VZCZCXRO1120
OO RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHPB
DE RUEHML #0332/01 0440825
ZNR UUUUU ZZH
O 130825Z FEB 09
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3222
INFO RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION IMMEDIATE
RHHMUNA/USPACOM HONOLULU HI//FPA// IMMEDIATE

UNCLAS SECTION 01 OF 02 MANILA 000332 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR EAP/PMBS, EAP/EP, EB/IFD, EAP/EP DARCY ANDERSON 
AMEMBASSY KUALA LUMPUR FOR PAM ZARESK 
 
E.O. 12958: N/A 
TAGS: ECON ETTC PARM PREL KSTC RP
SUBJECT: PHILIPPINE PROGRESS TOWARD INTEGRATED EXPORT CONTROLS 
 
¶1.  (SBU) Summary: While the Philippines is not a major producer of 
strategic items, its active terrorist organizations, incomplete 
laws, poor enforcement, and widespread corruption makes it a weak 
link in the global export control regime.  Post is working with 
Philippine counterparts to help them build a more effective export 
control system.  In the last two years we have provided training and 
expertise, installed radiation detection equipment in Manila ports, 
assessed the security and safety of biological laboratories, 
assisted in safeguards improvements, and lobbied for and provided 
information on improving the export control legal regime.  At our 
urging, the Philippines is currently drafting comprehensive export 
control legislation.  End summary. 
 
The need for comprehensive export controls 
------------------------------------------ 
 
¶2.  (SBU) The Philippines is not a major producer of items subject 
to export controls.  However, the southern Philippines is a breeding 
ground for terrorist activity, and has been designated a "terrorist 
safe haven" since the classification was created in 2006.  Because 
of links between domestic terrorists and international terrorist 
organizations including Jemaah Islamiyah and Al-Qaida, the 
Philippines is a weak link in global strategic trade management.  In 
many cases, the links between these groups have taken the form of 
assistance in procuring weapons and explosives.  The major factors 
that contribute to this situation include the numerous unpatrolled 
Philippine islands, a strategic location at the crossroads of global 
shipping routes, multiple domestic terrorist groups, endemic 
corruption, poorly trained staff in key agencies, lack of inspection 
and monitoring equipment, and absence of a comprehensive strategic 
trade control regime. 
 
¶3.  (SBU) The lack of strict implementation of existing laws poses 
additional proliferation threats.  For example, the semi-conductor 
industry, important to the Philippines, uses some chemicals for 
which safeguards are established under international agreements. 
However, the country has not effectively implemented those 
safeguards.  The Philippines has long had a thriving illegal market 
for small arms and other military equipment in the country.  At 
present, the Philippines does not have a national inventory of 
pathogens and biological agents available in their laboratories even 
though this is a requirement of agreements that the Philippines has 
signed.  Of particular concern are the lack of clear provisions on 
dual-use items and the lack of a national control list. 
 
International commitments 
-------------------------- 
 
¶4.  (SBU) The Philippines plays an active role in international and 
regional nonproliferation efforts, but could do much more if it had 
a unified export control regulatory regime.  It is a party to the 
Non-Proliferation Treaty, the Chemical Weapons Convention, the 
Biological Weapons Convention, and other such agreements.  It 
accepts International Atomic Energy Agency safeguards and the 
Additional Protocol.  The Philippines is part of the U.S. Megaports, 
Container Security, and Proliferation Security Initiatives.  It is 
also a party to the Southeast Asia Nuclear Weapon-Free Zone Treaty. 
Our Export Control and Related Border Security (EXBS) program 
provides assistance in form of training and equipment donations to 
help the Philippines become more involved in regional and 
international arrangements and to better meet their international 
commitments. 
 
 
U.S. and GRP Collaboration 
-------------------------- 
 
¶5.  (SBU) In order to assist the Philippines to develop and 
strengthen its strategic trade controls, the Export Control and 
Related Border Security (EXBS) program has delivered several 
training programs and donated equipment to Philippine agencies since 
¶2007.  EXBS has conducted five workshops that trained a total of 
some 200 participants in the areas of proliferation awareness, 
commodity identification, national control lists, cargo examination, 
and other related issues.  EXBS has sponsored eighteen Philippine 
government officials on travel abroad for  export control training 
and conferences.  Econ officers have collaborated with the 
Philippine Office of the Special Envoy on Transnational Crime, under 
the Office of the President to tailor this training to the specific 
needs of the Philippines. 
 
¶6.  (SBU) Between 2006 and 2008, the U.S. nuclear non-proliferation 
program "Megaports Initiative" installed radiation detection 
equipment and communication systems in two Manila ports.  This 
equipment detects the presence of nuclear and other radioactive 
materials in containerized cargo to help counter the threat of 
terrorists shipping nuclear materials to the United States.  Post 
 
MANILA 00000332  002 OF 002 
 
 
has also encouraged the Philippines to endorse the Global Initiative 
to Combat Nuclear Terrorism, an issue which is still under study 
here. 
 
Philippines prepares to draft new legislation 
--------------------------------------------- 
 
¶7.  (SBU) In recent years, the Office of the Special Envoy on 
Transnational Crime has become a leading force for comprehensive 
strategic trade law in the Philippines.  As an initial step, the 
Special Envoy has formed a technical working group composed of 
representatives from the Departments of Trade, Environment and 
Natural Resources, Science and Technology, Defense, and the Bureau 
of Customs.  The working group has compiled existing laws, 
regulations and documents related to strategic trade management to 
serve as a reference in drafting a comprehensive strategic trade law 
for the Philippines.  It has met several times in the last two 
months to discuss draft legislation.  In late January 2009, EXBS 
conducted a Legal and Regulatory Workshop in Manila on Strategic 
Trade Controls.  In the course of three days, the U.S. team trained 
thirty-two participants from various government agencies and 
provided advice on drafting the needed legislation.  The overarching 
message of the workshop was that passage of comprehensive export 
control legislation was an important step toward resolving current 
inadequacies. 
 
¶8.  (SBU) Post plans follow-up training on implementing rules and 
regulations for export control legislation, and later this year will 
sponsor ten Philippine officials to travel to the U.S. to learn 
about our export control system and to liaise with U.S. legislative 
experts. 
 
KENNEY