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

UNCLAS SECTION 01 OF 02 MANILA 005261 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/MTS, G/TIP 
AID/W FOR PPC/AA BRYAN KURTZ, PPC/AA PETER DELP, PPC/AA 
STEPHEN BRENT, HST THEODORE LYNG, ANE/SPOTS ANTHONY 
CHAN,PHILIPPINES DESK OFFICER CALISTA DOWNEY 
 
E.O. 12958: N/A 
TAGS: EAID KMCA EFIN EINV PREL PHUM RP
SUBJECT:  CALL ON PRESIDENT ARROYO 
 
¶1. (SBU) SUMMARY:  In a meeting with President Arroyo 
on November 7, USAID Assistant Administrator for the 
Asia Near East Bureau (AA/ANE) James R. Kunder and US 
Embassy Charge d'Affaires (CDA) Paul W. Jones 
highlighted how the USG's development assistance 
program carried out by USAID supports Philippine 
economic growth and supports the GRP's Mindanao peace 
efforts.  They urged further progress in combating 
trafficking in persons, especially in obtaining timely 
convictions of the guilty.  President Arroyo promised 
to highlight this urgency at a November 15 National 
Security Council meeting.  They congratulated the GRP 
on progress in the Millennium Challenge Account (MCA) 
Threshold Program process.  They stressed the 
importance of continued GRP efforts against Avian 
Influenza.  The CDA expressed appreciation to the GRP 
for its handling in accordance with the Visiting Forces 
Agreement of the recent allegations of rape by US 
Marines.  End Summary. 
 
¶2. (SBU) Visiting AA/ANE Kunder and CDA Jones paid a 
courtesy call on President Arroyo at Malacanang Palace 
on November 7.  Also present from the GRP were 
Philippine Ambassador to the US Albert del Rosario and 
Department of Foreign Affairs American Office Executive 
Director Ruth M. Prado.  USAID Mission Director Jon 
Lindborg, USAID Deputy Director Frank Donovan, and 
AA/ANE Special Assistant Allyson Stroschein joined from 
the USG. 
 
Shared Commitments 
------------------ 
 
¶3. (SBU)  President Arroyo welcomed AA/ANE Kunder and 
thanked him for his support.  AA/ANE Kunder noted that 
the Philippines is the second largest recipient country 
(after Indonesia) of USG development assistance in East 
Asia and that he hoped his trip would highlight our 
development partnership, which supports shared 
commitments to democracy, free markets, and regional 
and global security.  President Arroyo commented that 
USAID assistance was particularly supportive of the 
GRP's peace process in Mindanao, and expressed the 
GRP's appreciation and thanks.  AA/ANE Kunder 
emphasized that 60 pct of USAID resources in the 
Philippines are allocated to Mindanao programs. 
 
¶4. (SBU)  President Arroyo reiterated that peace 
efforts with the Moro Islamic Liberation Front (MILF) 
remained a major GRP focus.  She said that the GRP had 
reached agreement with the MILF on "ancestral domain" 
and expressed a hope of expediting the peace process by 
carrying out this agreement on ancestral domain in such 
a way that would also satisfy the concerns of the 
Christians in Mindanao.  AA/ANE Kunder advised that, in 
the event of a peace agreement, US development 
assistance programs that had worked so well with the 
Moro National Liberation Front could be provided to the 
MILF.  AA/ANE Kunder noted his upcoming visit to 
Mindanao with the CDA, which would include visits to 
completed infrastructure projects, such as roll-on, 
roll-off port facilities.  He added that opportunities 
for greater economic growth help fight the war on 
terrorism.  President Arroyo reiterated the GRP's 
support for the war against terrorism. 
 
Greater GRP Focus on Combating Trafficking in Persons 
--------------------------------------------- -------- 
 
¶5. (SBU)  AA/ANE Kunder highlighted the worldwide 
problem of trafficking in persons (TIP), the importance 
of greater GRP efforts to combat TIP in the 
Philippines, and USAID's commitment to assist the GRP 
in these efforts.  President Arroyo expressed agreement 
as well as appreciation for USG technical assistance. 
AA/ANE Kunder and CDA emphasized strongly the 
importance of convicting traffickers under the 2003 
anti-trafficking law.  President Arroyo concurred that 
it was urgent to speed up the prosecution of cases 
against traffickers. 
 
¶6.  (SBU)  CDA Jones advised President Arroyo of the 
visit in early December of G/TIP's Ambassador Miller. 
President Arroyo immediately instructed her staff to 
put TIP on the agenda at the next National Security 
Council meeting, on November 15, in order to engage 
high-level GRP officials on the need for further anti- 
TIP actions.  President Arroyo commented that one of 
her anti-TIP efforts is to revamp the Philippine 
Retirement Authority, since its activities to invite 
people to retire in the Philippines may have encouraged 
trafficking activity. 
 
GRP Progressing Under MCA Threshold Program Process 
--------------------------------------------- ------ 
 
¶7.   (SBU)  AA/ANE Kunder acknowledged the GRP's 
achievement in obtaining Concept Paper approval under 
the Millennium Challenge Account Threshold Program, and 
encouraged the GRP to continue working with USAID on 
developing a Threshold Country Plan.  President Arroyo 
expressed hope that these efforts would ultimately 
result in approval of MCA Threshold Program funding for 
the Philippines. 
 
For Now AI-Free, Philippines Must Be Alert and Prepared 
--------------------------------------------- ---------- 
 
¶8. (SBU) 5AA/ANE Kunder congratulated the GRP on its 
efforts to prepare for and prevent the outbreak of 
Avian Influenza (AI), but urged the President to remain 
vigilant.  President Arroyo assured him and CDA that 
the GRP was already working with local veterinarians, 
investing in laboratory facilities, taking disinfection 
precautions as passengers arrive at airports and ports, 
and, as poultry deaths are reported, testing 
immediately.  AA/ANE Kunder cited President Bush's 
personal interest in AI preparedness, especially in 
this region.  President Arroyo noted her own personal 
concern with AI, given the disastrous effects on 
travel, commerce, and human lives if an endemic 
occurred. 
 
¶9.  (SBU)  CDA Jones thanked the President for her 
leadership in tackling AI preparedness in the 
Philippines and stressed the importance for the GRP to 
coordinate efforts between the Departments of Health 
and Agriculture and to ensure that GRP funds allocated 
for AI preparedness did in fact flow to agreed GRP 
priority actions.  President Arroyo advised that, 
similar to the GRP's successful efforts to prepare for 
SARS, the GRP had designated one Department to take the 
lead.  In the case of SARS, it was the Department of 
Health; with AI, the Department of Agriculture, since 
it is in the first line of defense by identifying and 
eradicating any fowl infected with the disease. 
 
Rape Allegations Against US Marines 
----------------------------------- 
 
¶10. (SBU) CDA Jones expressed appreciation for GRP 
efforts to ensure that actions following recent rape 
allegations against six US Marines are carried out in 
accordance with the terms of the US/RP Visiting Forces 
Agreement (VFA) and that justice is served.  CDA 
pledged USG's full cooperation under the VFA. 
 
Press Event 
----------- 
 
¶11. (SBU) Following the meeting, AA/ANE Kunder appeared 
before the Malacanang Press Corps to summarize the 
discussion, and also responded to questions on the 
Millennium Challenge Account and on combating 
trafficking in persons.  He confirmed that lack of 
progress on TIP could affect USG assistance levels. 
 
¶12.  (U) AA/ANE Kunder did not have an opportunity to 
review this cable. 
JONES