VZCZCXRO7905
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #1981/01 1290704
ZNR UUUUU ZZH
O 090704Z MAY 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0898
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
RUEAWJA/DOJ WASHDC PRIORITY
RUCNFB/FBI WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 MANILA 001981 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS, INR/EAP, EAP/PD 
NSC FOR H. MORROW 
 
E.O. 12958: N/A 
TAGS: PGOV PINR PINS KPAO ASEC RP
SUBJECT: ARAGONCILLO GUILTY PLEA ANNOUNCEMENT NETS BIG 
PRESS PLAY 
 
REF: 05 MANILA 4809 
 
¶1.  (U) This message is Sensitive but Unclassified -- Please 
handle accordingly. 
 
¶2.  (SBU) Summary:  The May 4 USDOJ announcement that former 
FBI analyst Leandro Aragoncillo pleaded guilty to espionage 
and other charges received significant press play in the 
Philippines.  GRP reaction was basically restrained, mixed 
with some chortling over the Opposition's predicament 
(several key Opposition figures are entwined in the case as 
alleged recipients of classified information provided by 
Aragoncillo).  Those listed as unnamed "co-conspirators" by 
the USDOJ, including former president Estrada and one of his 
sons, have been put on the defensive by the announcement. 
Some Filipinos have reacted by claiming that the USDOJ 
announcement was purely "a U.S. matter."  End Summary. 
 
¶3.  (U) A Big News Story:  The May 4 USDOJ announcement that 
former FBI analyst Leandro Aragoncillo has pleaded guilty to 
espionage and other charges has received significant press 
play in the Philippines, including coverage on radio and 
television.  Since Saturday, May 6, the story has earned 
front-page coverage in most of the Philippines' newspapers. 
The Philippine Daily Inquirer's banner headline on May 6 
stated, "Aragoncillo admits spying for GMA foes:  Erap, Ping 
named co-plotters in bid to oust Gloria."  (Note:  "Erap" is 
the nickname of former president Joseph Estrada and "Ping" 
the nickname of Senator Panfilo Lacson.  End Note.) 
Meanwhile, the Philippine Star's front-page headline 
declared, "Palace:  Espionage a shameful act."  Many of the 
articles also mentioned the case of Michael Ray Aquino, a 
former Philippine National Police official, who was among 
those who Aragoncillo specifically identified as a 
"co-conspirator" in the transfer of classified documents and 
information.  By May 9, the case had also become a subject of 
a slew of editorials and op-eds (a selection of such 
commentaries is being sent septel). 
 
¶4.  (U) GRP Reaction:  Press Secretary and Presidential 
Spokesperson Ignacio Bunye said on May 6 that the admission 
by Aragoncillo that he passed classified information to 
certain politicians in the Philippines proved "beyond doubt a 
conspiracy to oust the President; and that those involved 
include prominent officials who have caused embarrassment to 
the country by their actions."  He described Aragoncillo's 
admission as a "shameful act of a political cabal" which 
justifies the "vigilance" of the GRP to protect its national 
security and survival.  He added that Malacanang expects more 
information to come out about links between Aragoncillo and 
Opposition political figures as the case unfolds.  Bunye 
added that the GRP would steer "a careful course given the 
sensitive issues at stake, including relations with the U.S. 
 
¶5.  (U) Executive Secretary Eduardo Ermita was quoted as 
stating that the Aragoncillo announcement could strengthen 
the cases of "rebellion" against personalities involved in 
alleged plots to oust the President, a point also made 
publicly by Solicitor General Eduardo Nachura.  Ermita added 
that the government would take (unspecified) action based on 
its own laws and legal procedure, while it respects U.S. 
processes.  Presidential chief of staff Michael Defensor said 
the apparent  involvement of Opposition leaders in the 
Aragoncillo espionage case may be a basis for filing treason 
and rebellion charges against them.  Justice Secretary Raul 
Gonzales said the GRP would turn over Filipino politicians 
involved in the espionage case if they were indicted by the 
USG and if the U.S. government files an extradition request. 
He also said the Department of Justice was coordinating with 
Department of Foreign Affairs officials to secure copies of 
Aragoncillo's plea for possible use in Philippine courts. 
 
¶6.  (SBU) A Defensive Crouch:  Former president Joseph 
Estrada and his son Mayor J.V. Ejercito downplayed the 
admission by Aragoncillo that the latter passed classified 
information to Philippine Opposition members seeking to oust 
President Arroyo.  Senator Panfilo Lacson, who was in Kenya 
at a conference, was quoted as stating that he could not say 
if he should worry about Aragoncillo's guilty plea, as he was 
not facing any charges in the U.S.  He described Secretary 
Gonzalez's declaration that the GRP would cooperate with the 
U.S. on any extradition requests involving Opposition members 
allegedly involved in the case as "virtually 
feeding...compatriots to the lions."  In a May 8 meeting, a 
 
MANILA 00001981  002 OF 002 
 
 
ranking Opposition figure (not involved in the Aragoncillo 
matter) told us that he had met with former president Estrada 
after the story broke on May 6 and that he (Estrada) was 
"very anxious" about USG intentions in the case. 
 
¶7.  (U) "A U.S. Matter":  Senator Joker Arroyo, a prominent 
senator who has tried in the past to steer a path between 
Palace and Opposition forces, has called for "moderation" 
from all parties, urging Malacanang to back off from any 
effort to try to implicate Estrada and others in the 
Aragoncillo case for political gain.  He asserted that no 
Philippine law was violated and the government has no role in 
the case (it was "a U.S. matter").  Senator Arroyo also urged 
the GRP to play a passive role as the case continues to 
unfold.  Several columnists in the Philippine Star struck the 
same note on May 9 when they claimed that the case was a 
matter of U.S. law and a USG concern which did not require 
GRP involvement in any way at this time. 
 
Visit Embassy Manila's Classified SIPRNET website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
 
You can also access this site through the State Department's 
Classified SIPRNET website: 
http://www.state.sgov.gov/ 
 
Kenney