Malacañang Palace
3:20 PM
[p.43] Have met (at 11:00 AM up to lunch and 1:30 PM) with Dr. Zarhkar of the IMF and Gov. [Gregorio] Licaros and have convinced him that instead of a 25% devaluation, a floating rate would be better to be set about the later part of February. But 75% of the export earnings of the traditional exports of sugar, coconut, lumber, minerals, etc. should be sold to the Central Bank at P3.90 per dollar and the remaining 25% goes to the exporter and can be sold at the floating rate, so as to attend to his requirements. Then we can lift the import budget but we would have to keep credit restraints for the next six months. The Central Bank will earn $600 million which can be used by the public sector only after six months. We can now lift guarantees at a certain level provided they are at least for five years—specially for export-oriented industries. We still must restrain travel, public spending and luxury imports. We must raise P600 million by new taxes.
47 Official Gazette for January 21, 1970: President Marcos met with the Cabinet, conferred an award on a ranking US Air Force official, and received two foreign newspapermen, and in-between worked at his desk.
At the Cabinet meeting held at the Council of State room starting about noon, the President served notice that the executive branch is the sole implementing arm of the Republic, and that it will discharge this constitutional duty without any interference from the other branches of the government. “There has been much talk about forming a centralized agency of the government to implement programs to meet national problems,” the President said. “The President is the centralized implementing arm under our republican form of government. I think we are capable of implementing these programs and we will do it.”
The President pointed out that because of the limited resources of the government, there was need of pinpointing projects to be given priority. Among such priority projects, he said, are rural electrification and the emphasis on arts and trades in school curriculum in connection with the manpower development program of the administration. The President stressed, however, that the establishment of priorities did not mean the abandonment of old projects, like infrastructure, land reform and resettlement. He asked Vice President Lopez, concurrently secretary of agriculture and natural resources, and other Cabinet members concerned, to push through these projects.
During the Cabinet meeting, the President emphasized anew the need to pare down expenses. He directed his department secretaries to refrain from filling up vacancies, except urgent ones like those in the judiciary and in the prosecuting agencies of the government. The President also called the attention of his Cabinet to reports of petty graft again reaching his office. He ordered not only the dismissal but also the prosecution of erring officials and employees. He warned anew against the misuse of government vehicles, singling out those of the Armed Forces and the Department of Public Works and Communications which, he said, were reported roaming around picnic grounds on Sundays, with large ” For Official Use Only” signs painted on their sides. At a simple rite earlier, the President awarded the Philippine Legion of Honor, degree of commander, to Lt. Gen. Francis Gideon of the U.S. 13th Air Force, for meritorious services to the Filipino people. During the day the President also received William Winter, who conducts “William Winter Comments,” and Joseph A. Amter, president of the World Press Syndicate, Inc. The two American journalists, who were accompanied by their wives during the call, exchanged views on a wide range of subjects with the President. Among other official actions, the President directed Secretary of Foreign Affairs Carlos P. Romulo to waive the fees for the travel documents of Muslim pilgrims who are leaving for Mecca.
The strongest argument that apparently convinced him was the violence that might attend devaluation; the demand for increase of wages and salaries.
He is correct though that if we merely engaged in restrictions, the economy would be stagnant while the prices would go up anyway because of the reduction in production and imports. Then there would also be mass lay-offs in the factories.
[p.44] 12:00 PM
Some unidentified persons have just time-bombed the Jusmag [Joint US Military Assistant Group] bldg. this morning. Only one PA [Philippine Army] Sgt. assigned there wounded but considerable damage to the building.
Looks like a 155 shell time fused in the baggage compartment of a Vauxhall car parked close to the building
This may be the beginning of a series of bombings. Looks like leftist activists.
Looks more like the Ma-Maos.
And we received the news at 10:00 AM when I was awarding the Philippine Legion of Honor degree of Commander to Lt. Gen. [Francis C.] Gideon of the 13th Airforce. He goes to Dayton Ohio, where it is 4 degrees below zero Fahrenheit.
48 Mirror of the Philippines a film on the second Marcos Inaugural shown in 22 theaters.