VZCZCXRO6082
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHML #0850/01 0991001
ZNR UUUUU ZZH
O 081001Z APR 08
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0322
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RHHMUNA/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 MANILA 000850 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL PGOV KISL KPAO RP EAID
SUBJECT: AMBASSADOR AND PHILIPPINE SECRETARY OF AGRICULTURE 
HIGHLIGHT U.S.-PHILIPPINE PARTNERSHIPS IN COUNTRY'S POOREST 
PROVINCE 
 
¶1.  (U)  SUMMARY.  On March 31, the Ambassador made her third visit 
to the province of Tawi-Tawi.  She was accompanied by Secretary of 
Agriculture Arthur Yap, the Chairman of the Mindanao Economic 
Development Council (MEDCO), Virgilio Leyretana, and the 
USAID/Philippines Mission Director.  The visit provided an excellent 
opportunity to highlight U.S.-Philippines partnerships that promote 
peace and prosperity. Events included the launching of a 
USAID-constructed boat landing, the inauguration of an aquaculture 
facility, a visit to a seaweed gene bank and abalone R&D center at 
the local university, a tour of a U.S. civilian support ship 
providing assistance to U.S. Special Forces and the Armed Forces of 
the Philippines, and a meeting with members of the Tawi-Tawi Chamber 
of Commerce.  In a meeting with the Provincial Governor and the 
Congressman representing Tawi-Tawi, the Ambassador also formally 
announced U.S. Government plans to support upgrading of the 
province's airport and construction of a key bridge-road project in 
the province.  END SUMMARY. 
 
BACKGROUND: TAWI-TAWI: THE POOREST OF THE POOR 
 
¶2.  (U)  Tawi-Tawi is one of the six provinces that comprise the 
Autonomous Region in Muslim Mindanao (ARMM) in the southernmost 
region of the Philippines.  Composed of some 300 islands, Tawi-Tawi 
has a population of approximately 350,000 and is ranked as the 
country's poorest province in the most recent government reports. 
However, Tawi-Tawi abounds with rich natural resources including 
marine resources and exotic fauna. One of the world's few remaining 
major nesting grounds for green turtles is found in this province on 
the Turtle Islands, near Malaysian Borneo. 
 
DEVELOPMENT PARTNERSHIPS IMPROVE LIVES 
 
¶3.  (U)  USAID has been mounting economic and social development 
assistance projects in this conflict-affected province for many 
years. Following the signing of a peace accord in 1996 with the Moro 
National Liberation Front (MNLF), USAID programs provided livelihood 
training for 1,745 former combatants in Tawi-Tawi, primarily in 
seaweed farming. The carrageenan-from-seaweed industry originated in 
Tawi-Tawi in the 1970's, and is the most important economic activity 
of the province, with over half the labor force involved in seaweed 
farming.  The Philippines is the world's largest producer of 
Eucheuma seaweeds (US$160 million in carrageenan and dried seaweed 
exported annually) and approximately 60% of the country's production 
comes from Tawi-Tawi 
 
¶4.  (U) Of the original group of 1,745 former combatants who became 
seaweed producers, 1,300 subsequently diversified into fish farming 
and almost 1,000 of these are now producing and selling their yield. 
Many of these will be among the first customers for the abalone fry 
produced in the  high value marine hatchery, designed with technical 
assistance from USAID and recently turned over to local control. 
 
¶5.  (U)  USAID partnered with the local branch of Mindanao State 
University (MSU) to develop a Seaweed Gene Bank and an Abalone R&D 
facility to sustain the seaweed production and the fish hatchery. 
The programs at the MSU facility, together with the fish hatchery, 
are intended to support producers who are targeting te lucrative 
and expanding Chinese market for Abaone and high-value fish like 
humpback grouper.  uring a tour of the university, the Ambassador 
noed the contribution of the multiple regional and lcal partners 
that assisted in the development ofthese facilities. 
 
¶6.  (U) After the ceremonial inauguration of the USAID-financed boat 
landing which will serve the new fish hatchery and several 
neighboring communities, the Ambassador participated in a ceremony 
formally turning over the hatchery to the Province of Tawi-Tawi. 
During a brief tour of the new facility, the Ambassador met briefly 
with a group of former MNLF combatants who are now successful 
seaweed growers and fish farmers, and who will be among the first 
customers for the fingerlings and fry produced by the hatchery. 
 
THE AMBASSADOR ANNOUNCES KEY INFRASTRUCTURE PARTNERSHIPS 
 
¶7.  (SBU) During her office call with Governor Sadikul Sahali, the 
Ambassador formally announced support of two key infrastructure 
projects, with funding by the United States under the "1207" 
program,  to be undertaken by USAID in partnership with the 
Philippine government. The first will be expansion and extension of 
the Sanga-Sanga Airport runway in the capital city of Bongao. The 
second is the Tawi-Tawi Bridge Road Partnership Project. This will 
be a phased construction of interconnected roads and bridges 
connecting Sanga-Sanga Island and Tawi-tawi Island, the two main 
islands of Tawi-Tawi province. The U.S. contribution to these 
projects will be approximately USD $5 million. 
 
¶8.  (SBU) Following the turnover of the fish hatchery, the 
Ambassador escorted a contingent of local and national government 
officials aboard a civilian Maritime Support Vessel (MSV) which 
 
MANILA 00000850  002 OF 002 
 
 
provides logistic support for the Joint Special Operations Task 
Force - Philippines for a tour and briefing about the ship. The MSV 
periodically operates in Tawi-Tawi waters, and the visit was 
arranged in order to make clear to local people was principally 
involved in supporting JSOTF civil affairs activities. 
 
¶9.  (U) At a visit to Mindanao State University's Tawi-Tawi campus, 
the Ambassador toured a Seaweed Gene Bank and Abalone R&D facility 
which had been established with USAID support. She noted the 
contribution of the multiple regional and local partners that had 
assisted in the development of these facilities. 
 
AMBASSADOR'S DISCUSSIONS WITH SECRETARY OF AGRICULTURE 
 
¶10.  (U) During the day, the Ambassador had the opportunity to 
discuss a range of issues with the Secretary of Agriculture Arthur 
Yap (one of President's Arroyo's key advisors) including Philippine 
rice supply and the impact of economic development, especially 
agribusiness, in the overall effort to improve the lives of the 
poorest citizens of the Philippines. This improvement is linked to 
the country's counterterrorism struggle as six of the ten poorest 
provinces are located in conflict-affected areas of Mindanao. The 
Secretary noted the value of the fish hatchery model which he would 
 
SIPDIS 
like to be duplicated in other locations in the Philippines to 
capitalize on the country's potential to serve the growing demand 
for high-value aquaculture products, while stressing the critical 
role that Tawi-Tawi would play. 
 
A MESSAGE OF PEACE AND PROSPERITY 
 
¶11.  (U) Prior to departing Tawi-Tawi, the Ambassador was 
interviewed by the local radio station which broadcasts on the 
government system to the remote areas of Mindanao that are not able 
to receive commercial broadcasts. She reiterated her announcement of 
the two major infrastructure projects to be undertaken on the island 
and their importance to the development of Tawi-Tawi and the region. 
She also noted the ongoing efforts of the Philippine government in 
identifying and developing the potential of this resource rich 
province. Upon arrival in Zamboanga, she was interviewed for live 
broadcast in the Metro Manila region. 
 
¶12. (SBU)  COMMENT.  Tawi-Tawi is strategically located in the 
tri-border region of the Philippines, Malaysia and Indonesia near 
areas of international terrorist activity.  Infrastructure projects 
such as the fish hatchery and R&D facilities accelerates economic 
development, raises the standard of living and improves the prospect 
for long-term peace and security in the critical region.  The 
community welcomes the U.S. - Philippines partnerships for these 
reasons and U.S. military support has also been well received.  The 
Provincial Governor proudly wore a "USNS Mercy" hat given to him by 
the U.S. Government in 2006.  Each of the government officials 
visited by the Ambassador and Secretary Yap emphasized their desire 
for increased partnerships with the United States. 
END COMMENT. 
 
KENNEY