Subject — Economy. Sison made inferences about MacA relief. Did not Pres Q ask the GS whether it could handle the job by itself. Sison then extemporized on military justice. Case of Lt. Valparaiso. Very bad decision of Capt Torres. Lim took responsibility.
Had several conferences w Carag, Cunanan, [illegible] Richards.
Had hot words w Col Garcia whom I accused w high handedness re report of board. He submitted report without my signature, Valdes approved report without seeing my minority report. Garcia is determined to railroad selection of Laconico who is son in law Mrs. Alano, who is wife Rep. Alano, who is husband of Mrs. Alano who is the cousin to Sec Vargas, who is husband of Mrs. Vargas who is supposed to be aunt of Mrs. Garcia who is the wife of Col Garcia.
After these hot words I went to see Lim who went with me to Valdes. Valdes too is in this deal. No reason why V can not change his approval.
The way Garcia handles this business make him unfit for any position of responsibility in this army.
Reception at Mal. for Consular Corps. A very beautiful park across Mal. Why should [illegible] be a guest at Mal.
Went to Murphy and inspected M.G. crew in order to equip M.G. units.
Lim called me up early to tell me of his estimate of the situation re McArthur. He told me he had conversations with him wherein he told McA that he was willing to step out of the Army to give way to me to become C of S. He told McA that I am strong, honest, aggressive, full of initiative and a keen mind.
All our troubles re basic policies which have to be changed are the product of one man’s McA without the leveling influence of another. Had the C of S (Santos & V) any idea of their own in military matters these things would not have happened. As it is McA chose dummies in order to have things his own way. But unfortunately the Gen. Staff was not such a dummy and with the fact that this Gen. Staff is very well thought of by the Pres. MacArthur’s had to lose prestige. Mc dug his own grave when he chose dummies for his C of S.
Lim says Valdes will not use favouritism anymore. I laugh. Look at the case of Galvez. Amado was present to give light on how Valdes extended Galvez. Favouritism again. Valdez circularized me re this mutt, and I indicated that he was no grad, yet he gave him an extension because Galvez father had spoken to Valdez at wedding of Aguilar’s daughter and had also written him a letter.
Present — Sec Sison, Valdes, Francisco, Lim, Garcia, Segundo, [illegible], De Jesus
Subject — Justification of proposed cut of budget. Loss of confidence in MacArthur expressed by the Pres. He expects MacArthur to pull out when budget is reduced.
McA failures — He failed to tell Pres. that 16 million is only for training purposes. He failed to explain Mindanao defense. He places too much confidence on contingencies that may not happen.
Trend of the President’s thoughts —
1. Country can not defend itself under present plan
2. Money could be better used by altering present plans.
3. Peoples that have interest in the govt must be the ones to be prepared as then they shall defend the govt.
4. Interest of American armament — to be able to dictate terms of peace at end of war.
5. Japanese interest — to share in wealth of country, to be master of the Orient. Pres. Q does not believe Japan will come to the Phil and risk a war with America as America is one of her best trade customers.
Pres. Q. requests the General Staff to exert its utmost to provide the countrys defense after McA. leaves.
Pres. Q. argues with Gen. Staff memo on reduction of budget. The Army needs as presented are considered vital by him.
Present: Sec. Sison, McA, Sutherland, Lim, Garcia, Segundo, [illegible], De Jesus, Magtoto — President Q Presiding–
Discussion — Pres. outlines history of McA. [illegible] Defensibility of Islands —
McA. quizzed by the Pres. on basis of his plan — Does it envision US.N. employment
McA. says no — He pretends his plan is self sufficient. He outlines Far Eastern balance of power as the thing that will insure independence. His opinion is six months of war, after that intervention by US or other power. He fails to answer Pres. Q on question of Mindanao —
Gen. Staff — opinion on budget reduction presented.
Tea at Lim’s –Dalao, Romero, Manzano Moran absent. Pacita was present. Lim talks and traces the case of the Scouts. Most of his talk was on his resignation and the chanfe in the relation of Mil. Adv. to Army. Everything was brought out about the new offer of the Chief of Staff in the form of the letter signed by Vargas.
Sevilla, Amado, Olivares were somewhat positive against. Garcia A was the other way. Victor wanted concerted action either to accept, or not to accept. Garcia A objecting.
I gave an estimate of the situation as follows: The case consists of two parts: loyalty which is a problem bet. officers and the President, and rank which was a question between the officers and McArthur but which is no longer so but has become a problem between Pres. and McArthur.
Everybody unanimous on loyalty and service including Olivares. Some difference in opinion on rank, most of the officers wanting no rank. Joe Garcia the only one who accepts everything. He has already accepted by letter to Valdes. [Illegible], Santos, Janaino, Cabuya not vocal. Amado, Sevilla, Garcia A and Olivares, vocal.
I brought up question of Woodring Vitalization bill. All unanimous with respect to my suggestion to include in it a Phil Scout rider.
Lim speaks about his interviews with Pres. Q. including his plan of retirement for Scout Officers so that no loss of retired pay will vault to such officers.
Joe Garcia said that this letter which is so well written was probably a maneuver of the Gen. Staff to get these officers into a frame of mind not so favorable so that when something more favorable turns up later these same officers will be so satisfied. I remarked that this was a wrong estimate. I said Col Garcia can tell the whole story which he did on the letter written about their places in the water which provoke this present offer fr. Vargas.