Three stories on independence: Kalaw says "Absolute Independence No Longer Possible"; Secretary Ickes says, "Freedom Now Harmful," and Jaime Hernandez said, "It would not be necessary to delay independence in order to rehabilitate the islands." The intelligentsia fear the U.S. is beginning to stall on independence. I spoke to two prominent people today, a Filipino and an American, and both think the matter is tied up with the banking situation that has all Manila hanging on the ropes at the moment (except for families with pretty girls — more on that later). Our dire straits is reflected in today's Manila Post Editorial:

We are sounding the warning now that the way prices of commodities are steadily rising, the country is headed for economic dislocation worse than that experienced during the Japanese rule. The situation is indeed serious ... mainly due to the fact that there is not enough money in circulation.

Paul Meyer said that Washington was adopting a hands-off policy on the money question, while the Government here doesn't know what is holding things up and is a bit put out by it all. Aurelio Montinola, who certainly knows what's going on in Malacañan, said the U.S. was playing a nice game of politics and running rings around Osmeña. Before departing for the States, Osmeña told him: "'I have to go slow, I'm just feeling my way around now.' And that's the trouble with the present government," says Aurelio. "Oh for Roxas and some of the others.... The current leadership is the worst the Philippines has ever had — and just when the country can't afford it." To wit, an article in the December 2 issue of Colliers on Osmeña: "'He's amazingly reasonable during negotiations,' one veteran American official said recently." No one could have said that about Quezon.

Osmeña has not yet made a public speech; in fact, Confesor's speech at the Lotus Theater the other day was the first published by any government official. That Osmeña was late in arriving in Manila, that he then made a private appearance at the Malacañan ceremony to take over affairs from the Army and then slunk quietly away to Washington (and hasn't been heard of since) has raised a few serious eyebrows here.

The U.S. is likely to come in for increasing criticism if something is not done soon. After some 60 days the people here are more at sea than ever before. MacArthur passed the reins so quickly to Osmeña that it's now looking like a stroke of genius on his part: dropping a hot potato in the nick of time.

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MFP Page 4: "Red Cross Man's Affidavit Describes Japanese Butchery." Modesto Farolan, acting manager of the Philippine Red Cross, said that on Saturday afternoon, February 10, the Japanese entered the Red Cross building south of the Pasig "and began to shoot and bayonet everybody they found." In the room he hid in with six others, the Japanese killed all but him and two nurses, including two patients that happened to be there. He was saved when a bullet aimed for him struck his helmet! All told, the Japanese killed some 60.