VZCZCXRO1119
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #0914/01 0590909
ZNR UUUUU ZZH
O 280909Z FEB 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9583
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHHMUNA/CDRUSPACOM HONOLULU HI PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 03 MANILA 000914 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS, DRL/CRA, DS, CA 
 
E.O. 12958: N/A 
TAGS: PINS ASEC ECON RP
SUBJECT: SITREP 17:  SENAT CONDEMNS GRP ACTIONS 
 
REF: MANILA 891 AND PREVIUS 
 
¶1.  (U) This message is Sensitive but Unclasified -- Please 
handle accordingly. 
 
¶2.  (SBU)Summary:  The Senate has adopted a resolution 
conemning GRP actions (pressure on media, arrests) uner the 
State of Emergency (Proclamation 1017).   similar resolution 
filed by Opposition members s under consideration in the 
House.  The SupremeCourt has deferred hearings on petitions 
challengng the constitutionality of Proclamation 1017. 
Mlacanang has until March 6 to respond to the petitons; 
oral argments are set for March 7.  The GR has released an 
expanded list of names of indivduals facing charges of 
rebellion.  The military as announced that it has relieved 
from duty the arine colonel involved in a standoff at Fort 
Bonfacio on February 26.  The situation in Manila is 
nonetheless calm, overall, with schools and businsses open. 
The peso gained while stocks rose.  Th next EAC is scheduled 
for the afternoon of Marc 1.  End Summary. 
 
----------------- 
Senate Reolution 
----------------- 
 
¶3.  (U) The Senate n February 27 adopted a resolution 
condemnng the police raid on a newspaper and other GRP 
attempts to exercise control over media, the arrests of 
several citizens (including a member of the House of 
Representatives) and "other similar acts" carried out under 
Proclamation 1017.  The resolution directed the appropriate 
Senate committee to conduct an inquiry into acts being 
carried out under Proclamation 1017 in order to support 
adoption of remedial legislation that would "fully protect" 
constitutional rights.  Senate President Franklin Drilon and 
Senators Francis Pangilinan, Manuel Roxas, Rodolfo Biazon, 
and Pia Cayetano played key roles in moving the legislation 
forward.  Also on February 27, eleven Opposition 
representatives filed an identical resolution in the House, 
which has not yet acted. 
 
----------------------------- 
Supreme Court Defers Hearings 
----------------------------- 
 
¶4.  (U) On February 28, the Supreme Court deferred hearings 
on petitions challenging the constitutionality of 
Proclamation 1017.  Oral arguments are set to begin on March 
¶7.  The Supreme Court gave Malacanang a deadline of midnight, 
March 6, to respond to the assertion that Proposition 1017 is 
unconstitutional.  Senator Miriam Defensor Santiago, a 
staunch Arroyo ally, asserted to the press on February 27 
that the Supreme Court has no power to determine whether the 
President had the "factual basis" to issue Proposition 1017. 
She conceded, however, that the Supreme Court may review 
specific acts arising from the State of Emergency, such as 
the raid on a newspaper office or arrests of alleged 
anti-government plotters. 
 
----------- 
New Charges 
----------- 
 
¶5.  (U) On February 27, the Department of Justice released an 
expanded list of leftist militants charged by the police with 
rebellion.  There is no indication that arrest warrants have 
been issued.  In addition to the 15 names released yesterday 
(reftels), the DoJ named 46 more individuals accused of 
conspiring to overthrow the government, including:  Luis 
Jalandoni, the chairman of the negotiating committee for the 
National Democratic Front; Gregorio Rosal (aka Ka Roger), 
spokesman for the New People's Army; and Juliet Sison, wife 
of the exiled Communist Party of the Philippines founder Jose 
Maria Sison (who was on the first list).  Others on the list 
are: 
 
Spouses Benito Tiamzon 
Wilma Tiamzon 
Tirso Alcantara 
Benjamin Mendoza 
Vic Ladlad 
Nathanael Santiago 
Sotero Llamas 
Julio Atienza 
Edilberto Escudero 
Rosemarie Domanais 
 
MANILA 00000914  002 OF 003 
 
 
Rogelio Vilanueva 
Leo Velasco 
Rafael Baylosis 
Prudencio Calubid 
Philip Limjoco 
Julius Giron 
Allan Jazmines 
Antonio Cabanatan 
Fidel Agcaoili 
Edilberto Silva 
Maria Concepcion Araneta Bocala 
Jorge Madlos 
Eugenia M. Topacio 
Francisco Fernandez 
Carlos Borjal 
Elizabeth Princepe 
Randall Echaniz 
Rey Claro Casandre 
Edwin Alcid 
Tita Lubi 
Abdias Guadania 
Mike Gamara 
Ka Selbio 
Kim 
Tasio 
Randy 
Rosa/Sisa/Isid 
Novo 
Elya 
Rose 
 
----------- 
Manila Calm 
----------- 
 
¶6.  (U) Manila appears calm, overall, on February 28, with 
businesses operating normally.  Manila area schools and 
universities resumed classes on February 28, after being 
closed on February 24 and 27.   There were no major 
demonstrations in Manila as of late afternoon on February 28. 
 About 30 members of the leftist group "Kasama Pilipinas" who 
attempted to gather at the Memorial Circle in Quezon City 
were quickly dispersed by the police.  Another leftist group, 
Anak Pawis, was reportedly planning a rally at police 
headquarters at Camp Crame in Manila the evening of February 
¶28.  Police units were on standby for the rally. 
 
¶7.  (U) The Armed Forces of the Philippines ((AFP) reported 
no problems with the chain of command and all troops were 
accounted for.  On February 28, a Philippine Marine spokesman 
announced that Col. Ariel Querubin, the commander of the 1st 
Marine Brigade, had been relieved of duty for leading a 
protest over the replacement of the Marine Commandant at the 
Philippine Marine headquarters at Fort Bonifacio on February 
26 (reftels). 
 
------------------ 
Peso and Stocks Up 
------------------ 
 
¶8.  (U) On February 27, the Philippine Treasury rejected all 
bids for the three billion pesos of bonds on offer during its 
regular securities dealers auction.  Interest rates on t-bill 
bids have been on a downward trend since the increase in the 
value added tax rate went from 10 to 12 percent this month, 
and the government has projected deeper reductions in its 
fiscal deficit.  With the political uncertainty, however, 
dealers offered somewhat higher rates than at the last 
primary market auction on February 13.  With plenty of cash 
and T-bill demand more than four times oversubscribed, the 
government apparently decided to reject all bids as a signal 
that the political turbulence was temporary and did not merit 
higher rates. 
 
¶9.  (U) On February 28, the peso closed at 51.65, much 
stronger than its 51.96 close on February 27 and a full 
recovery from before the President declared the State of 
Emergency.  The Philippine Stock Price Index rose to 2123 at 
the close of the trading day, up 1.6% from its close of 2089 
on February 27, its highest level in three weeks. 
 
¶10.  (U) Finance Secretary Gary Teves said on February 28 
that investor confidence in the Philippine economy remains 
strong and that the economic team would continue aggressively 
to implement the government's fiscal and economic reform 
program.  He said "the rebound in the local stock market and 
 
MANILA 00000914  003 OF 003 
 
 
the stabilization of the peso today indicate that investor 
faith in the fundamentals of the Philippine economy remain 
strong."  He also noted that rating agencies Fitch and 
Standard & Poor's have reaffirmed their recent positive 
revisions of the Philippines' credit rating outlook. 
 
-------- 
Next EAC 
-------- 
 
¶11.  (U) The next EAC is scheduled for the afternoon of March 
¶1.  The crisis management center will remain in operation 
overnight. 
 
Jones