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Thursday, January 4, 1940

General Conference at Malacanang — 10:30-1:00

Subject — Defensibility of Islands —

Present: Sec. Sison, McA, Sutherland, Lim, Garcia, Segundo, Buenconsejo, 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.

Called as witness. Quintero case.