VZCZCXRO7064
OO RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHML #2726/01 3510542
ZNR UUUUU ZZH
O 160542Z DEC 08
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2691
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RHHMUNA/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 MANILA 002726 
 
SIPDIS 
 
PLEASE PASS TO PEACE CORPS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV KISL KPAO EAID RP
SUBJECT: VISIT TO SUBIC BAY HIGHLIGHTS U.S. IMPORTANCE IN REGION 
 
¶1. SUMMARY: The Deputy Chief of Mission's December 4 visit to the 
port of Subic Bay, site of the former U.S. naval base, highlighted 
the continuing importance of the region to U.S. business and the 
American citizen community, as the Ambassador and DCM have done on 
previous visits.  The DCM recognized local law enforcement officials 
for their help and assistance with Naval Criminal Investigation 
Service (NCIS) efforts, met with a successful U.S.-Philippines 
joint-venture company, and visited with local government officials. 
Additionally, the DCM heard from local Peace Corps Volunteers and 
saw the positive effects of the U.S. Tropical Forest Conservation 
Act of 1998 on an indigenous Filipino community.  The DCM also took 
advantage of national and local media interest and spoke about U.S. 
interests in the region and American democracy with the upcoming 
presidential inauguration.  END SUMMARY. 
 
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RECOGNIZING EFFORTS TO HELP U.S. VISITING FORCES 
--------------------------------------------- --- 
 
¶2. The Subic Bay Economic Zone and Freeport, a U.S. naval base for 
nearly 95 years until it reverted to Philippine authority in 1992, 
is now a commercial and tourism destination and maritime hub that 
hosts approximately 15 U.S. Navy ship visits per month. 
Coordination with Subic Bay Metropolitan Authority's Law Enforcement 
Department and the Philippine National Police office in Olongapo 
City is essential in providing for the safety and security of U.S. 
visiting forces and protection of U.S. Navy assets in port.  These 
offices have been very supportive and cooperative with NCIS efforts, 
helping to minimize and mitigate concerns with U.S. sailors and 
marines on liberty and in addressing general force protection 
requirements.  As a show of the USG's appreciation, the DCM 
presented certificates of appreciation to the Subic Law Enforcement 
Division Head, Subic Operations Chief, and Olongapo City Chief of 
Police. 
 
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SUBIC BAY GOOD FOR U.S. BUSINESS 
-------------------------------- 
 
¶3. The visit by the DCM and the Senior Commercial Officer to a 
U.S.-Philippine joint venture company founded in 1996 highlighted 
the positive economic environment Subic Bay offers U.S. businesses. 
The company is the largest heavy hauling, specialized transportation 
and heavy lift rigging company in the Philippines.  During the 
visit, a senior company executive stated that, unlike some 
international companies that try to cut corners, his company has 
never had a single problem with moving cargo through Philippine 
customs.  Additionally, he stated that the company has not yet seen 
a downturn in business due to the global economic slowdown. 
 
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LOCAL LEADERS ENCOURAGE EVEN MORE U.S. ENGAGEMENT 
--------------------------------------------- ---- 
 
¶4. The DCM and the Senior Commercial Officer spoke to Subic Bay 
Metropolitan Authority Chairman Feliciano Salonga, Administrator 
Armand C. Arreza, and Olongapo City Mayor James Gordon.  Salonga and 
Arreza acknowledged that some companies are delayed in securing 
credit financing because of global economic conditions, which has 
delayed progress on some projects.  At the same time, they noted a 
delay of at least six months in FedEx's regional hub relocation from 
Subic Bay to China due to new Chinese import restrictions (e.g., 
limiting FedEx to only packages greater than 4.4 pounds).  Salonga 
and Arreza, along with Mayor Gordon, welcomed more U.S. ship visits, 
including greater opportunities for sailors and marines while on 
liberty.  Mayor Gordon also encouraged more Peace Corps Volunteers 
to be assigned to the area. 
 
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VOLUNTEERING IS SAFE, WELCOME, AND APPRECIATED 
--------------------------------------------- - 
 
¶5. Local Peace Corps Volunteers described their community programs 
that assist disadvantaged Filipino children, youth, and their 
families - programs that have been very well received during their 
18 months in country.  Both feel secure and accepted in their 
communities and have made lasting connections in the Philippines. 
 
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PROTECTING THE ENVIRONMENT; IMPROVING LIVES 
------------------------------------------- 
 
¶6. The Philippine Tropical Forest Conservation Foundation was 
established through bilateral agreements under the U.S. Tropical 
Forest Conservation Act of 1998.  The DCM visited with members of 
the Kanawan Ayta indigenous community who are recipients of a 
Foundation grant to rehabilitate and conserve forests in their 
ancestral domain and to provide alternative livelihood options 
compatible with traditional lifestyle and cultural heritage. 
Additionally, a National Institutes of Health grant enabled 
 
MANILA 00002726  002 OF 002 
 
 
scientists from the University of the Philippines and Michigan State 
University to study medicinal plants used by indigenous herbalists. 
After years of work, the scientists identified a compound in a 
particular species of rattan, Calamus ornatus, that is an effective 
anti-inflammatory agent and acts to block the growth of tumors, 
which is useful in fighting certain types of cancer. 
 
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CAPITALIZING ON MEDIA INTEREST 
------------------------------ 
 
¶7. The DCM discussed the continuing U.S. commitment to Philippine 
economic and social development, the importance of the Peace Corps 
program, and the role of U.S. businesses as responsible economic 
partners at a round table with 17 members of print, television, and 
radio media during the trip.  The DCM also gave a radio interview to 
a Voice of America affiliate station.  During both interactions with 
the media, the DCM capitalized on interest in the democratic 
transition of the U.S. government to stress that the U.S. and the 
Philippines will continue to have close ties and excellent 
relations. 
 
 
KENNEY