Talk with A. D. Williams over the building activities of Quezon. Malacañan Palace is never quiet; always, there is hammering and moving of walls etc. It appears that while the President is acting Secretary of Public Works and Communications, Under Secretary Cruz has not a jot of authority, and every single decision of his has to be O.K.’s by Presidential Secretary George Vargas. Thus it is very hard to get things moving. Quezon asked Williams about making Vargas Secretary of this Department and putting Anonas in as Presidential Private Secretary. Williams replied to him that Quezon could not spare Vargas as his own Secretary, and it would be better to make Anonas Secretary of the Department of Public Works.
Williams and I talked of the coal mines at Cebu; the iron fields of Surigao; of the possibility of starting a heavy iron and steel industry here; of smelters for the chromium ore, etc. How wonderful it would be if the National Development Company could at last get started–but fear has always been an anaesthetic to them.