July 23, 1945 Monday

The newspapers bring two pieces of news; one elated us, and the other alarmed us.

The first seems to indicate an early end of the war. United Press reports in New York that the United States government administration is taking steps to draft the United States unconditional surrender terms. New York Herald Tribune states that the possible terms as reported from reliable sources are the following: (1) Return of all territories seized by force; (2) Complete destruction of Japanese fleet and air force; (3) Dismantling of all shipbuilding facilities capable of turning out air crafts and munitions; (4) Japan will not be invaded, only a token “supervisory force” will be sent to Japan; (5) Japan is to retain her form of government, including the Emperor, and to manage her own political, economic and social affairs; and (6) Japan may be supplied with iron, coal, oil and other resources needed for civilian use.

Some parts of the above terms need clarification. For instance, what shall be done with Manchuria, Korea and Formosa?

If I were Japan, I would grab peace under the above terms. Japan is already beaten. With the hundreds of superfortresses, her annihilation or almost complete destruction is assured. Furthermore, due to her own fault, her dream of union among the countries of Greater East Asia has been blasted. Because of her record in these countries, it will take a century before her nationals will be welcomed in these countries. Not only did she disqualify herself to be the leader of any union to be organized here, but she will probably not even be admitted until she shows that she can treat other people as civilized people do. China may want to be the leader. If Manchuria and Formosa are returned to her, she will be the strongest nation in the world and may even dominate the world. The Chinese are not only good businessmen, but they have also shown themselves to be good soldiers. But they were also shown to be cruel at times. I believe that for the safety of the Orient, China be divided into at least three nations: North and South China, and Manchuria.

It is rumored that in Washington these terms for surrender were received with general approval.

The above news must be related to other news. It is reported that Russia is acting as intermediary and that Stalin took with him to Berlin the surrender terms, evidently to submit them to the Conference between him, Truman and Churchill. Another news item is that before the Russian delegation left for Berlin, the Japanese Ambassador Sato, had a conference with Foreign Commissar of Foreign Affairs Molotov and with the Vice-Commissar.

Something must be in the offing. All of us expect or at least hope that termination of the war will come.

Today, our stock prices have reached the highest level.

The alarming news is that the feud in Manila seems to be impossible to patch up. It is growing worse to the dismay and disappointment of the Filipino people.

Roxas is reported to have stated that the administration of Osmeña “smacks of dictatorship”. He reiterated his criticism of the elimination of judiciary officials, army men and civil service employees without following the processes provided by law for their separation. He also cites blunders being committed by the administration. “Take for instance eggs,” he said. “The price fixed is 3 centavos per egg, whereas the price at sources is 4 centavos. The hen will not even care to lay eggs.”

It should be remembered that the Committee on Appointments returned the appointment of the seven justices appointed by Osmeña. This is tantamount to disapproval. It was suggested that the Court of Appeals abolished by Osmeña be revived. Instead, Osmeña reappointed the seven justices in defiance of the apparent desire of the Committee.

The Senate of the United States Congress has approved the Bretton Woods monetary agreement, approved by representatives of 44 countries. The agreement provides for the establishment of an international bank with a capital of $9,100,000,000 to make or guarantee loans for rehabilitation and economic development. It also provides for a fund of $8,800,000,000 as monetary fund for stabilizing the currency exchange rate of participant countries. The participation of the United States will be $5,900,000,000 in the proposed $17,900,000,000, divided thus: $3,175,000,000 for bank’s capital and $2,750,000,000 for the exchange stabilization fund.

The approval of the agreement in the United States Congress seems certain.

This Agreement is of far-reaching effect. We must be a member of it. As one of the countries needing funds for rehabilitation, we should secure from the fund what we need for the purpose. The exchange question will also he vastly simplified. I suppose the bank will also act as a sort of clearing house.


Jan. 10, 1945

Rather quiet day with moderate air activity – thus all personnel in and out of buildings due to frequent ringing of bell. Conference with Col. Vanderboget and Col. J.S. Craig concerning Franz Weisblatt, supposedly a U.P. correspondent. He is a trouble maker talks too much, is always taking down information and witnesses names etc. However, he has caused no great trouble here since I took over before he went to Ft. McKinley or since returning. He did cause trouble out there and Capt Shaw wishes him committed for mental observation. I am having him transferred to another ward for another chance as I do not believe he is psychopatic but simply ordinary. He does have paranoia trends in that he thinks someone has it in for him. Talked with Sgt. friend tonight.


August 24, 1936

Quezon’s banquet for General MacArthur of 144 guests at one table in the central hall in Malacañan. Army, Navy, Consular Corps, Committees of Assembly, Church pundits, etc., etc. Probably the most brilliant and dramatic dinner party ever given in the Palace. The purpose of the evening’s ceremony was to confer an appointment as Field Marshal on MacArthur with the presentation of a gold baton. Quezon’s address opened with an account of his first visit to Malacañan in 1900 as a prisoner of war, he having been sent through the lines by General Mascardo of the Filipino insurrectionary forces from Zambales to ascertain whether General Aguinaldo was really a prisoner of war. The story was well and dramatically told–thus furnishing an excellent introduction to the son:–MacArthur’s address was carefully prepared and was eloquently delivered. He was covered with orders and decorations. His speech was all about preparedness. When he had finished, the Japanese Consul General who sat next to me whispered: “it is the same speech the Japanese Generals make before the Diet when they want more money for the Army!” He (Uchiyama) talked that evening more openly and frankly about Japan that one expects from one of their officials. Told me of recent nationalization of all water power in Japan; also of the new rule requiring old men to vacate the public service and in business as well;–in the latter they must now retire at the age of 55 unless they are Directors, when they can go on to 60. Youth insists on taking control. Pensioners get one third of their former salary.

Uchiyama had originally set up the first Japanese Legation in Havana;–he commented that Cuba under the Platt Amendment was much like the Philippine Commonwealth now.

Later, Quezon invited MacArthur and his staff, Cavender, Jim Ross and myself to stay on in his office, and we talked until one o’clock. MacArthur and I were urging Quezon to influence the Bulletin to stop its campaign in the United States in derogation of the Philippines. MacArthur says that news from the Philippines, manufactured by the Bulletin and by Walter Robb is published as facts by the Associated Press and the United Press etc., without verification–the only place in the world where this is possible! MacArthur also discussed the influence of Stanley Hornbeck in the State Department, who for fifteen years has directed “Far Eastern Affairs,” and is strong for America’s withdrawal from the Pacific.