VZCZCXRO2490
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #0240/01 0190939
ZNR UUUUU ZZH
O 190939Z JAN 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4834
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
RUEKJCS/JOINT STAFF WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE

UNCLAS SECTION 01 OF 02 MANILA 000240 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP, PM, AND EAP/MTS 
USPACOM ALSO FOR FPA HUSO AND J5 
SECDEF/OSD/ISA/AP (TOOLAN/BAILEY) 
JOINT STAFF/J5 (WILKES/ROBINSON/CLEMMONS) 
 
E.O. 12958: N/A 
TAGS: MARR MASS MOPS MCAP PREL RP
SUBJECT: PRESIDENT ARROYO FIRMLY BEHIND DEFENSE REFORM 
 
¶1.  (SBU) SUMMARY.  President Arroyo firmly supports defense 
reform, and has added another $11 million to the program's 
Foreign Military Sales Account to buy new equipment for 
battalion training.  Armed Forces Chief of Staff General 
Esperon is pushing hard for the rapid delivery of the 
equipment, which he views as a priority.  Although challenges 
remain, Philippine Defense Reform has clearly become 
institutionalized and is beginning to have a spillover effect 
in other areas. The Philippine National Police has embarked 
on its own transformation plan, and with U.S. help will soon 
launch its "Model Police Station" program.  This is a "good 
news" story for the Philippines. END SUMMARY. 
 
A MODEL EFFORT 
-------------- 
 
¶2.  (SBU) President/Defense Secretary Arroyo expressed her 
firm support for defense reform during a January 18 meeting 
with Ambassador Kenney, the U.S. Executive Steering Committee 
for Philippine Defense Reform (PDR) chaired by Defense 
Security Cooperation Agency Principal Director for Security 
Cooperation Ed Ross, and senior Philippine defense officials. 
 (President Arroyo assumed the portfolio of Secretary of 
National Defense in November 2006 after the resignation of 
then-Secretary Cruz.)  Thanking the Ambassador for U.S. 
support, President Arroyo said reform efforts were beginning 
to bear fruit.  She noted that she had just added $11 million 
dollars to the program's Foreign Military Sales account to 
buy new equipment for battalion retraining.  The Ambassador 
observed that PDR had become a model for the region, with 
countries such as Mongolia and Cambodia beginning to embark 
on their own military reform programs with U.S. assistance. 
The United States was pleased to be part of such an important 
effort, which was already having a spillover effect on the 
Philippine National Police, which, with U.S. help, would soon 
launch its "Model Police Station" program. 
 
¶3.  (SBU) President Arroyo drew comparisons between the armed 
forces modernization program launched in the mid-1990's when 
she was still a senator and the existing reform effort.  The 
former program was focused almost exclusively on external 
threats, while the latter was aimed at improving the 
Philippine military's capability to conduct internal security 
operations.  She said she had accelerated funding to speed up 
procurement so that newly retrained soldiers would have the 
equipment they needed. 
 
PUSH FOR TRAINING EQUIPMENT 
--------------------------- 
 
¶4.  (SBU) In a separate session with the U.S. Executive 
Steering Committee, Armed Forces Chief of Staff General 
Esperon emphasized the need to have at least three battalion 
"training sets" of equipment, so that Army and Marine 
battalions going through training could familiarize 
themselves with and train to the new equipment they would 
eventually obtain.  "We need to fast track equipment for 
these battalions if we want to call them battalions of 
excellence -- training sets are a priority," he said.  U.S. 
Department of Defense Principal Director for Asian and 
Pacific Affairs Brigadier General John Toolan agreed that new 
equipment meant a lot to the troops. 
 
¶5.  (SBU) Director Ross noted that PDR represented a "good 
news story," but challenges remained.  It was important for 
both sides to identify potential obstacles and develop 
work-arounds to avoid delays in the acquisition of equipment, 
he stressed.  Philippine Undersecretary for Defense 
Operations Santos concurred, stressing that defense reform 
was contributing to the economic and social development of 
the country. 
 
"QUICK WINS" 
------------ 
 
¶6.  (SBU) A number of "quick win" projects have already begun 
to translate reform into practical and tangible results for 
the troops. 
 
-- President Arroyo opened a U.S.-equipped Combat Trauma 
Center on Jolo on her January 8 visit to Jolo.  The center 
will provide immediate care to troops wounded in the ongoing 
operation to eliminate the Abu Sayyaf and Jemaah Islamiyah 
 
MANILA 00000240  002 OF 002 
 
 
leadership on the island; 
 
-- The Defense Security Cooperation Agency quickly turned 
around within 24-hours a request for a U.S. Mobile Training 
Team to conduct train-the-trainers squad leader training. 
The team developed a Squad Leader's Handbook, which has now 
been distributed to Philippine Army and Marine units; 
 
-- General Esperon is establishing a Sergeant Major's Academy 
and has made sergeant majors responsible for training 
non-commissioned officers.  Training for drill instructors 
will be standardized; and, 
 
-- In early 2007, the Armed Forces of the Philippines will 
introduce a Purchase Authorization Card, which will nearly 
eliminate cash purchases for goods.  This measure creates an 
auditable procurement trail that addresses the core complaint 
of corruption. 
 
COMMENT 
------- 
 
¶7.  (SBU) President Arroyo is clearly committed to defense 
reform, and wants to accelerate its pace.  The program, which 
is entering its fourth year, has become institutionalized. 
The Philippines is now contributing far more in dollar terms 
than we are.  One impressive briefing during the Executive 
Committee meeting laid out a comprehensive series of metrics 
for measuring success -- developed exclusively by Department 
of National Defense staff.  Key to the ultimate success of 
the program is translating reforms down to the individual 
soldier.  General Esperon's emphasis on equipment highlights 
this concern, and we will need to work closely with our 
Philippine counterparts to expedite as much as possible 
equipment delivery. 
 
 
Visit Embassy Manila's Classified website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
KENNEY