“Bataan fell today”. This little peninsula, the one separating north Manila Bay from the South China Sea has been the scene of terrible fighting the past ten days or more. It has held out ever since the USAFFE forces left the central part of Luzon Island. It was greatly out numbered – at least 8 to 1, we have been told – and therefore surrendered only when they could no longer give the men time enough to rest between attacks. Great numbers of wounded came back from the front on this side, and the defenders must have suffered much too. Corregidor is still holding out, and there are other guerrilla forces on this Island. Many of our friends are sad because of the fall of Bataan, as they thought there might be hope as long as it held. But we feel that those who knew expected it, and that it may not materially affect the outcome of the war in the distant future. People are going back to work slowly – prices are becoming stabilized, at least on native things. Imported goods may be had only at exorbitant prices.