MGSF01 Economic Impacts and Philippine Response to H1N1

UNCLAS MANILA 001043

SIPDIS

BANGKOK FOR HOWELL HOWARD AND WINSTON BOWMAN
STATE PASS USTR JANE DOHERTY
STATE PASS USDA/FAS/OSTA CLAY HAMILTON AND CASEY BEAN
STATE PASS USAID
STATE PASS HHS/NIH
STATE PASS HHS/CDC

E.O. 12958: N/A
TAGS: KFLU AEMR ASEC CASC KFLO TBIO KSAF KPAO PREL PINR
AMGT, MG, RP
SUBJECT: MGSF01 Economic Impacts and Philippine Response to H1N1

REF: A) MANILA 0913 B) MANILA 0941 C) MANILA 0959


1. (SBU) Summary: The Philippine government has earmarked funds for
H1N1 prevention and treatment, but the virus has had only minor
impact on the Philippine economy. Philippine boxer Manny Pacquiao
ignored official warnings to delay his return from Las Vegas to
avoid spreading H1N1, diverting media attention from exaggerated
concerns about U.S. troops entering the Philippines for training
exercises. The rapid reversal of the Philippine ban on U.S. pork
prevented any significant revenue loss to U.S. producers. End
summary.

Bringing Home the Bacon
--------------


2. The Philippine government ended its freeze on issuing import
permits for U.S. pork on May 4 (Ref. B),thanks to a coordinated
Mission effort and public pronouncements by international animal
health authorities. Mission members lobbied Philippine officials to
resume issuing import permits, and the Ambassador met with
Philippine Agriculture Secretary Arthur Yap on May 4. The
Department of Agriculture lifted its ban later that day (Ref C).
The nine-day pork import permit suspension had minimal impact on
U.S. pork producers, according to the U.S. Meat Export Federation.
U.S. pork exporters simply delayed shipments to the Philippines
during the hiatus.

Philippine Government's Financial Preparations
-------------- -


3. The Philippine National Disaster Coordinating Council set aside
93.5 million pesos (nearly $2 million) for planned H1N1 expenditures
by the Department of Health. This includes 10 million pesos (around
$212,000) for additional personal protective equipment; 15 million
pesos (nearly $320,000) to reinforce stockpiles of oseltamivir; and
the balance for other preparedness activities including support for
hospitals that have the capacity to treat H1N1 patients.

Business as Usual
--------------


4. There have not been any confirmed H1N1 cases in the Philippines.
The Philippine stock market took a quick dip of 2% following the
outbreak, but has since increased by about 7%, as of May 12. The
travel industry has not been hit and the retail industry has not
been affected. Philippine government officials do not foresee any
H1N1-induced economic slowdown.

Pacquiao's Triumphant Return
--------------


5. On May 3, Philippine boxing champion Manny Pacquiao fought in Las
Vegas, winning his fifth title. Philippine Health Secretary
Francisco Duque urged Pacquiao to delay his return to the
Philippines to allay concerns that Pacquiao and his entourage could
spread the virus around the country. Pacquiao defied Duque and came
back to a hero's welcome on May 8, which included a meeting with
Philippine President Gloria Arroyo. The boxing star said he had
used hand sanitizer, and no one in his group has shown any flu
symptoms. A travel ban has not been imposed, and all flights from
the U.S. maintained their regular schedules.


6. Post was prepared to field questions from reporters and health
authorities about any risk posed by U.S. Navy personnel coming to
the Philippines for the Combined Afloat Readiness and Training
(CARAT) exercises May 21-28. However, Pacquiao's return helped
demonstrate that just because a person has come from the U.S. does
not mean that the individual is infected.

MEMMOTT