Machado told me about the Enrique Santamaria deal that put him in easy street. Roxas and Company has a sugar mill in Nasugbu and the Americans weren't interested in sugar, which was fine because profit is impossible at today's prices. So the company made 189-proof alcohol, which Enrique sold to Elizalde with the approval of the Army. Elizalde pays P10 per liter and converts it to just over 80-proof alcohol, adds essence and bottles it for sale to the Army at P10 per bottle or P15 to outsiders. How this squares with the fixed price of P2.50 to P5.00 for liquor I don't know. But Roxas and Co. will be able to produce 40,000 liters of alcohol and it adds up to an enormous profit for the company, Santamaria and Elizalde. At least the Army won't go blind on bad liquor. At any rate, Enrique just bought himself a Buick, and that ain't mush these days if you know what I mean.

. . . .

Rumbles and booms from the east have increased in the last few days. The Japanese are not only still there but are also very much awake. From the north comes disturbing news about the stubbornness of Japanese defenses. It's going to take a long while to chase them out of the Cagayan Valley, our breadbasket. Three men of the Communications Corps went to say goodbye to the Sotelo girls today, and I'm not kidding when I tell you that the guys actually began to sob.

Monday quarterbacks have begun to take MacArthur apart. He has escaped the onus so far because he only chased the Japanese to the hills and no further. Yes, they are still in Bougainville, New Britain, New Guinea and many other islands. Here, MacArthur has an answer: guerrillas. They are being incorporated into the American Army in a big way. It's no coincidence that Coco, just back from hauling K-rations around Batangas in a Duck, mentioned off-hand that guerrillas have been losing ten to fifteen men for every American dead.

...ooOoo...