US embassy cable - 05MANILA1059

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 001059 
 
SIPDIS 
 
DEPT FOR EAP/PMBS 
NSC FOR GREEN 
 
E.O. 12958: DECL: 03/07/2015 
TAGS: PREL, MARR, PINS, PTER, AS, NZ, JA, RP 
SUBJECT: DEFENSE SECRETARY FOCUSED ON PDR AND 
COUNTERINSURGENCY 
 
Classified By: (U) Political Officer Paul O'Friel 
for reasons 1.4(b) and (d). 
 
1.  (C) SUMMARY.  Defense Secretary Cruz has made Philippine 
Defense Reform (PDR) the centerpiece of his tenure, and is 
also focused on ending the country's multiple insurgencies 
within the first six years of the 18-year PDR program.  His 
new approaches include the "500 barangay" program, which will 
enlist civilian agencies in the counterinsurgency effort. 
According to Cruz's Chief of Staff, PDR will be high on the 
Philippine Defense Secretary's agenda during his upcoming 
trips to Australia and New Zealand.  END SUMMARY. 
 
PDR FRONT AND CENTER 
-------------------- 
 
2. (C) According to Brigadier General Lamberto "Bert" Sillona 
(ret.), Secretary of National Defense Avelino Cruz's  Chief 
of Staff, Cruz plans a series of meetings with Department of 
National Defense (DND) personnel beginning March 7 to ensure 
the entire Department understands and is on board with PDR 
objectives.  Sillona told poloff that Cruz views PDR as the 
centerpiece of his mandate as Defense Secretary, and its 
success (or failure) will be the defining criterion of his 
own tenure. 
 
3.  (C) Admitting that many of the personnel and 
organizational reforms proposed by PDR, such as a fixed 
tenure for the Chief of Staff and service chiefs and reducing 
the number of Philippine Army divisions, would require new 
legislation, Sillona said his boss was pushing the DND staff 
hard to come up with a new National Defense law.  A first 
draft, however, failed to pass muster with the eagle-eyed 
Cruz (one of the Philippines' most able attorneys and 
previously legal counsel to the President).  Sillona claimed 
Cruz "threw it in the trash" and directed his staff to come 
up with a better effort. 
 
4.  (C) Sillona commented that PDR will be high on the agenda 
during Cruz's planned April 2005 visits to Canberra and 
Wellington, where he intends to solicit Australian and New 
Zealand support for PDR.  He separately also plans to enlist 
Japanese backing for the effort. 
 
ENDING INSURGENCIES 
------------------- 
 
5.  (C) Sillona stated Cruz wants within the first six years 
of the 18-year PDR effort "to finish" the insurgencies 
plaguing the Philippines.  According to Sillona, Cruz had 
directed Armed Forces of the Philippines (AFP) Chief of Staff 
General Efren Abu to come up with a concrete list of the 
equipment he needs to combat the insurgencies.  Cruz told Abu 
to work with an projected budget of 5 billion pesos 
(approximately USD92.5 million) per year, but also instructed 
the Chief of Staff to come up with possible funding sources, 
e.g., new taxes or sale of excess military property. 
 
6.  (C) Sillona also described Cruz's intention to develop a 
more holistic approach to counterinsurgency.  He noted that 
the "500 barangay (precinct)" program would identify 
communities located primarily in areas controlled by the 
Communist Party of the Philippines/New People's Army and 
develop them as models of what the GRP can do for its 
citizens.  AFP engineering, civil affairs, and medical 
outreach efforts would be coordinated and in sync with 
concurrent efforts by the Department of Public Works and 
Highways (DPWH) and the Department of Social Welfare and 
Development (DSWD).  Sillona related how Cruz had asked DPWH 
to furnish a map of planned road construction over the next 
five years.  Cruz then sought the advice of General on which 
are the key roads and subsequently intervened personally with 
President Arroyo to get DPWH to readjust its priorities to 
meet counterinsurgency needs.  (Note:  The DND will brief 
donors on the "500 barangay" program at the World 
Bank-chaired donors' coordination group March 7-8. End Note.) 
 
 
 
7.  (C) COMMENT.  Cruz reportedly told the Canadian 
Ambassador during a recent courtesy call that he was 
interested in only "boots and bullets," disappointing 
Canadian attempts to flog high-ticket weapons.  Thus far in 
his short tenure, Cruz seems to have focused on the right 
priorities, and appears well served by his earlier role in 
privatizing the moribund Philippine telecommunications 
industry in the 1990's.  Taking a leaf out of a MBA textbook, 
he has established an agenda and is now in the process of 
reorienting the leviathan and often hide-bound Philippine 
military to his way of thinking.  While canny and articulate 
and with excellent access to his President, Cruz will also 
need some luck and strong support from us to see PDR through. 
 
Visit Embassy Manila's Classified website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
Ricciardone