FOREIGN SECRETARY ON ASEAN, BURMA, AND UPCOMING

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 000833 SIPDIS STATE FOR EAP/MTS E.O. 12958: DECL: 04/19/2019 TAGS: MARR PGOV PREL RP BM SUBJECT: FOREIGN SECRETARY ON ASEAN, BURMA, AND UPCOMING VFA HEARING REF: A. MANILA 645 ¶B. MANILA 495 Classified By: Ambassador Kristie A. Kenney, Reasons 1.4 (b) and (d) ¶1. (C) SUMMARY: In a candid and free-ranging April 17 private discussion over breakfast with the Ambassador, Philippine Foreign Secretary Alberto Romulo expressed disappointment that recent ASEAN meetings in Thailand had to be canceled due to antigovernment protests, and he underscored President Arroyo's high-profile public efforts to urge the Burmese junta to move toward democratization and release long-detained pro-democracy leader Aung San Suu Kyi. Romulo provided the Ambassador a copy of the Department of Foreign Affairs' April 17 press release calling for Suu Kyi's release, greater tolerance toward opposition forces and minority ethnic groups, and a return to the regime's long-dormant "roadmap to democracy." The Foreign Secretary expressed interest in the upcoming visit of a Millennium Challenge Corporation team; the Ambassador responded by noting that it was important not to raise public expectations at this early stage. Romulo was forthright in his concern that Visiting Forces Agreement hearings to be held April 23 in the Philippine Senate might turn into a criticism session by leftist NGOs. Lastly, he repeated that President Arroyo keenly desires an Oval Office meeting with President Obama. END SUMMARY. Clear Disappointment on Aborted ASEAN Meetings -------------- - ¶2. (C) The Foreign Secretary was frank in expressing his disappointment that April 10-12 ASEAN meetings in Pattaya, Thailand, were cut short due to violent protests by supporters of ousted Prime Minister Thaksin Shinawatra. Of particular concern was the cancellation of meetings that were to be held between ASEAN members and China, Japan, and Korea, in order to organize a planned $120 billion equity fund (to be underwritten primarily by the three Northeast Asian economic powers) that would be made available to ASEAN member states to address liquidity problems brought on by the global financial crisis (reftel B). Secretary Romulo lamented that the Philippine delegation had hoped to discuss the fund with the three Northeast powers. Secretary Romulo also remarked that although President Arroyo's delegation, who were evacuated from the summit hotel's rooftop by helicopter, never felt as though they were in any serious danger, the scene was nonetheless chaotic, and Thai police seemed poorly organized and lacking in motivation. Arroyo Pressures Burma on Aung San Suu Kyi -------------- ¶3. (C) Romulo outlined how Burmese Prime Minister Thein Sein had invited President Arroyo to visit Burma, to which Arroyo responded positively -- on the condition that her visit coincide with the release of detained opposition leader Aung San Suu Kyi, whose current term of house arrest is due to expire in May. In the Department of Foreign Affairs' April 17 press release, President Arroyo strongly and clearly emphasized how Suu Kyi's release and greater tolerance toward opposition POLITICAL parties and rebellious ethnic minorities would result in "tremendous goodwill for Myanmar from the international community." The statement goes on to say that Prime Minister Thein Sein promised to take into consideration President Arroyo's suggestions, and that Burma considered its cooperation with the UN to be the cornerstone of its foreign policy. President Arroyo welcomed Sein's response, and highlighted that the Philippines' views on Burma were very similar to those of the UN and the United States. Managing Expectations on MCC -------------- ¶4. (C) Turning to the subject of the Millennium Challenge Corporation (MCC),Romulo and the Ambassador discussed the upcoming visit to the Philippines of an MCC technical level team. Romulo speculated on the prospect of the Philippines' signing a full-fledged MCC assistance compact, after progress toward a compact was deferred last year due to the country's below-average corruption ratings. The Ambassador warned that this is not a formal visit, and it would be counterproductive for the Philippine government to raise expectations publicly about MCC assistance. The Search for Job Opportunities -------------- ¶5. (C) Romulo noted the Ambassador,s recent visit to the MANILA 00000833 002 OF 002 call center operations of several American companies in Baguio, and revealed that he was very unfamiliar with the proliferation of business process outsourcing operations in the Philippines. He was, for example, unaware that only India rivals the Philippines as a location for such operations linked to American companies. The Ambassador encouraged the Foreign Secretary to learn more about an industry that is beneficial to both the U.S. and Philippine economies, and urged him to tour at least one call center to better understand what they do and why they are an important economic link to the rest of the world. Continuing with the theme of jobs, Romulo noted that during President Arroyo's recent visit to Dubai, she received assurances that thousands of jobs await Filipino Overseas Workers there. Worries Over VFA Hearings in Senate -------------- ¶6. (C) Touching on the annual Balikatan bilateral military exercise, set this year to be carried out April 16-30 in the Bicol region and northern Luzon, Romulo explained that conflicting events in his schedule precluded his participation at opening ceremonies. Turning to the subject of hearings to begin April 23 in the Philippine Senate on possible abrogation of the Visiting Forces Agreement (VFA), the Foreign Secretary confessed his fear that in a POLITICAL atmosphere already charged with anticipation of 2010 elections, certain senators might vie to be the most outspoken in criticizing U.S.-Philippine military cooperation, and he expressed his hope that he could go into the hearings armed with comprehensive information outlining the many benefits to the Philippines of its close relationship with the United States. The Ambassador offered to provide the Department of Foreign Affairs sufficient materials to make that task easier. ¶7. (C) As the conversation drew to a close, the Foreign Secretary alluded once again to President Arroyo's cordial and productive March 13 phone conversation with President Obama, which had highlighted a number of key areas of bilateral cooperation, including global climate change and U.S.-Philippine counterterrorism efforts. Echoing sentiments he expressed in a March 24 luncheon conversation with the Ambassador (reftel A),Romulo again underscored President Arroyo's very strong desire for a face-to-face meeting with President Obama in the Oval Office. KENNEY