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Viewing cable 06MANILA4523, U.S. SUPPORT FOR MINDANAO CHAMBERS OF COMMERCE

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Reference ID Created Released Classification Origin
06MANILA4523 2006-10-30 07:17 2011-08-25 00:00 UNCLASSIFIED Embassy Manila
VZCZCXRO3526
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #4523/01 3030717
ZNR UUUUU ZZH
O 300717Z OCT 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3701
INFO RUEHZS/ASEAN COLLECTIVE IMMEDIATE
RUCPDOC/USDOC WASHDC IMMEDIATE
RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
UNCLAS SECTION 01 OF 02 MANILA 004523 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS USDA/FAS 
STATE FOR EB/CIP AND EAP/MTS 
USDOC FOR 4430/ITA/MAC/SBERLINGUETTE 
 
E.O. 12958: N/A 
TAGS: ECON ECPS ETRD EINV RP
SUBJECT:  U.S. SUPPORT FOR MINDANAO CHAMBERS OF COMMERCE 
 
------- 
Summary 
------- 
 
1.  As part of the Embassy's broader Mindanao strategy, the U.S. 
Commercial Service in Manila hosted a roundtable meeting on October 
20 with representatives of twelve Chambers of Commerce from 
Mindanao.  Ambassador Kenney met with the group and exchanged views 
of prospects for economic growth and closer business ties between 
U.S. firms and this troubled region.  As part of this program, The 
U.S. Foreign Commercial Service in Manila signed Memoranda of 
Understanding with the Marawi and Tawi-Tawi Chambers of Commerce. 
With Memoranda of Understanding with 16 Mindanao-based Chambers of 
Commerce, the U.S. Foreign Commercial Service is creating a 
framework for building closer business ties and promoting peace and 
prosperity in this region.  End Summary. 
 
--------------------------------------------- ------ 
Ambassador Highlights Mindanao's Economic Potential 
--------------------------------------------- ------ 
 
2.  On October 20, the Ambassador witnessed the signing of Memoranda 
of Understanding between the U.S. Foreign Commercial Service in 
Manila (FCS Manila) and the Marawi and Tawi-Tawi Chambers of 
Commerce, both of which are located in the Autonomous Region in 
Muslim Mindanao.  Representatives from twelve other Mindanao 
Chambers, FCS Manila, the Foreign Agricultural Service (FAS), USAID, 
and ECON attended the event.  The Ambassador praised Mindanao's rich 
variety of cultures and diversity of talent.  She highlighted the 
need for Mindanao to continue to focus on infrastructure development 
and the ongoing peace process.  Chamber members expressed strong 
appreciation for U.S. development assistance in Mindanao.  The 
Ambassador noted the importance of planning for long-term economic 
prosperity, looking to the time when economic assistance is no 
longer needed. 
 
3.  Representatives of individual Chambers discussed issues specific 
to their regions.  A representative from the Surigao Chamber noted 
that the mining industry has great potential in the region, and 
should be attractive to U.S. investment after the 2005 Supreme Court 
decision upholding the 1995 Mining Act allowing foreign mining 
companies in the RP.  The representative from the Marawi Chamber 
discussed concerns about poverty and misconceptions about Muslims in 
the Autonomous Region in Muslim Mindanao and emphasized the need for 
continued U.S. assistance, particularly in education.  The Tawi-Tawi 
chamber representative said he hoped the recent kidnapping and 
release of USAID contract employees in Sulu would not affect USAID 
programs in Mindanao.  The Ambassador replied that the kidnappings 
were unacceptable and, while the USG will suspend work wherever 
conditions are unsafe, the USAID-funded programs in Mindanao will 
continue.  Chamber representatives from General Santos City 
discussed the dominance of the tuna industry in their region and how 
their Mayor is looking for ways to develop other industries. 
 
--------------------------------------------- ---- 
U.S. Support for Business Development in Mindanao 
--------------------------------------------- ---- 
 
4.  One key aspect of Embassy Manila's strategy to promote peace and 
prosperity in Mindanao is to provide extensive support for Mindanao 
business development through programs administered by FCS Manila, 
USAID, and FAS.  FCS Manila has now established MOUs with 16 
Mindanao-based Chambers of Commerce to help U.S. companies partner 
with Mindanao-based firms and expand U.S. trade links in Mindanao. 
The MOUs are informal undertakings to develop trade opportunities, 
share business contacts, and engage in joint business promotion 
activities.  USAID is providing assistance through the Growth with 
Equity in Mindanao (GEM) Program.  The GEM Program is aiding the 
development of business support organizations, including business 
councils, 18 Chambers of Commerce, and producer associations.  FAS 
programs focus on developing agricultural trade between the U.S. and 
the Philippines, and FAS has provided food aid worth approximately 
$200 million since 2000.  During FY 2006, the U.S. is providing 
69,000 metric tons of rice valued at $20 million through PL-480 
Title I to support the Philippine government's programs in 
agricultural biotechnology and modernization.  FAS also provides 
food assistance through grants to non-governmental organizations. 
 
------------------------------------------- 
Plans for Future Bilateral Trade Activities 
------------------------------------------- 
 
5.  To deepen relationships between U.S. business and the Mindanao 
Chambers, members suggested holding regular meetings to discuss 
issues in specific sectors, including tourism and information 
technology.  A subsequent general meeting may be held, possibly 
during a U.S. trade mission to Manila or Cebu.  Members also 
 
MANILA 00004523  002 OF 002 
 
 
suggested that FCS Manila or the American Chamber of Commerce 
sponsor seminars on doing business in the U.S., focusing on specific 
product clusters. 
 
--------------------------------------------- -------- 
PCCI Dispute Emphasizes Importance of Individual MOUs 
--------------------------------------------- -------- 
 
6.  Separately, the Davao Chamber of Commerce disaffiliated itself 
from the national Philippine Chamber of Commerce and Industry (PCCI) 
and the PCCI Vice-President for Mindanao and all Mindanao-based PCCI 
governors resigned en masse on October 19.  The Davao Chamber 
claimed the PCCI had unilaterally decided to reduce the number of 
Mindanao chamber regions from 8 to 5 on October 18, and accused the 
PCCI of disregard for due process and insensitivity to cultural 
differences in Mindanao.  According to chamber leaders, the Davao 
Chamber has its own revenue sources and direct access to foreign 
funding, and can afford to be independent of the PCCI.  Davao 
Chamber leaders also claimed that 16 Mindanao chambers intended to 
break from the PCCI.  PCCI leaders downplayed these events, stating 
that they reduced the number of regions to ensure equal 
representation among chambers, and that only the Davao Chamber has 
resigned. 
 
7.  While the Embassy is not involved in any aspect of this dispute, 
these developments highlight the importance of MOUs with individual 
Mindanao chambers.  The Embassy's roundtable meeting with the 
various MOU chambers from Mindanao helped to build relationships 
with these emerging business organizations in a positive and 
apolitical manner, and ensures opportunities for future dialogues. 
 
KENNEY