Identifier | Created | Classification | Origin |
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06MANILA4666 | 2006-11-13 05:36:00 | UNCLASSIFIED | Embassy Manila |
VZCZCXRO5796 OO RUEHCHI RUEHDT RUEHHM DE RUEHML #4666 3170536 ZNR UUUUU ZZH O 130536Z NOV 06 FM AMEMBASSY MANILA TO RUEHC/SECSTATE WASHDC IMMEDIATE 3874 RUEHZS/ASEAN COLLECTIVE IMMEDIATE RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE RUCPDOC/DEPT OF COMMERCE WASHDC |
UNCLAS MANILA 004666 |
1. SUMMARY. DCM Jones highlighted U.S. business, USAID and Peace Corps involvement in the central Philippine port city of Cebu on October 27. Together with Commercial Counselor and Cebu Consular Agent, DCM met with local business, religious, and political leaders in the Philippines' "second city" which will host the ASEAN and East Asia Summits on December 10-14. The visit received significant local media coverage and follows two recent trips by the Ambassador to the city, underlining the importance of Cebu and the Visayas to U.S.-Philippines relations. END SUMMARY. 2. The DCM began the visit by touring Fairchild Semiconductor to highlight the increased investments of U.S. businesses in Cebu. Fairchild Semiconductor, a Maine-based leading manufacturer of integrated circuits, became one of the first companies to locate at Mactan Economic Processing Zone in 1979. Starting with less than 500 employees, the company today employs over 1,600 local staff and has expanded its operations to include a testing facility. Other American companies, including Timex and Lexmark, have similarly expanded their investments in Cebu by opening R&D and distribution centers. These manufacturers are being joined increasingly by call centers including Convergys and Sykes Asia, a company that will be augmenting its 1,500-seat center with a brand new 2,000-seat facility. 3. After a visit to the U.S. Consular Agency in Cebu to review operations and meet staff, the DCM hosted a business luncheon. There he heard from local and American businesspeople who described the opportunities and challenges of doing business in Cebu. They stated that misperceptions from abroad about the security situation in Cebu were constraining foreign investment. Joel Yu, a business chamber president, noted that Cebu, a traditional trading center, is not as prone to political extremism and insurgency as agriculturally-based regions of the country. The business leaders pointed out that skilled and relatively inexpensive local labor is the main attraction for foreign investment in Cebu. Yet they noted that current IT education in Cebu is not adequate to meet the growing demands of businesses, despite several local colleges and universities. 4. The DCM also visited two Peace Corps Volunteers who converted an old provincial jail into a computer classroom where they teach college students how to deploy inexpensive computer technology in rural schools. The volunteers showed how partnerships between NGOs, private businesses, and government can work together to address Cebu's business and development needs. 5. The DCM toured one of 137 franchised midwife clinics which USAID helped establish by providing the midwife entrepreneur with training, basic clinic equipment and marketing support. USAID channeled its support to these midwives through non-government organizations that joined to form a private foundation in 2002. These midwife-owned franchises now employ, on average, two staff members and earn $400 to $1,200 per month. The midwife owner of the clinic visited by the DCM noted that these clinic operations are an attractive alternative to seeking work abroad, as they provide an opportunity and an incentive to healthcare workers to remain in the Philippines and meet the health care needs in their communities, while earning a good living. 6. Cardinal Vidal, the Archbishop of Cebu, welcomed the DCM to his residence for a courtesy call and described the Catholic Church's efforts at educating the people about the electoral process. The Church, through its parishes, conducts programs to inform the people about how elections are held and what they mean. The DCM encouraged Vidal to speak out more forcefully against practices that encourage trafficking in persons, and commended his efforts against corruption. 7. In television interviews with the two major local networks, ABS-CBN and GMA-7, the DCM highlighted the above examples of U.S. engagement in Cebu and clarified the U.S. role in various regional forums in Asia. He also dispelled persistent rumors about possible Presidential or Secretary of State attendance at the ASEAN Summit in December. 8. The DCM amplified the visit's message of engagement and partnership during a reception he hosted for over 100 local business, political, and community leaders. Guests, including Congressman Raul Del Mar, Congresswoman Nerissa Soon Ruiz, and former Governor Lito Osmena, warmly greeted the U.S. Mission delegation and mentioned how they looked forward to more visits from the Embassy. KENNEY |