SITREP 17: SENAT CONDEMNS GRP ACTIONS

UNCLAS SECTION 01 OF 03 MANILA 000914

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EAP, EAP/MTS, DRL/CRA, DS, CA

E.O. 12958: N/A
TAGS: PINS ASEC ECON RP
SUBJECT: SITREP 17: SENAT CONDEMNS GRP ACTIONS

REF: MANILA 891 AND PREVIUS


1. (U) This message is Sensitive but Unclasified -- Please
handle accordingly.


2. (SBU)Summary: The Senate has adopted a resolution
conemning GRP actions (pressure on media, arrests) uner the
State of Emergency (Proclamation 1017). similar resolution
filed by Opposition members s under consideration in the
House. The SupremeCourt has deferred hearings on petitions
challengng the constitutionality of Proclamation 1017.
Mlacanang has until March 6 to respond to the petitons;
oral argments are set for March 7. The GR has released an
expanded list of names of indivduals facing charges of
rebellion. The military as announced that it has relieved
from duty the arine colonel involved in a standoff at Fort
Bonfacio on February 26. The situation in Manila is
nonetheless calm, overall, with schools and businsses open.
The peso gained while stocks rose. Th next EAC is scheduled
for the afternoon of Marc 1. End Summary.

--------------
Senate Reolution
--------------


3. (U) The Senate n February 27 adopted a resolution
condemnng the police raid on a newspaper and other GRP
attempts to exercise control over media, the arrests of
several citizens (including a member of the House of
Representatives) and "other similar acts" carried out under
Proclamation 1017. The resolution directed the appropriate
Senate committee to conduct an inquiry into acts being
carried out under Proclamation 1017 in order to support
adoption of remedial legislation that would "fully protect"
constitutional rights. Senate President Franklin Drilon and
Senators Francis Pangilinan, Manuel Roxas, Rodolfo Biazon,
and Pia Cayetano played key roles in moving the legislation
forward. Also on February 27, eleven Opposition
representatives filed an identical resolution in the House,
which has not yet acted.

--------------
Supreme Court Defers Hearings
--------------


4. (U) On February 28, the Supreme Court deferred hearings
on petitions challenging the constitutionality of
Proclamation 1017. Oral arguments are set to begin on March

7. The Supreme Court gave Malacanang a deadline of midnight,
March 6, to respond to the assertion that Proposition 1017 is
unconstitutional. Senator Miriam Defensor Santiago, a
staunch Arroyo ally, asserted to the press on February 27
that the Supreme Court has no power to determine whether the
President had the "factual basis" to issue Proposition 1017.
She conceded, however, that the Supreme Court may review
specific acts arising from the State of Emergency, such as
the raid on a newspaper office or arrests of alleged
anti-government plotters.

--------------
New Charges
--------------


5. (U) On February 27, the Department of Justice released an
expanded list of leftist militants charged by the police with
rebellion. There is no indication that arrest warrants have
been issued. In addition to the 15 names released yesterday
(reftels),the DoJ named 46 more individuals accused of
conspiring to overthrow the government, including: Luis
Jalandoni, the chairman of the negotiating committee for the
National Democratic Front; Gregorio Rosal (aka Ka Roger),
spokesman for the New People's Army; and Juliet Sison, wife
of the exiled Communist Party of the Philippines founder Jose
Maria Sison (who was on the first list). Others on the list
are:

Spouses Benito Tiamzon
Wilma Tiamzon
Tirso Alcantara
Benjamin Mendoza
Vic Ladlad
Nathanael Santiago
Sotero Llamas
Julio Atienza
Edilberto Escudero
Rosemarie Domanais

MANILA 00000914 002 OF 003


Rogelio Vilanueva
Leo Velasco
Rafael Baylosis
Prudencio Calubid
Philip Limjoco
Julius Giron
Allan Jazmines
Antonio Cabanatan
Fidel Agcaoili
Edilberto Silva
Maria Concepcion Araneta Bocala
Jorge Madlos
Eugenia M. Topacio
Francisco Fernandez
Carlos Borjal
Elizabeth Princepe
Randall Echaniz
Rey Claro Casandre
Edwin Alcid
Tita Lubi
Abdias Guadania
Mike Gamara
Ka Selbio
Kim
Tasio
Randy
Rosa/Sisa/Isid
Novo
Elya
Rose

--------------
Manila Calm
--------------


6. (U) Manila appears calm, overall, on February 28, with
businesses operating normally. Manila area schools and
universities resumed classes on February 28, after being
closed on February 24 and 27. There were no major
demonstrations in Manila as of late afternoon on February 28.
About 30 members of the leftist group "Kasama Pilipinas" who
attempted to gather at the Memorial Circle in Quezon City
were quickly dispersed by the police. Another leftist group,
Anak Pawis, was reportedly planning a rally at police
headquarters at Camp Crame in Manila the evening of February

28. Police units were on standby for the rally.


7. (U) The Armed Forces of the Philippines ((AFP) reported
no problems with the chain of command and all troops were
accounted for. On February 28, a Philippine Marine spokesman
announced that Col. Ariel Querubin, the commander of the 1st
Marine Brigade, had been relieved of duty for leading a
protest over the replacement of the Marine Commandant at the
Philippine Marine headquarters at Fort Bonifacio on February
26 (reftels).

--------------
Peso and Stocks Up
--------------


8. (U) On February 27, the Philippine Treasury rejected all
bids for the three billion pesos of bonds on offer during its
regular securities dealers auction. Interest rates on t-bill
bids have been on a downward trend since the increase in the
value added tax rate went from 10 to 12 percent this month,
and the government has projected deeper reductions in its
fiscal deficit. With the political uncertainty, however,
dealers offered somewhat higher rates than at the last
primary market auction on February 13. With plenty of cash
and T-bill demand more than four times oversubscribed, the
government apparently decided to reject all bids as a signal
that the political turbulence was temporary and did not merit
higher rates.


9. (U) On February 28, the peso closed at 51.65, much
stronger than its 51.96 close on February 27 and a full
recovery from before the President declared the State of
Emergency. The Philippine Stock Price Index rose to 2123 at
the close of the trading day, up 1.6% from its close of 2089
on February 27, its highest level in three weeks.


10. (U) Finance Secretary Gary Teves said on February 28
that investor confidence in the Philippine economy remains
strong and that the economic team would continue aggressively
to implement the government's fiscal and economic reform
program. He said "the rebound in the local stock market and

MANILA 00000914 003 OF 003


the stabilization of the peso today indicate that investor
faith in the fundamentals of the Philippine economy remain
strong." He also noted that rating agencies Fitch and
Standard & Poor's have reaffirmed their recent positive
revisions of the Philippines' credit rating outlook.

--------------
Next EAC
--------------


11. (U) The next EAC is scheduled for the afternoon of March

1. The crisis management center will remain in operation
overnight.

Jones