US embassy cable - 05MANILA2174

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 002174 
 
SIPDIS 
 
STATE FOR EAP/PMBS 
NSC FOR GREEN 
OSD/ISA FOR ALLEN 
 
E.O. 12958: DECL: 05/13/2015 
TAGS: PREL, PINR, EPET, ECON, CH, RP 
SUBJECT: MORE ON HU JINTAO'S VISIT TO THE PHILIPPINES 
 
REF: A. STATE 81733 
 
     B. MANILA 1987 
     C. MANILA 1257 
 
Classified By: (U) Political Officer Paul O'Friel 
for reasons 1.4(b) and (d). 
 
1.  (C) SUMMARY.  According to the Department of Foreign 
Affairs, PRC President Hu Jintao's state visit was a "normal" 
component of Beijing's outreach to the region.  Visits by the 
PRC Vice Minister of Defense and Chief of Staff of the 
People's Liberation Army are on the agenda as part of the 
warming ties between the two countries.  Cooperation on 
seismic exploration in the South China Sea continues. 
Foreign Secretary Romulo's meetings in Washington May 16-17 
will offer a timely opportunity for further discussion of 
Philippine perceptions of China's evolving role in the 
region.  END SUMMARY. 
 
NORMALIZING PERCEPTIONS OF CHINA 
-------------------------------- 
 
2.  (C) According to Department of Foreign Affairs (DFA) 
China Director Maria Theresa Almojuela, the GRP was 
"extremely satisfied" with the results of the April 26-28 
state visit of Chinese President Hu Jintao, which had done 
much to "normalize" popular Filipino perceptions of China. 
The business-suit clad Hu, she observed, had a "reassuring" 
appearance, and did not fit the "stereotypical" view 
Filipinos still had of the mainland Chinese.  "He reassured 
people that China is not a threat," she claimed. 
 
3.  (C)  Without prompting, Almojuela assured poloff that the 
Philippines had no intention of playing a "China card" in its 
relations with either the United States or Japan.  The 
warming ties with China were a "natural and normal" part of 
Beijing's outreach to the region, and meshed closely with the 
GRP's own broad development agenda.  Pointing to China's 
decision to open a consulate in the northern Luzon town of 
Loaog, Almojuela noted that efforts to develop trade links 
between that region and China had been underway since 2001. 
A Hong Kong-based conglomerate had made a major investment in 
a hotel and casino, and regular (charter) flights connected 
Loaog with six cities on the mainland.  Almojuela expressed 
doubt that the warming economic and trade ties with the PRC 
would impact sizable Taiwanese investment in the Philippines, 
since Taiwanese investments were "profit driven," independent 
of political considerations. 
 
NEXT STEPS 
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4.  (C) Part of Manila's warming relations with the PRC will 
include upcoming visits by the PRC Vice Minister of Defense 
as well as the Chief of Staff of the People's Liberation 
Army, Almojuela said.  She declined to provide further 
details on the trips, beyond clarifying that the Vice Defense 
Minister would visit "sometime this summer." 
5.  (SBU) Cooperation on the tripartite (China-the 
Philippines-Vietnam) seismic exploration was still underway, 
Almojuela confirmed.  She noted the Chinese National Offshore 
Oil Company had agreed to discuss with the Philippine 
National Oil Company the exploration of a petroleum block in 
the Calamian Area in Philippine national waters northwest of 
Palawan Island.  Almojuela speculated that international 
energy giant Shell, which operates the Malampaya natural gas 
facility, might have a role in developing the Calamian block. 
 
COMMENT 
------- 
 
6.  (C) As noted in ref C, President Hu's charm offensive in 
Manila does not appear significantly different from that in 
other ASEAN capitals.  Better and broader bilateral ties 
advance regional interests, as other ASEAN members have also 
discovered.  However, the conservative Philippine defense 
establishment -- whose doctrine, equipment, and training are 
all US-based -- will be cautious so as not to jeopardize its 
close relationship with the United States military, 
especially as it undertakes (with US help) fundamental 
restructuring and continues to combat multiple terrorist 
threats.  Foreign Secretary Romulo's upcoming visit to 
Washington offers a timely opportunity further to discuss the 
evolving PRC role in Asia and Philippine perceptions of 
long-term Chinese goals. 
 
Visit Embassy Manila's Classified website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
 MUSSOMELI