Railways in Mindanao: Then and Now

Department of Transportation and Communications, 2010


News is that the National Economic Development Authority (NEDA) has approved a Feasibility Study to proceed for the proposed Mindanao Railway Project. The map above gives an indication of the scope of the proposed railway system.It’s been a long time coming. An overview of railways in the past can be found in The Colonial Iron Horse: Railroads and Regional Development in the Philippines, 1875-1935 by Arturo G. Corpuz. The British, of course, were railway pioneers in the Philippines, and as this report on a US Congressional Hearing in 1904 shows, the Americans were wary of British commercial interests in this regard. See also a 1907 journal article by Frank McIntyre, Railroads in the Philippine Islands.

The Philippine Diary Project gives a glimpse into the first glimmerings of a railway scheme for Mindanao. These glimpses are through the diary of Francis Burton Harrison, former Governor-General, and who served as an adviser to the Commonwealth of the Philippines from 1935-36 and again from 1942-44 (and after independence, on foreign affairs). Aside from having been a chief executive, Harrison was a longtime resident of the United Kingdom and was thus attuned both to British psychology and their reliance on railways, in contrast to the American preference for highways. See Planes, trains, and automobiles from July 16, 2008 for some background:

Courtesy of Augusto de Viana is The railways in Philippine history which, however, so compresses the most interesting years, the 20s to the 50s, as to render that section meaningless. Oh well. Viviana overlooks the ambivalence and even hostility American officials felt towards railways, since it would affect the Philippine market for automobiles… When autonomy was achieved, railroad development accelerated. And the policy debate on highways versus railways also began, along with still-unrealized plans such as a railroad for Mindanao (the development of Maria Cristina Fall’s hydroelectric power was originally envisioned as primarily powering the Mindanao railways: there are interesting snippets on these debates in F.B. Harrison’s diary: as an Anglophile, he was pro-railways, pointing with envy to Britain’s not altogether altruistic promotion of its own steam engine industry in its colonies…

Harrison’s interest in railways can be seen in his entry for October 25-29, 1935, Harrison records an extended conversation with Alejandro Roces, the leading newspaper publisher at the time:

Roces, Sr. advocates a National Transportation Corporation to take over all the motor bus lines –capital required now is about three million pesos but they would take shares or installment payments; they can be run as feeders for the Railroad. Paez agrees with him. Roces advocates moving Bilibid prison out of town and making the site a central market and the hub of motor buses –thus cutting out the middleman. This has been tried in Spain –and is a success.

His interest is also shown by railways-related details he notices. Two days before the inauguration of the Commonwealth (November 13, 1935), Harrison visits Pasay and noticed,

Called at Pasay. Quezon was closeted with General MacIntyre, General Creed Cox (Chief of the Bureau of Insular Affairs), Osmeña, Roxas, Paez and Carmona –I believe they were discussing the subject of the bonds of the Manila Railroad.

Harrison quite early on (the idea was first broached in broad strokes on November 2, 1935, thirteen days before the inauguration of the Commonwealth) was engaged as an adviser on communications, and his first task was advising the Philippine government on how to handle the British owners of the Manila Railway Company. See his diary entry for November 26, 1935:

We then discussed my appointment as Adviser on Communications and he asked me also to help him in the reorganization of the government. He is to put me in touch with Quirino and Paez on the purchase of the Manila RR. bonds from the English.

Harrison seems to have immediately set about getting himself up to speed on the railway situation. See his diary entry for November 27, 1935:

Talk with [James J.] Rafferty and McCreery, who is auditor and acting manager of the Philippine Railway. He said that the Iloilo line, is practically self-sustaining. Cebu is not suited to a railway.

Two days later, he was actively taking up the task assigned him with the railways manager. See his diary entry for November 29, 1935:

Conference 9-10 a.m. with [Jose] Paez over the proposed purchase of the Manila RR. Southern 4’s from the Southern Syndicate. He is much in favor of accepting the British offer, and says that if the plan is carried thru’ the RR. can meet its indebtedness for interest even in bad times.

About a week later, he was being consulted by representatives of investors on what to do, see his entry for December 6, 1935:

[John H.] Pardee wants to know whether the Philippine Railway Co., should pay its Dutch bond holders on a gold basis, or whether the Manila RR. had decided that under American law they could pay only 4%. If so, the Philippine Railway Co., would pay only 4%, because the gold clause was not in their bonds and upon “instructions” from the Secretary of War in the time of Taft this had not been followed by a vote of their board. No written word of this exists in the War Department today.

Three days later, the government position was formally communicated to the new National Assembly. See Message of President Quezon to the First National Assembly on Railroad Bonds Redemption, December 9, 1935.

Politics being what it is, by December 15, 1935 Harrison was noticing political intrigue concerning his assignment on railways:

[A.D. Williams] reported that it is now rumoured that I came out here this time to advance the interests of the English in the Manila RR. bond redemption. (Exactly contrary to facts –as usual). Says Paez insisted on resigning if the bonds are not redeemed. I feel certain we could have made a better bargain with the English; that I could have done it; and that it is legally possible to avoid paying them receipts from the “gold clause” in the bonds, and that the English know it. (N.B. Quezon asked me to prepare “advise” on this subject and then never asked for my opinion.)

Five days after that, Harrison records his discussions with the president, and then with the British consul on December 20, 1935 (along the way it’s an interesting glimpse into the contending interests that come into play whenever any commercial interest is affected by government policies –press, politicians, governments local and foreign, get into the act):

Then I asked him [Quezon] what was the matter with the Manila RR. bond purchase? He said it has been held up to enquire of the United States Government as to whether they considered that the Philippine Government was resposible for the principal of these bonds; they had replied thru the High Commissioner in the affirmative –so Quezon said the bill would go through because this meant that the United States would act on the maturity of the bonds and seize the Customs House. He said that if the American Government had decided this Government was not responsible for the principal, he was going to say to the English that he had been in favour of purchase but the Legislature demands better terms. I told him that this Government was not responsible for principal of these bonds –that just as we had bought the railroad we could sell it. Then he said Confesor (Assemblyman) had told him of F. Theo Roger’s (of Free Press) story that I had come out here to get what I could for the English! He said that he had authorized Confesor to state the true facts in the Legislature –that this impugned his honor as well as my own– that he would put Rogers in prison if he printed such a gross libel. He asked me to bring him the memorandum on these bonds which I had prepared for him on December 6, which I did…

…I then went to home of A.P. Blunt, British Consul General –he did not get there until 8 o’clock, having been at work in his office, getting off in the mail all his reports on governmental development here… As I left, Blunt asked me in a casual voice what had happened about the purchase of the Manila RR. bonds –I said there had been “a hitch.” He eagerly enquired “what hitch?” I said it had been caused by Vicente Villamin’s speech –“ah!” he said “they fear the wily English bankers, whereas our fellows would rather get this agreement now than perhaps lose everything later.” I replied that there was much to be said on each side, but I really thought the deal would go through –(it passed the Legislature just about that time).

The story resumes some weeks later, on January 16, 1936:

I asked him [Quezon] whether he wanted me to talk public business at luncheon, and he replied that he enjoyed it with people he liked. Told him I had just been with Paez and had written for him (Quezon) an opinion on the Manila RR. I advised him to instruct the public utilities commission to stop for the present issuing any more “certificates” or licenses for the bus lines. Said he would do so. Told him it was fortunate he could put the railroad and the busses under one control –other countries could not now do so but he was catching the situation nearly as it began.

I also expressed the hope that he would be able to get the Legislature to agree to permit the Manila Railroad to abandon those branches which were (dead) unprofitable.

(a few days later, on January 20, 1936, Harrison would note that he submitted a memorandum on Manila Railroad plans “for the next few years”). A few months later, the situation seems to have been resolved, as recorded in his diary entry for March 19, 1936:

Quirino said to me that my silver purchase suggestion was “gaining ground.” He also remarked that I had helped in the purchase of the Manila Railroad bonds, because I knew the “psychological background” of the English bondholders.

But this entry is about the proposed Mindanao Railway. And here, Harrison gives insights into the thinking behind the Mindanao Railway –and the opposition to it.

The entries related to a Mindanao Railways plan start on February 18, 1936, when A.D. Williams, the American adviser of the government on public works, makes an inquiry with Harrison:

A. D. Williams came in to enquire whether there was any basis for Quezon’s newspaper statement that it was being considered whether to build main roads in Mindanao, or railroads, which would cost ten times as much and probably be a heavy loss. We agreed that roads were the modern solution, and that a railroad was only justified if leading to a mine or other heavy industry.

A month later, Harrison, on March 17, 1936 notes that Teofisto Guingona, Sr. (who would be Commissioner of Mindanao and Sulu) had a different point of view:

Guingona is in favour of constructing roads rather than railroads in Mindanao.

The clash between these points of views is discussed in his entry for March 25, 1936:

Busy morning at office. Miguel Unson has seen Quezon…

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

It seems that the issue continued to remain unresolved –or that those opposed to railways were still lobbying to change the policy. See Harrison’s entry for April 28, 1936:

At Malacañan. A. D. Williams had just come from a conference with Quezon, Paez and Ramon Fernandez; says the President is set on building railways in Mindanao, and “A.D.” and Fernandez tried to convince him they would not pay. “A.D.” said he thought he had offended Quezon still more by replying to his (Quezon’s) complaints that the roads offered too unfair competition to the Manila Railroad, that the competition from trucks was unfair and when they had finally managed by January 1, 1936 to get the tax on trucks raised from one peso to two pesos per 100 kilos, the rate had at once been reduced again. This was Quezon’s own doing on the advice of Geo. Vargas, and they both looked pretty glum.

But the policy remained. See May 8, 1936:

This morning, Quezon gave a press interview to both “foreign” and “local” reporters. Evidently, he had important things to give out. The newspapers published:

(a)  A statement that Davao land “leases” would go to the courts.

(b)  The President contemplates the construction of a 150 kilometer (300!) electric railway between Davao and Cagayan de Misamis, and also would complete the Aloneros-Pasacao gap in the southern lines of the Manila Railroad. The Maria Cristina Falls in Lanao are to be used for part of the power for the first project.

(c)  That the Philippines would sooner ask for immediate independence than wait for the end of the ten years period if there are no prospects of improving the provisions of the economic clauses of the Tydings-McDuffie law.

Still, the opponents of the railways scheme hadn’t given up, as recorded in this entry for May 9, 1936:

[A.D. Williams] told me again of a talk with Quezon concerning transportation. It arose out of a project to build a wharf for the Cebu Portland Cement Co. Williams pointed out that this would reduce the revenues of the Cebu Railway. Quezon replied: “our guarantee of interest on the bonds expires next year. We will have to buy the road and move it.” Williams agreed and suggested moving it to Negros. Quezon remained silent. What he wants is to move it to Mindanao which Williams opposes since he believes that a railroad would be so much more expensive to maintain and operate than roads.

The policy, however, still remained. As the entry for May 18, 1936, the railways head was dispatched to Mindanao to conduct an inspection:

Quezon returned from Hong Kong and after a day at Malacañan left for Baguio. His office work is greatly in arrears and is in confusion. Vargas handed me a memorandum prepared by Quezon dated April 14 in Iloilo, addressed to me, (and unsigned) asking me to prepare papers to carry out the recommendations of the annual report of the Manila Railroad Co. This I received May 18!! Vargas says he found it “on the boat” (Arayat?). I hardly think it was meant for me, anyway, but probably for Paez who is away inspecting the line for the proposed railroad in Mindanao.

A month later, the lobbying of the National Assembly included a pitch for the Mindanao railways scheme, see June 6, 1936:

Before making wharf at Iligan, Quezon addressed the Assemblymen, asking for funds for the development of Mindanao. He used maps, and said that an electric railway was to be built from Misamis, via Bukidnon to Davao, the water power for this project coming from the falls in Lanao. Only four or five of the Assemblymen had ever been in Mindanao before. The gathering seemed to be willing to vote the money, but wanted to know how they were to get the colonists? Quezon replied “Open roads, and they will come of themselves.”

These behind-the-scenes stories in Harrison’s diaries, help provide context to the official declaration of policy in the Second State of the Nation Address, June 16, 1936 in which the railroad bonds, and future plans, including the expansion of the railways system, were discussed:

Manila Railroad Company –A very important measure approved by the National Assembly is Commonwealth Act No. 4 providing funds to be loaned to the Manila Railroad Company for the purchase, before maturity, of certain outstanding bonds of the said Company. In accordance with the provisions of this Act, I directed the Insular Treasurer to loan to the Manila Railroad Company P9,900,000, and authorized the Philippine National Bank to use P3,360,000 of its funds in the purchase of said bonds.

On January 29, 1936, upon payment to the Manila Railway Company (1906) Ltd., through the Chase National Bank, New York City, of the sum of $6,698,631.41 covering the principal, interest and exchange premium, all of the Souther Lines 4 per cent gold bonds maturing May 1, 1939, held by the English Company, with par value of P16,340,000, were delivered to the order of the Bureau of Insular Affairs, Washington, D.C., acting as representative of the Commonwealth Government and the Manila Railroad Company.

The successful culmination of this exceedingly important transaction resulted in great financial advantages to the direct benefit of the Manila Railroad Company and indirectly of the Commonwealth Government, which is the sole owner of the property. The following estimates indicate in round figures the savings that will be effected between now and the maturity of the bonds:

Total face value of the bonds held by the Manila Railway Company (1906), Ltd. …………….. P16,340,000.00
Cost at 80 per cent of face value …………….. 13,072,000.00
Savings in principal …………….. 3,268,000.00
Less –premium …………….. 165,500.00
Net saving in principal …………….. 3,102,500.00
Normal 4 per cent annual interest on English Company holdings P653,600.00
Normal interest for 1936, 1937, 1938 and half of 1939 2,287,600.00
Premium for 3-1/2 years at P441,180 each year 1,544,130.00—————— 3,831,730.00—————————–
Total …………….. P6,934,230.00
2% on P13,350,000 for 3-1/2 years 934,500.00—————————–
Total savings in principal and interest …………….. P5,999,730.00================

The above savings on the English Company holdings are based on the principal of the bonds being redeemed at maturity at their face value. However, both the principal and interest are subject, at the holders’ option, to payment in certain European currencies at the former gold equivalent, and if this option should be exercised covering the principal at the time of maturity, the amount necessary to redeem the bonds being held by the English Company would, on the present basis of exchange, represent a total sum of approximately P27,287,800. The purchase of these new bonds at this time for the sum of P13,072,000, therefore, means a saving in interest and principal of about P14,200,000 besides a savings in interest and premium amounting to about P2,900,000 after allowing for the two per cent interest on the loan from the Government, or a total saving of about P17,100,000.

The investment of the Government in the Manila Railroad Company including bonded indebtedness of the Company all told amounts to approximately P28,000,000. This is a respectable sum for any Government and doubly so for a Government whose yearly revenue at present is around P78,000,000 and at its highest peak only reached the total of P92,783,173.70.

Bus and truck transportation due to improved roads in the northern and central provinces of Luzon have caused a large decline in the income of the Manila Railroad Company. We cannot afford to allow this situation to continue and permit the Government to suffer tremendous losses in railroad operation, for the time might come when the Government would either be compelled to suspend the operation of the Railway or carry a yearly financial burden that sooner or later would bankrupt the National Treasury.

The Manila Railroad was acquired by the Insular Government in 1917 in order partly to withdraw from foreign hands the control of our most important means of transportation at that time. Soon after the Government assumed the administration of this property, the railroad began paying interest on the bonds from its revenue, and even extended some of its lines with its own resources. Only during the last two or three years has the income of the railroad begun to decline due, as already stated, to bus and truck competition. If it should be found advisable, I am prepared to authorize the Manila Railroad Company to purchase some of these competing bus transportation companies or else to have the Government establish and operate its own bus and truck services. The Constitution expressly authorizes the Government to establish and operate means of transportation and communication, and, upon payment of just compensation, transfer to public ownership utilities held by private individuals to be operated by the Government.

Another step that must be taken at once is the completion of the railroad line to the Bicol provinces. This, I am informed, will make the southern lines a paying enterprise. In pursuance of the authority vested in me by law, I have directed the Secretary of Finance to purchase P3,000,000 worth of stocks of the Manila Railroad to finance the completion of the Aloneros-Ragay line. It is my understanding that to complete the road the Government will have to invest only P700,000 more in addition to the P3,000,000 referred to above.

But this amount will have to be greatly increased if the Manila Railroad Company is not given permission to abandon the Legaspi-Tabaco, Las Pinas-Naic, Rosario-Montalban and Batangas-Bauan lines which are absolutely unnecessary from the point of view of public convenience and which, consequently, are causing an annual loss of about P100,000 to the Railroad Company. Once these lines are abandoned their materials and equipment will be used in the construction of the Aloneros-Ragay line.

I, therefore, earnestly recommend that a law be enacted authorizing the Manila Railroad Company to abandon the lines above mentioned.

After this, there isn’t any discussion on the Mindanao railways scheme, as Harrison resigned as adviser in 1936. As a postscript, the last mention of railroad planning in Harrison’s Diary is on December 23, 1938 when, during a visit, he mentions the recently-completed Bicol Express:

Staying with the President alone at the Guest House across the Pasig River from Malacañan Palace.

At luncheon we had Don Alejandro Roces, proprietor of the T.V.T. newspapers and Paez, manager of the Manila Railroad Company. Paez told of the success of the new branch of the railroad in the Bicol Provinces –at last, they have through connection with Manila and it is no longer necessary to cross Ragay Gulf by steamer. Quezon mentioned that he had refused the request of residents of those provinces for a highway parallel with the railroad.

For the official record on this, see the Fifth State of the Nation Address, January 24, 1939:

The Manila Railroad Company has at long last completed its southern line. The gap which existed for many years between Tayabas and Camarines Sur was connected at a cost of about P2,000,000. This was one of my dreams that have come true. The significance of this achievement will be readily seen when we consider the fact that a daily, comfortable, fast and inexpensive communication service has been established between Manila and the Bicol provinces. At the same time the completion of this southern line means increased earnings for the railroad.

Some photos (click to enlarge):


The Hondagua reception committee consisted of the crew of a Manila railroad boat.
Railroad officials inspecting the construction of the Sinuknipan Bridge along the new railway line
Government officials and assemblyman welcomed Commissioner McNutt and President Quezon
Coming down
A big crowd cheered the gayly-decorated special trains bearing guests of the Manila Railroad Company as it reached Del Gallego
High Commissioner Paul V. McNutt, President Manuel L. Quezon and Speaker Gil Montilla at the historical stone marker
The historical stone marker unveiled by Commissioner McNutt
Another partial view of the unveiling of the stone marker at Del Gallego, Commissioner McNutt (left) and President Quezon are shown standing before the marker in the background
Manila-Legaspi Line Inauguration
Line to the South

We can catch glimpses of the continuing story, also in the official record for the next two years:

Sixth State of the Nation Address, January 22, 1940:

In addition to this public debt, however, the Manila Railroad Company has an outstanding obligation in the amount of P26,472,000 for which no sinking funds are being provided. In order to protect the credit of one of our most im­portant enterprises, the Government will have to as­sume the payment of this debt maturing in 1956. I recommend that the National Assembly consider a plan establishing a sinking fund for these obliga­tions from the proceeds of the excise tax in the event the Manila Railroad Company is unable to provide therefore.

Seventh State of the Nation Address, January 31, 1941:

With the completion of the Tayabas-Legaspi section of its main Southern Line, the Manila Railroad Company has been enabled to maintain through train operation between Manila and Albay…

The Manila Railroad Company has also outstanding bonds amounting to P28,718,000.00. We have taken steps to enable this company to redeem its outstanding bonds upon maturity. For this purpose the National Assembly last year appropriated P7,000,000 from the Coconut Oil Excise Tax Fund. The present program of the Government contemplates further yearly appropriations from this same Fund until the total bonded debt of the Manila Railroad Company is fully covered.

World War II would put an end to railway schemes. In the years that followed, the story would be destruction and trying to rehabilitate the railways system.

See the two-part series by in the Cebu Daily News: “What happened to the Philippine Railway Company?” on June 12, 2014 and June 19, 2014.

See Statement of the Presidential Spokesperson on the restoration of rail service between Manila and Bicol on June 29, 2011:

The Bicol Express commenced in 1938 when, half a kilometer from del Gallego town proper in Camarines Sur, a golden nail was driven into a railroad tie, marking the meeting point of the south and north railroad lines and so officially linking Manila and Legaspi City by rail. The devastating weather of the early 1970s devastated the South Railway, and only token efforts were made to restore rail services. The railway was only rehabilitated in 1985, but deteriorated again soon after that. Then rail service between Manila and Bicol ceased in 2006 due to typhoon damage.

See also The Railways and Industrial Heritage Society of the Philippines website.


The sinking of the S.S. Corregidor, December 16-17, 1941

The S.S. Corregidor of the Compañia Maritima, which sank on December 16, 1941. Photo from Chad Hill.
The S.S. Corregidor of the Compañia Maritima, which sank on December 16, 1941. Photo from Chad Hill.

On December 16-17, 1941 (around midnight, hence the event straddling two dates), the S.S. Corregidor, an inter-island steamship of the Compañia Maritima, hit a mine off Corregidor Island and sank, resulting in a tremendous loss of life.

Here is a map of the area (click on this link for the original scan).

Detail of sketch of minefields around Corregidor island, provided by Peter Parsons.
Detail of sketch of minefields around Corregidor island, provided by Peter Parsons.

There is a very interesting discussion on the disaster, and the question of whether negligence was involved, and if so, who should be assigned blame, in the The Loss of the S.S. Corregidor thread of Corregidor Then and Now Proboards. Within the thread can be found recollections by George Steiger (an officer in Corregidor), Charles Balaza (serving in an artillery detachment on Corregidor) and others.

Here is a dramatic account by one of the survivors of the sinking of the ship, in the memoirs of Jose E. Romero (Not So Long Ago: A Chronicle of My Life, Times, and Contemporaries, Alemar-Phoenix, Quezon City, 1997 reprint):

The S.S. Corregidor Disaster

WAR HAVING BEEN DECLARED, the next day the National Assembly met at the house of Speaker Yulo to pass legislation giving the President powers to be able to cope with emergency. After that the members of Assembly were concerned with the problem of returning home to their provinces and their families. I was very much chagrined that close friends of mine had been able to take passage on the S.S. Legaspi that was making trips to my hometown, Dumaguete, via Cebu, a trip that took two days, without having difficulty from Japanese boats and planes. I was also chagrined to learn that my good friend, the District Engineer of my province who had come to Manila with me a few days previously, had been able to get out of Manila by way of the Bicol provinces and then made it to Samar and Leyte and back to our home province. A few days later, another boat was scheduled to depart for the South, including my hometown of Dumaguete. Passengers, including myself, were aboard when an hour later we were told to disembark by order of the U.S. Army, probably for fear of enemy action.

Inasmuch as the Japanese had already bombed Clark Field, Camp Nichols, Cavite, and Manila itself, particularly the Intendencia building and the Herald building and Santo Domingo Church, I thought it would be safer, being alone in Manila with my houseboys, for me to live in my office in the Legislative building. (The basement at the Legislative building had been sandbagged and was converted into an air-raid shelter.) I immediately arranged with the late Ramon Fernandez, whose boats were making trips to the Visayas, to advise me whenever any of his boats made a trip for the South, but this he never did. I had also arranged with my good friend, Salvador Araneta, who was then one of the principal owners of the FEATI (Far East Aviation Transport Co., Inc.), which owned the planes making trips between Manila, Iloilo, and Bacolod, to advise me whenever there was a chance to get on one of those planes. I was very much worried because, as already stated, I had come to Manila immediately after the election, and being very confident that in case of emergency I could easily return to my province either by a FEATI plane or by boat, I had not made sufficient provision for the maintenance of my family during my absence. In any event we had used up practically all of our financial resources during the political campaign and I had precisely come to Manila, among other things, to make arrangements to meet my immediate financial problems.

Although Mr. Araneta did his best to try to get an accommodation for me on the plane to the South, the man actually running the affairs of the FEATI was so swamped with demands for passage on his planes that even Mr. Araneta’s recommendation could not help me. One night I received a message from Mr. Araneta advising me that if I would go to Batangas that night, I might be able to get a passage on a plane. (The Manila airfield at Nichols had been bombed and was not safe for takeoff and landing of planes.) This was very difficult because the country was then under blackout orders, it was not safe to travel at night, and there was no certainty that I would get on the plane. It was the last trip that the plane made, so I missed this chance.

One day the member of the Assembly were advised that a special train was being reserved for us to go to Sorsogon. From there we could get launches or sailboats for Samar, Leyte, and our respective provinces in the Visayas. At the appointed day and hour many of us gathered at the Paco Station and we were hardly seated in the car when we were asked to come down because the Japanese had landed in Legaspi. A couple of days later, I saw my colleagues who like me had been living in the Legislative building rushing toward the Compañia Maritima office. One of them shouted to me that the S.S. Corregidor was leaving for the South. I immediately packed up the few things that I had and, together with a cousin of mine and his daughter who were living with me in the Legislative building, hied myself to the Compañia Maritima building. It was chaos there, with hundreds of people trying to get into the building to buy a ticket for the trip. A security guard, gun in hand, was at the door trying to prevent people from going into the building. I explained to him that I had an arrangement with Don Ramon Fernandez to get on the first boat going to the south, but he said that he knew nothing about the arrangement and would not let me in. My cousin, his daughter, and I left the building very disappointed when a little farther on we met Don Ramon’s nephew, Carlos, who today is still active with the shipping company. I explained my situation to him and he asked me whether I was really anxious to go on that trip. When I answered in the affirmative, he personally took me inside the office and helped me get a ticket for myself, my cousin, and his daughter. I also bought a ticket for a fellow townsman who wanted to return home but was without funds. But the danger of the trip was made manifest by our being asked to sign a waiver of any responsibility on the part of the shipping company in case a mishap occurred during the trip.

From the Compañia Maritima office and the Muelle de la Industria, we went to the South Harbor where the S.S. Corregidor was docked. There were hundreds of people and it seemed that there were many who got aboard even without tickets. I was delighted to find aboard Senator Villanueva, his recently married son and daughter, and their household help. He told me that he had been trying to contact me repeatedly the last few days, because he was anxious that we should go home together. In times of emergency like this, personal animosities among relatives are forgotten and the old family ties reassert themselves. I also met Captain Calvo of the boat, who had been a longtime friend of mine, with his pretty young wife that he had just married. He told me that I must be anxious to get back home under such conditions of danger. I told him that if he and his wife, my relatives and other people were willing to take the chance, there was no reason why I should not do the same. The boat was being located with ammunition and other military equipment for the South. I was quite nervous and I was told later that he had not wanted to make that trip. This probably partly explains why he was taking his wife along with him. I was also told later that on previous occasions, while passing the mined sections around Corregidor he had been warned that he was passing too close to the mines.

Probably the trip would not have been as risky as it was surmised. The plan was to land at the first port in the South at daybreak and from there the passengers would take sailboats or other means of transportation to the provinces which were still unoccupied by the Japanese. There were many times more passengers than should ordinarily have been allowed aboard. We stayed aboard for several hours and strict blackout was observed. Senator Villanueva and his family and I and my cousin with his daughter seated ourselves directly in front of a lifeboat as we thought we could quickly get on it in case of emergency. We were all furnished life belts and hundreds of other life belts were strewn around the deck. About midnight the boat started to leave in pitch darkness. I was half-asleep but noticed that light signals were being flashed from what I think was Corregidor Island. I was to learn afterward that the signals were to warn the captain of the boat that he was not on the right track. (The passage between Corregidor and the mainland in Manila Bay had been mined.) All of a sudden there was a dull thud and then an explosion. We had hit a mine. The boat shuddered as if mortally wounded. It did not sink immediately and the group already referred to who were seated near a lifeboat got aboard it.

Before the boat left, as already stated, we had been supplied with life belts. My companions were very prudent in having attached the life belts to their bodies, but I only held mine in my hands. A husky Spaniard had been saying that this was a bad joke we were playing with the life belts, but I told him that it was customary, even in peacetime, to have drill aboard the ships and practice the use of life belts. When we hit the mine this husky man grabbed my life belt, since he had not taken the precaution to provide one for himself. I insisted that the life belt was mine, but he claimed that it was his and proposed that we throw the life belt into the water, confident that later on, if we had to struggle for that life belt, as a much huskier man he would have the advantage. But the man from my province, whom I had helped to get a ticket on that trip and for which ticket I had paid, handed me another life belt. Again it was grabbed by another person. This faithful protege of mine handed me another one and still another one, but each time somebody would grab the life belt away from me. Remembering that I was the only one without a life belt and recalling that hundreds of life belts had been scattered on the deck in the early evening, I went down to the deck to see if I could find another life belt. At this moment, there was a second and more terrible explosion. It seemed that it was the boiler that exploded and the boat immediately sank headlong into the water. We were all drawn by the suction and had the water in those parts been deeper, we could not have returned to the surface.

When the boat reached the bottom and there was no more force of suction, I instinctively swam with all my force toward the surface, and when I reached the surface after what seemed an endless effort to reach it, it seemed this was a second life for me. Right in front of me was a life belt and a piece of board just enough for me to lie down on. If ever there are or were miracles, this certainly was one. I had gone into the water without a life belt and here right in front of me was the board of salvation and a life belt. I did not realize it then, but I had ugly cut in the head which must have been caused when the boat touched the bottom and my head hit something hard. I was too weak to tie on my life belt and it was really the board that saved me. I was too weak from loss of blood, so I only hung on to the board which, as I said, was just sufficient to keep my body afloat. Fortunately, it was as long as my body so that my body covered it almost entirely, otherwise other people who were floating around without support might have tried to grab it from me. I just lay over that board semi-conscious for several hours. Fortunately, the sharks that infest these waters must have been kept away by the explosion and by the oil from the sunken ship. About four hours later. I felt as if there were some bright lights. It was one of the P.T. or so-called mosquito boats that had been sent to rescue the survivors. I looked up and one of the American crewmen threw me a life belt which was tied to a rope that he held. I took hold of the life belt and he pulled me toward the boat. I must have looked like a real mess, covered all over with oil from the boat that sank and with the blood of my head over my face. I just lay there on that boat while we were being taken to Corregidor. It was just beginning to dawn when we docked at the harbor of Corregidor. I will never forget, especially after seeing the callousness and cruelty of the Japanese later, seeing one of the American soldiers who had come to the dock to meet the survivors take particular notice of me, saying, “This man is badly hurt.” He immediately ran up the gangplank, took me in his arms, loaded me into the car that he was driving, and then rushed me like mad to the hospital in Malinta Tunnel. The others who were not so badly hurt were taken to Manila. Only about one-third of some one thousand people that were in the S.S. Corregidor were saved. Senator Villanueva and his son, my cousin and his daughter, as well as two of my colleagues, Representatives Ampig and Reyes of Iloilo and Capiz, respectively, perished in the disaster, as did the wife and children of Representative Dominador Tan. Representative Zaldivar, later Justice of the Supreme Court, survived.

In Corregidor Hospital

At the hospital in Malinta Tunnel, which I revisited later, the wound in my scalp was sewn up by a kind American doctor. Fortunately, the wound was only skin-deep and did not fracture my skull. When a Filipino nurse found out who I was, she made a lot of fuss about it and many people were soon coming to see me. (Much later when I was Secretary of Education, on a visit to Cabanatuan City, Nueva Ecija, I was fortunate to see her again with her husband.) Two of the young officers who visited me in Corregidor were from my town and province. A medic or medical assistant, an American, took very kind interest in me. (To anticipate my story, when I left Corregidor Hospital ten days after I entered it, I was to wear his civilian clothes as I had none of my own. I gave him my address and after the war when the House of Representatives, of which I was a member, was reconvened, one day an American came to my office and greeted me joyously. When I could not quite remember him, he said, “I was the one who sewed up your head in Corregidor.” It was a happy reunion. He gave me his address in the U.S. to which he was returning and when I was Ambassador to London, I unfailingly sent him a Christmas card. I did not receive any reply from him, but after the third or fourth time I sent him a card, I got a reply explaining that the reason he did not acknowledge my previous cards was that he did not know the address of the Philippine Embassy in London, not realizing that it would have been sufficient for him just to put the Philippine Embassy as address. He told me that he was working somewhere in the Middle East and was doing pretty well financially.)

I developed a slight case of pneumonia, but thanks to the sulfa drugs that had just recently been discovered, this danger to my health was averted.

To return to my story, next to my bed at the hospital was that of Captain Kelly of the United States Navy, a man made famous by a book written in the United States by American escapee during the War, entitled They Were Expendable—a bestseller. Like many Americans in Corregidor, they were still confident that military aid would come from the United State and that the Philippines would be retaken. But this was not to be for more than three years.

During my ten-day stay in Corregidor, from December 17, the day of the sinking of the Corregidor, until December 27 when we were ordered to evacuate to Manila, many prominent officials went to Corregidor. Among those who visited me were the Commanding General of Corregidor and the U.S. High Commissioner, Francis B. Sayre, Vice-President Osmeña and his family, ex-Speaker Roxas, and Chief Justice Jose Abad Santos. President Quezon and his family, however, who also arrived at Corregidor on Christmas Eve, did not visit me. When casually one night I saw him and Mrs. Quezon, he did not even talk to me. I think he was ill and depressed when he saw me with my bandaged head and, perhaps thinking that I was more badly hurt than I really was, he simply was too depressed to talk to me. However, Mrs. Quezon who was seated next to me while we were seeing a movie just outside the entrance to Manila Tunnel during a lull in the bombing by the Japanese, held my hand and gave me words of comfort. From Vice-President Osmeña, I learned for the first time that my relatives by affinity, ex-Senator Villanueva and his son, had not survived the sinking of S.S. Corregidor, although the ex-Senator’s daughter-in-law, who was expecting a baby (and who is still very much alive), and two maids survived.

Christmas Eve was celebrated in Corregidor, and in my condition, away from my family, it was indeed a sad Christmas Eve for me. The singing of Christmas carols by the American and Filipino nurses and other personnel only added poignancy to my depressed spirit. On December 27 an order was received from General Douglas MacArthur for the evacuation of all civilians in Corregidor to Manila, as the Japanese were fast approaching Manila. The medic who took such interest in me suggested that I ask President Quezon to contact General MacArthur and get him to make an exception in my case by allowing me to stay in Corregidor. I contacted Mr. Roxas, who immediately got in touch with President Quezon and who in turn tried to get in touch with General MacArthur. However, General MacArthur was busy directing the withdrawal of USAFFE troops to Bataan and could not be contacted. Mr. Roxas urged me, however, to go to Manila. He said that I could get better medical treatment there and, besides, the boat leaving for Manila might be the last one that could make the trip as, with the arrival of the Japanese, Manila would be isolated from Corregidor. So I decided to leave.

We left again in pitch darkness, as complete blackout was ordered everywhere. I shall not forget another American soldier who took me in his car to the waiting ship and then removed his overcoat and placed it over me. After my experience on the S.S. Corregidor, to travel again in complete darkness could not but inspire fear in me, but we made the trip uneventfully. Upon arrival in the South Harbor, we were placed in a covered truck where it was also very dark. The driver had to stop at every street corner to find his way, and finally I was deposited at the Philippine General Hospital which was then under the direction of my good friend, the late Dr. Augusto Villalon. I was placed under the direct care of Dr. Santos Cuyugan, who was a specialist in wounds and burns. Because of the infection of my wound, it took about three months to heal, although it was only a superficial one

The Philippine Diary Project contains several points of view discussing the S.S. Corregidor disaster. The earliest one appears in an entry in the diary of Teodoro M. Locsin, December 16, 1941:

Today the inter-island vessel Corregidor struck a mine near the mouth of Manila Bay and sank in a few minutes. The ship was packed to the gunwales with passengers leaving the city for the southern islands, thus reintroducing the “Samarra” theme.

The number of people on board was estimated at from 600 to 1,000. The exact number may never be known. Government officials used their influence to make the ship’s agents issue them and their friends tickets. Many went up the gangplanks just before the boat sailed, thinking to get their tickets from the purser afterward, when the boat was out at sea. Each, in one way or another, properly sealed his fate.

Later in the day, I was shown a wire from a man in Iloilo asking a friend in the city to secure a ticket for his mistress on the Corregidor. The war caught the woman in Manila and the man wanted her with him. The friend, I need not say, got the ticket.

Locsin, then a young newsman in the Philippines Free Press, would have been among the first to receive important news. Others got the day after. Fr. Juan Labrador OP, December 17, 1941 mentions how most other people got the news, and details that shocked the public:

At noontime, an “extra” of the dailies announced the great catastrophe of the vessel “Corregidor”. This was the heaviest and fastest of the boats anchored at the river. It set sail the night before without previous notice. Nevertheless, it was teeming with passengers destined for the Visayas. Around midnight, it hit a mine near the island of Corregidor and in three to five minutes it was swallowed up by the black waters of Manila Bay. It cannot be ascertained how many lives were lost. The Compañía Marítima does not have a list of the passengers. Many had filtered in without paying the fare, or mounted aboard with the idea of paying later on. Only 200 passengers were rescued, and the number of those drowned is estimated at 600 to 800.

Among the passengers were assemblymen, students from the South, and well-known families, including the brothers of the Archbishop of Cebu, one of whom was a professor and secretary of the Faculty of Law of the University of Santo Tomas; the other was a member of the Assembly. The assemblyman drowned, but the faculty member of UST was saved after swimming and floating for six hours. Those who were trapped in the cabins—women and children, for the most part—are forever buried in the bosom of the sea. Even among those who were on deck and had time to jump overboard, many were drowned for lack of lifesavers or for their inabiity to resist the current of the waves.

It was the first great tragedy of the war, and God permit that it be the last.

A young officer in the Philippine Coastal Patrol (the fledgling Philippine Navy) wrote about the tragedy as he received the news from colleagues in the US Navy. See Ramon Alcaraz, December 17, 1941:

By night time, the tragedy was compounded by the sinking of S.S. Corregidor in our own defensive minefields guarding the entrance to Manila Bay west of Corregidor Fortress.  S.S. Corregidor is one of the best among our inter-island commercial vessels with civilian and military personnel aboard bound for Visayas and Mindanao.

Loaded also are Artillery pieces, equipment and supplies of the 101st FA, and other Vis-Min Units.  From initial scant report I got from my Mistah Alano, ExO of Q-111 that participated in the rescue, he said the ship hit a mine and sunk so fast virtually all passengers went down with the ship including her Captain.  There were very few survivors.  The mined area is under the responsibility of the Harbor Defense and PT RON 3.  I should know more details about this tragedy after I talk with some of my comrades on duty then at PT RON 3.

Five days later, Alcaraz had more information about the tragedy. See Ramon Alcaraz, December 22, 1941:

I also talked with Ens. George Cox, CO PT 41 on duty when S.S. Corregidor sunk five days ago.  He said PT 41 was leading the ill fated ship at the channel but suddenly, all at once, the S.S. Corregidor veered course towards the minefields and his efforts to stop her were to no avail.  There was a loud explosion after hitting a mine, the ship sank so fast virtually all aboard went with her including the ship captain. There were very few survivors.

Events would rapidly overtake the S.S. Corregidor disaster. See December 24-25, 1941 in diaries; The Great Escape of the S.S. Mactan: December 31, 1941Evacuation of the Gold Reserves of the Commonwealth, February 3, 1942The debate on taking the Philippines out of the war: February 6-12, 1942Bataan, 1942: views of a father and his son; Life, death, decisions, during the Japanese Occupation; Diary entries on the Leyte Landing: October, 1944; and The Battle of Manila, Feb. 3-March 3, 1945 for more features on entries in the Philippine Diary Project.


September 1, 1945, Saturday

I am sick. I have fever and eruptions cover my whole body. How I remember my wife and children! How I miss their loving care!

We learned that the drawing of lots to determine who of the Senators should serve 2 years, 4 years, and 6 years took place last August 23. They used a device — something like that used by the Sweepstakes Office. Those who came out for 6 years are Pedro Hernaez, Proceso Sebastian, Nicolas Buendia, Vicente Rama, Alejo Alonto, Domingo Imperial, Emiliano T. Tirona and Eulogio Rodriguez; for 4 years, Melecio Arranz, Quintin Paredes, Ramon Fernandez, Esteban de la Rama, Manuel Roxas, Carlos Garcia and Rafael Martinez, and myself; and for 2 years, Ramon Torres, Elpidio Quirino, Claro M. Recto, Jesus M. Cuenco, Jose Yulo and Vicente Madrigal. Evidently, the deceased senators David Maramba and Jose Ozamis were not included or assigned to 2 years. I do not believe this could be legally done; they should have been included. It is especially important as Ozamis might have died after the 2 year term was over. There is some criticism about the drawing. Fraud is insinuated. I doubt it, however; if the Sweeptakes system was adopted, fraud is impossible.

I am satisfied with the result. Now if I decide to quit politics as I have always wanted, I can. But I may be forced to continue in politics to seek vindication.

I would like to have the following for they contain important publications: (1) Daily News, August 24, 1945; (2) Daily News Magazine, August 1,1945; (3) Gallegos’ Economic Emancipation, published on August 17, 1945, (4) 7 papers published by the Pacific General Headquarters.

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 21, 1945 Saturday

This is inspection day. We prepared our bed, baggage, everything. My family will be surprised at how well I can arrange my things. This is one of the many good things we have learned here. The bed cover is neatly folded, the mosquito net properly placed. Our mess kit and toilet articles, all very shiny, are meticulously arranged on our bed. It is a pleasure to see them.

After the inspection, Col. Gilfilan suddenly appeared in our quarters and engaged Minister Paredes in conversation. As usual, whenever he comes we get jitterly expecting that he was going to give us hell. After the appropriate preliminaries, they proceeded to discuss our case. Evidently, the Colonel had already submitted our letter to General MacArthur. He added that he had other papers about us but he had not seen our memorandum submitted to Mr. Stanford of the C.I.C. As reported by Mr. Paredes the conversation is substantially as follows:

The Colonel came prejudiced against us. Like others, he thought we had willingly collaborated with the Japanese, committed acts constituting treason to our country, and harbored anti-American feelings.

Paredes related how we happened to be in the service during the Japanese regime. He said that under the circumstances, we could not possibly do otherwise unless we wanted to endanger the lives of our people. We need not wait for guns to be pointed at us. The Japanese did not hesitate to arrest, punish and even kill. The people were unprotected. Furthermore, there was the danger of the administration falling into the hands of real pro-Japanese men like Ricarte, or of irresponsible rascals, like Benigno Ramos. These men had acted before and during the Japanese occupation as spies. They had not only baited the Japanese to commit atrocities but had no hesitation themselves to rob, abuse and even kill. This was the situation. We had to choose between inaction or action, hiding in the mountains or acceptance of the office which placed us in a position to protect or serve our people as best we could. We harbored no illusions about it but we preferred to take our chances to see what we could do for our people. We feel we did a satisfactory job. So many were killed; more than 500,000 people died because of Japanese brutality. But what would have happened if we did not accept? Knowing now what the Japanese are capable of, it will not be an exaggeration to say that at least one fourth of our population would have perished.

The Colonel nodded with approval. But evidently there were many doubts lingering in his mind. He asked why the Republic declared war against the United States. Paredes explained. He said that even before the inauguration of the Republic, Pres. Laurel was called to Tokyo where Premier Tojo himself expressed their desire for the Philippines to declare war against the United States and Great Britain. The Japanese Premier was very insistent. Laurel boldly refused. He spoke with frankness. He reasoned out that it would not be decent for us to declare war against the United States. The reasoning of Laurel was so sound that the Filipinos present, Aquino and Vargas, were astounded. No publication was ever made of the incident, but rumors about the incident rapidly spread and the people admired his courage. Tojo did not compel Laurel, but the Japanese never gave up on the idea. Every time there was a propitious occasion, the Commander-in-Chief and other generals spoke to the President about the declaration of war.

But the most serious request was when U.S. air attacks on Davao began. It should be remembered that there was a Pact of Alliance between the Philippines and Japan. The Japanese invoked the provisions of the Treaty.

A word about this treaty must be said. It was a treaty of Amity and Alliance. It was given wide publicity by the Japanese; they presented it as an outright alliance. The full document was never published. It was really a unilateral agreement. Whereas Japan had to fight for us, we were not under any obligation to help or fight with them. But of course, lest our true colors be discovered, we accepted that if the Philippines were attacked, we would defend our territory. In the case of Davao, Laurel did not consider it a threat to our territorial integrity, so he did not declare war. He promulgated, however, a proclamation declaring martial law. He thought this would satisfy the Japanese, but it did not — they kept requesting that formal declaration of war be made. American air bombardment of Manila took place on the 21st of September 1944. The Commanding General and the Ambassador saw the President and insisted on a declaration of war. We had special meetings of the Cabinet and secretly we planned what to do. It was evident that the members of the Cabinet were against it, and almost all the assemblymen. So were the members of the Council of State composed of Chief Justice Avanceña as Chairman, and Messrs. Miguel Unson, Pedro Aunario, Ramon Fernandez and Jose Paez. Even the President himself was not in favor. But above all, the people were decidedly against it.

But Roxas had a vision. He could see what could happen if something was not done. So he advised the President to issue some kind of a proclamation about the war. The Constitution provides that war can only be declared by the President with the concurrence of the National Assembly. The Japanese offered to facilitate plans to bring the assemblymen to Manila. But we made every effort to prevent a quorum in the Assembly. It was unanimously approved that no declaration of war be made; that a mere state of war be declared. There is of course a big difference between the two. The declaration of a state of war merely recognizes the state then existing which was the armed conflict prevailing in the Philippines. Every effort was made to eliminate as much as possible statements concerning America without the Japanese noticing it. As part of the plan, the President, a day or two before the declaration was issued, stated that there would be no conscription of the Filipino youth. Pres. Laurel somehow learned that the Japanese would order the conscription of the Filipino youth. The young people would be trained to fight Filipino and American forces. The proclamation contained no provision for conscription. In making the assurance, his intention was to be able to answer the Japanese in case they asked for such conscription, that his prestige would be adversely affected if he did not stand by his word. What good is a declaration of war without conscription? These are the facts. But of course the Japanese announced to the world that it was an outright declaration of war.

Colonel Gilfilan also asked about the labor conscription. It was also explained that this is one of those things that just could not be avoided. But let us examine the wording of the proclamation. It will be seen that it is a useless proclamation. It provides that labor conscription may be ordered by the Military Governor when deemed necessary.

The Colonel expressed surprise, “Did Laurel do all that?” He made Paredes to understand that he did not consider us guilty of any punishable act. He stated, though it is not known whether it was said jokingly, that a jury better be created and he be made a member of it.

He is confident that we will be detained only during the duration of the war. He said that his tour of duty is already over but he decided to stay until we were released. This is interpreted by us to mean that the war may end soon. As the Colonel started to leave, he stated that he would help us.

There is a lot of speculation as to why he came. Some believe that he knows something more definite about our early release, and so he wanted to have closer relations with us. Others say that he is authorized to investigate our case and was investigating our case. The rest believe that something involving us is going on in Manila and that the Colonel had been called for a conference. He is preparing himself.

Needless to say, our hopes are again quite high.

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.

June 11, 1945 Monday

Discussion is raging in the Camp as to what the government will do with regard to alleged collaborationists like us. To some, this question has been settled—Pres. Osmeña having already spoken. As reported in the Free Philippines of June 1, Pres. Osmeña declared that he reiterates his policy on collaborators as stated in his speech delivered in Leyte last November. According to this policy, “every case should be examined impartially and decided on its merits.” Persons concerned fall within 3 categories: “Those prompted by a desire to project the people, those actuated by fear of enemy reprisals and those motivated by loyalty to our government and cause.” The matter had been submitted to the Cabinet. The President declared on the 31st of May that the question of collaborators is difficult but not an insoluble problem—provided it is not made a political football. He said that it shall not be allowed to result in a division of the people, as this would be fatal to the success of our efforts toward national rehabilitation, reconstruction and the preservation of national unity.

In his speech in Leyte, the President admits that not all public officials could go to the hills to fight. Some had to remain in their posts to maintain a semblance of government, to protect the population from the oppressor to the extent possible by human ingenuity and to comfort the people in their misery. If the officials did not accept and serve, the Japanese would have governed directly and utilized unscrupulous Filipinos capable of committing treason to their people. The President concluded that the motives which caused the retention of the office and conduct while in office, rather than the sole fact of its occupation, ought to be the criterion in deciding each case.

I agree 100 per cent with Pres. Osmeña. He evidently is thoroughly familiar with the facts. We are now convinced that full justice would be given us. However, from the beginning, I feared that politics and personal considerations might creep in, in which case we cannot be assured of justice in the disposition of our cases. Our country is now in a terrible state; its rehabilitation will be a great problem. We should not do anything that might hinder or affect unfavorably all the rehabilitation efforts. Now, more than ever, we need complete unity. This is the reason why I resent deeply acts and statements of present officials of the government that would compel us to be indifferent or to do something to protect ourselves which might prejudice such efforts. If we really love our country let us forget the past; let us bury our personal ambitions, all personal considerations. Let us be one in carrying out all plans that would enable our country to recover in the shortest time possible.

There is a great deal of rumor and speculation concerning those of us who are senators. A few days ago, rumor spread that we were leaving the Colony soon. Many congratulated us and asked us to visit their families. Some even handed us letters. The rumor became more persistent when Pres. Osmeña, on May 31, 1945 issued a proclamation calling a special session of the Philippine Congress for June 9th. The senators who are here are Yulo, Recto, Paredes, Madrigal, Sebastian and myself—six. One, Sen. Tirona, is detained in Bilibid Prison. There are two vacancies in the Senate on account of the deaths of Senators Martinez and Ozamis. It is said that our presence was necessary to have a quorum. I could not see it that way as there were 15 members of the Senate remaining. But they argued that some of them might not be allowed to sit; like us, they accepted positions in the Japanese regime or committed acts similar to ours. Roxas was one of the framers and signers of the Constitution of the Philippines and later accepted the position of Chairman of the Economic Planning Council. Rodriguez was a member of the Council of State and later on accepted a position in a committee. Arranz was another framer and signer of the Constitution and was a member of the National Assembly. Fernandez was signer of the manifesto to form a government organization at the beginning of the Japanese regime and later became member of the Council of State. Imperial was in the Court of Appeals. Sa Ramain was another framer and signer of the Constitution. They might be classified in the same category to which we belong, and if they are excluded from the special session, there could of course be no quorum.

News came that Congress had convened and that the Senate was organized with the following officers: President, Senator Roxas; President Pro Tempore, Senator Quirino; and Floor Leader, Senator Rodriguez. This has blasted all hopes of our being called in Manila in connection with the Senate.

Undoubtedly, the main reason why we have not been called is that we are still political prisoners. Surely they do not know us nor understand us. We are not capable of doing anything which may divide our people, which may hinder rehabilitation of our country in her preparation for an independent existence. For my part, I shall readily sacrifice my ambitions for the common good and to make our nation great and enduring.

On June 2, we read in the papers that Gen. Manuel Roxas was reverted to inactive status effective May 28, upon his own request. Pres. Osmeña declined to comment. Many interpretation have been given to this news. It especially became mysterious on account of the attitude of Osmeña. It was believed that there had been a serious break between our two great leaders. We were very much concerned. We knew that it meant that the work for the rehabilitation of our country may be seriously affected. Our problems, the situation our country is in now, are such that no one man or group can cope with the situation. But we have faith in their spirit of sacrifice, in their love of country. We were relieved when Roxas was elected President of the Senate; now we know the reason for Roxas’ change of status. It is a great event—Roxas is the natural and logical man for that office. With his experience and ability, our country will be greatly benefited.

We are encouraged with the news that Senator Tydings, after his personal inspection tour, reported that the Philippines was stricken very badly by the war and needs prompt help. He submitted a four-point program for the rehabilitation of the Philippines as follows: (1) Loans to Philippine government to finance reconstruction; (2) Strict compliance with legislation calling for complete independence as quickly as economic conditions permit; (3) Gifts of funds for Army and Navy engineers to undertake rehabilitation of buildings and other structures as soon as war conditions permit; (4) General treatment of the Philippines to expedite the return to normal conditions. We should be very thankful to the Senator for his program. I hope, however, that as regards independence, the phrase “economic conditions permit”, will not be interpreted like the “stable government” condition in the Jones Law. The third is not clear; it may refer only to military buildings and structures.

Today we received a very disheartening news. It seems a fight between Osmeña and Roxas for the presidency is unavoidable. The election will be in November. Roxas is reported to have said, “I am more than ever determined to fight Osmeña for the Presidency.” The President on the other hand is reported to have said, “It doesn’t matter. I will run for the Presidency in November on national, and not purely personal issues.” So there is a challenge and an acceptance. Friends of both will undoubtedly intervene to settle the feud. I doubt whether they will succeed. Osmeña, on account of his long service in the government and his advanced age, wants to close his public career with a vote of confidence on the part of the people. On the other hand, Roxas feels that, although he is still young, this may be his last chance on account of the state of his health. Furthermore, he thinks that this is the time that he could be of great help to his country as the problems of the country are those he specialized in his studies and observations. Such a division will be fatal to our country. Our country lies prostrate on account of the war. She needs all of us, especially these two outstanding leaders whose love for country is proverbial and whose combined knowledge, experience and ability will enable us to surmount the difficulties that are in store for us. We pray to God that His light may be shed upon us in order to illumine our minds, so that all ambition, all rancor, all personal considerations, in fact, everything we have or may want to have, will be sacrificed at the altar of our mother country.

A word more about independence. Political independence and economic support on the part of America are entirely compatible. One great advantage of becoming an independent nation is that we can proceed with the preparation of our programs, and carrying out these programs with full power and without international considerations other than the reciprocity agreements involved. When I was Chairman of the National Economic Council under President Quezon’s administration, I despaired on account of the difficulties arising out of our dependent status. We could not legislate on anything that may affect American interests, notwithstanding the fact that the U.S. passed legislation without consideration to its effect on our economy, especially with regards to our exports to the United States. We could not deal with other countries as we did not possess the authority to do so. My experience has convinced me that it is impossible to prepare and carry out a complete and comprehensive program unless we have an independent nation, with complete freedom in tariff, currency, commercial treaties, etc.

The question has been raised whether it will be possible to prevent the fight between Osmeña and Roxas. From my personal point of view, settlement is most difficult. Now that Pres. Quezon is dead, we have to decide who would succeed him. Of course the choice is between Osmeña and Roxas. Their friends did all they could so the fight could be avoided. No effort was spared; no argument neglected. They especially emphasized the fact that Osmeña was old, and that the arrangement could be that Osmeña can be President this term and Roxas the next. All efforts failed.

Who will win? Nobody can tell. Each count with unconditional supporters. Each can muster good and effective arguments. In my opinion, however, the result will depend upon their views on live issues, especially the date for our independence, the political and economic relationships that may be established with other nations, and the “collaborationist” problem. In so far as I am concerned, personal considerations will never enter, grievances that I have had in the past, will all be forgotten. What matters to me is the independence of our country and the welfare of our people. For these I shall be willing and ready to make any sacrifice.

We had a program within the compound this evening. It was very entertaining.

June 7, 1942

Quezon thinks this is a business war, caused by slavish imitation by Japanese of the Western powers’ methods of monopoly. If the Japanese had not closed the open door in China, there would have been no war. It was totally needless, in any case, for the Japanese could have undersold all commercial rivals with all of her own products in China and she had already regained for China control over her own customs administration. If the “open door” had been maintained, the United States could then have held their Chinese market only on petroleum and tobacco.

In Japan in 1937, Quezon met members of the House of Peers and of the Diet who were opposed to the militarists —not so now. One of the Peers who was speaking of the recent Coronation said it was the last, as a religious ceremony with all the “Son of Heaven” cult. Quezon says he is never entirely at his ease in conversations with Japs —they have been until recently, for too many centuries isolated from the rest of the world.

Thinks it is a mistake to assume the Japanese are naturally an Empire and the Chinese not; on the contrary, the Chinese have always been imperialists when they were strong enough, and the Japanese only recently so. China in the past tried to conquer Japan. If the Chinese now argue that the aid promised by the United States to China has not been satisfactorily supplied, he would reply, if he was an American, that the Chinese got us into this war anyway.

Quezon is absolutely opposed to the plan to let the Chinese remain armed after this war, and the Japanese entirely disarmed. “The Japanese could teach us civic virtues, but the Chinese only ‘trickery and corruption.'” Would prefer to have the Indians armed.

I asked him whether, in the peace settlement, the Dutch East Indies would be given back to the Netherlands? He replied: “That would be an outrage. The Malays should be allowed to unite. For years the Javanese have been looking to the Filipinos to lead them to freedom. The movement started when General Wood was Governor General; we smuggled their leaders into the Philippines with the connivance of the Collector of Customs (Aldanese); Ramon Fernandez helped them and gave them money. I must soon begin to work on this with the English, the Australians and the New Zealanders. At the Peace Conference, I intend to make a loud noise. If we were to be united politically, I would be willing to have the capital in Java. It is not mere numbers that count, but intelligence.”

He thinks we could make a satisfactory peace with Japan at any time, but Roosevelt would not consider it for a moment. Believes the Japs would consent to leave the Philippines outside their “Co-prosperity sphere.”

“The greatest political danger to Don Sergio and me now is that the Japanese may declare the independence of the Philippines themselves.” “If so” he added “I would not stand in the way for one moment, but would resign and not spend one more penny of the money of the Philippines in the United States, even though that would reduce my family and myself to starvation.” He said that if he were President of the Philippine Republic, and the Japanese sent for him now to return to be head of an independent country, he might consider it. But he is only president of the Commonwealth which owes allegiance to the United States, and he is irrevocably tied up with that. If the proposition of independence were put to the Filipinos now by Japan they would vote overwhelmingly for it —there would be no need of Japanese soldiers to carry out the election.

Roosevelt did not insist that the Filipinos should continue the war against the invading Japanese. On the contrary, on January 3rd, 1942 in response to his cable of the day before from Corregidor, in which Quezon had questioned the right of the United States to make the Filipinos carry on a war for a power which could not protect them, Roosevelt had wired MacArthur to permit the highest ranking Filipino officials to surrender the Philippine Army, and then ordering MacArthur to carry on the fight to his last man.

Quezon then told of some Indians who were on the steamer with him when he was crossing the Pacific in 1916 with the Jones Law in his pocket. Two or three of them came up to congratulate him on his great achievement and ask his help for Indian independence.  “This,” he replied, “I am not in a position to give.” They were taken aback and asked: “Aren’t you in favor of our independence?” “Yes, I’m in favor of it, but with your 350 million people, all you have to do is to have every Indian sneeze at the same moment. Give me one half of your population and I would have the English begging me for their independence.” They retired angry and confused.

He thinks that, physically, the Siamese most resemble the Filipinos. They went over to the Japanese before the war began because their former territories in Indochina which had been seized by the French, had been given back to them by the Japanese.

Discussing the two photos in the Manila Tribune ofJan (?) 1942 showing first George Vargas reading to the Japanese officers his acceptance of the post as head of the Executive Commission set up by them, and the second showing the group of Philippine representative citizens who had been summoned, or chosen to accept this new form of temporary government, I commented on the presence there of former Chief Justice Avanceña. Quezon remarked that it was a damned shame that the group insisted on the presence on that occasion of that old man.

He thinks Kihara, former Vice Consul at Davao, whom he likes, is the go-between between the Japanese High Command and the Executive Commission of Filipinos.

December 29, 1941 – Monday





BVC-0001 PAGE 29

BVC-0001 PAGE 30


At 5 a.m. I phoned Collector de Leon. His voice showed that he was worried. “I have not heard from the Apo”, he said, “I fear that it may have been sunk.” I decided to take other steps if no reply was received by 6:30 a.m.

At 6:30 a.m. I called up Mr. Jose (Peping) Fernandez one of the managers of Compañia Maritima and told him that I had to see him with an important problem. I rushed to his house. He realized my predicament. “I can offer you ships, but they are not here,” he said. After studying my needs from all angles we decided that the best thing to do would be to ask the U.S. Army to release the SS Mactan.

We contacted Colonel George, in charge of water transportation, and asked him to meet us at USAFFE Headquarters so that we could discuss the matter with General Marshall. We met at 8 a.m. and it was decided that the U.S. Army would release the Mactan to me to convert it into a hospital ship. I was told the SS Mactan, was in Corregidor and it would not be in Manila until after dark. I rushed to the Red Cross Headquarters and asked Mr. Forster to have the painters in readiness to start the painting without delay, as soon as the ship docked at Pier N-1.

Last night Mr. Forster sent a telegram to the American Red Cross in Washington informing them of our plan.

At 11 a.m. Collector de Leon phoned me that the Apo was sailing for Manila that evening. I thanked him and informed him that it was too late.

At 5 p.m. Mr. Wolff phoned me that they have received an important radiogram from the Secretary of State, Hull, and that my presence in the Red Cross was urgent to discuss the contents of this radiogram. I rushed there. Mr. Wolff, Mr. Forster, Judge Dewitt and Dr. Buss of the High Commissioner’s Office were already busy studying the contents of Mr. Hull’s radiogram. It was specified in it that the sending out of Red Cross hospital Ship was approved; that the Japanese government had been advised of its sailing through the Swiss Ambassador and that it was necessary that we radio rush the name of the ship and the route that would be followed. Moreover, we were told to comply strictly with the articles of the Hague convention of 1907. These articles define what is meant by Red Cross Hospital Ship, how it must be painted and what personnel it must carry. It clearly specifies that no civilian can be on the boat.

I left Red Cross Headquarters at 6:30 p.m. No news of the SS Mactan had been received. At 9 p.m. I called Dr. Canuto of the Red Cross, and I was advised that the ship had not yet arrived.

At 11 p.m. I went to Pier N-1 to inquire. No one could give me any information about the Mactan. There was a big fire in the Engineer Island. It had been bombed the previous day and the oil deposit took fire late this evening. The flames were very impressive. I left at 11:45 p.m.