July 3, 1942

Met Lt. Col. Carlos Romulo, editor of Quezon’s paper the Herald in Manila–noted orator–a.d.c. to MacArthur, i.e., “press agent”–still very shaky, said he was wounded once on Bataan (?). He corrected the newspaper interview ascribed to him on landing at San Francisco. He did not correct the statements to the effect that he was in the United States “on a mission for General MacArthur,” nor that he was the “last man to escape from Bataan”; but did give a correct rendering of the Domei agency announcement concerning the burning of Cebu–that it was to show the Filipinos that all further resistance should cease–not that it was punishment for sniping, in which even women were said to have taken part from upper windows of houses when the army of occupation entered Cebu.

“Further resistance” probably refers to the guerrilla bands, or remnants of the army still active in the high mountains of Cebu, and perhaps also in Luzon and Mindanao.

Quezon tells me that a “high official” of the Red Cross reported to him that the Japanese are treating their prisoners in the Philippines well.

Reports come from Australia that the danger from the Japanese has not lessened–only that their present interest is turned elsewhere. Some think the enemy could take Australia and New Zealand whenever they wished.

“Nonong” (Manuel Quezon, Jr.) celebrates his sixteenth birthday. He tells me that “Calle F. B. Harrison” in Pasay has had its name changed by the Japanese.

Chat with Osmeña. He says that there were 5,000 troops in Negros; 5,000 in Cebu; 5,000 in Panay and 30,000 in Mindanao–all units of the Philippine Army, with high officers who were all Americans. Believes General Sharp, tho unwilling to surrender, probably did so when Lieutenant General Wainwright expressed his desire that he should do so.

Osmeña has always been interested in pushing the settlement of Mindanao by Christian Filipinos, but believes that in all these years they have only persuaded some 50,000 of them to go down there.

Osmeña was the founder of the Nacionalista party and its first president. Since 1907 they were permitted by the American Governors General to agitate for independence.

At the convention of Governors of Provinces in 1906, Osmeña, from Cebu, Quezon from Tayabas, Veyra from Leyte, Luna from La Union, and Gabaldon from Nueva Ecija were the only Nacionalistas, but ran the convention in spite of the fact that all the rest were Progresistas. Governor General Smith was in charge during these years. The principales of Negros proposed establishing a “Republic of Negros,” and Smith did not object so long as they stayed under the American flag. Tells the story of Smith’s first attempt to speak Spanish. It was at this banquet in Negros, and after the customary large number of courses, a lady beside him asked: “Quiere Su Excelencia tomar una siesta ahora?” He replied: “Si Señora, con usted,” thinking the siesta was a name for ice cream.

Quezon on the subject of protocol: “I have never been much interested in it. I prefer the theory of Don Quixote, who when he appointed Sancho Panza Governor of Baratari, was given a dinner by the latter. Sancho invited him to sit at the head of the table, but Don Quixote replied: ‘Wherever I sit will be the head of the table. “‘

The subject, however, is of great importance to Osmeña. Taft has fixed Osmena’s status as Speaker of the Assembly when opening the first Philippine Assembly, by declaring that, after the Governor General, the Speaker of the Assembly was the second man in the Philippines.

Leonard Wood, when Department Commander in the Army had raised the question with Governor General Forbes–Wood was unwilling to allow precedence over the Department to a Filipino. Osmeña cabled Quezon then the Resident Commissioner in Washington and Quezon went to see the Secretary of War adding that “Tho I considered my mission a silly one, yet the duty was imposed on me by my leaders.” He reported to the Secretary of War that Osmeña believed Wood was trying to undo the fiat of Taft, and that he (Osmeña) would consider such action a humiliation to him and to his people. “Personally,” said Quezon, “I never consider it important where they place me.” The War Department ducked the issue, ruling that when the Speaker was invited, the Commanding General should not be present and vice versa. This was in 1910-11. Quezon added: “Wood could not stand the idea of a Filipino being put ahead of him. I never regard such matters as important unless done with the purpose of humiliating me or my race.”

Quezon continued: “When McNutt was first sent in 1936 [sic] as High Commissioner to the Philippines, I was in Europe. The Japanese Consul gave a fiesta at which he toasted the President of the Philippines before proposing a toast to the High Commissioner (McNutt).” This Quezon considered as of no importance, and it was certainly not an official attempt of the Japanese to play politics in the Philippines. “The Americans in Manila had been pushing McNutt to assert himself, and got him crazy.” So, he sent circulars to all the Consuls in the Philippines calling their attention to the correct order of precedence, and instructing them to route all official correspondence with the Commonwealth Government through his office.

“In Washington, they had a Cabinet meeting to discuss the press furore over this matter, for they feared it would give trouble. Vice President Garner said: ‘I’m afraid we’ve sent a trouble maker there.’ President Roosevelt replied: ‘I wouldn’t say that, but he seems to be indiscreet.’

“I was in Paris at this time, but refused to be quoted as being mixed up in this damned nonsense. When I arrived in New York all the newspaper men were on to me on this question. I told them: ‘Gentlemen, all I wish to tell you is this: if there is a toast, and I am given the opportunity of drinking it, all I care about is that there should be enough to drink.’

“The President was relieved when he learned of this reply. But I feared that with McNutt I might have another Wood-Quezon fight on my hands in Manila. Before arriving home, I carefully wrote out my speech. The banquet of welcome, attended by some 1,500-2,000 people was dramatic enough for we had an earthquake during it. I told them: ‘In order that there may be no misunderstanding among the people, I consider it important on this occasion to state what I consider to be the rights of the President of the Commonwealth in relation to those of the American High Commissioner. The latter, as the representative of the President, occupies the highest place. But all the power and responsibility of this government, except in the matter of foreign affairs, rests in the President of the Philippines. In these matters, I am the boss. I will welcome any suggestions from the High Commissioner and no doubt his suggestions will exercise great influence on our decisions.” (Wm. H. Anderson’s book contains 20-30 pp. on this.)

Quezon next described his first lesson as a young member of the first Philippine Assembly in 1908 on how to act when attacked by the press. A local newspaper in Manila had attacked him in its morning issue and a friend rushed into his bedroom and awakened him with the article. He leapt out of bed, rushed through his dressing and ran to the office of the paper, asking to see Salazar, the editor. He shoved the paper before him and asked him if he had written it. “Yes,” so he pushed it into Salazar’s mouth who went over backward with his chair. Alemany rushed in to protest, and Quezon raging, asked him if he had anything to do with it, so Alemany fled. Then Salazar challenged Quezon to a duel and Quezon replied: “To hell with you and your duel.” He then went into the composing and printing room and told the workmen in Tagalog that they ought to quit working for such scoundrels.

The next morning, all the press attacked Quezon. He began to be ashamed and to think that after all he was disgraced. He went down to attend the session of the Assembly in the marble hall of the Ayuntamiento, and at the door met Governor General Smith, who “was himself a fighting Irishman”–Smith said to him: “Well, young man, you had quite a good time yesterday. Let me offer you a piece of advice–there is nothing worse than being ignored by the press; if they won’t praise you, pay them to attack you.” Osmeña said nothing to Quezon about the incident.

Visit to President Coolidge. Former Governor General Forbes told Quezon that in due time, Coolidge would be recognized as the greatest President next to Lincoln. Quezon remarked to me that he thought he was the worst “not even except Harding.” He described a visit with Osmeña to Coolidge in the White House. It was Osmeña’s first President; he bought a suit for the occasion and bowed low when entering the presence. Quezon continued: “After 10 minutes I saw that Sergio was beginning to revise his estimate. This was not one of Coolidge’s best days. He drawled and gulped and nobody could make sense out of anything he said. When we left the White House, Sergio said ‘Chico! Caramba! so that’s a President of the United States.'”

Quezon’s revision of Hare-Hawes-Cutting Bill: The provision of the indefinite retention of the American Army in the Philippines after independence was granted seemed to Quezon to make “independence” (a) futile–for had not the Army “betrayed” an American Governor General? What would they do when a Filipino became the head of state? “Suppose Don Sergio for example were the first President of an independent Philippines, what would happen? Directly after his inauguration he would perhaps wish to rest after the ceremonies and take a drive. He would go to Fort McKinley, outside Manila, and perhaps be halted by a sentry and turned back.”

The provision was moreover (b) dangerous--and would be liable to create incidents between the United States and the Philippines. Moreover, though at the time they naturally did not make this statement, there was the challenge to Japan in the continued presence of the U.S. Army in the Philippines. He thinks this requirement was a product of American imperialism.

So, he wired Osmeña and Roxas in Washington to await his arrival there and added that if they could convince him that the bill was wise, he would support it. This they failed to do. Senator Harry Hawes, one of the joint authors of the act, gave a luncheon for the Philippine delegation at which Joe Robinson, the floor leader of the Senate was present. Having listened to the discussion at the table, Robinson finally said with some show of anger–and he was a man of sudden anger and violence: “I’ve had enough of all this–you can take the law as it is, or leave it.” Quezon rose and said: “Then I’m through, we won’t accept the law.” He left and returned at once to the Philippines. Before Robinson’s death, a little later, the senator paid a handsome tribute to Quezon.

Upon his return to Manila, Quezon got the legislature to reject the law by more than a two-thirds’ vote. He told the caucus that they would have to “get rid” of Osmeña (the Vice President) as head of the senate (sic) and of Roxas as Speaker. There was much hesitation among them since the people were so anxious for independence that there was general support for the law. So Quezon told them: “You leave it to me–the popular support here for Osmeña and Roxas will not last thirty days.” Then Quezon offered his own resignation as President of Senate, which was refused by a large majority. Roxas, that evening, did not wait for the vote; he resigned as Speaker of the House of his own accord. He was “chaired” by the students at the University and said later that “he had fallen from the speakership into the arms of the people.” Quezon commented publicly that when Roxas had fallen into the arms of the students, he had picked out those of a pretty girl in the crowd–Quezon added that he wouldn’t mind that kind of a fall, himself. During the controversy, Quezon made no personal attacks nor reflections on either Osmeña or Roxas. The Hare-Hawes-Cutting law was overwhelmingly rejected by the legislature.

Religious Instruction in the Public Schools: Taft as the first Civil Governor had passed a law permitting this, but it was very ambiguous in its terms, and never put into effect. (N.B. this, and Taft’s visit to the Vatican, plus the “Friar Land Purchases” had a great deal to do with the re-election of Theodore Roosevelt in 1904. I was campaigning on the state ticket in New York in that election and knew of the immense activity–undercover–of the Catholic priests against our ticket headed by Alton B. Parker. F.B.H.)

Quezon says that when Laurel, Roxas and Recto were framing the constitution of the Philippine Commonwealth, Taft’s “religious instruction” proposition was inserted in the articles. The first session of the National Assembly, in the early winter of 1935-6, passed by 90 votes a law to this effect. Quezon vetoed the act on the ground that it was unconstitutional. Chief Justice Avanceña, whose advice he took privately, backed him up, but the act was never re-passed over Quezon’s veto, so never came before the courts. Avanceña went down to his home province of Iloilo to explain this matter to his sisters, who had brought him up and educated him. They had kept a school there since Spanish days, and were intensely religious. Avanceña did not broach the subject to his sisters but went to the priests who were those who “confessed” them, and explained to them the constitutional point. Then, after satisfying them, he arranged with them to come to dinner and to have one of them raise the question quite casually at the table.

Quezon was dictating to Canceran the chapter of his book on his birth and childhood. Great was my surprise at the primitive conditions at Baler 60 years ago: no market–everybody raised, or shot or caught their own food or exchanged their crops for venison and pork. Few shotguns; most of the people were armed only with spears or bow and arrows, etc. He replied: “Inferiority complex of the Filipinos never has permitted them to tell the truth about their primitive conditions in Spanish days. I shall be the first.” (Vivid contrast here with the profusion, extravagance and disregard of expenditure in which he has lived during the Commonwealth; instead of resenting this, the Filipino are probably proud of all this reckless display–I’ve never heard him express the view that anything he wanted was too expensive. F.B.H.)

August 11, 1936

Saw Quezon coming out at 9:30 with A.D. Williams, Arellano the architect and Assemblyman Magalona. He called out to me asking me to lunch with him, and a moment later sent a messenger to ask me to join his party. We went down to the Port Area to see the land which Magalona wants to lease for a hotel. Quezon told me it would not compete with the Manila Hotel, since it would be of a different class, and would not be a success anyway –the group of Negros sugar planters represented by Magalona “had so much money they didn’t know what to do with it”; they hoped to construct the hotel in four months to be ready for the coming Eucharistic Congress. Quezon approved the plan “because the government might as well get the income from the rental.” Somebody added that “the Government would probably get the hotel in the end –to use for offices.”

Quezon talked of getting rid of the San Miguel Brewery as a neighbour of Malacañan Palace, and making government offices there, so that he could house all the bureaus under the control of the President in one group around him: Civil Service, Auditor, Budget Office &c. Apparently, he contemplates exchanging the Government Ice Plant (now leased for 120,000 pesos a year to San Miguel Brewery and assessed as worth 1,200,000) for the brewery buildings next to Malacañan.

Quezon also told us that Cuenco had been to see him asking his aid in getting the Assembly to modify the new inheritance tax law so as to exempt bequests for religious and educational purposes. Maximo Kalaw, the Chairman of the Ways & Means Committee had then come to ask him to oppose this change. Quezon is opposed anyway –says the Government is spending a very great deal of money anyway on educational and charitable programs. The papers carry an item of another decision backed by Quezon to insist on the payment of certain taxes by the Church. It is possible he feels restless now over his re-conversion to the Church made when he was so ill in California several years ago. He is, I think, irked both by that and the partial restriction of his mental liberty. If so, the Church had won a Pyrrhic victory in restoring him to its bosom! I remember how at the time of my appointment as Governor General, the question was “why not send a Catholic to a Catholic country?” and the reply was “The Church doesn’t want a Catholic as Governor General –they had one in Governor General Smith, and he was so impartial in his relation to the Church that he leaned over backward!”

On our return to Malacañan, the President and I went to his office and I told him I wished to ask him about three points he had suggested to me as to my future relations out here!

(1) He had said I had better stay on out here for the rest of my life (giving complimentary reasons) –“not of course always in the Government –but as an investor” –I now was asked to become a director of a company about to be launched. He properly replied it would not be suitable “so long as I was at Malacañan”– of course he “had no objection to my making investments here.” (I passed up for the moment the plan I am forming to get out of the government service). Then Quezon asked me what was the second question?

(2) I raised again his suggestion that I should collaborate with him in a history of the Governors General since my time. His face lit up with this. I said we should not wait, but “strike while the iron’s hot.” He agreed, and advocated my seeing him three times a week, either while driving around or in Malacañan, adding “I like your company, and I think you like mine.” “The way not to write a biography is to sit down to it, because then one often misses the important points.” My third question.

(3) Was whether he had consulted Secretary Yulo as to Americans taking up Philippine citizenship. He jumped and said: “By Jove, I had forgotten that” and sent for Yulo immediately.

Then he went into the matter of his relations with  Murphy, saying “Murphy is a man who avoids facing a difficult situation –especially with a determined man like myself. If he ever comes back here he will not dare to try to run the government. I would rather have Weldon Jones here –he is clever, wise, and modest. I consulted him about that part of my message to the Assembly denouncing the withholding of the excise taxes in the United States –and he was very helpful.”

Quezon then gave me a copy of his letter of November 2, ’35 to Murphy opposing a “definition by the Secretary of War of the duties and privileges of the High Commissioner” and stating forcibly the constitutional rights of the new Commonwealth. Murphy never replied to this. The President went on to discuss the powers of inspection of the High Commissioner into the offices of the government, which are very broad. Said he had drawn up an authorization for all bureaus and offices to give information upon request by the High Commissioner, but on advice of Yulo he had withheld this. However, the only two matters on which information has not been furnished are: (a) the Philippine National Bank, which refused “in spite of my orders to furnish a copy of their minutes to the High Commissioner and I did not press them further” and (b) as to the Belo Fund. Murphy came to see him with a demand for the list of payments in the Belo Fund, and Quezon told him he could see it himself, but he would not turn it over to the High Commissioner’s office. He told Murphy: ” The powers of inspection of your office are based on the responsibility of the United States to make sure that Philippine finances are kept sound. How could the authorized expenditure of my 250,000 Belo Fund affect the general financial position? If this, however, is mere curiosity, or is an attempt to show that I have not administered the fund honestly and legally, –I resent it.” Murphy returned to the enquiry later, but got no further. Quezon went on the steamer as far as Hong Kong with Murphy who then never raised the question, but en route to Shanghai he gave Yulo a letter on the point, saying he need not put it on the record if it was thought unwise. Yulo never gave this letter to Quezon. Then, the President continued: “I would rather deal with a man who came out in the open like Stimson –who was a savage, but not one who fought from ambush– he was out on the open road always ready for a scrap. He was brutal –I never knew a man so well brought up who was so rough. Once during Stimson’s administration as Governor General, Don Miguel Unson came to me and said he would have to resign as acting Secretary of Finance. I persuaded him not to resign and then told Stimson, who replied: ‘I have tried to be careful with the Filipinos and especially with Unson –I didn’t know I was rough!'”

Later, at luncheon with Quezon and Aldanese, I opened the conversation by saying I had seen in the papers that he is interested in the Leyte Rock Asphalt dispute with the Bureau of Public Works. That this was not my business, but I had the papers on my desk and here they were –the latest statements from A.D. Williams and Claude Russell. He said at once “I am in favour of A.D.” –(so sounds the death knell of an infant Philippine industry!). He went on to say that Claude Russell had lost the government a lot of money as head of the defunct coal company (no doubt he did, but this valuable coal is now about to “come home to roost”). He added that General Wood came out here breathing fire and promising to “take the Government out of business,” but the only business they should properly have relinquished was that of coal, and: “Wood kept hold of this company for two years after we tried to close it up, because Russell kept flattering him.” He then went on about Wood. I told of the day in November 1920 when the news of Harding’s election as President had been received here. At the moment, I was driving up to Malacañan with Quezon and Osmeña and one of them said: “This means either Wood or Forbes.” “How did you come to prophecy Wood?” I asked. Quezon replied: “We didn’t select Wood; he was chosen because he was a defeated candidate for the Presidency and Harding didn’t want him around. I had first known Harding when he was a Senator, and asked him later in the White House why he had sent Wood to the Philippines. Harding replied: ‘Because the people of the Philippines asked for him.’ ‘Why, Mr. President, no reputable Filipino would ask for a man who had insulted them as the Wood-Forbes Report did.'” (Quezon found there a telegram prepared by Fairchild and Cotterman! I asked if any Filipino had signed it and he said “perhaps Aguinaldo.”) “But,” added President Harding, “Wood will stay there only a year, for the University of Pennsylvania has elected him Chancellor, and will hold it open for a year.” Quezon thereafter started back to Manila and meanwhile the Legislature had passed a resolution offering co-operation to Wood. Quezon was angry about this. He told Osmeña they ought to fight, but Osmeña was for compromise. During the first year, the Legislature passed every bill requested by Wood. At the end of the year, Harding wired Wood that he was unwilling to impose on his sacrifice any longer, but Wood replied that his work here was unfinished. “No gentleman,” remarked Quezon, “would reply in that way to the President’s suggestion.” The Chancellorship of the University of Pennsylvania was then given to another, and Wood remained as Governor General for some six more years until his death. Both men present at this lunch said that Wood had employed every effort to investigate them. Aldanese added that he was not aware that for two months, four army secret service men had been raking everywhere for his “graft” because he wore a diamond ring and was building a house. They examined all the banks in Manila for proof of his supposed wrong-doing. Then Wood congratulated him (Aldanese) “because there was nothing against him.” Quezon said they had made a search for his “five millions” which were, they concluded “probably in Spain”!! George Fairchild, who was a traitor to Quezon (and to me) in every other respect, said at that time in a conference with Wood, that Quezon never had been a grafter. Fairchild ought to know, because when my administration had helped him to start his sugar central at San Jose, Mindoro, George had offered him 600,000 pesos of the stock which Quezon refused. Fairchild then gave some of this stock to his lawyers: Jim Ross, who kept his (and lost) and his partner Ham Lawrence, who sold his (and gained).

Quezon then told of the special election for senator of Ramon Fernandez over Sumulong. He said that one day at lunch at Malacañan he told Wood that the contest was not between those two candidates, but it was Wood vs. Quezon and that he (Quezon) would beat him in every precinct. Wood (who had a sense of humour, as Quezon remarked) smiled and replied that he was afraid that was so. And so it was! Quezon and Aldanese agreed that Wood’s mind had begun to fail when he was here as Governor General.

The President had invited Collector of Customs Aldanese, to lunch in order to discuss measures for increasing the safety at sea on Philippine ships. He said that on a recent trip to Cebu with Osmeña, he had put “Baby” Quezon (his eldest daughter) with a party in one of the ship’s boats, which leaked, and it required two men to keep bailing it out; –then, one after the another two oars broke! Aldanese was told that a committee of naval officers would visit him at Quezon’s request to discuss plans for greater safety. Aldanese said regulations were not observed in ships because the owners pushed the captain to carry more passengers than the law allows to ports where there are no customs officers; he added that the law should be amended to provide for power of suspension of the right to navigate a vessel, so the owners would have to back up the ships’ officers in enforcing regulations. Quezon agreed. They also said that far too many officers are employed on these ships. The President remarked that he would furnish Aldanese with twelve secret service men to travel about and investigate the shipping situation.

January 13, 1936

Left with Quezon, Colonel Santos and Mayor Posadas for the new site of Bilibid Prison at Muntinlupa, near Alabang, Laguna. We travelled in a motor which never went over 30 miles an hour, with motorcycle cops in front and behind. When we got there, we shifted to Quezon’s Ford armored car which has bullet-proof (apparently glass) windows. He says that when goes incog. to the provinces he always travels in this Ford alone with Colonel Nieto who has a machine gun with him –Quezon carries a revolver on those trips. He says Encallado, the dead bandit, reported that he saw this car pass in the mountains and could have shot Quezon. Quezon comments he wished he had tried.

I asked him about the Ayuntamiento –he stated that the Marble Hall was to be given to the Supreme Court.

He began to talk about Rodriguez, Secretary of Agriculture. He said he had talked too much in the press –had quoted Quezon concerning the Japanese hemp leases in Davao, which caused the Japanese Ambassador in Washington to enquire of the Secretary of State if it was true that Quezon had consulted him about it. Hull truthfully replied “no.” But the worst was, Quezon had rebuked Rodriguez for talking to the press and had announced his own policy concerning the leases of hemp lands in Davao, Rodriguez had published in the press his own defense as Secretary of Agriculture, instead of giving the paper to the President. Quezon said he would have to remove him, unless he crawled –that he was particularly sorry to do so because Rodriguez was an energetic worthy man, and had done more for his (Quezon’s) election than any other individual. He is moreover a man who has made good in his own business life. He thought Rodriguez would be better as Secretary of Labor.

Quezon said he had talked so much while he was in the Senate –he was now going in for action.

He also said he had already adopted my suggestion and was abolishing all “law” divisions in the bureaus and obliging the Bureau Chiefs to consult the Attorney General or the Secretary of Justice.

The President stated further that the Japanese question resolved itself into a dilemma –either to avoid showing them that the Filipinos were antagonistic to the Japanese, or else to let them occupy the islands industrially; that one of the leading Japanese had passed en route from a ceremonious visit to Australia (a pretext) and that he (Q) had been ill (also a pretext) and postponed seeing him until the last minute. That this Japanese had dismissed the Japanese Consul General from the room during the interview. That Quezon had told him very frankly how the Filipinos felt about their lands, but had put off trade discussions. We talked of the purchase by the Government in my time of the Sabani ranch on the remote east coast of Luzon. [Quezon remarked that this was “blackmail” by an American who had acquired it when he was a Judge of the Philippine Land Court.] That the United States Senators who had raised a fuss about the possible purchase of it by Japanese had been inspired by that man.

Said also that the Filipinos had blocked the use of this man’s ranch to the north of Sabani (now W.H. Anderson’s), by closing the land access to this property.

Quezon said Harding had been very fond of him and liked his opposition to Governor General Wood –that if Harding had lived longer, Quezon would have gotten rid of Wood sooner.

I asked him about the vast iron fields in Surigao which I had reserved by Executive Order for the Government. He said he had already had nibbles from the Japanese and one of them was coming here soon about that, but ostensibly on another errand.

P.M. Becker from Aparri appeared with his two sons asking to have them put in the Philippine Army. Saw General Reyes and think it is fixed.

At my request, former Speaker Manuel Roxas came to see me. Said he was going to his province tomorrow to consult his people as to whether he should accept the post of Secretary of Finance. I told him I had been requested by Quezon to ask his opinion of the plan to use part of the Government currency reserve and exchange standard funds (which are 4 times larger, together, than required by law) to purchase silver at the present low rate, and by issuing silver certificates at a “pegged” rate to make a vast sum for the Treasury –he objected first because the price of silver might go lower on account of the very artificial market for silver in United States, and secondly because they might lose (part of) the 2 million pesos of interest at 2% now obtained in the United States.

He next asked me what I was doing in relation to the Friars haciendas –I told him and he seemed satisfied except as to the constitutionality of my proposed Land Commissioner’s decisions fixing tenure and rents. He observed that the English constitution was not written as was that in the Philippines. I replied that the Philippine constitution gave to the Government the right to expropriate Friar Lands –“yes” he said “and the right to adjudicate relations between landlord and tenant.” Well, he said, “we might do it by establishing a Landlord & Tenant Court.”

Roxas then speculated on the result of the next presidential elections in the United States. Said that if a conservative Republican were elected, he might listen to Stimson,  Davis & Hurley on Philippine policies, but not if a man like Borah were elected. I said, yes, the West is for getting rid of the Philippines, but I thought F.D. Roosevelt was going to buy his reelection by the expenditure of public money and that my grand-children were going to be burdened 50 years hence in repaying the debts incurred by F.D. Roosevelt’s joy ride.

Talk with Reyes, new Chief of Staff of the Philippine army –tired and old, and unaggressive, hardly able to cope with new problems.

I asked Quezon whether there was any plan afoot to recreate the Government of the Department of Mindanao and Sulu –he said that he was not sure, but feared it would be considered as a “step backward” –he intends to accomplish the same object by designating some one member of the Government to act for him– that nobody realized how great under the constitution was the power in the hands of the President of the Philippines.

I wonder why Osmeña is laying so low nowadays?

December 6, 1935

John H. Pardee spent one hour in my office; told me he had been one of the originators of the idea of an elected Filipino head of a “Protectorate” –in the Philippines– that he had persuaded Secretary of War Weeks, and he finally induced President Harding to agree, but as Manuel Roxas was at that time the only one of the Filipino leaders in Washington, Roxas had to cable the suggestion to Quezon and Osmeña who were in Japan on their way back to Manila and they wired back refusing. 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.

Saw Colonel Paulino Santos, who was on his way to see General Valdes, wishing to criticize the campaign against the seventy bandits in Laguna Province. Said the constabulary had not sufficient men or enough experience for the task; and that rewards for the capture of the outlaws should not be offered, which would humiliate the Government.