VZCZCXYZ0005
OO RUEHWEB

DE RUEHML #5108/01 3630825
ZNR UUUUU ZZH
O 290825Z DEC 06
FM AMEMBASSY MANILA
TO SECSTATE WASHDC IMMEDIATE 4410

UNCLAS MANILA 005108 
 
SIPDIS 
 
SIPDIS 
FOR ASSISTANT SECRETARY FOR ADMINISTRATION, RAJ CHELLARAJ 
 
E.O. 12958: N/A 
TAGS: AMGT ASEC OTRA PREL ECON RP
SUBJECT: SCENE SETTER FOR THE VISIT OF ASSISTANT SECRETARY 
FOR ADMINISTRATION, RAJ CHELLARAJ 
 
¶1.  A warm welcome to the Philippines!  We are developing 
a dynamic program for your January 23-25 visit, to include a 
tour of the Regional Printing Center and Regional Training 
Center on the Mission's Seafront Compound, an ICASS Council 
Meeting and events with Mission personnel at the Chancery, 
and interesting stops at the American Cemetery and a USAID 
partner energy project in Makati. 
 
------------------ 
Mission Operations 
------------------ 
 
¶2. Embassy Manila is home to 255 USDH and over 1170 LES. 
The Management Section has undertaken a number of initiatives to 
advance the President's Management Agenda.  To name a few: 
 
-- Focusing on ICASS Performance:  The Management Section 
opened FY 07 by identifying, examining, and planning 
improvements within each service category following a series 
of in-house workshops and sessions that identified benchmarks, 
introduced performance measurements and focus groups 
and trained employees on process mapping.  LES are 
enthusiastically involved in the process, and many made 
presentations at our last performance focus session; 
 
-- Competitive Sourcing:  The Management Section hosts over 120 
full-time embedded contractors in the performance of repairs, 
cleaning, gardening, alarm maintenance, warehousing, pesticide 
use management, travel and packing services, and construction. 
Manila continues to evaluate the potential for shifting 
non-governmental functions to the private sector.  A competitive 
sourcing study currently underway is examining the potential 
for further outsourcing shuttle services, vehicle maintenance, 
property disposal, admin supply, and residential make-readies. 
The results of this study are expected Spring of 2007; 
 
-- A-76 Competition Programs:  The Regional Printing Center (RPC) in 
Manila recently won an A-76 printing competition for the provision 
of worldwide media services to the Department of State.  To increase 
its competitiveness prior to the solicitation, RPC Manila increased 
productivity, achieved ISO 9001 certification, and refocused 
services by introducing business practices; 
 
-- Service Automation:  Post is developing software to automate 
procurement management and bidding.  The software will automate 
interaction with local vendors while increasing the speed of 
local procurement, expand Post's vendor base, and improve 
procurement analysis capabilities.  In addition, Post has 
expanded use of ONE, Blackberries, and VOIP to key officers for work 
throughout the 7,000 islands of the Philippines, and across the 
world; 
 
-- Supporting Service Dependents:  Post continues to assist 
DOS families on Separate Maintenance Allowance in the 
Philippines through outreach and consular services.  In the 
coming year, Post will extend housing, transportation and 
employment benefits to three Mission families with 
spouses heading to Iraq.  These families join hundreds of 
U.S. Defense Department dependents in the Philippines with 
spouses serving unaccompanied tours in Iraq and Afghanistan. 
 
------------------------ 
Counterterrorism Efforts 
------------------------ 
 
¶3.  The Philippine Government is a committed counterterrorism 
partner.  The Armed Forces of the Philippines (AFP), supported 
by the U.S. Joint Special Operations Task Force-Philippines 
(JSOTF-P) continues operations against senior Abu Sayyaf Group 
and Jemaah Islamiyah leaders on the island of Jolo. 
 
¶4.  USAID devotes nearly 60 percent of its $70 million 
FY06 assistance budget to Mindanao, where it is focused on 
reintegrating former combatants, promoting economic growth 
and business opportunities, education, health and local 
governance.  After the Moro National Liberation Front signed 
a peace deal with the government in 1996, USAID carried out a 
range of highly successful programs, including "Arms to 
Farms," which reintegrated over 28,000 former fighters back 
into civil society as successful farmers. 
 
------------------------------------- 
Philippine Defense and Police Reform 
------------------------------------- 
 
¶5.  The Department of the National Defense and Armed Forces 
Chief of Staff strongly support joint Philippine-U.S. 
Philippine Defense Reform programs.  The Philippine Government 
deposited $17.53 million into a Foreign Military Sales holding 
account in 2004.  There are now 11 U.S. Subject Matter Experts on 
the ground, and more may be added in the near future.  In addition 
to long-term 
 
institutional changes, the multi-year Capability Upgrade 
Program will modernize 72 Philippine Army and 12 Philippine 
Marine Corps battalions over the next six years.  The 
Battalion Retraining component will focus on better training, 
personnel and logistics programs, while the longer term 
Battalions of Excellence concept will introduce new personnel 
policies, new equipment, and better training capabilities. 
 
¶6.   A new INL-funded U.S. senior law enforcement advisor will 
support the similar Transformational Program of the Philippine 
National Police, a key partner on counter-terrorism, IPR protection, 
trafficking in persons, etc. 
 
-------------------------------------------- 
Human Rights: Concern Over Unlawful Killings 
-------------------------------------------- 
 
¶7.  Unlawful killings of local leftists and journalists, a 
problem here as in many countries with weak rule of 
law, have recently attracted public attention. Leaders of leftist 
political groups linked to the Communist Party of the 
Philippines/New People's Army blame the military and police, while 
some in the government assert that the killings are the result of 
internal purges within the Communist Party of the Philippines/New 
People's Army.  Few of the cases have been resolved, prompting 
President Arroyo to set up a high-level independent commission and a 
special national police task force to investigate the killings.  The 
government and armed forces have strongly condemned such killings 
and pledged to bring perpetrators to justice. 
 
------------------------------- 
Economy Hobbled by Massive Debt 
------------------------------- 
 
¶8. The U.S. remains the Philippines largest trading partner, 
with over $16 billion in two-way merchandise trade.  Major 
U.S. exports include electronics and agriculture.  The U.S. 
is also the largest investor here, with over $6 billion in 
assets.  The large American Chamber of Commerce in Manila is 
proud of its history as the first American Chamber of 
Commerce abroad. 
 
¶9. Over the last year, the Philippines has averted serious 
economic instability and made significant progress on 
reducing its massive government debt, still about 90 percent 
of GDP.  Low levels of government infrastructure investment 
and public spending present serious challenges to poverty 
alleviation.  The Philippines is a participant in the 
Millennium Challenge Corporation's (MCC) Threshold Program 
Funds.  The government's plan will intensify anticorruption efforts. 
 The USG assists in economic development, anti-corruption, 
environmental protection, and poverty alleviation programs 
through our USAID programs, USDA programs, and through the 
efforts of an active Peace Corps program. 
 
¶9.   Please visit our intranet and SIPRNet sites for additional 
insight 
into Mission activities. 
 
KENNEY