REGIONAL 1207 FUNDING PROPOSAL

UNCLAS MANILA 001087

SIPDIS

SENSITIVE
SIPDIS

STATE FOR S/CRS, PM, EAP/RSP, AND EAP/MTS
USPACOM ALSO FOR FPA HUSO AND J5
SECDEF/OSD/ISA/AP (TOOLAN/REDMON)
JOINT STAFF/J5 (WILKES/ROBINSON/CLEMMONS)

E.O. 12958: N/A
TAGS: EAID PTER MOPS PREL ID MY RP
SUBJECT: REGIONAL 1207 FUNDING PROPOSAL

REF: A. 06 MANILA 4151

B. 06 MANILA 4396


1. (SBU) SUMMARY. Section 1207 funds offer a potentially
extremely valuable tool to help consolidate the post-conflict
environment in the Philippines' Sulu Archipelago and in the
neighboring areas of Indonesia. Our joint Manila-Jakarta
$15.5 million proposal would seek to build upon existing
programs to improve infrastructure, border and port security,
and foster a climate of peace in the region. These measures
would complement the approved proposals for FY 2007 Section
1206 for the tri-border area, which were designed to improve
maritime security in this region of porous borders and
transnational terrorist activity. U.S. Embassies Jakarta and
Manila strongly believe that this regional 1207 initiative,
if approved, would allow us to help host nation governments
consolidate their counterterrorism successes and win back
ground from the extremists. On the Public Diplomacy side, we
would add that the context of the cooperation is different in
each country, and request that any announcement or publicity
about this cooperation be cleared by relevant embassies. END
SUMMARY.


THE PHILIPPINES -
BUILDING ECONOMIC ACTIVITY TO SECURE THE PEACE
-------------- -


2. (U) The Philippines is currently the focal point of our
counterterrorism fight in the region. The Armed Forces of
the Philippines has scored significant victories during its
ongoing campaign on the island of Jolo against Abu Sayyaf and
Jemaah Islamiyah terrorists. With U.S. help, Philippine
troops have overrun terrorist training camps and conducted
successful operations that led to the deaths of Khadaffy
Janjalani and Abu Solaiman, the top two leaders of the Abu
Sayyaf Group. Our $10 million Philippine 1207 initiative
would build upon existing U.S. Agency for International
Development and Joint Special Operations Task
Force-Philippines activity to improve dual-use infrastructure
on the islands of Jolo and the neighboring island of
Tawi-Tawi, where we have made significant gains in separating
the terrorists from the population.


3. (U) Our Philippine proposal consists of five components:

-- Jolo Airport: A $3 million expansion project would
lengthen the current runway from 1500 meters to 2000 meters,
giving it increased capacity to handle civilian and military
(both U.S. and Philippine Air Force) aircraft, such as Boeing
737s and C-130s. This improved accessibility to Jolo and
similarly, below, to Tawi-Tawi is expected to offer
opportunities for economic growth in both locations that will
give these island communities greater hope for the future for
themselves and their children, and help them become less
isolated and more a part of a greater, pluralistic Philippine
society.

-- Tawi-Tawi Airport: A similar $3 million expansion project
would give this airport the same expanded dual-use capability.

-- Tawi-Tawi Bridge: This $3 million project would construct
a bridge and approach roads that would link Tawi-Tawi and
Sanga-Sanga, the two main islands of the Tawi-Tawi group. It
would open the agricultural hinterland of the principal
island of Tawi-Tawi for development by allowing
farm-to-market access. The project would also enable the
Armed Forces of the Philippines to shift forces by land from
Sanga-Sanga to Tawi-Tawi, an operation it is now only able to
conduct by sea, in order to eliminate terrorist safe havens
and transit areas from this heretofore inaccessible area.

-- Security Force Train-and-Equip Package: $300,000 in funds
under the supervision of the resident U.S. Senior Law
Enforcement Advisor would allow us to train and equip port
and airport security personnel in Zamboanga and the Sulu
Archipelago to screen cargo and passengers and respond to
potential terrorist threats.

-- Jolo Water Distribution System: $700,000 would allow Joint
Special Operations Task Force-Philippines to complete a badly
needed water distribution project in Jolo City, the largest
municipality on the island, that would provide its residents
potable drinking water.


4. (U) These proposed projects would have a tremendous
impact on the Sulu Archipelago. The expanded runways will
improve economic activity and allow for greater air passenger
and cargo traffic between the islands and neighboring areas
in Sabah, Malaysia and Sulawesi and Kalimantan, Indonesia.
If these projects receive funding, a dedicated program
manager under USAID,s Growth and Equity in Mindanao (GEM)
III program currently scheduled to begin in August 2007 would
oversee the program.

INDONESIA - BORDER SECURITY AND EDUCATION
--------------


5. (U) The northeast Kalimantan islands of Tarakan, Nunukan,
and Sebatik are the major transit points into Indonesia from
the Philippines and Malaysia. These areas are known transit
routes for not only terrorist activities that reach all the
way to Poso, in Central Sulawesi and Maluku, but also serve
as transit area for major transnational criminal activities
involving weapons smuggling, human trafficking, illegal
logging, fuel, illegal fishing, and wildlife smuggling. $5.5
million in 1207 funding would address border and port
security issues in northeast Kalimantan, improve central
government coordination, and promote community stabilization
and development.


6. (U) Border and Port Security: $2 million would be used to
provide technical assistance, training, limited
infrastructure development and conduct cross-functional
training programs with Indonesian Immigrations, Customs,
Indonesian National Police, Indonesian National Police Marine
Police, port authorities and the Indonesian Armed Forces
(TNI). All of the ports in the northeastern Kalimantan
islands suffer from a lack of inspection equipment, queuing
infrastructure and processes, training, standardized
procedures, and coordination. The infrastructure development
would involve low-tech structural improvements and
modifications to enable better management of passengers and
cargo. The training and process systems provided would cover
immigration processes, document examination and inspections,
cargo inspection, vessel and vehicle search, interview and
interrogation, basic surveillance, border and port
management, law enforcement safety, tactical and strategic
intelligence methodologies for law enforcement, standardized
reporting, and inter-agency coordination.


7. (U) Central Coordination: Better central coordination
would greatly enhance the effectiveness of the above
measures. Under the Global War on Terrorism program, we will
place a U.S. Coast Guard Maritime Security Advisor at the
Agency for National Maritime Coordination (BAKORKAMLA) for
one year. An additional $500,000 in 1207 funding would
provide for training of central government officials to
institutionalize coordination among the dozen Indonesian
agencies that are involved with maritime security. This
training would address institutional gaps in communication
and coordination and competing authority among TNI Navy, the
National Police and Maritime Police, Customs, and other
agencies, and would start at the upper levels of the
Indonesian government and work downward to close gaps and
eliminate overlaps in authority.


8. (U) Community Stabilization and Community Development:
The Malino Accord did not end conflict in Central Sulawesi,
where extremists have continued to foment discord and
violence between the Muslim and Christian communities. The
province is divided along communal lines, public offices and
services are the object of contention, and public
infrastructure has yet to be re-developed from the communal
violence around 2000. Scarce economic opportunities and
resources escalate tensions among groups, local government
fails to meet minimum needs of the citizens, and continuing
security threats create confusion and instability. Central
Sulawesi, especially in and around Poso, has become an ideal
"safe haven" for terrorists, potential terrorists and others
linked to terrorism, notwithstanding the recent arrests. The
situation resembles the one that existed in General Santos
City on Mindanao in the southern Philippines before USG
intervention there. USAID plans to implement a program in
Central Sulawesi aimed at community stabilization and
community development


9. (U) To reinforce these programs and to promote community
focus on the future and issues of common concern and promote
mutual understanding, we propose to use $500,000 in 1207
funds to expand existing public diplomacy programs in
Indonesia that promote youth leadership and improve the
quality of education to include Central Sulawesi. These
programs would include:

-- English immersion camps;
-- Documentary film program for young adults;
-- Sports leagues;
-- High school journalist training;
-- Scholarships for English classes; and,
-- Study tours for community leaders.


10. (SBU) All the above measures would complement the
approved FY 2007 Section 1206 proposals for the tri-border
area, which were designed to improve maritime security in
this region of porous borders and transnational terrorist
activity. U.S. Embassies Jakarta and Manila strongly believe
that this regional 1207 initiative, if approved, would allow
us to help host nation governments consolidate their
counterterrorism successes and win back ground from the
extremists.


11. (U) Embassies Jakarta and Kuala Lumpur have cleared this
message.

Visit Embassy Manila's Classified website:
http://www.state.sgov.gov/p/eap/manila/index. cfm
KENNEY