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May 16, 1936

Asked A. D. Williams about hydro-electric power: he said the Meralco expended double its estimates on the Pagsanan site. He explained that under the constitution all water power is the property of the Government and can only be leased; not sold; that the only good sites left in the Philippines are:

(a)  Maria Cristina Falls in Lanao

(b)  Angat River ten miles above the new water works dam

(c)  possibly the Agno River.

There seems to be no opportunity in the circumstances for outside capital. He also said, speaking of the gold mines in the Paracale district, that because of mining; Paracale in 1840 was a town of 84,000 people; now it has only 2-3,000.

In p.m. golf alone at McKinley.