(2 of 3)
ON THE MOSLEM REBELLION: We captured the main headquarters of the Moro National Liberation Front on March 11 in Batong Puti. We captured all their documents. They were in a cave that would have held 1,000 men. Undoubtedly, some of our lower-echelon officials have irritated the Moslems by not being flexible enough. For instance, when I proclaimed that nobody could carry a gun, some of our police and constabulary disarmed the Moslems in an alienating manner in markets and other public places. But one thing I'd like to make clear. We can handle any insurgency or infiltration in the south.
ON THE ECONOMY: Our development costs will almost double because of the energy crisis. The annual fuel bill alone, which used to be $200 million, will be $700 million. Instead of retrenchment, the usual means of meeting inflation, we are increasing economic activity by further incentives especially in exports and in foreign investments. The bankers—they are the no-risk fellows—have come here in hordes. Some companies have come in too fast, particularly Japanese. Let's admit it, the Japanese have outstripped the Americans. They are our biggest trading partner. If they increase any more, we'll be completely dependent on them.
ON PHILIPPINEU.S. RELATIONS: The old special economic relationship [based on the Laurel-Langley Treaty] will terminate on July 3. Both governments agree there has to be a completely new understanding. The new terms should reflect self-reliance, economic development and security so we can develop economically without begging or relying on special privileges.
ON THE AMERICAN PRESENCE: Personally, I believe that the U.S. is going to pull out of mainland Asia. I think you are going to maintain the old line, or forward defense perimeter, that starts in the Aleutians and runs down through Japan, Okinawa, the Philippines and possibly Singapore. Your anchor will have to be the Philippines. There is no other anchor. Initially Singapore's facil ities will be available. But Singapore's facilities are going to be made available to Russia. Russian warships have been reported serviced and refitted in Singapore. Your military must be watching this.
ON DIPLOMATIC MOVES: We intend to normalize relations with both the People's Republic of China and Soviet Russia. We feel it is not normal to maintain diplomatic indifference to a big nation.
ON FORMATION OF A LEGISLATIVE COUNCIL: Our people don't want the old politicians again. They held back land reform, squandered the funds of the government, prevented the country from meeting the Communist threat and the threat of the rightist oligarchy. Last July we held a referendum, and I asked the people if they wanted a legislative council, national assembly or legislature. We are still assessing the answers. Apparently the majority want a legislative council. Either I call an election or I appoint the members.