US embassy cable - 05MANILA5329

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 005329 
 
SIPDIS 
 
STATE FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP 
NSC FOR MORROW 
SECDEF/OSD/ISA/AP FOR ALLEN 
 
E.O. 12958: DECL: 11/14/2015 
TAGS: PREL, PTER, ASEC, MOPS, PGOV, PINS, EAID, RP 
SUBJECT: GRP OFFICIALS REVIEW PHILIPPINE DEFENSE REFORM 
WITH EAP DAS JOHN 
 
Classified By: Charge d'Affaires, a.i., Paul W. Jones for 
reasons 1.4 (b) and (d). 
 
1.  (C) Summary:  In a November 11 meeting with EAP DAS John 
and Charge, Department of National Defense (DND) 
Undersecretary Carolina reviewed the Philippine Defense 
Reform (PDR) process.  Carolina asserted that PDR was 
"embedded" in the system now and did not rely on current 
Defense Secretary Avelino Cruz's personal involvement to push 
it through.  DND Undersecretary Rodel Cruz reviewed GRP views 
on possible new legislation to make the existing Visiting 
Forces Agreement (VFA) more applicable to ongoing 
anti-terrorism cooperation.  U/S Cruz and U/S Carolina said 
Defense Secretary Cruz looked forward to his early December 
visit to Washington.  DAS John underscored USG opposition to 
any form of emergency rule or martial law (septel).  End 
Summary. 
 
---------------------- 
Review of PDR's status 
---------------------- 
 
2.  (C) EAP DAS Eric John and Charge met DND Undersecretary 
for PDR Ernesto Carolina, DND Undersecretary for Legal and 
Priority Affairs Rodel Cruz, and Philippine Ambassador to the 
U.S. Alberto del Rosario on November 11.  U/S Carolina said 
the PDR program was proceeding well, having grown out of the 
2003 Joint Defense Assessment endorsed by President Bush and 
Arroyo during the former's October 2003 state visit to the 
Philippines.  He noted that the DND was implementing the 
program in cooperation with the USG.  (Note:  The GRP 
committed USD 17.45 million to PDR in 2004, transferring this 
amount to a Foreign Military Sales, "FMS," account.  Current 
USG counterpart funding is about USD 7 million.  End Note.) 
Three key areas of PDR's continued focus include:  1) 
improving management of the armed forces; 2) underscoring GRP 
civilian control of the armed forces; and 3) building 
capacity for the war against terrorism.   U/S Carolina 
commented that it had become easier for the DND to provide 
the Philippine Congress with a multi-year perspective of 
"resources linked to strategy" due to the implementation of 
modern management methods via PDR. 
 
3.  (C) U/S Carolina said the key practical step now was to 
upgrade capabilities for battalions, given the importance of 
the battalion as a fighting unit.  The DND was working with 
the Armed Forces of the Philippines (AFP) completely to 
outfit and provide training for 14 battalions a year.  U/S 
Cruz remarked that it would be useful if FMS could be used to 
purchase the equipment needed for this effort, which he hoped 
would prove faster than a commercial competitive bidding 
process.  To assist the battalion upgrade process, U/S Cruz 
added that DND was working hard to develop its national 
training center at Fort Magsaysay and to build several 
regional training centers. 
 
------------------------------ 
PDR Process seen as "Embedded" 
------------------------------ 
 
4.  (C) DAS John asked whether the PDR process now had its 
own momentum or whether it still relied on the efforts of DND 
Secretary Avelino Cruz.  U/S Carolina responded that the DND 
 
SIPDIS 
has a "firm PDR management plan" in place and is neither ad 
hoc nor reliant on any personalities.  Overall, the PDR 
effort was at this point "embedded" and firmly part of the 
AFP's future roadmap.  U/S Carolina admitted that DefSec Cruz 
had done an excellent job of "marketing" PDR.  Down the line, 
when there was new leadership at the DND, similar efforts to 
"push" PDR would also be key to its success, he added. 
 
------------------------------- 
Examining "a New Legal Footing" 
------------------------------- 
 
5.  (C) U/S Cruz reviewed GRP views on possible new 
legislation on joint exercises that could supplement the 
existing VFA.  U/S Cruz noted that the Mutual Defense Treaty 
(MDT) of 1951 and the VFA had been developed in a different 
international context.  Nowadays, he commented, the MDT and 
VFA did not adequately deal with needs in the area of 
anti-terrorism cooperation, which had become vital in the 
post-9/11 world.  He explained that therefore DND is looking 
to place such cooperation on "a new legal footing."  DND 
officials had not yet decided whether new legislation was 
needed to supplement the VFA, suggesting that perhaps only an 
addendum to the VFA regarding counter-terrorism cooperation 
might be necessary.  He predicted that GRP proposals on the 
way forward could be ready by the end of the year. 
 
6.  (C) Charge said that it is important not to let 
consideration of a firmer legal footing impinge on our vital 
counterterrorism cooperation.  U/S Cruz admitted that the GRP 
was under pressure to take steps on this matter from some 
elements in Congress.  Senate Foreign Relations Committee 
Chairperson Miriam Santiago and Senator Juan Ponce Enrile, 
notably, had asserted that current anti-terrorism exercises 
had no legal basis, as they did not fit into the "baskets" of 
what was envisaged by the MDT and the VFA.  However, Senator 
Richard Gordon and Senate Defense Committee Chairman Rodolfo 
Biazon were very helpful.  U/S Cruz added that the GRP felt 
some urgency on the matter -- "legally speaking, we cannot 
afford even one thing to go wrong or the entire edifice of 
the MDT and VFA could fall down."  U/S Cruz specifically 
noted that the GRP's "Kapit Bisig" proposal for upgraded 
GRP-USG counterterrorism cooperation could benefit from a 
more solid legal framework under which to operate. 
 
7.  (C) U/S Cruz and Carolina added that Defense Secretary 
Cruz looked forward to his early December visit to 
Washington. 
 
8.  (U) DAS John did not have an opportunity to review this 
message. 
 
 
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Jones