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Viewing cable 08MANILA1959, SCENESETTER FOR STAFFDEL HIGGINS

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Reference ID Created Released Classification Origin
08MANILA1959 2008-08-15 10:47 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Manila
VZCZCXYZ0000
OO RUEHWEB

DE RUEHML #1959/01 2281047
ZNR UUUUU ZZH
O 151047Z AUG 08
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1628
INFO RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
RUEHBK/AMEMBASSY BANGKOK IMMEDIATE 2899
RUEHGP/AMEMBASSY SINGAPORE IMMEDIATE 7443
RUEHJA/AMEMBASSY JAKARTA IMMEDIATE 6744
UNCLAS MANILA 001959 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EAP AND H -- H PLEASE PASS TO STAFFDEL HIGGINS-MARCHESE 
 
E.O. 12958: N/A 
TAGS: OREP PREL RP
SUBJECT: SCENESETTER FOR STAFFDEL HIGGINS 
 
REF: STATE 81490 
 
1. (SBU) Summary: Embassy Manila warmly welcomes to the Philippines 
professional staff members Craig Higgins and Steven Marchese of the 
House Committee on Appropriations, Subcommittee on State, Foreign 
Operations, and Related Programs.  The relationship and spirit of 
partnership between the United States and the Philippines are 
strong.  U.S. interests in this major non-NATO ally center on 
strengthening democracy, fostering economic growth, fighting 
terrorism, and providing superb services to our American and 
Filipino publics.  The U.S. is the Philippines' largest trading 
partner and the largest donor of grant foreign assistance.  During 
your visit, you will have the opportunity to learn about Post's 
involvement in economic development and security assistance 
activities, as well as understand the impact of U.S. foreign 
assistance accounts in the Philippines.  Our entire team looks 
forward to making your visit productive and useful.  End Summary. 
 
---------- 
BACKGROUND 
---------- 
 
2. (U) The Philippines, with almost 90 million people, has one of 
the fastest-growing populations in Asia.  Metro Manila, home to at 
least 12 million people, is the largest city in a country made up of 
over 7,000 mainly mountainous islands.  Literacy (94%) remains high, 
although the standard of public education and other government 
services is weak.  Filipinos are mainly Roman Catholic (83%) or 
Protestant (10%), with a small Muslim minority (6%) in the southern 
island of Mindanao and in Manila.  Approximately 38 percent of 
Filipinos earn less than $2 per day, with a much higher percentage 
of Muslims in Mindanao eking out a living below this threshold. 
 
------------------- 
PHILIPPINE POLITICS 
------------------- 
 
3. (SBU) Philippine politics is free-wheeling, focused primarily on 
the charisma of individual political leaders, and still largely 
oligarchic, with most wealth and political power concentrated among 
influential families.  President Gloria Macapagal Arroyo assumed the 
Presidency in 2001 after a "people power" movement swept out her 
predecessor, whom she recently pardoned after he was convicted of 
corruption.  She is a strong leader who has faced a series of 
challenges to her rule, including unsuccessful impeachment efforts 
and low-level military coup attempts.  The President's political 
position improved after May 2007 elections gave her allies a large 
majority in the House of Representatives, decreasing any 
impeachment 
threat.  With two years left in her term, the President appears 
intent on establishing her legacy, with a focus on the economy and 
jobs, infrastructure, and seeking stability and peace on Mindanao. 
 
------------------- 
ECONOMICS AND TRADE 
------------------- 
 
4. (U) The U.S. is the Philippines' largest trading partner, with 
over $17.1 billion in two-way merchandise trade in 2007.  Major U.S. 
exports include electronics and agriculture.  The Philippine economy 
grew by 7.3% in 2007, the fastest pace of growth in over three 
decades.  Growth was fueled by increased government and private 
construction expenditures, a robust information and 
communications-technology industry, improved agricultural harvests, 
and strong private consumption, spurred in part by $14.4 billion in 
remittances from overseas workers (equivalent to about 11% of GDP). 
GDP growth is expected to slow in 2008, but still reach between 
5-6%.  Record economic growth and an improved image moved the 
Philippines up five places to 40th in the latest World 
Competitiveness Yearbook rankings, its best performance since it 
joined the listing over a decade ago.  According to the April 2008 
Social Weather Stations survey, Filipinos' self-assessed proficiency 
in the English language has recovered in the past two years after a 
decline over the previous 12 years.  President Arroyo has an 
impressive reform agenda -- privatizing the electric power sector, 
building infrastructure, increasing education funding, and reducing 
business red tape -- but still faces significant hurdles, 
particularly to improving the investment climate. 
 
------------------------ 
COUNTERTERRORISM EFFORTS 
------------------------ 
 
5. (SBU) Three U.S.-designated terrorist organizations are active 
and dangerous in the Philippines, despite significant military 
success against them over the past two years.  Separately, the New 
People's Army of the Communist Party continues to extort, bomb and 
 
attack remote police and military outposts.  Parts of Muslim 
Mindanao remain a sanctuary for terrorists who are responsible for 
bombings in the Philippines and Indonesia and the kidnapping and 
killing of Americans and Filipinos.  The major thrust of U.S. 
development assistance is focused in conflict-affected areas of 
Mindanao through USAID to help reduce support for terrorists.  The 
Philippine military has scored successes against several top 
terrorist leaders in its focused military operations and its 
civil-military and humanitarian activities that eliminate spaces in 
which terrorists can operate.  In addition, the Philippines' Defense 
Reform Program gradually is transforming the Philippine military 
into a more transparent, accountable, and effective institution that 
enjoys an increasing level of public trust. 
 
------------------------- 
PEACE PROCESS IN MINDANAO 
------------------------- 
 
6. (SBU) The peace process continues to move forward in the 
aftermath of a Philippine Supreme Court order that temporarily 
halted the August 5 signing of the government's territorial 
agreement with the Moro Islamic Liberation Front (MILF).  With the 
government's ability to sign the territorial agreement temporarily 
suspended, parties to the peace process are renewing their focus on 
the long-term goal of a comprehensive peace settlement.  However, 
the challenge remains for Presidential Advisor on the Peace Process 
(and former Chief of the Armed Forces) Hermogenes Esperon and the 
other Philippine government negotiators to bring together Mindanao's 
diverse Muslim, Christian, and native communities.  Successful peace 
in Mindanao would make the Philippines a stronger, more 
outward-looking partner, while also denying terrorists ungoverned 
spaces. 
 
------------------------------------------ 
DEVELOPMENT AND LAW ENFORCEMENT ASSISTANCE 
          ------------------------------------------ 
 
7. (U) Development assistance from the U.S., complemented by 
increasing support from the World Bank, Japan, Australia, and others 
has established growing zones of peace and private sector-led growth 
in Mindanao, thereby attacking the conditions of poverty that 
provide breeding grounds for terrorists.  About 60% of USAID's 
annual development assistance is channeled to conflict-affected 
areas of Mindanao to promote economic opportunity, build 
infrastructure, and carry out programs that promote health care, 
renewable energy, environmental protection, education, and 
strengthening of local governance.  The Embassy's Public Affairs 
Section (PAS) exchange programs for students and community leaders 
offer a chance to interact with responsible and moderate Muslims. 
 
8. (SBU) USAID, Embassy law enforcement agencies, Philippine local 
governments and law enforcement authorities, as well as NGOs 
collaborate on various programs throughout the Philippines, with a 
value of more than $1 million in 2007, to raise awareness that helps 
prevent Trafficking in Persons (TIP), arrest and prosecute human 
traffickers, and protect and assist TIP victims.  The assistance 
includes providing NGOs such as the Visayan Forum Foundation with 
funds to build and operate halfway houses and shelters for victims. 
Our law enforcement agencies train police, customs, and immigration 
agents in detecting human trafficking and saving victims.  Our USAID 
programs help educate people about the dangers of trafficking and 
also train prosecutors on trafficking cases. 
 
--------------------------------------------- -- 
HUMAN RIGHTS: COMBATING EXTRA-JUDICIAL KILLINGS 
--------------------------------------------- -- 
 
9. (SBU) President Arroyo has consistently expressed her commitment 
to resolving the complex problem of extra-judicial killings and has 
taken several steps in this direction.  With increased domestic and 
international pressure, the number of extra-judicial killings 
decreased dramatically in 2007, but more still needs to be done. 
While many of these deaths and disappearances are more likely 
attributable to local disputes than to military or police action, it 
is clear that the government needs to do more to ensure that these 
crimes are fully investigated and that responsible parties -- 
whether or not they are connected to military or police -- are 
brought to justice.  The problem is closely related to a judicial 
system which is inefficient and strained beyond its capacity.  The 
government has responded with a police task force ("Task Force 
Usig") to investigate the killings.  The government also rejuvenated 
the Presidential Committee on Human Rights, established an Armed 
Forces Human Rights office to investigate allegations, and allocated 
additional funding for the Commission on Human Rights. 
 
------------------------- 
THEMES AND TALKING POINTS 
------------------------ 
 
10. (SBU) You may wish to draw on the following themes in your 
meetings: 
 
-- The Filipino-American friendship and partnership has stood the 
test of time and will continue to endure because of its strong 
historic ties. 
 
-- The U.S. and the Philippines are bonded by decades of friendship, 
cooperation and joint sacrifice.  That bond will remain strong, not 
only because of our shared past, but our shared vision of the future 
where our two countries prosper together in a world of freedom, 
security, and justice. 
 
-- U.S. development assistance and business partnerships are helping 
achieve higher economic growth and spread this growth, especially to 
the poor and disadvantaged. 
 
-- In close cooperation with our Filipino partners, the U.S. 
Government will continue to be a strong and dedicated partner of the 
Filipino people to combat trafficking in persons. 
 
Visit Embassy Manila's Classified SIPRNET website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
 
You can also access this site through the State Department's 
Classified SIPRNET website: 
http:// www.state.sgov.gov/ 
 
KENNEY