VZCZCXYZ0020
OO RUEHWEB

DE RUEHML #1188/01 1060935
ZNR UUUUU ZZH
O 160935Z APR 07
FM AMEMBASSY MANILA
TO RUEHHK/AMCONSUL HONG KONG IMMEDIATE 4573
INFO RUEHC/SECSTATE WASHDC IMMEDIATE 6081

UNCLAS MANILA 001188 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
HONG KONG PLEASE PASS PEACE CORPS DIRECTOR TSCHETTER 
FROM CHARGE PAUL JONES 
 
E.O. 12958: N/A 
TAGS: PREL ECON EAID RP
SUBJECT: SCENESETTER FOR PEACE CORPS DIRECTOR RONALD A. TSCHETTER 
 
¶1.  Director Tschetter:  We deeply appreciate your visit, which will 
mean a lot to our Peace Corps volunteers and to Philippine 
authorities who are offering extraordinary support in the search for 
Julia Campbell.  Karl will be at the airport upon your arrival and 
give you the latest on the search.  We will all travel together to 
the site on Tuesday morning.  On Wednesday you will meet all Peace 
Corps Volunteers, key members of the Mission Country Team, senior 
Philippine officials, and members of the media. 
 
¶2.  Let me take this opportunity to provide you with background on 
our Peace Corps program, suggested media themes, and the context of 
our relationship with the Philippines. 
 
------------------------------ 
Peace Corps in the Philippines 
------------------------------ 
 
¶3.  Our overall relationship with the Philippines is deep, strong 
and constructive. We are immensely proud of Peace Corps Philippines' 
history spanning 46 years and of the more than 8,000 Volunteers who 
have served here in numerous fields of development including 
environment, education, business, and youth services.  In the past 
year Peace Corps Philippines has begun implementing important 
programmatic changes to assure that all Volunteers have full jobs 
and to respond to current Philippine development needs. The effect 
of these changes has strengthened Peace Corps' position as a key 
element of the overall US-Philippines relationship.  The tragic 
disappearance of Peace Corps Volunteer Julia Campbell has drawn many 
American and Philippine organization and officials together in 
conducting search operations.  The Embassy and staff continue to 
offer all of the support possible to you and the Peace Corps in this 
search. 
 
-------------------------------------- 
Press Themes in Search for Missing PCV 
-------------------------------------- 
 
¶4.  (U) The following press themes may assist you in your contacts 
with the media in the Philippines. 
 
-- The Peace Corps deeply appreciates the excellent assistance of 
the Government of the Philippines in the ongoing search for our 
missing Peace Corps Volunteer Julia Campbell. 
 
-- In particular, we thank local authorities in Banaue (Ban-OW-way) 
and Ifugao (IF-u-gow) Province, the Philippine National Police, the 
Armed Forces of the Philippines, and citizens of the Banaue area for 
their generous assistance. 
 
-- We thank the Filipino people for their prayers and support, and 
we all continue to hope and pray for Julia and her family. 
 
-- Peace Corps Volunteers have done great work in the Philippines 
since 1961, and we have been proud to be a part of so many 
Filipinos' lives.  The more than 8,000 Americans who have served 
here in the Peace Corps carry fond memories of this country and its 
people. 
 
-- Peace Corps Volunteers in the Philippines serve and work in close 
partnership with local government and charities to improve the lives 
of Filipinos through education, environmental conservation, economic 
opportunity, life skills development, and business development. 
 
-- Peace Corps Volunteers in the Philippines work in national and 
local government institutions and with numerous non-governmental 
organizations to improve the lives of Filipinos through English 
language and computer education, coastal resources management, 
literacy and life skills development, and business development. 
 
-- The Peace Corps will remain a committed partner of the 
Philippines and friend of the Filipino people. 
 
------------------------------------ 
Partners in the Global War on Terror 
------------------------------------ 
 
¶5.  (SBU) The Philippines is a strong partner in the global war 
against terrorism.  We are working together to rid the poor Southern 
Philippines islands of international terrorists who hide among 
Muslim insurgents in this Christian majority country.  Our 
engagement with the Philippines on counterterrorism ranges from 
humanitarian relief and economic development to military cooperation 
and public diplomacy.  There is no better antidote to terrorism and 
extremism than economic progress, and USAID and other USG programs 
directly assist vulnerable populations and former insurgents.  A 
U.S. Joint Special Operations Task Force provides advice and 
assistance to Philippines Armed Forces conducting anti-terrorism 
operations in the South.  Although assignment of Peace Corps 
Volunteers to these southern islands is ruled out due to security 
concerns, Peace Corps remains active there via a distance learning 
project in which Peace Corps Volunteers train Mindanao teachers of 
English and Internet Communications. 
 
------------------------------------------- 
Partners in Economic Development and Reform 
------------------------------------------- 
 
¶6.  (U) In the area of economic development, the United States 
remains the Philippines' most important partner.  With our bilateral 
economic assistance of about $70 million in 2006, we are the 
Philippines' largest grant aid donor.  In addition, the Philippines 
is in the middle of a Millennium Challenge Account Threshold Country 
program to strengthen substantially its fiscal capacity through 
fighting corruption and improving its revenue collections.  If the 
Philippines can demonstrate the political will to strengthen the 
rule-of-law and successfully fight corruption, we would see more 
domestic and foreign investment as well as more jobs and growth. 
 
¶7.  (U) The U.S. remains the Philippines' largest trading partner, 
with over $16 billion in two-way merchandise trade.  Japan falls 
slightly behind us.  Trade with China, though only about $6 billion 
in 2005, grew by about 60 percent over the last year.  Major U.S. 
exports are electronics, machinery, and agriculture.  The U.S. is 
also the largest foreign investor, with over $6 billion in assets in 
a broad range of manufacturing and service industries including 
banking, insurance, consumer goods, electronics, autos, and 
agriculture.  The American Chamber of Commerce of the Philippines 
describes itself as the first overseas American Chamber worldwide 
and is an active contributor to the economic policy dialogue as well 
as a strong supporter of trade and investment policy reforms. 
 
¶8.  (U) In comparison to other countries in the region, the 
Philippine public and private sector investment levels remain low. 
This condition inhibits the economy's ability to sustain accelerated 
growth rates about 6 percent, the level necessary to begin reducing 
poverty.  The current GDP growth of about 5 percent is respectable, 
but, with a population growth rate of 2.3 percent, the impact on per 
capita income remains insufficient. 
 
-------------------- 
Politics and Poverty 
-------------------- 
 
¶9.  (SBU) The Philippines is in the midst of election campaign for 
half of its Senate, all seats in the House of Representatives, and 
virtually all provincial and local leadership positions.  May 14 is 
election day.  Most campaigns center on personalities, not policies. 
 The relatively small middle class, the mass emigration of overseas 
workers (about ten percent of the total population, or twenty 
percent of the workforce), and improved income distribution help 
explain the absence of a strong political force for change.  The 
middle and upper income classes make up only 9 percent of the 
population.  The economy is heavily dependent on remittance inflows 
from overseas workers, totaling about $13 billion annually.  About 
40 percent of the population living on $2 per day or less. 
 
¶10.  (U) We look forward to your visit. 
 
 
Jones