MALACAÑAN PALACE
Manila
January 8, 1972
Saturday
The Philippines is a small frog in the big lake croaking to the tune of the big frogs.
This we have been repeatedly reminded of in the Monetary Crisis decided upon by the Big Ten, then in the decisions of the UNCTAD, the International Monetary Fund, World Bank, the military agreements etc.
And yet government leaders must act as if our destiny is completely within our control. To a certain extent, though, it is within the context of the world power decisions.
We must keep open our options and alternatives and use them to our advantage.
This should be the burden of the State of the Nation Address.
I have talked to Gov. Gregorio Licaros to prepare this study. We spent the morning before lunch on this.
PAL’s holding company, Rubicon owned by Benny Toda is being foreclosed by Caltex and FNCB, the former being guarantor for the $7 million of which $3 million is delinquent. Mr. Wollahan of Caltex says Caltex does not want to take over PAL which is supposed to be a flag carrier and would rather have a private group of Pilipino capitalists take over.
I have asked Bobby Benedicto and Ronnie Velasco who saw me this morning to look into this as the government does not want any stoppage of PAL flights.
And PAL is farther indebted to CALTEX for about P21 million of gas and fuel.
Sen. Roy came to say Sen. Pres. Gil Puyat is working to run for President in 1973 and therefore should not be allowed to become Senate President nor Party President.
I am meeting the Nationalista congressmen and governors on the 11th.
The Free Trade Zone must be developed as soon as possible. So I met with Joe Roxas and Pablo Roman on Bataan.
Talked to Bongbong on laziness and his lack of dedication to his schoolwork which his tutors have observed. I emphasized that he may be talented but hard work makes the difference between success and failure in life. He has to leave on the 10th.
Asked Mr. Emilio Yap, owner and President of the Philippine President lines and part owner of Bulletin and Liwayway Publications to agree with Hans Menzi for their transfer of control of Liwayway upon payment of the bank loan of P1.9 million. He has agreed.
Justice Antonio Barredo and Sol. Gen. Felix Antonio on the need to clarify the announcement to lift the suspension of the privilege of the writ. Justice Barredo feels that I should now issue a proclamation lifting the suspension with the effectivity upon Judge Erica deciding the matter of the warrants of arrest for the detainees. But Judge Erica has said he would decide the matter in a few days.
I enclose reports on this.