PAGE 2258
Aug 23rd (Con’t)
Malacañan Palace
Manila
Met Foreign Minister Kim Yong Shih of Korea who is here as the guest of Sec. Romulo and who is apparently here to ask Sec. Romulo to help prevent the Korea issue to be brought up by the North Koreans in the U.N. My feeling is that he thinks Sec. Romulo makes the decisions in foreign policy. I did not dissuade him from this mistaken belief.\
Awarded him the Ancient Order of Sikatuna, Rank of Datu.
Directed Com.
Vera and Dep. Com. Diaz to recognize the BIR; change assignments, met Specific Tax Div. Chief Guining which has an increase of ₱72 million this vear — an increase of 50% of rate of increase from 8% last year to 12% this year. Asked him to give his deputy, Jose Salundong more responsibilities.
Then met the senators and congressmen. Next week I will release ₱100,000 to each congressional district.
Sen. Tolentino has just called my directive to Sec. of Justice and Sol. Gen. to see to it that there is no confiscation without fair compensation untimely and improper. Because of his bill on escheat of American property rights.
I do not wish to quarrel with him. So I merely commented that the study by the Sec. of Justice must be objective and include all aspects including those that must be brought to the attention of the court on a motion for reconsideration — whether adverse to the government or not.
I ordered the BOI, PES, SEC and Ex. Sec. to study the effects on business and the economy of the decision – and make a listing of all persons affected
The Intelligence Chief of Rizal was felled by three unknown persons the other day.
The floods do not seem to recede so we cannot wait for the Central Plains to dry up before repairing the roads and dikes.
I have ordered that the Dept. of Public Works adopt techniques of reconstruction in the water.
Amb. Benedicto called up to say that he is signing the purchase of 100,000 tons of rice from Japan: 30 years amortization, 10 years grace, 2% the first 10 years and 3 percent the next 20 years.
The Japanese are also agreeable to convert the current commodity loan agreement term of Cagayan Electrification of ₱40 M and ₱11 M to flood control.
And Amb. Romualdez telexed that the US will not intervene in the Japanese normalization of relations with Red China.
Looks like the Nationalist Chinese are lost. Although Japan should also be interested in keeping her at least as an independent state.
The United States, apparently, is going to leave Japan to pull her chestnuts out of
the fire.
I attach the papers on this in Envelope XXXIV-K and the orders in XXXTV-L.
The newspapers are in Envelope XXXIV-M.