The Japs moved in a little more yesterday and enlarged their beachhead. They pushed south as far as San Fabian along the coast, and east to include the Baguio road. Baguio is now cut off. Some of our troops which were cut off north of San Fernando have moved to Baguio via the Naguilian road and joined with Horan’s provisional battalion. Apparently the Japs are getting their transports unloaded and securing enough room for a major effort. They are supported by land-based aviation from the Cagayan Valley and vicinity of Vigan. Their method of operation is similar to the German, and reports come in now and then that German officers are with them. We are preparing for any eventuality. Started the movement of all supplies to Corregidor and Bataan today. Am putting Class I into Corregidor to capacity and balance in Bataan. Everything of military value is to be moved or destroyed. We are using all available water transportation for the evacuation of Manila, as well as some motor. We are also preparing to move this Hq. to Corregidor if and when it becomes necessary. Supply under such conditions is a difficult matter to say the least. I can’t make any kind of a plan with any degree of certainty.