VISIT TO SUBIC BAY HIGHLIGHTS U.S. IMPORTANCE IN REGION

UNCLAS SECTION 01 OF 02 MANILA 002726 SIPDIS PLEASE PASS TO PEACE CORPS E.O. 12958: N/A TAGS: PREL PGOV KISL KPAO EAID RP SUBJECT: VISIT TO SUBIC BAY HIGHLIGHTS U.S. IMPORTANCE IN REGION ¶1. SUMMARY: The Deputy Chief of Mission's December 4 visit to the port of Subic Bay, site of the former U.S. naval base, highlighted the continuing importance of the region to U.S. business and the American citizen community, as the Ambassador and DCM have done on previous visits. The DCM recognized local law enforcement officials for their help and assistance with Naval Criminal Investigation Service (NCIS) efforts, met with a successful U.S.-Philippines joint-venture company, and visited with local government officials. Additionally, the DCM heard from local Peace Corps Volunteers and saw the positive effects of the U.S. Tropical Forest Conservation Act of 1998 on an indigenous Filipino community. The DCM also took advantage of national and local media interest and spoke about U.S. interests in the region and American democracy with the upcoming presidential inauguration. END SUMMARY. -------------- --- RECOGNIZING EFFORTS TO HELP U.S. VISITING FORCES -------------- --- ¶2. The Subic Bay Economic Zone and Freeport, a U.S. naval base for nearly 95 years until it reverted to Philippine authority in 1992, is now a commercial and tourism destination and maritime hub that hosts approximately 15 U.S. Navy ship visits per month. Coordination with Subic Bay Metropolitan Authority's Law Enforcement Department and the Philippine National Police office in Olongapo City is essential in providing for the safety and security of U.S. visiting forces and protection of U.S. Navy assets in port. These offices have been very supportive and cooperative with NCIS efforts, helping to minimize and mitigate concerns with U.S. sailors and marines on liberty and in addressing general force protection requirements. As a show of the USG's appreciation, the DCM presented certificates of appreciation to the Subic Law Enforcement Division Head, Subic Operations Chief, and Olongapo City Chief of Police. -------------- SUBIC BAY GOOD FOR U.S. BUSINESS -------------- ¶3. The visit by the DCM and the Senior Commercial Officer to a U.S.-Philippine joint venture company founded in 1996 highlighted the positive economic environment Subic Bay offers U.S. businesses. The company is the largest heavy hauling, specialized transportation and heavy lift rigging company in the Philippines. During the visit, a senior company executive stated that, unlike some international companies that try to cut corners, his company has never had a single problem with moving cargo through Philippine customs. Additionally, he stated that the company has not yet seen a downturn in business due to the global economic slowdown. -------------- -------------- LOCAL LEADERS ENCOURAGE EVEN MORE U.S. ENGAGEMENT -------------- -------------- ¶4. The DCM and the Senior Commercial Officer spoke to Subic Bay Metropolitan Authority Chairman Feliciano Salonga, Administrator Armand C. Arreza, and Olongapo City Mayor James Gordon. Salonga and Arreza acknowledged that some companies are delayed in securing credit financing because of global economic conditions, which has delayed progress on some projects. At the same time, they noted a delay of at least six months in FedEx's regional hub relocation from Subic Bay to China due to new Chinese import restrictions (e.g., limiting FedEx to only packages greater than 4.4 pounds). Salonga and Arreza, along with Mayor Gordon, welcomed more U.S. ship visits, including greater opportunities for sailors and marines while on liberty. Mayor Gordon also encouraged more Peace Corps Volunteers to be assigned to the area. -------------- - VOLUNTEERING IS SAFE, WELCOME, AND APPRECIATED -------------- - ¶5. Local Peace Corps Volunteers described their community programs that assist disadvantaged Filipino children, youth, and their families - programs that have been very well received during their 18 months in country. Both feel secure and accepted in their communities and have made lasting connections in the Philippines. -------------- PROTECTING THE ENVIRONMENT; IMPROVING LIVES -------------- ¶6. The Philippine Tropical Forest Conservation Foundation was established through bilateral agreements under the U.S. Tropical Forest Conservation Act of 1998. The DCM visited with members of the Kanawan Ayta indigenous community who are recipients of a Foundation grant to rehabilitate and conserve forests in their ancestral domain and to provide alternative livelihood options compatible with traditional lifestyle and cultural heritage. Additionally, a National Institutes of Health grant enabled MANILA 00002726 002 OF 002 scientists from the University of the Philippines and Michigan State University to study medicinal plants used by indigenous herbalists. After years of work, the scientists identified a compound in a particular species of rattan, Calamus ornatus, that is an effective anti-inflammatory agent and acts to block the growth of tumors, which is useful in fighting certain types of cancer. -------------- CAPITALIZING ON MEDIA INTEREST -------------- ¶7. The DCM discussed the continuing U.S. commitment to Philippine economic and social development, the importance of the Peace Corps program, and the role of U.S. businesses as responsible economic partners at a round table with 17 members of print, television, and radio media during the trip. The DCM also gave a radio interview to a Voice of America affiliate station. During both interactions with the media, the DCM capitalized on interest in the democratic transition of the U.S. government to stress that the U.S. and the Philippines will continue to have close ties and excellent relations. KENNEY