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Viewing cable 06MANILA2389, PHILLIPINES SECOND CITY GREETS AMBASSADOR WITH

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Reference ID Created Released Classification Origin
06MANILA2389 2006-06-08 05:01 2011-08-25 00:00 UNCLASSIFIED Embassy Manila
VZCZCXRO1625
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #2389 1590501
ZNR UUUUU ZZH
O 080501Z JUN 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1369
RUEHZS/ASEAN COLLECTIVE IMMEDIATE
UNCLAS MANILA 002389 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON EAID RP
SUBJECT: PHILLIPINES SECOND CITY GREETS AMBASSADOR WITH 
A DYNAMIC SPIRIT 
 
1. SUMMARY: Ambassadors May 19 and June 2 visits to Cebu 
highlighted the broad range of U.S. interests and 
activities in the area. The Cebu metro area is second only 
to Manila in the size of its population and economy. Over 
100 American businesses operate in Cebu, including Timex, 
Lexmark International, and Fairchild Semiconductors. Local 
leaders exhibited a strong sense of optimism and 
willingness to address business constraints. Local leaders 
also cited the December 2006 12th ASEAN Summit as an 
example of Cebu's dynamism. The Ambassador also swore-in 
Peace Corps Volunteers and visited the Cebu Consular 
Agency. END SUMMARY. 
 
Y. 
 
2. The Ambassador began the May 19 visit by touring Timex 
Philippines state of the art manufacturing and 
distribution facility, which produces 80% and distributes 
100% of all Timex watches. Timex was the first company to 
operate in the Mactan Export Processing Zone (MEPZ), a 
successful and growing government-private sector 
partnership of over 100 firms including U.S. technology 
leaders Lexmark International and Fairchild Semiconductors. 
These are among the approximately 100 American businesses 
in the Cebu area employing 25,000 staff, the largest ten of 
which have over $600 million dollars in total annual sales. 
The successful U.S. businesses and MEPZ are symbolic of 
Cebus role as a business growth point with an 
international orientation, and an illustration of the 
entrepreneurial relationship between Cebus government and 
the private sector. 
 
3. Cebu's international profile will be further 
strengthened when it hosts the twelfth annual ASEAN Summit 
it 
in December 2006. The ten-member nations will participate 
in regional discussions and witness the Philippines assume 
the organizations chairmanship. Immediately thereafter, 
Cebu will host the second annual East Asian Summit, which 
includes ASEAN members and six ASEAN partners from South 
Asia, East Asia and the Pacific. 
 
4. The Ambassador hosted a working lunch with Cebu 
Congressmen Antonio Cuenco and Raul del Mar, Provincial 
Governor Gwendolyn Garcia, local government authorities of 
Cebu and nearby Mandaue City, representatives of the 
American Chamber of Commerce, and other business chambers. 
These leaders acknowledged several constraints to business 
growth, including electricity dependability and water cost, 
but they also spoke enthusiastically of the options 
available to address the challenges. Business leaders 
described excellent collaboration with local officials, and 
the Provincial Governor claims (the local government?) will 
provide ample funds for infrastructure projects as she 
seeks to expand the successes of metro Cebu throughout Cebu 
Province. 
 
5. As part of the Philippine Month of the Ocean 
celebrations, the Ambassador officially launched several 
coastal resource management programs to be implemented by 
neighboring Lapu Lapu city government and civic 
organizations with USAID support. This strong local 
involvement and initiative demonstrates a solid 
understanding of the direct link between protecting the 
environment and the health of the local economy. Although 
the welfare of the entire Philippines is directly connected 
to the coastal environment, heavy investment in the tourism 
industry makes the Cebu economy and population particularly 
sensitive to environmental degradation. 
 
6. The visit also included an interview on a top local 
music/news radio station, where the Ambassador fielded 
questions running the gamut from her professional biography 
to the economy, President Bushs new immigration policy and 
U.S. assistance for counterterrorism, counter-narcotics and 
the efforts to fight trafficking in persons. 
 
7. On June 02 the Ambassador swore in 28 new Peace Corps 
volunteers who will serve in the Visayas region. Over 8,000 
volunteers have served in the Philippines, the second 
oldest Peace Corps program. The Ambassador also visited the 
Cebu Consular Agency which replaced the Consulate in 1995. 
The Agency primarily provides ACS services and had just 
completed an outreach program in collaboration with 
Department of Homeland Security and Social Security 
Administration staff. 
 
KENNEY