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O 200639Z OCT 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3584
INFO RUEHZS/ASEAN COLLECTIVE IMMEDIATE
RHHMUNA/CDR USPACOM HONOLULU HI IMMEDIATE
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UNCLAS SECTION 01 OF 02 MANILA 004430 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ECON ENRG EPET PGOV EAID RP
SUBJECT:  AMBASSADOR HIGHLIGHTS AMERICAN INVESTMENTS AT CHAMBER OF 
COMMERCE MEETING 
 
 
¶1.  Summary.  The Ambassador spoke to approximately 1,000 Philippine 
Chamber of Commerce members about American investments in the 
Philippines on October 18.  The Ambassador underscored the long 
history of American investors in the Philippines and urged the 
business audience to focus on exploiting the country's many 
advantages, such as its excellent human resources, noting the 
emerging call center and business process outsourcing sectors as 
areas of recent success for U.S. investors. She also highlighted 
commercial partnerships between the U.S. and Philippine governments. 
 End Summary. 
 
-------------------------------- 
Philippine Chambers of Commerce 
------------------------------- 
 
¶2.  On October 18 the Ambassador spoke to 1,000 Philippine Chambers 
of Commerce (PCCI) members at the opening of their annual three-day 
meeting in Manila.  The conference attracted businesspeople from all 
over the Philippines and had the highest level of attendance in 32 
years, including representatives from a record number of Chambers 
from the southern island of Mindanao.  Under the banner of "Seizing 
Global Opportunities", the conference focused on enhancing the 
Philippines' competitiveness and encouraging businesses to 
pro-actively seek out investment opportunities. 
 
¶3.  PCCI and the Philippine government recently hosted a 
Competitiveness Summit intended to address many of the issues 
holding back both foreign and domestic investment.  At both events, 
local leaders outlined goals with specific action plans and time 
tables - including reducing the number of days it takes to start and 
register a new business and creating new procedures that reduce the 
opportunities for corruption.  The results of PCCI's conference will 
be formally presented to President Arroyo on October 20. 
 
------------------------ 
Private Sector Investors 
------------------------ 
 
¶4.  The Ambassador commended the long partnerships between American 
and Filipino companies.  She noted that for over 50 years, high 
quality products from U.S. firms like Goodyear, Chevron, Kraft, 
Proctor and Gamble, and Ford have been manufactured in the 
Philippines, and mentioned that other employers with 
state-of-the-art production facilities - such as Timex and Moog (an 
aviation company) - also have important investments in the 
Philippines. 
 
¶5.  The Ambassador urged Chamber members to examine the next steps 
in economic development.  The United States is the single largest 
market for call centers and business process outsourcing (BPO), 
while the Philippines is considered the most competitive supplier in 
Southeast Asia.  U.S. BPO businesses are investing in both 
infrastructure and English language training to further build the 
industry.  One example is the American firm Convergys, the largest 
call center operator in the Philippines, which employs close to 
10,000 young Filipinos, and is investing in English-training 
programs for high school English teachers.  The global BPO industry 
has doubled in just five years from $208 billion in 1999 to $543 
billion in 2004. 
 
-------- 
USG Role 
-------- 
 
¶6.  The Ambassador highlighted the partnerships between several USG 
agencies and Philippine businesses.  The U.S. Agency for 
International Development (USAID) funds the  Microenterprise Access 
to Banking Services, a microfinance program that helps private banks 
develop the capability to provide loan and deposit services to 
microenterprises.  USAID provides training and technical support, 
while banks provide the lending capital.  Since starting the program 
several years ago, about 320 rural banks have provided loans to more 
than 330,000 different microenterprises with total loans approaching 
10 billion pesos ($20 million). 
 
¶7.  The Ambassador noted U.S. Department of Agriculture's 
contributions of over $200 million in both grant and food aid loans 
over the last five years to the Philippines.  She encouraged local 
farmers to work with the USDA on an irradiation project that will 
help Philippine mango exporters increase their access to the U.S. 
market.  USDA hopes that by 2010 Philippine mangoes will be 
available in the mainland U.S. (Note: Philippine mangos are 
currently available in Guam and Hawaii).  USDA also sponsors a cold 
chain program, which provides a forum for education, training, and 
technical assistance to a group of Philippine companies specializing 
in perishable foods.  Representing some of the most important and 
progressive food companies in the Philippines, the membership of the 
Cold Chain Association of the Philippines has doubled from 25 firms 
in 2002 to over 50 in 2006. 
 
 
MANILA 00004430  002 OF 002 
 
 
¶8.  The Ambassador ended her speech by noting the close disaster 
assistance coordination between the U.S. and Philippine governments. 
 She mentioned that she would travel to Central Philippines on 
October 19 to observe relief efforts in the wake of the recent 
Typhoon Milenyo. 
 
KENNEY