July 29, 1939

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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.