PHILIPPINE DEFENSE RESHUFFLE UNLIKELY TO AFFECT

C O N F I D E N T I A L MANILA 002238 SIPDIS SIPDIS E.O. 12958: DECL: 07/02/2017 TAGS: PGOV MARR PINR RP SUBJECT: PHILIPPINE DEFENSE RESHUFFLE UNLIKELY TO AFFECT COOPERATION Classified By: Ambassador Kristie A. Kenney, reason 1.4 (d) ¶1. (U) Malacanang Palace announced on June 30 the appointment of outgoing Congressman Gilberto C. Teodoro Jr. as Secretary of National Defense, effective August 3. Outgoing Defense Secretary Hermogenes E. Ebdane, Jr. will return to his previous post as Secretary of Public Works and Highways, while National Security Advisor Norberto Gonzales will serve as Officer-in-Charge of the Department of National Defense until August 3. The DND turn-over ceremony from Ebdane to Gonzales took place at Camp Aquinaldo on July 2. ¶2. (U) Bio notes: The 43-year old Teodoro, a long-time Embassy contact, will be one of the youngest Philippine Defense Secretaries ever. His appointment comes as he faced the end of three terms (the maximum in succession; his wife Nikki succeeded him) as Congressman for the first distract of Tarlac, where his mother's family -- the Cojuancos -- are the predominant landowners. He is a nephew both to former President Corazon Cojuangco Aquino and to the head of the pro-Administration Nationalist People's Coalition (NPC), Eduardo "Danding" Cojuangco, Jr. as well as former Congressman Jose "Peping" Cojuangco. A graduate of law from the University of the Philippines as well as holder of a Masters of Law from Harvard Law School, he received the top score in the national bar examination in 1989, and practiced law until his election to Congress in 1998. He also holds the rank of Lt. Colonel in the Philippine Air Force Reserve, and is an "adopted member" of the Philippine Military Academy's Class of 1976. ¶3. (U) Teodoro, who reportedly remains on vacation in the U.S. with his family, has declined publicly to discuss his policy or personnel plans for DND. In a statement on June 30, he said, "I am humbled and sincerely honored by Her Excellency's (President Arroyo) announcement. I will not comment any further until I have received the President's instructions and guidance." ¶4. (C) Comment: Many had expected Ebdane's appointment at DND to be temporary through the mid-term election season, but the timing of this reshuffle was still somewhat of a surprise (even to many senior AFP officials),coming only days after the annual meetings of the U.S.-Philippine Mutual Defense Board and the Security Engagement Board and the visit of Admiral Keating from PACOM. The logic of appointing Gonzales as OIC for one month has raised concerns in the leftist community due to Gonzales' well-known focus on the Communist Party of the Philippines/New People's Army. Teodoro's ties in Congress should help in maintaining political support for the budgetary resources necessary for the ongoing Philippine Defense Reform, Capability Upgrade Program, and Battalion Re-training initiatives, as well as winning support for the ratification of the Philippine-Australian Status of Forces Agreement. Having a civilian at the helm of DND again is also welcome to many observers, as this was one of the key recommendations of the Feliciano Commission after the 2003 "Oakwood Mutiny." Teodoro is expected to play a key role in the implementation of the Human Security Act of 2007 -- the landmark counterterrroism legislation that will come into effect on July 14 -- as well as in continuing the push begun by then-Defense Secretary Avelino Cruz, Jr. for a new National Defense Act that would, inter alia, revamp personnel and assignments practices. Teodoro showed himself to be a team player during the 2005 and 2006 impeachment drives against President Arroyo, as well as throwing his vocal support behind the ill-fated People's Initiative for Charter Change. He is shrewd but personable and appears to be extremely well disposed to the United States and our partnership with the Philippines. His combination of Congressional, legal, and military reservist backgrounds may poise him to be unusually successful in this demanding job. Embassy is highly confident that the DND and AFP will remain firm partners in our counterterrorism and reform efforts on Teodoro's watch. Visit Embassy Manila's Classified website: http://www.state.sgov.gov/p/eap/manila/index. cfm KENNEY