwan Power Company

As the notice did not exclude electric power plants owned by Filipino establishments, the new Japanese firm has taken over all existing light factories, whether owned by enemy nationals or not.

On the other hand, Filipino, Spanish and German industries, except for isolated cases, are allowed to operate, with many reservations.

Of the four major cigar and cigarette factories in operation, three are Spanish and one is Swiss-German. They can produce all the cigars and cigarettes they want, with Philippine tobacco which is abundant. The prices, however, are prohibitive, due to the manipulations of middlemen. The military commandeers all the big warehouses of imported cigarettes. Likewise, the Army has “bought” from Virginia tobacco all the cigarettes made in Manila. In the beginning, they allowed the sale of some of these imported brands. Gradually, the Army exhausted the supply and prohibited their sales.

Furthermore, the Army purchases all alcohol produced by the different distilleries, exporting it to Japan, or selling it on ration to those who have the permit to use motor vehicles.

The manufacturers of “Rizal” cement were ordered to produce at full capacity, and the products are being bought by the Army. As of date, they have been paid only with receipts and IOU’s.

 

San Miguel Brewery was one of the most flourishing economic establishments in Manila. Its products are ice, softdrinks, Magnolia milk, ice cream and beer. Before the war, San Miguel produced some one hundred thousand bottles of Coca Cola and beer daily. All of them were sold. Ninety-five per cent of the operations were under Filipinos or Spaniards. Aside from a few Spanish employees and three or four German technicians, the personnel force was composed of Filipinos. The firm has been taken over by Japan, perhaps because the local Japanese beer factory could not compete with San Miguel, or perhaps because the Japanese needed the products of San Miguel. The fact is that just at the start of the war the Japanese Army took over all the plants of San Miguel and produced just enough for the Japanese Army.

Due to the lack of raw materials, San Miguel could not manufacture bottles. The Army had to resort to all kinds of tricks to insure the supply of bottles. First, they announced that beer was going to be sold to the public but those who wanted to buy it would had to turn in seventy-two empty bottles before they could be entitled to buy a case of twenty-four bottles. The Chinese went around buying empty bottles which they sold at seven or ten centavos per bottle. Once refilled, a bottle of beer cost from fifty to sixty centavos.


July 1, 1942

I had thought of touching on this theme several times, but for lack of data, I had to delay doing so. We knew a few details, loose ends gathered here and there, but we lacked an overall view of the new economic organization implanted by the new economists. Neither the civil nor the military government seem to be interested in making this matter public. Rather, they apparently prefer to leave us in ignorance.

We can, at most, assume this fact—or postulate—as a starting point: that the Philippines, while under the domination of the Americans, was an enemy of Japan against which she fought and for which she was invaded and conquered. Having been dominated, the Philippines has to pay the costs and damages of war. How will Japan ever recover such costs? As Japan has not officially imposed on the Philippines a share in the cost of war, nor indemnification, nor contribution to support the Occupation Army, what economic system would she install to recover such expenses?

All the economic activities are being manipulated by the super administrators from behind the curtain. Both the manipulators and the strings are invisible but the public knows that the actors are mere cardboard puppets manipulated by unseen strings.

Some economic advantages have obviously been obtained by the conquerors. Their most abundant sources of revenue are the stores and warehouses of the more valuable wholesale business establishments. Only the Japanese know the value of the spoils of war. If to these were added the number of trucks, cars and other motor vehicles confiscated, the amount would reach some ₱500,000,000.00.

With regard to the banking establishments, one fact is that when Sto. Domingo was being bombed last December 27, the banks, by order of the Military, loaded their deposits for transfer into a motor boat to Corregidor. Could it be that the Japanese got wind of this move and therefore bombed the river and Intramuros?

After the fall of Corregidor, Radio San Francisco announced that sometime in the middle of February, an American submarine succeeded in going through the Japanese line and reaching the island to bring provisions for the defending army. It left Corregidor with the bank money, allegedly amounting to some sixty million. The rest must have been dumped into the sea.

The Bank of the Philippine Islands has only some six hundred thousand pesos left in its vaults. The amounts left in the other banks are not known, but they were more or less around the same amount. The Japanese therefore found the vaults of the banks and of the National Treasury virtually empty.

Naturally, not all the money had been deposited in the banks. The money which is still in private hands amounts to millions. The conquerors, badly in need of metal, have tried to gather all the money, so much so that, after the Japanese entry, coins became scarce.

Meralco, an American firm, was commandeered, and all the coins which were confiscated therefrom were never put back in circulation. Streetcar conductors became short of coins for change, until tickets were issued for the purpose. The NARIC started rationing rice, demanding coins as payment. Finally, denominations disappeared, until paper money was issued.

The Japanese suspect that the people are hoarding the coins. Banks have therefore been ordered to hold back small paper denominations to force the people to spend their coins.