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FM AMEMBASSY MANILA
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INFO RUEHKA/AMEMBASSY DHAKA IMMEDIATE 2494
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
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RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
RUEHIN/AIT TAIPEI IMMEDIATE 1420

UNCLAS MANILA 000608 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OREP EINV BEXP PREL MCAP RP
SUBJECT: CONGRESSMAN CHABOT HELPS KICK OFF BALIKATAN 07 
EXERCISE 
 
REF: MANILA 560 
 
¶1.  (U)  Summary.  During his February 18-20 visit to the 
Philippines, U.S. Congressman Steve Chabot (R-OH) joined 
Ambassador, Philippine Secretary of National Defense Ebdane, 
and high ranking U.S. and Philippine military officials at 
the Opening Ceremony of Balikatan 2007, the annual 
U.S.-Philippines joint military exercise.  Congressman Chabot 
also toured the facilities of two major Ohio-based companies 
- a Procter & Gamble plant in Cabuyao and a Convergys call 
center in Manila.  He separately met with the Philippine 
Speaker of the House Jose De Venecia and toured the American 
Military Cemetery in Manila.  His visit was another symbol of 
the strong partnership and close friendship between our two 
countries, and Embassy would welcome additional Congressional 
visitors.  End Summary. 
 
---------------------------------- 
AFP: Transforming While Performing 
---------------------------------- 
 
¶2.  (U)  U.S. Congressman Steve Chabot (R-OH) joined 
Ambassador, Philippine Secretary of National Defense 
Hermogenes Ebdane, and high ranking U.S. and Philippine 
military officials at the opening ceremony of Balikatan 2007, 
the major annual joint exercise involving Armed Forces of the 
Philippines (AFP) and U.S. military units.  The ceremony 
received widespread coverage in the local media, including 
photos of the Congressman with the other dignitaries. 
 
¶3.  (U)  After the ceremony, the Congressman and Ambassador 
met privately with Secretary Ebdane and AFP Chief of Staff 
General Hermogenes Esperon.  Secretary Ebdane and General 
Esperon briefed the Congressman on the ongoing Philippine 
Defense Reform program jointly funded by our two governments, 
stressing that the AFP has "come a long way" since the 
inception of the program.  General Esperon explained that the 
first phase focuses on internal security operations and 
strives to achieve "quick wins" by producing tangible results 
for soldiers in terms of equipment and training.  He pointed 
out that the AFP is in the process of devising "performance 
measures" to "make sure there will be no backsliding."  With 
the AFP currently engaged in fighting terrorists and 
communist insurgents, General Esperon added that "while 
transforming, we must be performing." 
 
¶4.  (U)  Congressman Chabot commended the U.S.-Philippine 
partnership and lauded the Philippines for its efforts in the 
war on terror.  General Esperon asked Congressman Chabot "to 
thank Congress for U.S. support, especially the 
intelligence," adding that "none of the operations would 
succeed without it." 
 
------------------------------ 
Procter & Gamble Factory Visit 
------------------------------ 
 
¶5.  (U)  The Congressman traveled outside of Metro-Manila to 
visit the Procter & Gamble plant in the town of Cabuyao.  P&G 
- a Cincinnati-based company - first established its presence 
in the Philippines in 1935 and, except during the Japanese 
occupation in World War II, has operated successfully here 
ever since.  P&G manufactures a wide-range of products in the 
Philippines, including detergents and various paper hygiene 
products.  Plant managers stated that 85% of the goods 
produced at the Cabuyao plant are for local sale and that the 
Philippines ranks among the top 12 markets for P&G.  The 
company employs approximately 1,000 people nation-wide. 
 
--------------------- 
Convergys Call Center 
--------------------- 
 
¶6.  (U)  Congressman Chabot also toured the call center 
facilities of another Cincinnati company, Convergys. 
Convergys has grown at a prodigious rate in the Philippines 
since beginning operations here in 2003.  Today, the company 
employs over 10,000 people at seven locations throughout the 
country, providing call center services to the American 
market in customer care, accounts receivable management, 
finance and accounting, information management and human 
resources. 
 
¶7.  (U)  According to the operations manager, the Philippine 
call center industry has a leg-up on foreign competition 
particularly because of the Filipino familiarity with 
American culture and the "neutral" accent of Filipino 
English. Nevertheless, company officials expressed concern 
that English language proficiency in the Philippines is far 
from optimal.  With the stupendous growth of Philippine BPO 
sector (the Philippine Board of Investment forecasts an 
annual growth rate of 100%), competition for talent is 
fierce.  Moreover, due to sub-par language skills of the 
hiring pool, the company hires on average only five out of 
every 100 applicants.  To fill the call center seats, the 
Convergys has resorted to what it calls "interventions" for 
near-hire applicants.  Presently, Convergys is providing 
language training directly to some 700 students, and, in 
partnership with the government, is training English teachers 
as well. 
 
¶8.  (U)  The Congressman, who is the ranking Republican 
member of the House Small Business Committee, also met with 
representatives of the U.S. Commercial Service and Foreign 
Agricultural Service at the Embassy's Makati-based American 
Business Center for a discussion of the Mission's support to 
other U.S. firms, including the successes in the market of 
several small Ohio companies. 
 
-------------------------- 
Call on Speaker De Venecia 
-------------------------- 
 
¶9. (SBU) Congressman Chabot called on Philippine Speaker of 
the House Jose De Venecia at the Speaker's home.  Congressman 
Chabot thanked Speaker De Venecia for his country's efforts 
to combat terrorism, and congratulated the Speaker on the 
anti-terrorism bill passed by the Philippine legislature in a 
special session the day before (reftel).  Congressman Chabot 
expressed concern about extrajudicial killings (EJKs) in the 
Philippines.  The Speaker opined that most of these killings 
were due to internal purges within the ranks of the left as 
well as revenge killings by families of slain soldiers. 
Congressman Chabot also encouraged the Speaker to rein in 
corruption, a step which he said would attract U.S. 
businesses and investment. 
 
Visit Embassy Manila's Classified website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
 
KENNEY