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Viewing cable 07MANILA3419, AMBASSADOR'S VISIT HIGHLIGHTS CEBU'S BRIGHT HORIZONS

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Reference ID Created Released Classification Origin
07MANILA3419 2007-10-15 11:06 2011-08-25 00:00 UNCLASSIFIED Embassy Manila
VZCZCXRO9513
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHML #3419/01 2881106
ZNR UUUUU ZZH
R 151106Z OCT 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC 8598
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEAIIA/CIA WASHDC
RUEKDIA/DIA WASHDC
RUCPDOC/USDOC WASHDC
RHHMUNA/CDRUSPACOM HONOLULU HI
UNCLAS SECTION 01 OF 02 MANILA 003419 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL KPAO BTIO ECON MARR RP
SUBJECT:   AMBASSADOR'S VISIT HIGHLIGHTS CEBU'S BRIGHT HORIZONS 
 
REFS:  A) Manila 561  B) 06 Manila 2389 
 
1.  SUMMARY:  The Ambassador's October 4 visit to Cebu highlighted 
the opportunity the vital role American businesses play in the 
commercial life of the Philippines' second city.  Buttressed by a 
live television interview and a roundtable with print media business 
editors, the Ambassador opened an "American Showcase" exhibition of 
U.S. products and services, toured a milling company that uses 
American wheat, spoke to the local American Chamber of Commerce 
about the impact of U.S. businesses, and inaugurated a family health 
center at the subsidiary of an American market research firm.  The 
Ambassador also called on the Central Command of the Armed Forces of 
the Philippines, whose commander provided an overview of the 
priorities and challenges within his area of responsibility.  As 
they did during the Ambassador's visits to Cebu in February 2007 and 
June 2006 (reftels), Cebu's prospects in both the commercial and 
military spheres appear bright.  End summary. 
 
THE SECOND CITY 
-------------------------- 
 
2.  With a population of 3.36 million persons (according to the 2000 
census), Cebu is the Philippines' second-largest city.  Owing to its 
location in the resort-rich Visayas island group, Cebu boasts more 
international airline connections than Manila.  Its seaport, the 
country's busiest, captures the lion's share of Filipino shipping, 
and a pro-business local government has in recent years extended tax 
abatements and other inducements to international businesses such as 
call centers and electronic-component assembly plants.  Locals point 
with pride to nearly five centuries of Christianity and trade with 
the West (opened by Magellan, who was killed near Cebu), reasonably 
orderly traffic, relatively modest pollution, and a can-do spirit of 
workers here as evidence that-akin to the Hertz rental car "we try 
harder" advertisements of years past-they embrace the challenge of 
living in Manila's shadow. 
 
LOCAL MEDIA HOSTS AMBASSADOR 
--------------------------------------------- ------- 
 
3.  Appearing for an October 4 live interview on the local 
equivalent of "Good Morning America," the Ambassador spoke directly 
to the residents of the greater Visayas region about the reasons for 
her visit to Cebu.  She identified commerce as the engine propelling 
the fastest-growing economy in the Philippines and noted that the 
city has proven receptive to U.S.-Philippine investment and business 
partnerships.  Her hosts lauded the Ambassador's inauguration of the 
FCS-sponsored "American Showcase" exhibition at a local hotel later 
that day, wherein the products and services of 16 U.S. companies 
were highlighted.  At breakfast afterwards with four Cebu-based 
business editors, the Ambassador praised the city's pro-business 
climate and reiterated the importance to continued economic growth 
in the Visayas region of opportunities such as those represented by 
the "American Showcase." 
 
SHOWCASING SUCCESS 
--------------------------------- 
 
4.  The centerpiece of the Ambassador's visit to Cebu was a 
ribbon-cutting ceremony opening the FCS-sponsored "American 
Showcase" exhibition of 16 brands from 14 U.S. firms.  These 
firms-including such names as Ford, Kraft, Citibank and 
Goodyear-came with the goal of highlighting a positive American 
"brand-name" outside of metropolitan Manila.  The Ambassador 
stressed the diversity of U.S. businesses seeking partnerships in 
Cebu and the determination American firms have shown in expanding 
beyond Manila.  Both themes resonated with an energetic, 
full-to-capacity crowd eager to increase partnerships with U.S. 
corporations. 
 
DIVERSITY AND DETERMINATION 
--------------------------------------------- --- 
 
5.  A tour of the General Milling Company (GMC) complex on nearby 
Mactan Island reinforced the diverse nature of the American presence 
in local businesses.  A family establishment that has grown from a 
single mill to a 17-hectare, vertically-integrated agribusiness 
empire, GMC produces flour, animal feeds, yeast, and consumer goods 
such as pastas and edible oils.  Afterwards, at a luncheon hosted by 
the American Chamber of Commerce-Cebu, the Ambassador spoke on the 
subject "Faces of American Business in the Philippines," framing for 
the Chamber's 80 members and guests the key elements underpinning a 
viable bilateral business roadmap.  The Ambassador observed that few 
partnerships come close to embodying such tremendous potential for 
growth. 
 
CORPORATE RESPONSIBILITY 
------------------------------------------ 
 
6.  The Ambassador's visit to the Western WATS data collection 
 
MANILA 00003419  002 OF 002 
 
 
facility focused attention on a fact that American corporations have 
long recognized:  providing for worker welfare is critical to 
ensuring the health of businesses and the communities in which they 
reside.  The Utah-based Western WATS established operations near 
Cebu in 2003, with 1,300 full-time workers; its family health 
center-established with USAID assistance--serves as a model of 
corporate responsibility in the Philippines.  After being briefed on 
the center's pioneering, on-line reproductive health information 
portal, the Ambassador officially launched the site. 
 
REINFORCING MILITARY TIES 
------------------------------------------- 
 
7.  Later in the day, the Ambassador met with Maj. Gen. Victor 
Ibrado and his senior staff at Armed Forces of the Philippines (AFP) 
Central Command headquarters.  Ibrado emphasized the armed forces' 
focus on humanitarian efforts by highlighting civil-military 
projects throughout Central Command's area of operations, reporting 
that it has been the key to success against communist insurgents. 
He added, however, that both the Samar and Negros Oriental provinces 
still suffered from extreme poverty, making them isolated hotbeds of 
activity for the New People's Army (NPA).  Ibrado noted the utility 
of U.S. ship visits in promoting goodwill and said that future 
visits could be tied to civil-military operations such as medical or 
engineering civil action plans.  He and his staff thanked the 
Ambassador for the recent delivery of ten UH-1 helicopters and for 
ten more planned for 2008 delivery. 
 
COMMENT 
---------------- 
 
8.  The Ambassador's visit revealed high levels of interest in 
increasing American business presence in Cebu, with industrial 
icons-as well as lesser-known companies and start-ups-enjoying 
remarkable market acceptance.  Cebuanos have focused on forging a 
distinct "brand" to attract positive attention and investment. 
Buoyed by a booming economy and heartened by the AFP's success in 
addressing the regional terrorist threat, residents of the 
Philippines "second city" have good reason for optimism about the 
future. 
 
KENNEY