US embassy cable - 05MANILA5799

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 005799 
 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS, EAP/MLS, H, EB 
H PLEASE PASS TO OFFICE OF SENATOR BOND 
 
E.O. 12958: DECL: 12/12/2015 
TAGS: PREL, PTER, ETRD, EINV, RP, BM, CH, KS 
SUBJECT: SENATOR BOND'S DECEMBER 9 MEETING WITH PRESIDENT 
ARROYO:  WTO, BURMA, INTELLIGENCE, CHINA 
 
 
Classified By: Charge d'Affaires, a.i., Paul W. Jones for 
reasons 1.4 (b) and (d). 
 
1.  (C) Summary.  U.S. Senator Christopher S. Bond, 
accompanied by CDA Paul W. Jones, met with President Gloria 
Macapagal Arroyo on December 9.  President Arroyo pledged 
support for U.S. trade liberalization proposals at the WTO 
Ministerial Meeting in Hong Kong and for the U.S. efforts to 
encourage reform in Burma.  Regarding GRP efforts in the 
Global War on Terror, President Arroyo indicated that U.S. 
intelligence cooperation was the top tactical priority in the 
GRP fight against terrorism in general and Jemaah Islamiah in 
particular.  She also spoke positively about the expanding 
role of Chinese and South Korean direct investment in the 
Philippines.  End Summary. 
 
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GRP Support at WTO 
------------------ 
 
2.  (SBU) U.S. Senator Christopher Bond emphasized to 
President Arroyo in a December 9 meeting, the importance 
across a range of issues of the USG-GRP bilateral 
relationship and of the GRP as a USG partner in international 
and regional affairs.  Regarding the upcoming WTO Ministerial 
Meeting in Hong Kong, President Arroyo offered her 
unequivocal support for the U.S. proposal on trade 
liberalization and agricultural subsidies.  Noting that 
"everyone wants a resolution in Hong Kong," the President 
vowed to "support the United States all the way" on its 
proposal, and said that "the EU will see that APEC supports 
the U.S." 
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Pressure on Burma 
----------------- 
 
3.  (C) President Arroyo also underscored the GRP's support 
for the U.S. position on Burma.  She remarked that she had 
personally assured President Bush of the GRP's vote on Burma 
in the UNSC when she spoke with him at the APEC meeting in 
November.  She said that the Philippines' support for 
bringing Burma to the UNSC had initially created problems 
with ASEAN partners, since it was contrary to ASEAN policy, 
and she expected to hear complaints from Burma at the ASEAN 
Summit.  Nevertheless, she went on, ASEAN would continue to 
discuss democratization of Burma at its no-agenda working 
dinners every time ASEAN meets.  Senator Bond expressed the 
USG's appreciation for the GRP's support and urged the GRP to 
continue to encourage ASEAN to put pressure on Burma to move 
toward democratization and the release of political prisoners. 
 
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Intelligence Operations and Terrorism 
------------------------------------- 
 
4.  (C) Senator Bond noted that the chief purpose of his 
visit was to observe intelligence-gathering operations 
related to the Global War on Terror.  He related that he had 
met with Southcom Commander General Edilberto Adan in 
Zamboanga and been impressed with what he had seen there. 
President Arroyo stated that intelligence cooperation was 
what was most important to the GRP right now.  She added that 
such cooperation is the top tactical priority in the fight 
against terrorism, and especially against the Jemaah Islamiah 
(JI), which she singled out as the chief terrorist threat to 
the GRP.  Senator Bond inquired about the status of the 
proposed anti-terrorism legislation.  The President replied 
that the problem lay in the Senate, where there has been 
strong disagreement about how to define terrorism.  She 
indicated that a definition would soon be put forth by 
Senator Juan Ponce Enrile that would be acceptable to enough 
senators to allow for eventual passage of the bill. 
 
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China and Foreign Direct Investment 
----------------------------------- 
 
5.  (C) Senator Bond asked President Arroyo for her views on 
China and China's role in Southeast Asia.  She commented that 
U.S. designation of normal trading relations for China had 
initially hurt the Philippines by drawing foreign direct 
investment (FDI) away from the Philippines.  She noted, 
however, that the opening of China as a market for Filipino 
goods has mitigated this loss.  She claimed that the 
Philippines was beginning to benefit from regional 
diversification of FDI, as investors in China also looked to 
Southeast Asian nations as sites for subsequent regional 
investment. 
 
6.  (SBU) Citing concerns he had heard at an American Chamber 
of Commerce lunch the previous day, Senator Bond noted that a 
better environment for business, including a more responsive 
judiciary and less concern over corruption, could help draw 
more U.S. FDI to the Philippines.  President Arroyo replied 
that Chinese and South Korean FDI in the Philippines was 
significant and increasing, especially in the mining 
industry; she called attention to a potential $1 billion 
Korean investment in a shipyard facility at to be located in 
Subic, the site of the former U.S. naval base.  Senator Bond 
commented that the U.S. is looking for investment 
opportunities in places with well-trained knowledge workers, 
since it does not have the same need for raw materials as 
China.  President Arroyo indicated that the GRP was very 
pleased with the U.S. call centers based in the Philippines, 
and that she was looking forward to meeting with the US-ASEAN 
Business Council at the ASEAN summit that opens December 12 
in Malaysia. 
 
 
7.  (U) Participants in the December 9 meeting: 
 
USG: 
Senator Christopher S. Bond 
Charge d'Affaires Paul W. Jones 
Counselor for Regional Affairs Bruce Stewart 
John Bartling, Staff Member, Office of Senator Bond 
Louis Tucker, Staff Member, Senate Select Committee on 
Intelligence 
Political Officer John R. Groch (Notetaker) 
 
GRP: 
President Gloria Macapagal Arroyo 
National Security Advisor Norberto Gonzales 
National Intelligence Coordinating Agency Director General 
Cesar Garcia 
Department of Foreign Affairs Assistant Secretary Rey 
Carandang 
Deputy Presidential Assistant Sulpicio M. Confiado 
Department of Foreign Affairs Americas Desk Officer Ma. 
Josefina V. Ceballos 
 
8.  (U)  Senator Bond did not have the opportunity to review 
this cable. 
 
 
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Jones