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OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #4681/01 3180552
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O 140552Z NOV 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3889
INFO RUEHZS/ASEAN COLLECTIVE IMMEDIATE
RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE

UNCLAS SECTION 01 OF 02 MANILA 004681 
 
SIPDIS 
 
STATE FOR EAP/EX 
STATE PASS USAID 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON EAID SENV MARR RP
SUBJECT: AMBASSADOR VISITS PUERTO PRINCESA, PALAWAN 
 
¶1. SUMMARY: During a November 3-4 trip to the island of Palawan, the 
Ambassador visited Western Command (WESCOM) Headquarters; spoke to 
local tricycle drivers about the success of a USAID pollution 
reduction and traffic control project; met with local Peace Corps 
Volunteers and environmental NGO leaders about the cleanliness of 
Puerto Princesa City; spoke with students at the Western Philippine 
University (WPU) about Peace Corps activities in Palawan; and 
engaged with local and provincial leaders about joint military and 
environmental cooperation between the U.S. and the Philippines. 
Ambassador was enthusiastically welcomed by residents and covered 
well by media. End Summary. 
 
-------------------------- 
WESTERN COMMAND (WESCOM) 
-------------------------- 
 
¶2. Vice-Admiral Danga told Ambassador and JUSMAG leadership that the 
joint Philippine - U.S. "Talon Vision" and "PHIBLEX" military 
exercises were a success. Both militaries learned from the other, 
and both helped local residents with medical care and with school 
construction. Danga said that he would like to continue military 
cooperation, but suggested that future military exercises be 
conducted in the Muslim areas of southern Palawan, specifically 
Balabac, to include a population that is at the center of the hearts 
and minds campaign by the AFP. WESCOM's leadership said it was proud 
of its role in environmental conservation, which is in line with the 
environmentally friendly policies of Governor Reyes and Mayor 
Hagedorn. 
 
¶3. WESCOM protects 755,412 people on 1,768 islands (including the 
hotly contested Spratly Islands). It covers two congressional 
districts, 23 municipalities, and one city (Puerto Princesa). It 
protects the commercial operations of the 4.8 billion Malampaya gas 
pipeline that runs from Palawan to Batangas in Central Luzon. This 
gas project will generate approximately 2,700 megawatts of power for 
the next 20 years. 
 
 
 
------------------------ 
USAID Tricycle Project 
------------------------ 
¶4. Ambassador was greeted at the city Coliseum by Mayor Hagedorn and 
Mr. Efnie Lusoc, the President of the Federation of Tricycle 
Operators and Drivers Association. Ambassador was briefed on the 
USAID and Puerto Princesa City "Clean Air for Puerto Princesa" 
project to reduce vehicle emissions from tricycles and improve the 
air quality in the city. The city government took up the successful 
program in June 2005. Hagedorn and Lusoc said they were grateful for 
USAID assistance in reducing air pollution and traffic congestion. A 
before and after video of a major Puerto Princesa street showed the 
success of the tricycle project. Not only was traffic improved, but 
the wages of tricycle drivers went up by 50 percent, which was 
attributed to increased passenger volume due to fewer tricycles on 
the streets. Local leaders are proud of the cleanliness, order, and 
economic viability they have achieved with this program. Both 
Hagedorn and Lusoc said they welcomed future USAID projects in 
Puerto Princesa City. Mayor Hagedorn took the Ambassador on a 
ceremonial tricycle ride and photo-op, which were warmly received by 
local media, politicians, residents, and school children. 
----------------------------------------- 
Peace Corps and Environmental NGO Lunch 
----------------------------------------- 
 
¶5. Ambassador hosted a lunch for environmental NGOs and two of the 
nine Peace Corps Volunteers in Palawan. NGO leaders stressed the 
importance of balancing tourism and economic growth with 
environmental conservation and protection. They want to limit the 
growth of the mining industry, which does not provide many jobs and 
is a serious threat to the environment. They said that illegal 
fishing and logging by foreigners, principally from other Asian 
countries, was not punished by the judiciary, while Filipinos 
engaged in similar activities were punished. The outcome of the 
decisions or lack of decisions by the judiciary was leading to 
repeat foreign offenders. NGO leaders want to continue working with 
USAID and PCVs and want to strengthen their relationship with the 
Philippine government. 
 
------------------------------------- 
Western Philippine University (WPU) 
------------------------------------- 
 
¶6. Peace Corps Volunteer Michael Bercik is assigned to the Western 
Philippine University (WPU), one of two institutions of higher 
learning in Puerto Princesa City. The WPU offers a wide range of 
courses, including agriculture science, journalism, and criminology. 
The WPU was on break, but warmly welcomed the Ambassador to its 
Puerto Princesa Campus. The Ambassador met privately with WPU 
President Concepto B. Magay, spoke to a group of 14 students and six 
 
MANILA 00004681  002 OF 002 
 
 
faculty members about the role of the Peace Corps, and spoke on the 
importance of English in education and in the work place. A question 
and answer session followed. Students wanted to know how to get a 
visa to the U.S., how to study in the U.S., and what the USG could 
do for them and their country. The Ambassador encouraged students to 
keep on learning and taking risks in order for them to achieve their 
goals and become successful leaders. 
 
----------------------- 
Chambers of Commerce 
----------------------- 
 
¶7. Ambassador Kenney met with members of the Palawan Chamber of 
Commerce and Industry and the Palawan Filipino-Chinese Chamber of 
Commerce and Industry. The Palawan Chamber members said that 
ecotourism can help Palawan in the future, but poor infrastructure 
has not yet made it a reality. Conversely, the Chinese-Filipino 
Chamber representative Vic Tan believed that local NGOs and 
environmental considerations by the government obstruct business 
growth. 
 
¶8. Members of the local chambers were unsure how to promote Palawan 
business, but were eager to discuss how U.S. Embassy Manila could 
help them achieve their objectives. They were interested in getting 
speakers from the Economic Section, Foreign Agricultural Service, 
and Foreign Commercial Service to come speak to local business 
leaders. 
 
¶9. Most Palaweos are city government employees and unskilled 
workers who fish and farm rice, mangoes, and cashews. The lack of 
industry makes employment difficult in Palawan. The mining industry 
does not create many jobs, and the tax revenue generated by the 
mines goes to Manila, though processed fruit and fish products may 
be a way to create new industry. 
 
¶10. The national government recently announced that 3 billion pesos 
(50 pesos per dollar) will be appropriated for the upgrading of the 
Puerto Princesa airport, with hopes that Palawan will become an 
international gateway in the next two years. Another 4 billion pesos 
will be appropriated in the next three years for the improvement of 
the road system from northern to southern Palawan. The Strategic 
Environment Plan, unique to Palawan, requires an environmental 
clearance that takes three months to process, thus discouraging the 
establishment of big factories and industrial plants. 
 
---------------------------------- 
Dinner with Palawan Politicians 
---------------------------------- 
 
¶11. Governor Reyes and Mayor Hagedorn hosted a dinner for the 
Ambassador, which included Representatives Antonio Alvarez and 
Abraham Kahlil Mitra. All agreed that joint Philippine - U.S. "Talon 
Vision" and "PHIBLEX" military exercises in October 2006 were a 
success. Like Vice-Admiral Danga of WESCOM, they recommended that 
future exercises be held in the Muslim region of southern Palawan. 
 
¶12. Although belonging to different political persuasions, local 
politicians in Palawan, led by Governor Reyes and Mayor Hagedorn, 
forged an unprecedented alliance in the May 2004 presidential 
elections to support PGMA. They are one as well in pushing for the 
development of the province, with a focus on environmental 
protection, tourism, investment, peace, and order. The May 2007 
midterm elections will test the strength of this alliance. 
 
------- 
Media 
------- 
 
¶13. Ambassador Kenney underscored the long standing friendship 
between the U.S. and the Philippines in an interview with Ms. Leny 
Escaro for both DYPR Radio and the local ABS-CBN TV affiliate, and 
in a telephone interview with Ms. Mitchie Hitosis of DYER Radio. The 
Ambassador also visited DYSP Super Radyo Studio, where she was 
enthusiastically welcomed, and had a live radio interview with Mr. 
James Viernes. Local press widely covered the Ambassador's visit and 
the USG contributions to peace in prosperity in Palawan. 
 
KENNEY