This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 03 MANILA 000683 
 
SIPDIS 
 
DEPT FOR EAP/PMBS 
NSC FOR GREEN 
ASD/ISA/AP FOR ALLEN 
 
E.O. 12958: DECL: 02/11/2015 
TAGS: PREL MARR MOPS RP
SUBJECT: ADMIRAL FARGO'S TALKS WITH SECRETARY OF NATIONAL 
DEFENSE CRUZ 
 
REF: A. MANILA 650 
     ¶B. MANILA 547 
 
Classified By: (U) Political Officer Paul O'Friel 
for reasons 1.4(b) and (d). 
 
¶1.  (C) SUMMARY.  Secretary of Defense Cruz presented to 
Admiral Fargo in February 9 discussions a new framework for 
US-RP counterterrorism cooperation. "Kapit Bisig" would 
encompass humanitarian/civil affairs, exercises, and 
operations.  Cruz expressed confidence that such a framework, 
which incorporates existing activities, would meet both US 
and RP legal requirements.  "Kapit Bisig" would include a 
major humanitarian/civil affairs effort targeting 500 
villages in vulnerable areas of Luzon, the Visayas, and 
Mindanao.  Cruz said he would follow up on Ambassador's 
suggestion that senior-level GRP representatives brief donors 
on this initiative at the March 8 Davao donor's conference. 
END SUMMARY. 
 
¶2.  (C) In conjunction with his February 9 call on President 
Arroyo (ref a), Admiral Thomas Fargo, Commander of the US 
Pacific Command, met separately with Secretary of National 
Defense Avelino Cruz and Armed Forces of the Philippines 
(AFP) Chief of Staff General Efren Abu, and held a roundtable 
discussion on counterterrorism and Philippine Defense Reform 
(PDR) issues with Cruz, Abu, and their senior staff. 
Ambassador Ricciardone, JUSMAG Chief Velasco, FPA Huso, and 
Poloff O'Friel (notetaker) also attended the meetings. 
 
TARGET FOR ENDING INSURGENCIES AND TERRORISM 
-------------------------------------------- 
 
¶3.  (C)  Cruz thanked Admiral Fargo for his help with PDR, 
which, along with the newly launched Capability Upgrade 
Program (CUP), represented the twin elements of Cruz's 
defense policy.  He said he hoped to bring an end to the 
insurgencies and terrorism plaguing the Philippines within 
six to ten years.  "We need to get beyond the mindset that 
insurgency is inevitable, and set a timetable and allocate 
resources to eradicate it," Cruz stated.  Cruz welcomed 
Admiral Fargo's suggestion that Malaysia might prove 
receptive to beefing up its contribution to the International 
Monitoring Team (IMT) in Mindanao.  He observed Malaysia, 
Indonesia, and the Philippines share a common interest in 
eliminating Jemaah Islamiyah (JI) safe havens, and instructed 
his staff to follow up on the issue. 
 
GOING SLOW WITH CHINA 
--------------------- 
 
¶4.  (C) In a separate talk with Chief of Staff Abu, Admiral 
Fargo asked about Chinese overtures.  Abu said Beijing is 
seeking to establish regular military-to-military exchanges, 
port visits, and exercises, but indicated these initiatives 
are still very much in the exploratory stage.  Admiral Fargo 
advised Abu to proceed cautiously, warning there is "no free 
lunch" in dealing with the Chinese. 
 
NO QUARTER FOR MILF REJECTIONISTS 
--------------------------------- 
 
¶5.  (SBU) The roundtable laid out Secretary Cruz's 
priorities: Philippine Defense Reform; the Capability Upgrade 
Program; peace negotiations with the Moro Islamic Liberation 
Front (MILF); and national development.  Ambassador cautioned 
Cruz not to regard the MILF as "good guys;" many are as bad 
as the JI.  Cruz agreed, saying one motivation behind the 
peace process with the MILF was to distinguish between MILF 
commanders who supported peace and those who rejected it.  He 
promised to "search out and destroy" any faction that refused 
to make peace. 
 
"KAPIT BISIG" 
------------- 
 
¶6.  (C) Cruz presented a new framework, "Kapit Bisig" 
(Camaraderie), for RP-US military cooperation.  Cruz said 
"Kapit Bisig" -- which rested on the three pillars of 
humanitarian/civil affairs, security assistance, and 
operations -- would allow the US and RP to work within their 
respective laws, yet still be effective.  He noted ongoing 
discussions in the Philippine Senate drew a distinction 
between joint exercises focused on an external attack, e.g., 
Balikatan, and ongoing RP-US counterterrorism cooperation, 
which addressed an internal threat.  While this evolving 
political discussion might produce a new counterterrorism 
agreement, "Kapit Bisig" offered a way forward.  Admiral 
Fargo noted the plan embodied much of what the United States 
and the Philippines were already doing together, but put it 
in the context of an overall campaign. 
 
¶7.  (SBU) The humanitarian/civil affairs component of "Kapit 
Bisig" would focus on 500 priority barangays (townships) in 
vulnerable regions of Luzon, the Visayas, and Mindanao. 
Working with the Departments of Social Services, Agriculture, 
and Public Works and Highways, the AFP intends to build roads 
and schools, and bring water, electricity, and medical care 
-- through medical civic action programs (medcaps) and dental 
civic action programs --  to disaffected areas to address the 
root causes of terrorism and insurgency.  Secretary Cruz said 
funds for the program would come from sale of the GRP's 
shares in San Miguel Corporation and some of the confiscated 
Marcos millions.  Cruz said his goal is to demonstrate the 
sharp contrast between what the government and insurgents can 
provide.  "We want to show people an alternative way of 
life," he said. 
 
¶8.  (SBU) Ambassador Ricciardone suggested the March 8 
donors' conference in Davao offered an opportunity to build 
support for Cruz's initiative.  Both Cruz and General Abu 
were intrigued by the possibility, and expressed interest in 
participation at a senior level, both to address and to hear 
the donors. 
 
¶9.  (C) The security assistance and operations components of 
"Kapit Bisig" would incorporate existing programs, such as 
training for light infantry battalions, 
operations/intelligence fusion, and logistics, mobility, and 
medical improvements.  (Note: MG Pedro Ramboanga, the AFP J3, 
credited RP-US intelligence fusion as a significant 
contribution to the decline of JI numbers in the Philippines. 
 End note.) 
 
¶10.  (C) Cruz wondered if a new process was needed in the 
Mutual Defense Board (MDB) to "streamline" policy issues, 
should they arise.  Ambassador suggested it was better to 
keep the MDB process "lean and mean," by keeping official 
approval procedures at the lowest possible ranks.  The 
default US position on any question was "if it's not 
prohibited, let's do it." 
 
PDR 
--- 
 
¶11.  (SBU) In briefing PDR, DND Assistant Secretary Robert 
Nuqui emphasized the need to "harvest low hanging fruit," 
pointing to successes in reorganizing the DND and AFP staffs, 
implementing a multi-year defense strategy, and pushing 
pending legislative bills to extend the tenure of the Chief 
of Staff and major service commanders and to reform the AFP 
pension system.  Looking ahead, Nuqui said the DND had to 
work with the AFP to develop ways of effectively measuring 
PDR successes.  Metrics, such as operational rates, had to 
show the match between mission requirements and strategy. 
Nuqui added DND hopes to incorporate PDR into the regular 
schedule of MDB talks to ensure its full integration into the 
bilateral agenda. 
 
UPCOMING VISIT OF USNS MERCY 
---------------------------- 
 
¶12.  (U) Admiral Fargo briefed Cruz on the possibility the 
hospital ship, USNS Mercy, might stop in the Philippines 
during late March on its return from disaster relief efforts 
in Indonesia.  Cruz warmly welcomed the potential visit. 
Chief of Staff Abu noted the AFP's priorities might be Quezon 
and Aurora provinces in eastern Luzon, which are still 
recovering from the damage wrought by the December 2004 
typhoons, and eastern Samar and eastern Leyte.  Abu said his 
staff would work with JUSMAG to develop a plan of action. 
 
¶13. (C) COMMENT.  "Kapit Bisig" appears to be a genuine 
effort by Cruz to find a way to institutionalize and defend 
US-RP counterterrorism cooperation against potential domestic 
critics.  It incorporates and builds upon the earlier 
"Project Bayanihan," which covered successful 
counterterrorism cooperation in Basilan.  Cruz continues to 
impress us with the innovative means he has developed to 
achieve his stated objective of ending the insurgent and 
terrorist threat in the Philippines.  END COMMENT. 
 
¶14.  (U) Admiral Fargo did not have the opportunity to review 
this telegram before his departure. 
 
Visit Embassy Manila's Classified website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
Ricciardone