PHILLIPINES SECOND CITY GREETS AMBASSADOR WITH

UNCLAS MANILA 002389 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV PREL ECON EAID RP SUBJECT: PHILLIPINES SECOND CITY GREETS AMBASSADOR WITH A DYNAMIC SPIRIT ¶1. SUMMARY: Ambassadors May 19 and June 2 visits to Cebu highlighted the broad range of U.S. interests and activities in the area. The Cebu metro area is second only to Manila in the size of its population and economy. Over 100 American businesses operate in Cebu, including Timex, Lexmark International, and Fairchild Semiconductors. Local leaders exhibited a strong sense of optimism and willingness to address business constraints. Local leaders also cited the December 2006 12th ASEAN Summit as an example of Cebu's dynamism. The Ambassador also swore-in Peace Corps Volunteers and visited the Cebu Consular Agency. END SUMMARY. ¶Y. ¶2. The Ambassador began the May 19 visit by touring Timex Philippines state of the art manufacturing and distribution facility, which produces 80% and distributes 100% of all Timex watches. Timex was the first company to operate in the Mactan Export Processing Zone (MEPZ),a successful and growing government-private sector partnership of over 100 firms including U.S. technology leaders Lexmark International and Fairchild Semiconductors. These are among the approximately 100 American businesses in the Cebu area employing 25,000 staff, the largest ten of which have over $600 million dollars in total annual sales. The successful U.S. businesses and MEPZ are symbolic of Cebus role as a business growth point with an international orientation, and an illustration of the entrepreneurial relationship between Cebus government and the private sector. ¶3. Cebu's international profile will be further strengthened when it hosts the twelfth annual ASEAN Summit it in December 2006. The ten-member nations will participate in regional discussions and witness the Philippines assume the organizations chairmanship. Immediately thereafter, Cebu will host the second annual East Asian Summit, which includes ASEAN members and six ASEAN partners from South Asia, East Asia and the Pacific. ¶4. The Ambassador hosted a working lunch with Cebu Congressmen Antonio Cuenco and Raul del Mar, Provincial Governor Gwendolyn Garcia, local government authorities of Cebu and nearby Mandaue City, representatives of the American Chamber of Commerce, and other business chambers. These leaders acknowledged several constraints to business growth, including electricity dependability and water cost, but they also spoke enthusiastically of the options available to address the challenges. Business leaders described excellent collaboration with local officials, and the Provincial Governor claims (the local government?) will provide ample funds for infrastructure projects as she seeks to expand the successes of metro Cebu throughout Cebu Province. ¶5. As part of the Philippine Month of the Ocean celebrations, the Ambassador officially launched several coastal resource management programs to be implemented by neighboring Lapu Lapu city government and civic organizations with USAID support. This strong local involvement and initiative demonstrates a solid understanding of the direct link between protecting the environment and the health of the local economy. Although the welfare of the entire Philippines is directly connected to the coastal environment, heavy investment in the tourism industry makes the Cebu economy and population particularly sensitive to environmental degradation. ¶6. The visit also included an interview on a top local music/news radio station, where the Ambassador fielded questions running the gamut from her professional biography to the economy, President Bushs new immigration policy and U.S. assistance for counterterrorism, counter-narcotics and the efforts to fight trafficking in persons. ¶7. On June 02 the Ambassador swore in 28 new Peace Corps volunteers who will serve in the Visayas region. Over 8,000 volunteers have served in the Philippines, the second oldest Peace Corps program. The Ambassador also visited the Cebu Consular Agency which replaced the Consulate in 1995. The Agency primarily provides ACS services and had just completed an outreach program in collaboration with Department of Homeland Security and Social Security Administration staff. KENNEY