April 27, 1970

In the breakfast this morning I convinced the senators and congress leaders to agree to:

Official Gazette for April 27, 1970: President Marcos met anew with the leaders of both houses of Congress to further consider the means of speeding up passage of the minimum wage bill and the export levy bill. The President renewed his appeal to the Congress leaders for the early passage of the bill raising the minimum wage for industrial and agricultural workers, as a lever for minimizing the effects of rising prices.
Present at the conference were Senate President Gil J. Puyat, Senate President Protempore Jose J. Roy, Senate Majority Floorleader Arturo M. Tolentino, Senators Lorenzo M. Tanada, Dominador R. Aytona, Wenceslao R. Lagumbay and Jose W. Diokno; House Majority Floor-leader Marcelino Veloso, Reps. Jose Alberto, Natalio P. Castillo and James Chiongbian. Also present were Secretary of Finance Cesar E. A. Virata, Executive Secretary Alejandro Melchor, “jr., Chairman Leonides S. Virata of the Development Bank of the Philippines, Chairman Placido Mapa, Jr., of the National Economic Council, Budget Commissioner Faustino Sy-Changco, Deputy Director General Apolinario Orosa of the Presidential Economic Staff, and Eusebio Villatuya, president of the Philippine National Bank,
After the meeting, which started at breakfast and ended more than three hours later, an agreement was reached on several specifics to help iron out controversies over portions of the export levy bill.
Towards noon, the President motored to Quezon City where he addressed the opening session of the annual convention of the League of Provincial Governors and City Mayors. The President called on provincial and city executives to take the initiative in solving local problems and assured them of the full support of the national government. The President particularly emphasized to the provincial and city executives that they should be wary about those who would impose a “national democracy,” which he said, is just another term for “people’s democracy which the communists have coined.
Touching on the current agitation for change, the President reminded the governors and city mayors that “we are the ones who should bring about change,” pointing out that they were chosen by the people to lead in changing the nation. “I appeal to you to utilize this power given by the people to bring about that change required by them,” the President stated.
Noting that certain elements in the protest movement have proposed new systems of government, he said that the present democracy is “still much better than the systems” eyed by other factions. The President stressed that some “dissenters are trying to rise to power by fomenting disorders.” Enlarging on the tactics of communism, he said that communists “ride on any vehicle and if capitalism will advance communist interests.” the supporters of communism will align themselves with capitalism for as long as it will suit their purposes,
The President was fetched from Malacañang by Governor Isidro Rodriguez of Rizal, chairman of the League of Provincial Governors and City Mayors.
Except for these two activities, the President largely worked on state papers in his study. He did not receive callers for the rest of the day.
The President ordered a study of government requirements in motor vehicles, with a 5-j’ear projection. In this connection, Executive Secretary Alejandro Melchor, Jr. sent separate memorandums to the secretaries of national defense and of general services, asking them to coordinate on the possible standards to be followed in procurement. The President said that the projection should cover all offices and agencies of the government, including the armed forces, and should distinguish between vehicles to be secured by purchase and those through foreign assistance programs. He also asked that inquiry be made into the possibility of car manufacture in the country, utilizing local components as far as practicable.

1. A flat rate of 10% for all exports more than $5 million provided that the export incentives bill will be approved.
2. The proceeds will be spent as follows:
   50% for the payment of foreign and domestic obligations;
   25% for the counterpart fund for loans from the ADB [Asian Development Bank], IBRD [International Bank for Reconstruction and Development] and other foreign sources;
   25% for expenses for unfinished productive enterprises.
3. Only Sen. Jose Diokno is presently opposing the removal of Sec. 5 of the Senate Bill which amends the Charter of the Central Bank, removes the open-market operations of the Central Bank, and stops further loans in excess of the present level of our indebtedness. But this will mean that we will not be able to pay our debts.

We offered a compromise that addition indebtedness will not exceed 15% of the last three years of income.

Opened the convention of the governors and city mayors. I appealed to them:

1. To be in the forefront of change so that we will not allow the radicals to pre-empt our right as leaders chosen by our people.
2. That our times are crucial and each and everyone of us will determine the future of our country in the next century.
3. That we must now establish centers of activity other than Metropolitan Manila. That the reason Manila is the center of authority is because the President holds office in Manila, so I will now hold office in regional office.
4. That local development is dependent more upon the initiatives of the local leaders than on the experts of the national government. Cigar rolling factories in Cagayan was my example.
5. That they must now help develop cooperatives of agricultural producers to tie up with consumer cooperatives so that there will be local markets in the provinces. Right now the only market is in Manila.
6. That island provinces should look into the development of refrigerated warehouses. That this could be utilized also by other and inland provinces. Gov. San Luis of Laguna immediately asked that I reverse the decision of GAO [General Auditing Office] that the savings of the provinces cannot be used for cooperatives.
7. That I will proclaim land reform for the entire Philippines before the end of my term but that we will have no funds for credit to the tenants and the small land owners should be banded into farm cooperatives, as it is true that larger farms are more efficient.

Electrification.

Vocational and agricultural schools.

Take issue openly with the enemies of liberal democracy—those specially who would use violence.

We will tolerate debate. But we should not forfeit our right of reply. For we have more valid arguments. History is on our side.