New York Tinea, Karoh 27, 1940 QUEZON SUGGESTS SEMI-INDEPENDENCE He Hints of the Possibility of Continuing Under U. $., With Treaty-Making Power ASSAILS PRESENT STATUS Trade Effects Stressed in Talk to Normal School Class— 'Risk' of Liberty Preferred Wir»i(M lo The Nrw tokx Time*. MANILA, P. I.. March 26-Presl- dcnt Manuel Quezon tentatively suggested today that continued re- lations with the United States might bo arranged if treaty-making pow- ers wore vested in the Philippines. His statement aroused now discus- j sion over the question of independ- ence. Speaking extemporaneously to the graduating class of the Normal! School, he stated that Independence war preferable to a continuance of the present relationship beyond 1946. He admitted that ho had tost all confidence in the ability of the .Philippines to defend herself for many years to come against aggres- sion by a major Dower. The Presi- dent said that he lost confidence after seeing what happened In Eu- rope. He intimated, however, that the Philippines would accept Independ- ence at tho risk of being conquered afterward. He told his audience to impart the proper philosophy of life to the young Filipinos. He added: "Let any conqueror come. We may be under his power for another 300 years, as under Spain, but the day will come when the Filipino people will emerge triumphant." President Quezon's remarks about preferring Independenco to a con- tinuance of the present relationship apparontly was directed at the ad- vocates of re-exam in at Ion who want a review of the question of rela- tions with the United States, look- ing to postponement of Independ- ence. President Quezon stated: "Conditions of the present rela- tionship are too markedly In favor of the United States and against the Islands, because while United States goods enter here freoly, Philippine goods meet all sorts of restrictions and limitations in the United Statos. "Whore is the justice in that? How can the Philippines progress economically?" He added that the Philippines did not have the power to conclude commercial treaties so that Philip- pine goods banned from the United States might find markets else- where. "One of the most important things in govornment Is national economy," he said, "but under existing conditions, with the powers of the Commonwealth restricted by those retained by the President and Congress, the Philippines cannot shape her national economy." He added that perhaps continued relations with tho United States "might be acceptable" if the Philippines had the power to con- clude commercial treaties. He added that ho thought the Amer- ican Govornment never would per- mit that and said that those who advocate re-exam! nation see only the material side, meaning eco- nomic benefits from American pro- tection and a free market. Turning to the defense question. President Quezon said that he had ceased to believe that with the Philippines' scant resources It would be possible to repel the In- vasion of a major power during tho early years of nationhood. "We might just as well face the situ- ation and accept it." he said. "It Is foolish to believe that the pres- ence of the United States enhances the danger of Philippine invasion, because America would not attack a foreign power without provoca- tion, and vlco versa." This portion of President Quezon's remarks caused speculation hero because of tho position in which it placed General Douglas MacArthur. who has steadfastly insisted, sinco accepting tho post of military ad- visor in 1935. that the Philippines could defend Itself with a native army built up In ten years. Gen- eral MacArthur was unavailable for| comment. President Quezon's statement re- called that there had been a drastio retrenchment In tho defense pro- gram, Including tho training of only 20,000 men yearly, instead of 40,000. President Quezon's reasons for his statements puzzled many ob- servers, but somo who are close to official circles said that he was sending up a trial balloon In order to stir a reaction in Washington. President Quezon intends to go to. the Unitod States in June or July.' He will visit South America before returning.