September 5, 1945, Wednesday

We seem to have been forgotten, not only by the Americans but also by our own government, and even by our most intimate friends. Is Osmeña decided not to help us? With so many planes and other means of transportation, is it not possible to ship us to Manila? Why was it that when we were brought here, they found a freighter? Why cannot the Mactan which is cruising the southern waters pass by Puerto Princesa. Where are our friends?

The United Charter was ratified by our Senate. Out of the present membership, 15 voted for approval. This is illegal as the Constitution requires 2/3 votes, or 16 votes. Such an important humanitarian document should not start its life in the Philippines with a violation of our fundamental law.

We do not know whether any discussion of the Charter took place. If I were there, I would ask clarification of the provision on independent peoples. I would ask whether it is applicable to the Philippines. I would want to know whether the ultimate independence of now dependent countries is guaranteed. Unless satisfactorily answered, I would propose a reservation; at least I would put on record the following: (1) that the Philippines should not be among those affected by this provision as we are not a dependent people like those in English colonies, and our eternal craving is independence for our country; (2) that since the purpose is to avoid war or at least remove its causes, no people should be continued as dependent. They should ultimately enjoy the God-given right to all peoples under the sun — the right to independence.

* * * * *

As I said before, when I have the time, I will write all that we talked about in the last two meetings. Meanwhile, I would like to make of record the following facts brought out:

Our first connection with the Japanese began this way. About the time the Japanese entered Manila on January 2, 1942, some Japanese came to see Don Quintin Paredes. They wanted to know his opinion on the organization of an administration. Paredes was taken to the office of General Maeda, Chief of Staff of the Japanese Army who, not in very clear terms, asked Paredes to organize or cooperate in the organization of some form of administration. Summarizing what they talked about, Paredes reported that the General wanted him to organize or cooperate in the organization of a body which shall take care of certain activities like building of roads and bridges, planting and harvesting crops, keeping peace and order, and making people return to their homes. Paredes told the General that he could not speak for all the Filipino officials.

The next day, Paredes went to see Yulo to confer with him about the matter. Yulo thought the matter was a very serious one and immediately consulted Chief Justice Ramon Avanceña, the grand old man, whose patriotism had already been shown by words and deeds. Meanwhile, Vargas, the man left by the President in charge of the government in the Philippines and who as Acting Mayor surrendered Greater Manila, was in continuous communication with the Japanese officials. Jose P. Laurel had also been visited by some Japanese including General Mayashi, whom he had known in Japan. Benigno Aquino and Claro M. Recto were also contacted by Japanese officers and civilians, and later also had conferences with General Maeda. They went to see Mr. Yulo, where it was decided that a meeting be called with all the members of the Cabinet of Pres. Quezon, the Senators-elect, some Representatives-elect, the heads of political parties, representatives of the press and elder statesmen. As a senator-elect, I was one of those called.

I have already given an account of what happened in the meetings in the house of Speaker Yulo. I will make a resume of the causes of our acceptance.

1. Maltreatment of Filipinos and atrocities committed by the Japanese were an everyday occurence all over Manila.

Everyone who came to the meetings brought fresh news of abuses and atrocities committed by the Japanese, both military and civilian. Don Ramon Fernandez, a most respected citizen, was slapped. In many parts of Manila, men were tied to electric posts, brutally beaten up and left exposed to the sun. I cannot forget the men I saw on the corner of Azcarraga St. and Rizal Avenue who were left to die. Arrests were very common and many of those arrested did not return; those who came back reported horrifying experiences. Properties, especially houses and automobiles, all kinds of foodstuffs were confiscated.

During those early days of Japanese occupation, news were constantly coming from the provinces of atrocities committed.

2. There was no doubt that unless we accepted, the Japanese would have governed directly or through Gen. Artemio Ricarte or Benigno Ramos. These two men were openly supporting Japan and undoubtedly would obey and implement whatever the Japanese wanted.

Ricarte had some strange ideas. When the slapping of men and women was brought to his attention, he said it was all right; our people need it; we have been wrongly educated by the Americans. (“Mabuti nga po. Kinakailangan ng ating mga kababayan. Masama ang itinuro sa kanila ng mga Americano.”) He also later advocated a resolution against the Americans and a formal outright declaration of war against America and Great Britain.

3. Acceptance would be in accordance with the instructions of President Quezon to us. He told us to protect our people and for the purpose we could even have an understanding with the Japanese. He only imposed one condition. We must not take the oath of allegiance.

This is the reason why when at one time the Japanese proposed the taking of the oath we all refused and we were willing to be punished. The Japanese gave up as a mass resignation of officials and employees could have spoiled their world propaganda that the Filipinos were with them.

4. We feared, later confirmed by events, that unless we accept there would be no peace and order. We would not be able to plant and to harvest and our people would die of hunger before the Philippines could be liberated by the Americans.

5. From the beginning, probably to attract us or for propaganda purposes, the Japanese wanted to give us independence. We could not refuse as we would not be able to explain our refusal. So we preferred the provisional arrangement entered into as we all then believed that America would come back soon.

Chief Justice Avanceña approved everything we did. He said he would be willing to stake his reputation, everything he had.

The alternatives from which to select were the following:

(a) Continuation of the Commonwealth. Rejected by the Japanese.

(b) Organization of a Republic. Immediately rejected.

(c) Special organization under the Japanese Military Administration. This was followed, but we endeavored to make as little change as possible as when we were in the Commonwealth Government.

The Japanese wanted to call the central body “Control Organs.” There were a lot of jokes about this expansion. We decided for Philippine Executive Commission.

How I was appointed was finally disclosed. I was not in the original list prepared by the Japanese. Those in the list were Vargas, Aquino, Laurel, Yulo, Paredes and Recto. The Japanese insisted on this list. They said they wanted all the factions duly represented. But later it was decided to appoint Yulo Chief Justice. Yulo did not want to serve in any capacity, but if he had to serve, he preferred the Supreme Court. Yulo was slated for Commissioner of Finance. In view of his appointment as Chief Justice of the Supreme Court, two names were submitted for the position. Quirino and myself. Vargas did the selection. It was fatal in so far as I was concerned.

Vargas and Aquino aspired to be Chairman. Vargas from the very beginning acted as spokesman on our behalf although he had never been authorized. Because of this advantage, he won over Aquino Under the circumstances, it was preferable to have Vargas.

We afterwards discussed the following:

1. Message to our combatants in Bataan and Corregidor urging them to surrender. A prepared message was presented to us. Everybody was against it. The language was very bad, but we felt that that was better since it would be our best proof that it had been imposed. Alunan remarked: “Cuanto peor el lenguaje mejor.” Nobody remembered that he had signed.

2. It is said that we sent letters to Roosevelt and Quezon urging them to stop the hostilities. We did write Quezon under imposition. But nobody remembers the letter to Roosevelt as clearly it would have been improper.

For some time, I have felt fear that we might have to wait for Laurel, Vargas, Aquino, Osias and Capinpin who were still in Japan. It will delay our cases considerably. It may also complicate them. I hope this will not happen.


August 31, 1945, Friday

I have been asked many times how the Japanese financed themselves during their regime.

They came here bringing with them Japanese military notes. It can be assumed for certain that those notes are not backed by reserves. There is nothing behind it except the backing of the Japanese government. As a matter of fact, they are not currency or money. They are in reality requisition slips. Instead of forcing the Filipinos to give them food, equipment and materials, they found this indirect and less painful way of attaining their wishes. At the beginning the circulation of the currency of the Commonwealth was allowed. Following the economic law that bad money drives away good money, the latter soon disappeared in the market. Later, the Japanese made the circulation of the currency of the Commonwealth illegal. Those caught exchanging military notes for Commonwealth notes were taken to Ft. Santiago and punished for committing a hostile act.

The Japanese government then established the Southern Development Bank. They did not use the two Japanese banks, the Yokohama Specie Bank and the Taiwan Bank, except that the Taiwan Bank was used to liquidate the American and other foreign banks. As a matter of fact, the Southern Development Bank was not a bank but acted as a branch here of the Japanese Government Treasury. It was given the sole power of note issue. All the military notes were distributed through it. I had numerous discussions with the Japanese as to the nature of these notes. They have always insisted that they were Southern Development Bank notes, whereas I always maintained that they were Japanese Government notes. I did not feel it proper for the Philippine Government to deal with a private bank.

The Japanese, unlike the Americans, practically made the countries occupied by them defray all the expenses of their Army. They did this by means of the issuance of military notes. I also have no doubt about this as I happened to see the Japanese Government budget. In the statement of income, there was included what was called Contribution of the Southern Islands. (I was not sure what they called it, but I am sure that there were billions — 17 billion as I remember — provided as income from the Southern Islands.) As there was no direct request for funds, necessarily they must come from the proceeds of the military notes. They cannot ask for direct contribution because nobody or very few would give. This was shown when subscriptions were opened for the Philippines to buy and donate an airplane to Japan. Very little was collected and the project was stopped. It would not have been possible to collect a sufficient amount to buy even a small airplane unless force was used, as was done in many cases. As a matter of fact, those military notes were no more, no less than requisition slips. The whole financing of the Japanese, including the expenses of the Army and Navy and what they called war development companies, was exclusively handled by the Southern Development Bank.

This bank made every effort to exercise all the powers of a Central Bank and of a clearinghouse. It insisted that all the other banks deposit their funds with it, especially the reserves of the banks. I opposed this very strongly. I was willing to stake even my life to uphold my view. All the bank managers naturally were afraid to have any sort of issue with the Japanese. I told them that they need not assume any responsibility. I gave them orders not to deposit with the Southern Development Bank without my express authority and order. At that time, there were already on deposit in the Southern Development Bank funds of the different banks amounting to about 1000,000,000 pesos. About three-fourth or four-fifth of the funds belonged to the Philippine National Bank.

It must be stated in this connection that at the beginning I had no supervision over the Philippine National Bank. Supervision was being exercised by Malacañan. The reason was that the P.N.B. was a government corporation and Malacañan was in charge of all national companies. Later, I found out that it was Executive Secretary Pedro Sabido who was handling P.N.B matters. Even after his appointment as Minister of the new Department of Economic Affairs, he attempted to continue exercising the powers; as a matter of fact, after his appointment, he became even more insistent. He contented that the supervision of the Philippine National Bank properly belonged to his department since the bank was a government corporation and his department was in charge of all government corporations. He further contended that the Department of Economic Affairs should control the Philippine National Bank to enable it to realize the purpose for which it was established and also to facilitate the financing of the national companies.

Finally, he contended that, under the law, the Secretary of Finance is already the head of the bank, and it is not proper nor advisable for the Secretary of Finance to be also the Supervisor; otherwise; the Secretary of Finance would be supervising himself. I refused to devote much time and words to the discussion which was academic. So far as I was concerned, the argument I emphasized was that I found it impossible to supervise the banking and financing business unless all the banks were under me. Supervision over the P.N.B. was especially necessary since at least 70% of banking transactions in Manila was handled by the Philippine National Bank. I concluded in a memorandum to Pres. Laurel that if he decided to deny my request, I would strongly recommend that the supervision over all banks be transferred to the Ministry of Economic Affairs. After due consideration, the President told me that he fully agreed with me and he would immediately issue an order accordingly.

Days and weeks passed, the order did not come. I found out that the Minister of Economic Affairs was very insistent. So the President decided to submit it to the Council of State composed of Chief Justice Ramon Avanceña as President, and Don Miguel Unson, Don Pedro Aunario, Don Rafael Corpus, Don Ramon Fernandez and Don Jose Paez. The Council considered the matter very thoroughly and even heard the arguments of Minister Sabido. The President, and this was confirmed later by Don Miguel Unson and Don Rafael Corpus, advised that the Council upon preposition of Don Miguel Unson, decided unanimously in my favor. He assured me that he would issue the order forthwith.

Days passed; weeks passed, no order came. I decided to prepare the order myself and give it personally to the President. It was not signed and issued. I prepared another and left it with the President. After a few days, I asked him about it. He was surprised that I had not received it yet. I prepared another and this time I did not leave Malacañan without the President’s signature.

After the President signed the order, I immediately called Mr. Carmona, President of the P.N.B.. I must first state that under the order, I had all the powers of the Board of Directors of the Bank. I asked him about the deposits. He told me that he had submitted the matter to Malacañan and that no objection had been expressed on the part of Malacañan to the existing arrangement. When I asked for a written authority, he advised that he had not received any and that his experience was that he got no action from Malacañan on matters taken up by him, or at least action was delayed for weeks and even months.

I asked him to explain how he happened to have such a large deposit in the Southern Development Bank. He answered that from the very beginning the military people as well as the Manager of the Southern Development Bank requested him and even ordered him to deposit all excess funds of P.N.B., or funds not needed for ordinary daily transactions, with the Southern Development Bank. Pressure was used so that he had to make some deposit, but he assured me that it was far from what he could have deposited.

The Japanese reorganized the clearing house. Under the new system, all clearing balances were kept by the Southern Development Bank. There was no liquidation and the funds could be withdrawn only when the corresponding bank needed funds. So the deposit of P.N.B. in the Southern Development Bank increased everyday. This was also true as regards the other banks, Bank of the Philippine Islands and Bank of Commerce. They were also being required to make deposits. They said that they had to conform unless they wished their banks closed and their officers accused of a hostile act. I ordered them not to deposit. When they expressed fear, I told them that they should tell the Japanese that, per my order, they had to secure my approval. I also told them to withdraw their balances in the clearing house from the Southern Development Bank.

Mr. Hariguti Takahashi and the Manager of the Southern Development Bank came to me to request me to authorize the deposits. I flatly refused. This is one of many similar incidents I had with the Japanese. One instance was when a large Japanese sugar concern wanted to acquire the Philippine Refining Co., which was owned by the government and practically had the monopoly of sugar refining in the Philippines. An official of the company was told that an unfavorable recommendation from him would be interpreted as a hostile act. I told him to tell the Japanese to talk to me. The Japanese never came to see me. Another instance was when the Japanese Army proposed that the Textile Department of the National Development Company be constituted into a separate company and recapitalized with equal participation of the Philippine and Japanese governments. The participation was later changed to 40% for the Japanese and 60% for the Filipinos. I was made to understand that the plan had already been agreed upon by somebody in Malacañan. I prepared a memorandum strongly opposing the plan. The reason I gave was that the National Development Company, as any other national companies, was formed not for profit but rather to carry out national economic policies. Another time was when Colonel Utsonomiya, later promoted to General, approached me to ask me to allow the importation of opium. I told him that the laws prohibited the importation of opium and penalized its sale. Twice the Colonel approached me. I maintained my position. When it came to protecting our people and their rights, I ignored consequences absolutely.

In connection with the banks, a Japanese officer came to see me. He said that it had been reported to them that in the Ministry of Finance, there was somebody who was anti-Japanese and always worked against them. I knew it was merely a ruse. I answered that I assume responsibility for anything done in the Ministry of Finance.

Mr. Carmona wisely did his best to attain our purpose without unnecessary exposition. Carmona was so capable and prudent that he was able to withdraw a very good portion of the deposit and to maintain the deposit at a very low level.

My views and actions were fully reported to the President and he approved.

I had many other incidents. During a bombing raid, a boat loaded with military notes was blown up and all along Malate and Ermita, it rained notes. They were picked up by the people and spent. The Japanese who had the serial numbers of the notes prohibited the circulation. I protested on the grounds that the notes were already in the hands of innocent persons. For instance, there was Mrs. Mariquita de Ocampo who sold her furniture for 7,000 pesos as she needed the money. Afterwards, nobody would accept her money. What fault had she committed? Finally, the notes were accepted.

The Japanese wanted the administration to be self-supporting. They themselves prepared and imposed the approval of tax laws. From the beginning, my plan was not to change our tax laws; not to burden the people with more taxes than what they had to pay before the war. But how do we finance the government? Of course I had to make it look like I was trying to increase the income by means of assistance of our people. So I did not object to the increase in the income tax law, although I insisted that low incomes not be taxed and larger incomes not be taxed as heavily as in other counties. This is also the reason why I sold an amount of bonds instead from where I proposed to get the money.

Even during the time of the Commission, we borrowed money from the Army, It reached the amount of ₱23,000,000. During the Republic, I secured a credit of over ₱100,000,000 from the Bank of Japan, about ₱50,000,000 of which I got through the Southern Development Bank. When I submitted it to the Cabinet, there was some opposition. I did not argue, but after the meeting I explained to Minister Osias who was the one strongly opposed that my purpose was to charge to the Japanese as much of our expenses as possible. The Japanese Army after the establishment of the Philippine Republic tried to collect our previous indebtedness of ₱23,000,000. I declined on the ground that the Executive Commission was a mere instrumentality of the Japanese Administration. The amount was never paid.

Returning to inflation, I could do nothing as the Japanese did not want to give any power which would enable me to do something. I thought and thought about what to do until I came up with the idea of establishing a Central Bank if I could get the Japanese to approve my conditions. Some of them were: (1) That the Central Bank shall have the sole power of issue of notes. With this I meant to curb the unbridled issue of notes by the Japanese and the unlimited grant of credits to Japanese companies. (2) That the Ministry of Finance shall have jurisdiction and power of supervision over the Japanese banks. I demanded this most important power to control large credits given by the Japanese banks to Japanese companies and nationals. (3) That the Central Bank shall be the depository of the reserves of the other banks. And (4) That the Central Bank shall handle the clearing house balances.

The Japanese were opposed to my plan at the beginning, but in view of the fact that we were a Republic and they therefore could not openly deprive us of the right to exercise powers belonging to all independent states, they changed their tactics. They instead did their best to delay the establishment of the bank. They put up all kinds of objections and suggested many modifications. They wished preferential treatment or at least equal treatment for Japanese banks. I could not of course accept this. Mr. Haraguti, while I was speaking before the National Assembly about the establishment of a Central Bank, sent me a memorandum. I got the impression that he was opposed to it or wanted to delay it. I immediately suspended the proceedings and charged that Mr. Haraguti was out of line. He immediately saw me and tried to explain that such was not his intention. I know English well, I believe, and I had no doubt that my interpretation was correct.

The bill was approved by the Assembly but upon the request of Speaker Aquino a provision was inserted to it so that the establishment of a Central Bank would depend upon the promulgation order by the President. Aquino at the beginning was strongly opposed to the bank; later, he withdrew his objection but was evidently not interested in its establishment. However, the Japanese had not given up. We had no facilities here for the printing of notes and this had to be done in Japan. We prepared the necessary designs. We were told that all the printing presses were busy printing notes for other countries and that they could not begin making delivery until May, I believe of 1945. I went to Japan where I made every effort to expedite it but in vain. I was told that the delivery had to be periodic and the amounts for each period could not be very much. The matter remained in that state until hostilities in the Philippines began.

Another reason why I wanted the Central Bank was that I did not want to have a shortage of notes. We had a terrible crisis about the first months of 1944 because the ships used for transporting the notes were probably sunk or blown. The Japanese banks had no more available notes and the Southern Development Bank had only about ₱10,000,000 in notes of 10, 20 and 50 centavos. The Japanese banks suspended payment, and there was a run in all the banks as the public feared that the banks had no more funds. The Japanese banks, including the Southern Development Bank, wanted to get the notes of the Filipino banks. I refused to authorize the Filipino banks to loan their funds to the Japanese banks. I also instructed the Manager of the Philippine National Bank to withdraw a part of its deposit from the Southern Development Bank. We were all very much worried. Stoppage of payment of banks would paralyze business. All demands for withdrawal in Filipino banks were met. The Philippine National Bank, however, had to offer notes in small denominations. Generally, those wishing to withdraw big amounts desisted as the package of the money would be quite bulky. After a few days, shipment of notes came and the crisis passed. Because of this, I inquired about machines and materials in the Philippines that could be used in case of shortage of notes. We could print here but in limited quantities.

* * * * *

We heard on the radio that Truman had said that the Philippines might have her independence in 4 or 5 months. This means that we may have our independence by next January. I welcome it; I want to have it right now. We would have been spared the loss of billions of pesos and thousands of lives if only people ceased to be mentors of other people.

This means the election will have to be held soon. We may not even be able to take part in the elections. Until we are cleared, we cannot be of much service.

According to the radio, Ambassador Vargas was found in Tokyo and he is a very worried man. He was generally criticized for having been very weak with the Japanese. We were aware of it and we thought him a useless man and an incapable executive. But after we reflected, it may well be that under the circumstances, he did what would be of the greatest benefit to the people. Supposing that instead of getting the confidence of the known murderers, the Japanese, he had fought and defied them. He becomes a hero. But he sacrificed his country for w would have meant direct or almost direct rule by the Japanese. Instead of 200,000 dead, we probably would have had to mourn the loss of millions of our countrymen. Vargas has done much for our country.


July 14, 1945 Saturday

I am naturally very interested in the former employees of the government. It seems that the administration has considered all former employees as collaborators and as such they were all dropped from the service. Osmeña has somewhat qualified this policy and a few, like the teachers, have been reinstated. But the great majority are still out of public service. Many of them are now suffering, the victims of the injustices of politics. I say injustice because they have been replaced by henchmen of the government moguls. I hope they will be reinstated immediately. My reasons may be seen below.

When the Commission organized the government on Jan. 21, 1942, there was practically no government employee that wanted to reenter the service. But the government had to run and we did our best to persuage them to accept employment. They told us that they preferred to wait because the Americans would be back in less than a year. Anyhow, they said they had already received their three months’ salary. At the beginning, I was rather doubtful myself as rumors were very strong that an American Army and Navy Convoy were already on the way. But days passed, weeks and months passed, and no help was in sight, and in the meanwhile resistance in Corregidor and Bataan was weakening.

The fall of Corregidor and Bataan was imminent — there was no indication that the Americans were coming soon. The employees held out as long as they could. But after they had spent their three months’ salary, most of them could not longer continue without employment. They were now drawing from the little savings they had. As everybody knows, unless a government employee is dishonest, he cannot possibly provide for the morrow. This the reason why I am now convinced that the insurance system of protection for the employees must be converted into a regular pension system. The insurance is just a temporary help; the pension is permanent and provides for the employee when he loses his job, or for his family after his death. With the pension plan we can retire old employees, and the employees will do their best to maintain an efficient record during the period necessary to entitle them to receive the pension. They will be honest as they know that if they become incapacitated or die, they can rest assured that their families will not live in misery.

Going back to the government employees, a few of them engaged in business; but a great majority of them had to work and they were not fit to do anything else. They had to choose between employment or starvation. It is easy to say that for patriotic reasons, he should have preferred to starve and to suffer. But when his innocent little children began to clamor for food, they had to be fed — no explanation could sooth them. What was the poor father supposed to do? He could go around borrowing money or asking help from his friends. His friends may be very accommodating, but this could not continue for a long time because they also are not enjoying abundance. He looks for a job outside the government or any work which had nothing to do with the Japanese. The only pair of shoes that he still has wears out and he has spent his last money. What could he do? He could not go to the mountains leaving his family to starve under the mercy of the Japanese. He did not want to steal for he is a religious and perfectly honest man. What did he do? He went to the office where he had spent the best years of his life. He went there out of necessity; to live, to save his beloved wife and children. He served without the least intention of helping the Japanese since, having been reared in an atmosphere of justice and freedom, he could not possibly ally himself with men for whom such justice and freedom were a mockery. His whole thought, his sole aim was to save his family. Even then, there were many who resisted.

I remember vividly one case and fortunately he is here with us because if I am wrong, he could correct me. I am referring to Mr. Pimentel, our Secretary. I met him one day (during the war) and asked him what he was doing. He said he was not doing anything and, although he was already in dire straits, he would prefer not to work with or under the Japanese. His information was that in six months, the Americans would be back. He said that he had sons in the USAFFE and he did not care to be in any way connected with the Japanese. I knew Mr. Pimentel as a man who was as poor as myself and that he had to work all the time to support his big family. When we parted, I saw the determination in his eyes to continue fighting the Japanese in his own way.

But Bataan and Corregidor were crumbling; they fell shortly. He became convinced that the Americans could not come back in one year. He could not hold out that long so he decided to accept employment. Pimentel’s experience is the same as that of thousands and thousands of government employees — by necessity they accepted employment. In their hearts they did not for a moment waiver in their ardent desire to see the Americans back in the Philippines. They could not give any outward manifestation of their sentiments, as the offices were full of spies and the movements of officials and employees were watched closely. But inside their homes, among their immediate family, they prayed fervently for the victory of America. But many did not stop there. When the guerrillas became numerous and active, most of them joined the guerrillas in one form or another. I say in one form or another because, although there were many who were given official ranks, there were also many who did not want any appointment or sign anything for fear that they would be discovered. After all, they said, the important thing was to render service to the cause of America and the Philippines. No official papers or signatures could be more valuable than that. Like true heroes, real patriots, the material gain never entered their minds.

How did they serve the cause of America and the Philippines? They served by furnishing valuable information, helping in every way those active in the guerrilla warfare, bolstering up the morale of our people, creating difficulties for the Japanese Army and Navy and the Japanese in general. These employees were the anonymous forces that helped. Their services were equally meritorious.

To cite an instance of how they served. Ironically, this involved Mr. Confesor who seems to have had something to do with the formation of the present government’s policy involving former employees. Sometime in 1943, evidently as an answer to the appeal of Gov. Caram of Iloilo, Mr. Confesor wrote him a letter giving his reasons why he did not care to come down from the mountains and surrender to the Japanese. I was able to get a copy of the letter. It was a well written letter and his arguments were very weighty. It impressed me very deeply so much so that as I had always considered him a close friend of mine, I wanted to discuss the matter with him. Unfortunately I was not able to see him. I said that it was a good letter, but it contained an insinuation against which I must protest. I lost my two copies during the fire in my house and in my office. But I distinctly remember that there was a paragraph or some sentences referring to some speeches we delivered in Iloilo (in March or April of 1943), which in substance say the following: “You better prepare new speeches which you can deliver next July when the Americans will be here.” The insinuations were that (a) we were mere job-seekers; and (b) we were so insincere that we only say what would be pleasing to the ears of our hearers. This is not the proper place to answer such scurrilous accusations. For the present, I must make it of record that I have never been a job-seeker, and that I have always considered insincerity as one of the worst traits a man can possess.

Well, I brought Mr. Confesor’s letter to Manila and placed it in my desk drawer at the office, together with many other important documents. Many employees had heard about the famous letter announcing the coming of the Americans and they were all anxious to get a copy. One day, a clerk of mine entered my office gasping. “What’s the matter,” I asked him. “Sir, they are distributing copies of Mr. Confesor’s letter,” he stammered. I was alarmed; everybody knew what was coming if the Japanese ever found out that a prescripted document like that letter was being copied and distributed in our office. It would have meant Fort Santiago for all of us and at that time the mere mention of that historic fort made everybody shudder. I investigated the matter and I discovered that, as I had just come from Iloilo and suspecting that I had a copy of the letter, my employees went through my drawers and found the copy. They made numerous copies using the typewriter in our office. Each and every one of them became a distributor of the letter and a propagandist of the coming of the Americans. I had to take unusual precautions to cover up that happening in my office. I understand similar incidents occurred in the other offices.

Another evidence of the employees’ pro-American feelings. About 20 employees of an important bureau of the government were arrested by the “Kempetai” (Japanese Military Police). They were charged with being guerrillas and according to the Kempetai, the evidence consisted of a list of “guerrilleros” which they found. The matter was brought up to Malacañan. Naturally a promise was made to the Japanese that the matter would be investigated and proper criminal and administrative action would be taken against the guilty parties. All except the three supposed leaders, were released. I do not know what happened to those leaders, but they were probably released after the usual torture meted out to almost all those arrested.

During the investigation it was discovered that if the guerrilla elements in all the bureaus were to be eliminated, there would have been almost complete paralization of the government. The whole matter was hushed and covered up. I do not recall anyone prosecuted or dismissed from the service for guerrilla activities or connections.

More evidence of the attitude of the employees. Everytime there was a meeting or a parade, attendance had to be obligatory under heavy administrative penalty, otherwise very few attended. The employees offered all kinds of excuses to avoid going to the parade or meeting.

In this connection, I would like to say something about the ex-officers and servicemen of the USAFFE. At the beginning, we were not sure what the attitude of the Japanese to their employment would be. Already we could observe that a good many of them were suffering for lack of means. We were able to convince the Japanese to allow us to employ these men. The argument we used, which we knew could never be true, was that these men sincerely wanted to be with the Japanese because they were beginning to understand that Orientals ought to be together. We devoted much attention to them. We issued orders reinstating them to their old positions and, as to the others who were not former government employees, we ordered that preference in hiring be given to them. I can certify that inspite of all the hardships these men were going through, very few took advantage of our orders. Only those who would otherwise starve unless they earned something accepted positions in the government.

Another fact that should be considered. In the last months of the Japanese regime, in view of the dangers in Manila, the food shortage, the financial condition of the government and the paralization of government activities, orders were issued for the release of the employees with payment of a certain amount of bonus. Everybody wanted to take advantage of it. If we had not rescinded our orders there would have been practically nobody left.

There are the men that are now being punished. They are patriots in their own way. Perhaps their services were even more effective than those who now wish to monopolize patriotism. The only thing they were guilty of was that they wished to live, and managed to live. And because they survived the war, they are now branded as traitors; because they were unable and could not possibly go to the mountains, they are being placed on a worst ration than bread and water.

It is said that something is being done — but the process is entirely wrong. A board of inquiry has been appointed to determine whether those seeking reinstatement could be allowed to return. My opinion is that they should all be reinstated and then the Board can determine whether they could or should continue or not. The difference is that in the first case, the employees are being presumed guilty and the burden of proving the contrary is thrown upon them. In the latter case, they are presumed innocent and they could remain in the service as long as nothing has been proven against them.

Justice is all that I demand for them.


June 26, 1945, Tuesday

It may be asked: If the conduct of the Japanese is as reported above why did we serve in the Japanese regime and later in the Philippine Republic?

I had good reasons for not accepting any position in the Japanese regime. Aside from my past relations with America and the Americans, and the position I had held with the Philippine government which would make my acceptance of any position under the Japanese regime improper, I had plans which I could carry out only as a private citizen. I was Director of Marsman & Co. and President and Vice President of various Marsman enterprises, like the Coco Grove Mining Co., Marsman Trading, Insular Drug, Cardinal Insurance, Marsman Lumber, etc. Immediately before the war, Marsman & Co. further expanded its enterprises, by buying American Hardware and the Food and other departments of Pacific Commercial Co. There were also many new industries and businesses planned. Such was the condition of Marsman & Co. when the war broke out.

The offices of the Marsman enterprises were in the Marsman Building at the Port Area. It was right next to military objectives. From the second day of the war, Manila Bay was bombed including the Port Area. A favorite target was Pier 7, considered the longest in the world, located probably less than 100 meters from our building. Bombing continued almost everyday until the day before the entry into Manila of the Japanese Army on January 2, 1942.

I used to go to the office regularly although I did not have to. Employees were dismissed after 11:00 a.m. as it was noted that air raids commenced after that hour; nevertheless, I and other executives would remain in our offices and continue working as if nothing was happening. The bombs fell around the building. It might have been a military target as Admiral Hart, the Head of the American Asiatic Fleet, and the Navy General Staff had their headquarters in the Marsman Building. We had somebody in the building watch for Japanese planes and sound the alarm. We would all run down to the air raid shelters whenever he gives the signal; and when the planes were overhead, we would all lie down, cover our ears and open our mouths. I used to sit next to Admiral Hart in the air raid shelter located in the first story under the stairs. The building was also surrounded by layers of sandbags. Luckily, the building was never hit. There was only one bomb that fell behind the building about five yards away. All the windows of the building were shattered. I found several shrapnels inside my office which was on the 4th floor from which I got a good view of the pier.

In my house, we built no shelter at all. We used to hide on the first floor on both sides of the stairs which was located at the very center of the house. We lined the walls with sandbags and placed boards and many other things on the second floor directly above us. No bombs fell near us but we could hear the detonation very well so that at times, they sounded like they fell just next door to us. We save planes dive down and drop bombs on Nichols Field.

I never go out during an air raid. But I was caught in the streets twice when this occured. The first time I was luckily in front of the Bay View Hotel, a nine story reinforced concrete building. It seemed to be a safe place. The bombs fell in the bay near the hotel. The second time, I was in real danger. A special meeting of the Chamber of Mines was called and generally, either Vice President Ohnick or myself attended. We had agreec that Mr. Ohnick would attend that morning. The meeting was a special one called to discuss a very important matter concerning the mining industry. At the last hour, Mr. Ohnick decided not to attend and I had to rush to the meeting at the Pacific Building. This was the 27th of December, 1941. The meeting was hurriedly held and adjourned. I had sent my chauffeur to the bank to get some money and when after the meeting my automobile was not back, I had to borrow the automobile of the attorney of the company, Mr. Amando Velilla. I forgot to give directions to Mr. Velilla’s chauffeur not to pass through Intramuros (the Walled City) to go to Escolta but to go on to Padre Burgos St. outside Port Area. He drove through Intramuros, across the Malecon Drive and the air raid sirens sounded. Following instructions, we had to leave the car and seek shelter in the Myer’s Building. I entered a small compartment which had been converted into a very poorly built shelter. There were other people there, but they did not know me. Bombs fell all around. I heard the sound of an airplane which seemed to be flying very low. The moment I heard the sound I hit the floor, closed my eyes, covered my ears, and opened my mouth. Forthwith, I heard something heavy drop; then the building shook as the bomb exploded. The building was hit and shrapnel flew all around. When I dove, those around me laughed; they thought it was funny. I came through unscathed while many of the people around me were hurt. It was indeed a very narrow escape, but my satisfaction was that it happened while performing a duty for the company which had extricated me from financial difficulties. The Myer’s Building caught fire and burned down. The experience made me very cautious.

The City of Manila had already been declared an open city; nevertheless, the Japanese planes continued dropping bombs. To protect people residing in the nearby municipalities, like Pasay, San Juan, Caloocan, these were also included in the open city.

It was on December 28, 1941 when Japanese planes bombed the Treasury Building and the Philippines Herald offices located in a building on the other side of the former moat and wall around Intramuros, about opposite the Legislative Building. We were then having caucuses of both the members of the Senate and House to agree on the organization. When the siren sounded we ran to the shelter in the cellar. We were in the shelter until after three o’clock without anything to eat. It was very hot and crowded inside. The Herald had just written a strong editorial against the Japanese. It was also the time that the Church of Sto. Domingo and the Letran College were destroyed.

In connection with the advance of the Japanese and the occupation of Manila, it was in the morning of the 8th of December that the war began. I remember the date very well as that is the feast day of my hometown, Taal, Batangas, and we were about to leave that morning for Taal when we heard the news in the radio about the attack on Pearl Harbor. A few minutes afterwards we heard the bombing of Baguio. At 12:30 p.m. the bombing of Clark Field was reported and at 3 o’clock that same afternoon Nichols Field was attacked. Nichols Field was only a few kilometers from my house at Malate so that the war was brought next door to us. As I said, although there was bombing almost everyday I continued going to work especially since I noticed that the other executives were always present at the office. Very few of the Filipino personnel came. We continued holding meetings of the Boards of Directors of the Marsman companies as usual, but many times they had to be suspended to go to the shelter on account of air raids. I remember that one of my last acts was to sign dividend checks declared by the Coco Grove, of which I was the President. Before the coming of the Japanese we took steps to have our gold bullion taken to Corregidor where the USAFFE was going to make its last stand. We also endeavored to send all the moneys of the Marsman companies to the United States. I remember that our last meeting was at the University Club and we left some of our papers there. While there, I telephoned to arrange the sending of money to the United States.

Before going to the office, I would generally inquire from General Francisco about the situation of the advancing Japanese Army.He told me confidentially that the situation was very bad; that the Japanese were advancing very fast. I also informed my American friends and I advised them to withdraw as much of their deposits as they could. They refused on account of the official communique from the General Headquarters to the effect that “Enemies repulsed; no change in front.” About the 27th of December, I told them the Japanese had already passed San Pablo, Laguna, almost 100 kilometers away. It was then too late for the Americans to withdraw their money and they became very angry.

Since the attack on Pearl Harbor, there was absolute blackout throughout Manila. We passed terrible nights. Oftentimes, we heard revolver or gun shots. We understand that it was to enforce the blackout. The guards also shot at persons moving suspiciously or signaling, or at the places where the signaling was coming from. We actually saw many such signals, evidencing the presence of spies and fifth columnists.

The nights were dark and gloomy. I remember that we passed Christmas without the usual celebration. Some in our neighborhood tried to sing the Christmas carols, but they seemed in our ears like songs sang in necrological services. The thieves were also active. I remember that while we were downstairs on account of the air raids, a thief entered the second floor of our house. We heard the bathroom window creaking and we immediately ran upstairs and turned on the light in the room next to the bathroom. We found the door of the bathroom closed and we suspected the thief was still inside. In the meanwhile, the air raid wardens with an American Army officer were yelling from the street ordering us to put the light out, otherwise they would shoot. I quickly ran down to explain to the officer that there was a thief inside the bathroom. The officer went upstairs. Standing behind the closed bathroom door, he yelled to the thief to come out. He then broke in the door with his revolver. He found nobody: evidently, the thief had jumped out the window. There were practically no people going around at night. The cinematograph were open, but we never went.

In the day time, there were many people in the streets. During air raids, the air raid wardens were kept very busy. These are paid employees and they were very strict in the performance of their duties. The warden in front of our house, a man by the name of Emilio, was especially efficient. We noticed that the white people were reluctant to obey him. I remember an incident which I witnessed. The warden ordered a white couple to stop because there was an air raid; but they continued on their way. The warden ran after them to stop them. An American officer happened to be around and he drew his revolver and threatened to shoot the warden if he insisted. The warden, fearing for his life, let the couple go. When the officer drew his revolver, I immediately ran to my house to get my revolver. My intention was to shoot the officer if he shot at the warden since the latter was merely performing his official duty.

People were very careful about letting in anybody into their houses, even those caught in the streets during an air raid. Doors were always kept closed and locked. The reason for this was that there had been cases where bad elements took advantage of air raids to rob the houses.

On or about December 28, 1941, Pres. Quezon, Vice Pres. Osmeña with Secretary Santos, Col. Roxas and Gen. Valdes fled to Corregidor. For several days before and after their departure, there was a heavy movement of American and Filipino troops fleeing Manila as it had been declared an open city. They went north to Bataan where they were to make their last stand. It was about this time when I received an order from the U.S. Navy to turn over the Marsman yacht anchored in front of the Yacht Club to the Navy, and another order from the Army to blow up all our dynamite cache in Camarines Norte, and all our oil. We had just received a consignment of over 4000 cases of dynamite and in preparation for the war our two oil tanks, one of which was the biggest in the Philippines, were filled up.

On that same day, my son Tony who had finished training in the Cavalry Camp at Parañaque, and who was a Sergeant-Major in the Philippine Army Reserve received an order to join his regiment. He had been waiting for it; all his other classmates had received theirs. He prepared to comply with the order. I noticed that he was very, very anxious to do so. He envied his classmates, especially Apostol who only the day before left without him when his order did not come. Apostol never came back. Tony’s instructions were to report to the military headquarters in Pampanga. But when he arrived at the train station, the last train for the North had left and so had the last police bus that took reservists to their destination. Upon Tony’s insistence, I went to Malacañan to inquire and there I met Maj. Gen. Guillermo Francisco. I inquired from him as to how Tony could report for duty. He answered that the orders given to Tony and others which were issued on about December 9, 1941 had already been cancelled.

Before the Japanese entered Manila, I as a Senator-elect and as such a high government official, discussed with Speaker Yulo, Mr. Vargas and other officials what we should do. Should we hide from or present ourselves to the Japanese military authorities? After due discussion, and following instructions allegedly given by Pres. Quezon, we decided to stay. However, I expected that we would immediately be called by the Japanese and as I did not want to be one of the first to be called, and as I wished to know first what the Japanese would do to the Filipino officials, I decided to go into hiding. I went to New Manila and hid in the house of Doña Narcisa de Leon on Broadway Avenue. I changed my name and everybody was instructed to call me by that name and not divulge my identity. I went there in the afternoon of the 29th of December. I was very well treated Mrs. de Leon who is our “comadre” and in fact by the whole family. They certainly took good care of me. Rizal Day, December 30, passed and for the first time since that day was made an official holiday, there was no celebration. The Japanese were expected to arrive and enter Manila on December 31, but they did not come.

For the first time, I was not with my family when the New Year was ushered in. Like Christmas, there was no celebration of any kind. The usual fanfare and family reunions were conspicuously absent. There was a lot of speculation as to when the Japanese would enter Manila and what they were going to do.

By the second of January, 1942, when the Japanese had not shown up, we learned that the Japanese contingent coming from the North was somewhat delayed and that coming from the South was waiting. I called up Mr. Ohnick and told him I was hiding and asked his advice as to whether I should stay in hiding. He answered that I better just stay home. So in the afternoon, I went home. I left my revolver in Broadway as I was afraid that if I were to encounter the Japanese I would be searched, and if found with a revolver, I would be shot. It was a memorable short ride home. At any time, I was expecting to meet the Japanese and I wondered what I would do. I passed through España St., Quezon Avenue, Quezon Bridge, Arroceros St., Plaza Lawton, Taft Avenue and San Andres St. I met no Japanese, but I saw spectacles which gave me a glimpse of the moral fiber of the Filipinos. It foreshadowed what was to come later -the shameful conduct of many of our countrymen of robbery consisting in illegal confiscation of goods, soulless profiteering on goods, including foodstuff, and rampant bribery of the police and other agents of the law who were charged with the prevention of illegal traffic of commodities and sale at prices in excess of those fixed by law. I saw big crowds all along the streets and at first I did not know what it was all about. On España St. I met people carrying all kinds of commodities, clothing, canned goods, etc. On Rizal Avenue, I saw persons forcing open the Chinese stores and carrying out everything, including furniture. It was rampant looting. People rushed into the stores like mad dogs. I reached the other side of Quezon Bridge and there I saw a big crowd snatching everything they could get from the old Ice Plant. I could see them carrying frozen meat and fish.

On Lawton Square, on Taft Avenue, San Andres St., I saw the same thing. Some people used automobiles, “calesas” and “carretelas” to haul their loot. Many of them sold their wares right there on the street for very low prices; one could buy everything: clothing, foodstuff, furniture. I learned later that the goods came from the Port Area. Some bodegas were opened to the public. Other bodegas, however, were forced open. This was not to be regretted after all as the goods would have fallen into the hands of the Japanese. My chauffeur insisted in going to the Port Area with our automobiles. I refused to allow him to go. I prohibited all the members of my family and all those who worked for me to take any part in the looting or even to buy the looted goods. I consider it dishonest to acquire them. In fact, there was looting all over Manila. Right in front of my house they forced a Chinese store open and stole everything inside. The policemen who witnessed this looting were powerless. Some of the policemen were even seen to take part in the looting. It was a shame.

I forgot to mention that during the bombing, every time there was an air raid alarm, American soldiers were stationed in various parts of Manila to watch for parachutists. Five American soldiers were stationed just outside my house. Whenever they came, we offered them coffee.

It was in the afternoon of the 2nd of January between 5 and 6 o’clock p.m. when the Japanese entered the city. They marched down various streets, two of which were Taft Avenue and Mabini St. From Taft Avenue we could hear yells of “Banzai.” Those passing Mabini rode in trucks. We could see them very well from our house. For a victorious army, it was surprising that there was no show of pride.

The next day, the people went out expecting excellent treatment as many of them sincerely believed that the Japanese would treat us as equals and brothers. That same day we were awakened to the reality that the Japanese were not as we expected. That very first day, there were incidents due to the fact that the Filipinos were being compelled to salute the Japanese sentries. Everybody was searched for arms, which was to be expected. But the Japanese civilians were very abusive. Sometimes, although the Japanese soldier had already searched the man and found nothing, the Japanese civilian who acted as interpreter would get his watch or other things. All automobiles were confiscated without ceremony. Even civilians confiscated automobiles. I was just about to leave my house in my automobiles when my friend, Mr. Schultz, stopped me to tell me the Japanese were confiscating automobiles and his automobile had just been taken. So I went walking along the boulevard to go to the Marsman building at the Port Area. However, at the Luneta, I was stopped by a Japanese sentry. Evidently, entry into the Port Area had been prohibited.

On January 4th, an automobile with Japanese Navy officers stopped at our house. My family was scared. The civilian interpreter told me to get dressed and go with them. I was taken to the Marsman Building. I was made to wait at the anteroom of what used to be Mr. Jan Marsman’s office on the fourth floor. After about half an hour, I was ushered in. I saw a uniformed man who turned out to be the General and Chief of Staff of the Japanese Army in the Philippines. The General asked me many questions. He asked where Mr. Marsman was and whether the company was really owned by Britishers and Americans. He also told me he knew that Admiral Hart, the head of the American Navy in the Philippines had quarters in the building. He then asked where the telephone or secret communication to Corregidor was located in the building. Then the Japanese asked me for the keys to all the Marsman buildings and warehouses. I told them that I was Vice President of the Marsman Building Corporation and as such I was quite familiar with the plans of the building, and that I was not aware of any telephone communication with Corregidor. We went back to the Marsman Building where they took me all around the building to search for the communications equipment, but we did not find any. They thanked me and I prepared to leave. But before doing so I asked that I be allowed to go into my office to get a few things. They asked me for specifications and I especially mentioned the English Dictionary. My intention was that if I were allowed to get the dictionary I would then ask for other things. I had many valuable things in my office, such as important documents, parts of my diary, my collection of rare stamps, my photographs with Pres. Quezon and Mrs. Marsman, and other personal belongings. A Navy Captain escorted me to my office. But at the door, he stopped me and went inside. When he came out, he told me they would look for my things and deliver them to me at my house. On the way out of the building, I was looking all around, especially at the safes in which the companies had at least P60,000.

The next day the Japanese came for me again. We went to the Marsman bodegas near the North bank of the Pasig River. I do not know why they brought me there as I was not allowed to go inside the bodegas. I saw various trucks parked in front of the bodegas. The caretaker told me that trucks had been coming frequently and that the Japanese loaded them to the limit with things taken from the bodegas.

The next morning after the entry of the Japanese, I went to the Admiral Apartments on Dewey Boulevard. Mr. and Mrs. Benjamin Ohnick were expecting to be arrested by the Japanese at any time and that same morning at about noon, somebody had telephoned me that Mr. and Mrs. Ohnick were leaving with Japanese officers. When I arrived at the Admiral Apartments, they were gone. I just missed them by a few minutes. I saw their automobile being taken by the Japanese. I tried to stop the soldiers but they did not pay any attention to me. I lingered around the hotel. I met and talked with ex-Representative Pedro Sabido and Dr. Salvador Araneta. I found that Mr. Sabido decidedly in favor of a close relationship with Japan and membership to the Greater East Asia Co-Prosperity Sphere. This is the reason why in the sub-committee on Economic Planning of the Preparatory Committee for Philippine Independence, I made him Chairman of the Committee on the Greater East Asia Co-Prosperity Sphere. Araneta, on the other hand, was decidedly against any relationship with the Japanese. It should be remembered that he was one of the most active for permanent political relationship with the United States.

The only high officials of the Marsman enterprises who regularly attended the Board meetings after the Japanese came were Mr. Welhaven, Mr. Ottiger, Mr. Velilla and myself. Von Ahren called a few times. Mr. Ohnick attended once at the San Luis office he was out of the the concentration camp for a few hours. The Japanese came once to inquire what we were doing. We announced that we were discussing our affairs. They asked whether we were licensed. We explained that we were not operating. There was an understanding in the company that we were to take care of the interests of the Marsman enterprises during this period. We held many meetings in my house on Calle San Andres where we discussed various affairs of the companies to do all we could to protect them. We decided to prepare an inventory of all the stock we had for such claims as we may later wish to make. Very little could be done as regards these two matters as it was most difficult to deal with the Japanese and they would not allow us to have access to the premises of the Marsman buildings and bodegas. I was to continue with any work that could be done for the companies as Messrs. Welhaven and Ottiger are whites and the Japanese are prejudiced against whites. Furthermore, Mr. Welhaven was a semi-belligerent as he was from Norway, the refugee government which had declared war against Germany and Japan.

I did my best to get Mr. and Mrs. Ohnick released from the concentration camp in Sto. Tomas University. I used to send a few things to them and to other Marsman men at the camp. I generally went with Mr. Velilla and Mr. Ottiger. I shall never forget those visits. Those Japanese guards were very hard to deal with. I carried a pass from Colonel Watanabe. We had to go through all kinds of difficulties to get in. My papers were scrutinized. We were usually made to wait at the gate for a long time. There we saw many Filipinos slapped and treated like dogs. We feared that our turn would come. Many times we could talk only in the presence of the Japanese. I often went to see the Superintendent since it was easier to talk to him to ask him to be allowed to talk to internees without any guard present. When leaving I generally would loiter around the grounds to talk to different people. I knew I was exposing myself to danger in doing so. One of the internees, Mr. Kelly, a high official of Marsman Company who was one of my best friends in the organization, was suffering from something which required him to go to Dr. Gonzales on Legarda St. Every time he went, he called me up. I always took him back to Sto. Tomas in my automobile where we would have a good chat along the way.

I continued my efforts to get Mr. and Mrs. Ohnick out of the concentration camp. Mrs. Ohnick was released because she was sick most of the time. Mr. Ohnick was able to get permission once in a while to be out of the camp for a few hours.  I went to talk to the Superintendent about Mr. Ohnick. I told him that I would like to have Mr. Ohnick released in view of the fact that his wife was sick. I explained to him my relationship with Mr. & Mrs. Ohnick. I said that Mr. Ohnick was the Vice President of Marsman & Company, and that I was a member of the Board of Directors. Mr. Ohnick, when interviewed by the Superintendent, mentioned that his father was a pure blooded Japanese. I knew this, and I also knew that his father’s name was Oniki, but I never mentioned it. The Superintendent decided to release Mr. Ohnick to me. Of course I had to guarantee his good conduct. Mr. & Mrs. Ohnick moved to a house near the Rizal Memorial Stadium where I visited them quite frequently. Mrs. Ohnick was in very poor health.

Mr. & Mrs. Francisco were also released as Mrs. Francisco was very sick. They occupied a house in New Manila where I visited them. I noticed that their house was being watched by the Japanese police. I pitied them very much as they complained that they could not get some essential things like laundry soap. Mr. Francisco attended a few of the meetings of Marsman & Co.

Mr. Ohnick was present in various meetings in my house and in a meeting at the Marsman store and shop at San Luis St., almost directly in front of the Agricultural Building. At one time. some Japanese came and asked whether we had license to operate the store. We answered that we had not opened the store and that we were merely having an informal meeting. This store was later seized by the Japanese. In these meetings attended by Mr. Ohnick the main question discussed was whether or not we should continue the business. The consensus of opinion among us was that we should suspend operations of the company. However, upon my suggestion, we filed a petition to operate. My reason was that if we did not apply for a license to operate, they might take this as an admission that it was an enemy company. We were contending that it was not enemy property inasmuch as the majority stockholders were Mr. and Mrs. Marsman who were naturalized Filipinos. I forgot to state that Mr. Francisco, another high official of Marsman, was also present in some of those meetings. The Japanese never took action on our petition, and in the meanwhile they continued taking everything in the store until nothing was left.

It was agreed that I was to take charge of protecting the properties and interests of Marsman enterprises and that I was to act on matters that may come involving the enterprises. I was also to study future plans for the activities of the company during the Japanese regime if we ever decide to reopen.

Upon the request of my friends in the concentration camp, I suspended sending food or even visiting them. I noticed that I was being watched very closely. I remember one incident. We had a party in the house of Mr. and Mrs. Ohnick. All of them, with the exception of myself and Velilla, were Americans, Englishmen, Norwegians and Swiss. It was to celebrate the birthday of Mr. Ohnick and I went there with that understanding. The next day there was a full report about the party by the Military Police. The report stated that it was to celebrate the birthday of Mr. Marsman. It turned out that it was the birthday of Mr. Marsman and that the party was intended for him also, but I did not know this.

Because of my close relations with the Americans, the Japanese became suspicious of me. They complained to Malacañan. Knowing that drastic action would be taken against me, I desisted from visiting and sending food to the camp. My friends well understood my situation.

The Japanese Army entered Manila on the 2nd of January, 1942. Before their entry, the government made all the necessary preparations. Vargas, the Secretary to the President, which position made him a ranking member of the Cabinet, was at the same time appointed by Pres. Quezon as Mayor of Manila. He was the one charged with the painful duty of surrendering Manila. This was called Greater Manila as the municipalities around Manila –Pasay, Parañaque, San Pedro Makati, San Juan, and Caloocan– were incorporated into Greater Manila. Quezon City was also made a part of it. The purpose in creating a Greater Manila was so the whole area comprising those cities and municipalities could be included in the declaration of open city. Vargas and Laurel, got in touch with Katsumi Nihro, then Japanese Consul General in Manila. In the meanwhile, all the policemen were disarmed to prevent any incident which might result in combat with the Japanese. They were merely provided with walking sticks. Big streamers were placed along Taft Avenue and P. Burgos St. by the City Hall, warning the Filipinos to keep the peace. Vargas surrendered the city without any incident. He was told by the Japanese to continue as Mayor. He as well as Laurel were approached by the Japanese about forming a Central Government. Kihara, former Japanese Vice-Consul in Manila, took part in the negotiations. General Hayashi, an old friend of Laurel, called him also about forming a government. Aquino and Recto were approached by their friend, Kanegae. Later, Mori talked with Paredes on the subject.

Laurel was the Secretary of Justice and Acting Chief Justice; Aquino was a member of the Cabinet before the last reorganization of the Cabinet by Pres. Quezon and was slated to be the Speaker of the next House of Representatives; Paredes, Floor Leader and Speaker-elect; Recto, Senator-elect. Aquino, Paredes and Recto talked to Yulo who was then Speaker of the House and slated to be the President of the Senate. Yulo decided to consult Chief Justice Avanceña, the grand old man of the Philippines, whose views are always sound and whose patriotism had already been tested. He then called the other members of the Cabinet before the last reorganization to a meeting –Teofilo Sison, Rafael Alunan, Jose Fabella, Serafin Marabut, Jorge Bocobo. Fabella could not attend as he was sick. Later, they called all the Senators in Manila. These were Ramon Fernandez, Vicente Madrigal, Melecio Arranz, Eulogio Rodriguez, Elpidio Quirino, Arnaiz and myself.

The House of Representatives in a caucus designated the following to attend the meetings: Jose Zulueta, Eugenio Perez, Jose Veloso, Tomas Oppus, Prospero Sanidad, Alfonso Mendoza. Finally, prominent people were called and those included Gen. Emilio Aguinaldo, President of the first Philippine Republic; Ramon Avanceña, former Chief Justice of the Supreme Court; Miguel Unson, a businessman and civic leader; Alejandro Roces, another statesman, owner and publisher of the influential newspapers. Juan Sumulong, the president of the Democrata Party was included in the list. When he was approached by Secretary Bocobo, he answered that he would consult his men. He died before he could do this. There are others whose names I could not remember just now.

Many meetings were held in the covered glorietta by the swimming pool on the left side of the palatial house of Speaker Yulo. It was an ideal place for secret meetings. Almost all expressed their opinion very freely. Each had the courage to make his conviction known. The discussion was very thorough. Everybody was aware of the gravity of the situation and the momentous decision we necessarily had to make. Some were in favor of the establishment of some form of government; others were not. We were, however, agreed on one point. Under no circumstances would we accept any arrangement unless our independence was guaranteed. We made it very clear that we would not give up the freedom for which our forefathers had lavishly shed their blood.

Evidently, the Japanese negotiators transmitted this to Tokyo as Premier Tojo, on the 21st of January, in a speech before the Diet, promised independence for the Philippines if conditions of peace so warrant and if the Filipinos understood and cooperated with the aims and purposes of Japan, such s the establishment of the Greater East Asia Co-Prosperity Sphere.

After due deliberation, we decided not to form a government, but to have an organization which would merely cooperate with the Japanese civil administration in the Philippines. The Japanese, therefore, established their own civil administration in the Philippines which had all the departments and all the attributes of a government. On the other hand, the Filipinos organized a Commission with the Chairman as its chief executive.

As it turned out, the work of the Commission was of an auxiliary nature only. It could only decide routine or unimportant matters; all important matters, such as legislation and decision on policies had to be submitted to the Japanese Administration for approval.

Why did we accept such an arrangement? The following were our main reasons:

(1) To be assured of our independence whatever the result of the war might be.

(2) To be in a position to help the people. We knew the record of cruelty and brutality of the Japanese in China as many films had been shown in Manila depicting the atrocities of the Japanese. In our own country, slapping, unjustified arrests, illegal confiscation of private properties, and many other forms of abuses, had already become a common everyday happening. What could we do? We, who had repeatedly received the confidence of our people, could not forsake them precisely at a time when they had great need of us. Our personal interest should be of no account; no sacrifice is too great if dedicated to the cause of the people. We accepted, not necessarily because we were sure we could do much for our people, but in order to place ourselves in a position to help. Whether we succeeded or not only history will judge. Passion now runs high that even the most obvious might be overlooked.

(3) But our principal reason was that if we did not accept, the administration would fall into the hands of men like Artemio Ricarte, or an irresponsible person like Benigno Ramos. We are not sure that Ricarte is not a patriot. His record as a revolutionary figure points to his greatness and patriotism. But he was already over 75 years old. Somebody would have to govern for him, and history tells us that a government directed by another man behind the scene is dangerous as it generates the most iniquitous acts or acts of oppression by the government. His conduct in connecting himself with the Makapili has proven that our fear was well founded. Furthermore, Ricarte lived in Japan and was pro-Japanese and there was no one in our meeting that welcomed Japanese influence in the Philippines. Why did we think Ricarte might be head of the government? Because he came with the Japanese Expeditionary Forces and from the very beginning he was proclaiming that he was in favor of a dictatorship.

If not Ricarte, we were sure that the head of the government would have been Benigno Ramos, the head of the Makapili. He is so well known that it seems unecessary to describe him. Suffice it to say that he was an ambitious man and a degenerate. The only thing he thinks of is how to exploit other people. The many cases of “estafa” were the best proof of this assertion. He is a man without moral principles. He would not hesitate to kill to attain his purpose. The number of people killed by the Sakdals and the Makapilis is proof of this. In a government under Ramos, the people would be driven to start a revolution for they would not tolerate such indiscriminate killings,  Many of Ramos’ men –Sakdals– were killed by their own countrymen; in fact they had to concentrate themselves in places under the protective wings of the Japanese. The Filipino would have been the victim as Ramos would have been aided by the Japanese Army.

A government under Ricarte or Ramos would be used by the Japanese to commit cruelties and murders of the Filipinos.

(4) The last reason, which is no less important than the previous ones, is that we felt we were merely complying with the instructions of Pres. Quezon. These instructions are stated somewhere above. Whether we have complied faithfully or exceeded our authority, only history will decide. It should be remembered that the instructions contain no detail and all we could say for the present is that all our acts were done in good faith. If at times we apparently had exceeded our authority, it was exclusively for the purpose of avoiding a cataclysm, a great misfortune. In those instructions, Pres. Quezon foresaw the danger in leaving a government open to men like Ricarte or Ramos.

But I should reiterate that the Commission organized was not a real government. All its acts were merely delegated or had to be approved by the Japanese civil administration. We had hundreds of cases where we tried to do something or to do it in a different way, but the Japanese just did things or had them done in accordance with their whims and desires. The Office of the Director-General in the Japanese Administration was really the head of the government. It was occupied by Gen. Hayashi, and leter by Gen. Wachi.

When it was certain that a Commission was to be organized, somehow it got into my head that I may be appointed to the Commission. I wanted to avoid it by all means. As Vargas was the one dealing with the Japanese, I sked him not to have my name considered at all. Upon my insistence, he promised. He even showed me the proposed list wherein Yulo was suggested for Commissioner of Finance. When the list came out my name appeared. I became, to use a vulgar expression, groggy. My wife cried as she knew what that meant. She feared we would be in constant danger; she really hated public service as during my 29 years of service I got nothing but disappointments. I immediately went to Vargas to see whether I could decline. Vargas answered emphatically that I could not, unless I wanted to endanger my life. I consulted Mr. Ohnick. He understood the situation. He advised me to accept it, but to resign after three months. I consulted Vargas again and he said that he was aware of my situation, that he would help me get out after three months. I therefore asked for a three-month leave from Marsman & Co., which was granted. Such is the story of my acceptance.

After three months, I asked Mr. Vargas to allow me to resign. He said that it was not yet time. I asked and obtained another month’s leave of absence from Marsman & Co. At the end of the month, Mr. Vargas asked me to stay. He told me that it was for my own safety as he was sure the Japanese would consider my resignation a hostile act.

Mr. & Mrs. Ohnick were taken to Sto. Tomas again when the Japanese, for reasons I do not know, recalled all former internees, including the old and sick, to the Sto. Tomas concentration camp.


May 29, 1942

Auditor Ishibashi and I agreed that any cash shortage or overage should be reported immediately to the Management by the Cashier.

Col. Uzaki will write a letter to the Executive Commission regarding the use of the land at the back of the Naric. We need more space.

Main building will be painted after construction of the garage has been completed.

Played tennis at Philippine Club. Fukada and Nakashima vs. Tanco and I. We defeated them.

 

 


May 14, 1942

Two more men assigned to Naric by Col. Uzaki “in view of the increasing activities and the consequent enormous volume of auditing and accounting.” They are Messrs. R. Ishibashi and T. Tegai. Ishibashi will be Chief Auditor and Tegai will assist him.

Pertinent points of Executive Order No. 40 signed by Chairman Jorge Vargas of the Executive Commission initiating “a national campaign for the cultivation of idle lands to produce food crops in view of an impending food shortage, difficulty of importation and the need to avert hunger and “forestall famine throughout the land”:

“1. That a nationwide campaign for the cultivation of rice, corn, camote, cassava, gabi, cowpeas, soybeans, mongo and other short-time food crops suited to local conditions, be started at once under the joint sponsorship of the DEPARTMENT OF INTERIOR and the DEPARTMENT OF AGRICULTURE AND COMMERCE;

“2. That it shall be the duty of all city and municipal mayors to distribute uncultivated public lands within their respective jurisdictions among the citizens thereof preferably to those who are unemployed in order to enable them to plant food crops therein for a period of one agricultural year;

“3. That if for any reason the owner or the one in possession of any such private land is unable to cultivate the same, it shall be the duty of the mayor of the city or municipality where such land is located to turn it over to the citizens of such city or municipality, preferably to those who are unemployed, for the same purposes and under the same conditions prescribed in the next preceding paragraph;

“That it shall be the duty of all provincial governors personally or through the agricultural supervisors, to inspect the activities of the mayors in this food production campaign. The governors and city mayors shall also submit a monthly report to the Commissioner of the Interior and the Commissioner of Agriculture and Commerce on the progress of the Campaign in their respective provinces and cities;

“That any person who neglects or fails to perform any duty enjoined by this Order or who performs any act which defeats or tends to defeat its purposes, or who otherwise violates any provision thereof, shall upon conviction be punished with imprisonment not exceeding six months, or by fine not exceeding ₱200, or by both such fine and imprisonment, at the discretion of the court.”

I hope Commissioners Laurel and Alunan will thoroughly execute the responsibility imposed upon them by this Executive Order. Our production is not enough to supply our consumption. Consequently, every effort must be exerted towards increasing food production. Contrary to the general public opinion, the Naric has nothing to do with production. It has never had anything to do with it in the past and it still has nothing to do with it. Naric merely takes care of procurement, price-fixing and distribution.