VZCZCXRO6007
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #2319/01 1531146
ZNR UUUUU ZZH
O 021146Z JUN 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1291
INFO RUEHRC/USDA FAS WASHDC 1269
RUEAUSA/DEPT OF HHS WASHDC
RUEHPH/CDC ATLANTA GA
RUEHC/DEPT OF INTERIOR WASHDC
RUEHZS/ASEAN COLLECTIVE
RUEHKO/AMEMBASSY TOKYO 2687

UNCLAS SECTION 01 OF 02 MANILA 002319 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TBIO SENV EAGR EAID PREL RP
 
SUBJECT:  THE AMBASSADOR'S MEETING WITH AGRICULTURE 
SECRETARY 
 
SIPDIS 
 
REF:  A) MANILA 2207   B) MANILA 1567   C) MANILA 860 
D) STATE 023826   E) 05 STATE 209622 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET 
DISTRIBUTION - PROTECT ACCORDINGLY 
 
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SUMMARY 
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¶1.  (SBU) The Ambassador met with Agriculture Secretary 
Panganiban on May 31 to discuss the status of the PL 
480 agreement, continuing USG support for agricultural 
development in Mindanao, and the GRP's response plan 
for avian influenza.  Panganiban confirmed the GRP had 
approved the PL 480 agreement.  He then reported the 
GRP's plan for increasing agricultural production and 
exports from Mindanao.  Panganiban emphasized the GRP's 
focus on prevention of potential avian influenza 
outbreaks. 
 
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PL 480 
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¶2.  (SBU) The Ambassador, accompanied by the Acting 
Foreign Agricultural Service Counselor, met with the 
Agriculture Secretary Domingo Panganiban on May 31. 
The Ambassador acknowledged the strong agricultural 
relationship between the U.S. and RP and asked 
Panganiban about the status of the PL 480 agreement 
negotiated by U.S. Department of Agriculture and the 
Philippine Department of Agriculture (DA) in February. 
Panganiban stated that PL 480 was on the agenda of a 
Cabinet meeting held on May 30, and it was approved. 
The Ambassador emphasized the importance of signing PL 
480 as quickly as possible. 
 
¶3.  (SBU) The Ambassador asked Panganiban about the 
DA's priorities for agricultural development. 
Panganiban responded that the GRP planned to continue 
agriculture training programs through the Fulbright 
program.  Another priority is funding of biotechnology 
projects, particularly rice and corn, in order to 
increase food production and nutritional value. 
Currently the National Food Authority is the sole 
importer of iron-fortified rice, targeting the areas of 
Tawi-Tawi and Jolo in Mindanao, and Masbate. 
 
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AGRICULTURE IN MINDANAO 
----------------------- 
 
¶4.  (SBU) The Ambassador asked Panganiban about how PL 
480 will help agriculture in Mindanao.  Panganiban 
responded that projects will enable increases in 
production of rubber and palm oil as commodities, as 
well as fruits, fisheries, and aquaculture.  The 
Ambassador emphasized the USG's continued interest in 
developing agriculture in Mindanao.  Panganiban also 
stated that RP's livestock industry, particularly in 
Mindanao, has the potential for growth.  Growth rates 
currently range from 1.7 percent to 2.7 percent, mostly 
due to lack of government funding.  He anticipates an 
increase in exports of halal meat products, including 
sheep, goat, and poultry products, to Muslim countries, 
including Saudi Arabia.  Panganiban also praised 
USAID's Growth with Equity in Mindanao (GEM-2) program. 
 
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AVIAN INFLUENZA 
--------------- 
 
¶5.   (SBU) Panganiban recognized that although no avian 
influenza cases have been reported in the RP, 
prevention is a priority for the GRP.  He stated that 
the GRP currently has a two-pronged approach to prevent 
avian influenza.  Using funds provided by USAID and New 
Zealand, the GRP will conduct a rural information 
campaign for poultry workers and develop an inventory 
of the poultry population.  The GRP has also begun a 
public awareness campaign using radio and posters which 
have not yet thoroughly penetrated local communities. 
 
MANILA 00002319  002 OF 002 
 
 
The Ambassador asked about using local veterinarians, 
and Panganiban answered that local veterinarians are 
trained to detect avian influenza but the GRP has to 
coordinate further with local governmental units.  The 
Ambassador and Panganiban agreed that prevention and 
education would have to be done at the local level. 
 
¶6.  (SBU) Panganiban mentioned his US-sponsored 
attendance at an APEC conference in Hanoi, where he 
learned that Indonesia, Thailand, and Vietnam involved 
the private sector in their response to their avian 
influenza breakouts.  He stated that private industry 
in the RP is also concerned about avian influenza, as 
this may affect chicken exports.  The RP poultry 
exports have recently been reopened to Japan.  Japan 
had placed a temporary ban on poultry imports from the 
RP after an AI scare involving a Filipino duck farm in 
July 2005.  Tests later confirmed that the ducks did 
not have AI.  However, Japan maintained its ban of RP 
poultry for close to one year.  The resumption of 
poultry exports is good news to Filipino companies, 
which gained increased market share in Japan after 
outbreaks of avian influenza in major poultry exporting 
countries such as Thailand.  Local companies are also 
entering into joint ventures for export of processed 
poultry products to Korea.  Panganiban stated that 
while the World Health Organization has established 
pandemic preparatory measures, he believes that avian 
influenza should be stopped at the source by culling 
diseased chickens, thereby protecting the poultry 
industry. 
 
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COMMENT 
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¶7.  (SBU) Cabinet approval represents the final step in 
the interagency approval process for PL 480. 
Indications are that the agreement should be ready for 
signature before the end of June.  Panganiban 
understood that while the RP does not have any recorded 
instances of avian influenza, preventative measures 
must be in place and appeared willing to consider 
creative means for prevention. 
 
KENNEY