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Viewing cable 06MANILA3491, SENATOR INOUYE'S VISIT: OVERVIEW

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Reference ID Created Released Classification Origin
06MANILA3491 2006-08-22 04:28 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Manila
VZCZCXRO6901
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #3491/01 2340428
ZNR UUUUU ZZH
O 220428Z AUG 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2580
INFO RHMFIUU/VA CENTRAL OFC WASHINGTON DC IMMEDIATE
RUEHZS/ASEAN COLLECTIVE IMMEDIATE
RUEHBJ/AMEMBASSY BEIJING IMMEDIATE 5845
RUCPDOC/USDOC WASHDC IMMEDIATE
RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
RUEKJCS/JOINT STAFF WASHINGTON DC IMMEDIATE
RUEHLMC/MCC WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHDC//OSD/ISA/AP IMMEDIATE
UNCLAS SECTION 01 OF 02 MANILA 003491 
 
SIPDIS 
 
Sensitive 
SIPDIS 
 
STATE FOR H, EAP, EAP/MTS, EXIM, OPIC, AND USTR 
MCC FOR VP BRENT 
 
E.O. 12958: N/A 
 
TAGS: PREL OREP ECON EINV ETRD PTER MARR PGOV RP
SUBJECT:  SENATOR INOUYE'S VISIT:  OVERVIEW 
 
REF: MANILA 3472 
 
Sensitive but Unclassified - Not for Internet - Protect 
Accordingly. 
 
MANILA 00003491  001.2 OF 002 
 
 
1.  Summary.  During Senator Daniel K. Inouye's August 11 - 15 visit 
to the Philippines, he traveled to Zamboanga and dined with 
President Arroyo (see Reftel); met U.S. business leaders; and, 
called on the President of the Senate, the Speaker of the House, and 
Defense Secretary Cruz.  Given the Senator's work on behalf of 
Filipino veterans and long contact with the Philippines (his first 
visit was in 1962), Senator Inouye's visit was a sensation.  He 
received achievement awards from President Arroyo (Order of 
Lakandula), Speaker of the House de Venecia (Congressional Medal of 
Achievement), and Secretary of National Defense Cruz (Outstanding 
Achievement Medal).  End Summary. 
 
----------------------- 
U.S. BUSINESS LEADERS 
----------------------- 
 
2.  (U) Senator Inouye discussed opportunities and challenges for 
business in the Philippines during a luncheon meeting with selected 
members of the local American Chamber of Commerce.  Business leaders 
commented on positive factors impacting their local operations 
including the country's steady economic growth of more than 5%, the 
strong flow of remittances from Filipinos living abroad, the 
expansion of tourism by 20% per year, the proliferation of call 
centers throughout the country, and the resurgence of the mineral 
extraction industry.  Participants raised concerns about the 
sluggish and unpredictable judicial system and its inability to 
impose swift convictions on corrupt officials, as well as cumbersome 
government regulations and legislation that stifle business 
expansion.  The business leaders noted, however, that Finance 
Secretary Favila had requested a list of "red tape" inhibitors to 
 
SIPDIS 
business in the wake of the President's State of the Nation Address 
that focused on economic development.  They are busy compiling 
responses and hope for swift Philippine government action. 
 
-------------------------- 
U.S. - FILIPINO FRIENDSHIP 
-------------------------- 
 
3.  (U) Senator Inouye and his staff attended a gala dinner hosted 
by former Philippines Ambassador to the U.S. Albert Del Rosario. 
Here and on other occasions, Senator Inouye pledged to try to 
resolve the long-standing veterans' benefits issue.  (Note: 
Filipino veterans who fought under the U.S. flag in WW II are not 
eligible for the full compliment of VA benefits. Their most notable 
cause is to change the current USG law which provides benefits to 
qualified Filipino Veterans residing in the Philippines at a rate of 
fifty cents on the dollar. End Note.)  Senator Inouye described the 
joint U.S.-Philippines civil-military counter-terrorism efforts he 
had observed in Mindanao.  He told participants of the effusive 
welcome he had received from Muslim youth, and the sight of Muslims 
and Christians, Filipinos and Americans united in an effort to bring 
peace to that region; this experience filled him with hope and 
optimism for a secure and prosperous future.  Among those attending 
were Majority Leader Senator Pangalinan, former Senate President 
Drilon, Senator Recto, Senator Biazon, House Speaker de Venecia, 
Energy Secretary Lotilla, Defense Undersecretary Carolina, and 
representatives from the private sector. 
 
---------------------- 
VETERANS AT RECEPTION 
---------------------- 
 
4.  Senator Inouye was the guest of honor at a well-attended 
reception hosted by Charge for Filipino and U.S. veterans, senior 
Philippine government, military, and congressional leaders, and U.S. 
and Filipino business representatives.  After many poignant personal 
interactions with veterans and old friends, Senator Inouye spoke 
movingly of his commitment to Philippine-American friendship and our 
alliance, as well as continuing to work on benefits for Filipino 
veterans who served with the U.S. Armed Forces during WW II. 
 
-------------------------- 
SENATE PRESIDENT VILLAR 
-------------------------- 
 
5.  (SBU) Senator Inouye and his staff met with Senate President 
 
MANILA 00003491  002.2 OF 002 
 
 
Villar on August 14, together with the Charge.  Senator Inouye said 
he was inspired by the Philippines efforts to combat terrorism 
through the linkage of military and civil programs, and proud of 
U.S. assistance to these efforts.  The Senators discussed a variety 
of issues, including the new China-U.S. Inter-parliamentary 
Congress, the move toward Charter Change in the Philippines and the 
pros and cons of unicameral and bicameral systems.  They also 
discussed the Philippines' pending Anti-Terrorism Bill, Philippine 
Defense Reform, and the current state of the economy. 
 
------------------------- 
DEFENSE SECRETARY CRUZ 
------------------------- 
 
6.  (SBU) Senator Inouye and Charge met with the Secretary of 
National Defense Avelino Cruz on August 14.  Secretary Cruz led a 
briefing on Philippine Defense Reform, explaining that defense 
reform was gaining traction on the ground, with junior and mid-grade 
officers realizing that their input could bring about real change 
and improve systems.  Senator Inouye remarked that he was extremely 
pleased and impressed by GRP progress on defense reform and 
congratulated Secretary Cruz for his leadership. 
 
7.  (U) At the conclusion of Senator Inouye's visit to the 
Department of National Defense, Secretary Cruz awarded him the 
Outstanding Achievement Medal, in recognition of his support for 
veterans' benefits for Filipinos who fought with U.S. forces during 
WW II. 
 
--------------------------- 
HOUSE SPEAKER DE VENECIA 
--------------------------- 
 
8.  (U) Senator Inouye and Charge met with, and then attended a 
lunch hosted by, Speaker de Venecia on August 15.  De Venecia lauded 
Inouye's long time support of the Philippine-U.S. partnership.  He 
said his current priorities were a U.S.-Philippine Free Trade 
Agreement and a global or regional anti-terrorism summit, in the 
wake of the London aircraft bombing plot, which might coincide with 
the December 2006 ASEAN summit in Cebu. 
 
9.  (U) Speaker de Venecia presented Senator Inouye with the 
Congressional Award of Achievement in recognition of his unrelenting 
support of Filipino Veterans and his efforts to nurture the 
relationship between U.S. and Filipino legislatures.  Senator Inouye 
remarked he was deeply moved by the award and reiterated that he 
would continue to fight for full benefits for Filipino Veterans. 
Many high-ranking officials such as former President Ramos, 
Executive Secretary Ermita, Ombudsman Gutierrez, Central Bank 
Governor Tetangco and Secretary of Justice Gonzalez attended the 
award ceremony and luncheon to honor the Senator. 
 
10.  (U) Senator Inouye did not have the opportunity to clear this 
message. 
 
JONES