Tuesday, April 24, 2012

Chinese tabloid urges war with Philippines





THE ruling Communist Party's nationalistic tabloid newspaper The Global Times has suggested that China take on The Philippines in a "small-scale war" over a disputed island in the South China Sea, underscoring the growing tension in the region.
The two countries have been engaged in a two-week standoff at Scarborough Shoal, which China calls Huangyan Island, as political tension between the two nations continues to escalate.

Cyber War: Philippines Palace intruded by China’s hackers- Failed


Presidential spokesperson Edwin Lacierda
Chinese hackers were at it again, and this time they attacked the presidential websites.
Presidential spokesperson Edwin Lacierda on Monday (April 23, 2012) said that at 4 p.m. +8 GMT on Sunday, the Presidential Communications Development and Strategic Planning Office (PCDSPO) "noticed a significant spike in traffic with malicious URL requests from forged user-agents being channeled to the Official Gazette website (www.gov.ph ), PCDSPO (www.pcdspo.gov.ph ) and to the Presidential Museum and Library website (www.malacanang.gov.ph )."
Lacierda said the spike in traffic from these "forged user-agents'' caused the Palace websites' servers to "momentarily lag.''
"We determined that this was a denial-of-service attack," Lacierda said. "Information gathered through our data analysis indicated that the attack originated from IP addresses assigned to Chinese networks.''
A denial-of-service attack (DoS attack) or distributed denial-of-service attack (DDoS attack) is an attempt to make a computer or network resource unavailable to its intended users. Although the means to carry out, motives for, and targets of a DoS attack may vary, it generally consists of the concerted efforts of a person, or multiple people to prevent an Internet site or service from functioning efficiently or at all, temporarily or indefinitely.
Chinese perpetrators of DoS attacks typically target sites or services hosted on high-profile web servers of the country as revenge after Filipino hackers defaced several china's websites.
One common method of attack involves saturating the target machine with external communications requests, such that it cannot respond to legitimate traffic, or responds so slowly as to be rendered effectively unavailable. Such attacks usually lead to a server overload. In general terms, DoS attacks are implemented by either forcing the targeted computer(s) to reset, or consuming its resources so that it can no longer provide its intended service or obstructing the communication media between the intended users and the victim so that they can no longer communicate adequately.
Lacierda said the PCDSPO would maintain its websites, but added that "we can expect temporary disruption of service while the attack is [going on].''
Last week, groups claiming that Panatag (Scarborough) Shoal belonged to China hacked the website of the University of the Philippines.
Filipino hackers hit back, attacking several Chinese websites and stating that the shoal belonged to the Philippines.
The Philippines and China remain deadlocked at Panatag Shoal, with their maritime vessels refusing to budge in a standoff now on its 14th day.

Monday, April 23, 2012

WikiLeaks cable: China can't prove Spratlys claim



Posted at 04/20/2012 10:07 PM | Updated as of 04/20/2012 10:07 PM
According to a map, published by the Qing Dynasty in 1894, Chinese
 territory ended at the Hainan Island.
MANILA, Philippines - Chinese authorities have failed to identify specific historical evidence backing Beijing's claims that it owns disputed islands in the West Philippine Sea, a confidential US embassy cable published by anti-secrecy group WikiLeaks said.
Cable 08BEIJING3499, sent to Washington by the US embassy in Beijing in September 9, 2008, said a Chinese Ministry of Foreign Affairs (MFA) official and a local scholar could not identify specific historical records to justify China's "Nine Dashes" claim that covers the whole Spratlys and areas within other countries' exclusive economic zones (EEZs).
MFA Department of Treaty and Law Oceans and Law of the Sea Division Deputy Director Yin Wenqiang told a US embassy political officer on August 30, 2008 that "China has indisputable sovereignty over the islands in the South China Sea and the adjacent waters."
However, the US official said "Yin admitted he is not aware of the historical basis for the 'Nine Dashes'" and only mentioned unspecified "Chinese historical documents" that indicate the basis for China's claims on territory west of the Philippines, according to the cable.
The US official also talked to Beijing University Asia scholar Yang Baoyun about China's claims.
Yang said China's claims "date back to ancient times, prior to the development of the modern nation-state."
"Neither MFA's Yin nor Beijing University's Yang could specify a historical document that indicated the basis for the demarcation of the 'Nine Dashes'," the cable added.
Yang referred to a 2000 MFA "white paper" on the Spratlys. "However, the white paper devotes little attention to the history of the "Nine Dashes," providing, for example, only vague references to areas frequented by Chinese fisherman from Hainan," the memo said.
China skirts UN pact
Although China is a signatory to the 1982 UN Convention on Law of the Sea (UNCLOS), it will not attempt to verify its claims before the mechanism, said the MFA official as quoted by the US memo.
"China will not refer its SCS [South China Sea] claim to dispute settlement procedures established in UNCLOS,  because, Yin said, 'it is not in China's tradition' to submit  to such compulsory or binding decision mechanisms," the cable said.
"When queried as to why China acceded to UNCLOS, Yin commented that China became a signatory nation because neighboring countries in the SCS joined, and China believes its SCS claim is not threatened by UNCLOS," it added.
While China declared a 12-nautical-mile baseline around the Paracel Islands and along its mainland coast in 1996,  Yin said his government China has no plans to declare a baseline around any of the Spratly Islands, the memo revealed.
The Chinese official said his country's claim "came much earlier than UNCLOS"  and "UNCLOS cannot clarify everything." 

Sunday, April 22, 2012

Big Manufacturers quitting China for Philippines – PHL rating ups


Philippine officials say rising labor costs in China's southern coast are driving big foreign manufacturers to relocate to the country.
Trade Secretary Gregory Domingo said Tuesday there has also been "very strong" interest from Japanese investors who are looking for tracts of land in Philippine export processing zones. They include electronics, ship building and steel companies.
He said investors relocating to the country include foreign garments factories closing in China. A big company which left the Philippines has decided to return, while another one is seriously considering coming back, he said.
Domingo told a government economic briefing that so far this year the country is seeing "the most we've ever seen" of investor fact finding missions.
China, which after economic liberalization in the 1980s became the world's low-cost factory, is now grappling with rising wages and production costs that have made it less attractive to some foreign manufacturers.
The Philippine officials did not have estimates of the value of the incoming investment or the jobs that would be created. Domingo refused to name the companies that are relocating to the Philippines.
Foreign direct investment in the Philippines totaled 87.3 billion pesos ($2.04 billion) in the first nine months of last year, up slightly from 79.4 billion pesos ($1.85 billion) a year earlier.
The Philippine economy is forecast to grow 5 percent to 6 percent this year, driven by increased spending on infrastructure and more efficient budget spending, Socio-economic Planning Secretary Cayetano Paderanga said.
Domingo thinks economic growth could exceed 7 percent this year with the stock market achieving a new record high Monday, and strong growth in exports, the outsourcing industry, tourism and investments.
Officials also said the Philippines is estimated to hit its demographic "sweet spot" by 2015, when majority of Filipinos will be of working age, a situation which usually fuels growth.
Philippines seen getting credit-rating upgrade from S&P
Philippines stands a good chance of getting a credit rating upgrade in the short term from Standard & Poor's, which expects the country's debt profile to further improve as the economy grows and revenue collection rises.
In its latest outlook report for Asia-Pacific, S&P cited the Philippine government's focus on shoring up revenue collection and plans to help pump-prime the economy by enticing private firms to invest in infrastructure projects.
Currently, S&P assigns the Philippines a credit rating of BB and an outlook of "positive." This is two notches below investment grade, while the outlook indicates probability of a credit-rating upgrade within the short term if expectations of better indicators materialize.
"The positive outlook is based on our expectation that continued adherence to fiscal consolidation, combined with improved medium-term growth prospects, will further moderate the Philippines' public debt and interest burden," S&P said in the report titled "Asia-Pacific Sovereigns: Mixed Outlook in an Uncertain Year."
The ratio of the Philippines' public sector debt to the country's gross domestic product stands at about 55 percent. The ratio has declined from more than 70 percent in the early 2000s.
The country's economic managers are hoping to bring the ratio down closer to 50 percent or even lower to get a credit-rating upgrade. Such an objective requires making economic growth consistently exceed the rise in the country's debts.
The officials are hoping the Philippines will get investment-grade rating by 2013, claiming that macroeconomic indicators of the country are improving and are just about the same as those of other developing countries that are already enjoying investment grade.
Indonesia, which the Philippines would like to consider as its counterpart, recently obtained an investment grade rating.
"The rating [of the Philippines] could be raised on material progress in achieving a sustainable structural revenue improvement or further strengthening of the public balance sheet, thus reducing fiscal vulnerability,"S&P said.
The credit-rating firm said its baseline projection was that the Philippines would be able to post better fiscal numbers over the short term.
However, it stressed that should actual developments on the fiscal front veer away from the baseline projection, the country may see its current rating being kept, if not downgraded.
S&P said the Philippines would likely grow by 4.2 percent this year on the back of government commitments to raise public spending and likelihood of rising investments by the private sector in public infrastructure under the Public-Private Partnership (PPP) program.
Under the PPP program, the government invites private enterprises to invest in public infrastructure projects. The objective of the program is to fulfill the country's needs for infrastructure without derailing the government's goal of reducing its budget deficit and debts.


Philippines tycoon & other 7 - Top 116th richest men in the World 2012


Six business tycoons from the Philippines led by SM group patriarch Henry Sy made it to Forbes Magazine's 2012 list of richest people on the planet.
For the Philippines top $US Dollar Billionaires includes:
  • Henry Sy
  • Lucio Tan,
  • Andrew Tan,
  • Enrique Razon Jr.
  • Eduardo Cojuangco Jr.
  • Roberto Ongpin




Top 10 World's Richest People
  1. Carlos Slim Helu & family $69 B (72) - Telecom - Mexico
  2. Bill Gates $61 B (56) - Microsoft -  United States
  3. Warren Buffett $44 B (81) - Berkshire Hathaway - United States
  4. Bernard Arnault $41 B (63) - LVMH - France
  5. Amancio Ortega $37.5 B (75) - Zara - Spain
  6. Larry Ellison $36 B (67) Oracle - United States
  7. Eike Batista $30 B (55) mining, oil - Brazil
  8. Stefan Persson $26 B (64)         H&M - Sweden
  9. Li Ka-shing $25.5 B (83) diversified - Hong Kong
  10. Karl Albrecht $25.4 B (92) Aldi - Germany
In the Philippines, it was the first time for Cojuangco and Ongpin to join the roster of the world's billionaires (in US dollar terms).
Forbes published on March 7 its latest gallery of the world's richest people, an all-time high 1,226 billionaires, who were worth a record $4.6 trillion. When the magazine started this tradition of counting billionaires around the world 25 years ago there were only 140 names.
At the top of Forbes' global list is Mexican Carlos Slim, 72, who has an estimated net worth of $69 billion. Microsoft founder Bill Gates, 56, is second and investment guru Warren Buffet, 81, chair of Berkshire Hathaway, third.
Sy and family ranked 116th richest in the world, cementing his title as the wealthiest man in the Philippines. Forbes estimated his net worth at $8 billion.
Banking, retailing
The 87-year-old Sy leads SM Investments, the dominant player in Philippine banking, retailing and shopping mall development. It is also a fast-growing player in residential and tourism-oriented property development. Sy's group has recently added mining to its portfolio.
Lucio Tan and family ranked 314th on the list with an estimated net worth of $3.5 billion. Lucio Tan, 77, has interests in tobacco and liquor manufacturing, airline, property and banking. He has vast property interests in mainland China and is likewise a big investor in Guam.
Property tycoon Andrew Tan ranked 601st on the global list with a net worth of $2.1 billion. Andrew Tan, 59, built a fortune on real estate development, particularly in offering high-rise residential units to the mass market and in pioneering mixed-use developments to attract business process outsourcing firms.
He has also successfully ventured into the gaming business in partnership with the Genting group of Malaysia. He likewise has consumer-based interests, including a beverage unit and the Philippine chain of McDonald's fast-food stores.
Port operations
Razon, 52, is the fourth and the youngest tycoon from the Philippines with an international rank of 683rd. Forbes estimated his net worth at $1.9 billion. He has built a fortune on international port operations.
Razon has unloaded his interest in the country's electricity transmission superhighway and is now building a casino-hotel complex in Pagcor City. He also has an interest in oil exploration.
Cojuangco, 76, is the fifth Philippine tycoon on the list with a global rank of 960th. The 76-year-old chair of San Miguel Corp. (SMC) has an estimated net worth of $1.3 billion.
Cojuangco has a 15-percent stake in San Miguel which has diversified from its traditional food and beverage businesses into power generation, power distribution (via a minority but significant stake in Manila Electric Co.), oil refining, mining, toll road, airport, banking and telecommunications.
Ongpin's Ashmore
Ongpin, 75, is ranked 1,153rd on the list with an estimated net worth of $1 billion. Ongpin brought in London-based Ashmore as a partner in Philippine investments in recent years. Apart from his interest in San Miguel and Petron Corp., Ongpin is into real estate, mining and recently into banking.
Compared to last year, Sy, Lucio and Andrew Tan and Razon significantly increased their wealth.
Sy was worth $5.8 billion in 2011 while Lucio Tan, Andrew Tan and Razon were worth $2.3 billion, $2.2 billion and $1.1 billion, respectively. With the local stock market outperforming most bourses in the region, the market capitalization of their respective companies has surged.
Counting malls
"The Philippines' richest man, Henry Sy started out in his father's bodega (warehouse) and then opened a shoe store. He now controls the Philippines' largest mall developer, with 42 locations; has five in China, including one that opened last year. Shares in SM Investments, which makes up bulk of his fortune, popped 50 percent in the past year. BDO Unibank, run by daughter Teresita Sy-Coson, is the country's largest bank," Forbes said.
BDO is worth over P1 trillion, the first local bank to breach this mark in asset base. The Sys also own another big bank, China Bank, which is run by the tycoon's sons. The retailing group, operating through a chain of SM Department stores, hypermarts, supermarkets and SaveMore, had a turnover of P148.2 billion in 2011.
Tobacco king
Forbes described Lucio Tan as a "tobacco king" holding over a third in Philip Morris-Fortune Tobacco, a joint venture between his privately held Fortune Tobacco and Philip Morris. The combined entity has an estimated 80-percent share of the Philippine cigarette market. Tan's Asia Brewery is the country's second largest beer maker, according to Forbes.
"A big chunk of fortune comes from Hong Kong-based Eton Properties," the magazine said.
"He got his start as a chemical engineer and mopped floors to pay for school. Tan enjoys flying helicopters," Forbes said.
The publication noted reports that Lucio Tan was in talks to bring in San Miguel to help refurbish the aging fleet of Philippine Airlines. It also noted that three of Tan's companies, Eton Properties, Tanduay Holdings and PAL Holdings, faced delisting by the Philippine Stock Exchange for failing to maintain a 10-percent public float.
Second casino
"Son of a factory worker, Andrew Tan did odd jobs to put himself through college. Saved money he earned as a kitchen appliance salesman to buy a distillery and made his first fortune in brandy. His holding company, Alliance Global, has interests in food and beverage, real estate and gaming. With partner Genting Malaysia, he plans to build a second casino in Pasay City this year," Forbes said.
Cojuangco was described by Forbes as a "former Marcos crony" who controls San Miguel, a food and beverage conglomerate best known for its beer. Forbes noted that San Miguel had spun off its brewery unit in 2007, diversifying into power, infrastructure and heavy industry.
"In 2010, he sold an option to a group of investors to buy him out for an undisclosed sum. The country's Supreme Court has ruled that his stake in San Miguel, which the Presidential Commission on Good Government had alleged he got because of his links with the former dictator, wasn't ill-gotten," Forbes said.
To unload 15%
The Inquirer reported in May 2010 that Cojuangco had made plans to unload his entire 15-percent equity in San Miguel in favor of trusted allies.
The option to buy his shares for P75 per share was given to a holding firm, Top Frontier Investment Holdings. The holding firm is 49-percent owned by San Miguel itself as represented by Cojuangco's trusted lieutenant and concurrent company president Ramon Ang. An investor group, which includes Ongpin, Iñigo Zobel and condiments king Joselito Campos, controls 51 percent.
Forbes noted that Ongpin, a former minister of trade during the Marcos regime, had investments in property, gaming, mining and telecommunications. (His interest in telecoms was recently sold to San Miguel and Ongpin instead took a controlling stake in Philippine Bank of Communications).
Ongpin heads Top Frontier, the entity with a controlling interest in San Miguel. "Last November he appeared before a Senate inquiry over a loan from a state-owned development bank, which he claims was above board. He's a certified public accountant and Harvard Business School graduate," Forbes said.
Aside from the interests mentioned by Forbes, Ongpin has an interest in media being the deputy chair of South China Morning Post in Hong Kong.

Australia urged Philippines, USA, India, ASEAN & allies to counter China’s 9 rocks claim in WPS


The Philippines must counter China's intrusive actions in the disputedSpratly islands and protect its territory, an Australian expert on political and security issues in Southeast Asia said.
Carlyle Thayer, emeritus professor at the University of New South Wales and the Australian Defense Force Academy, prodded the Aquino administration and even Vietnam to take steps in enhancing their "national sovereignty" over their exclusive economic zones.
In his paper, titled "Security Cooperation in the South China Sea: An Assessment of Recent Trends," Thayer, a Southeast Asia regional specialist, said Manila's weakness will only invite Beijing "to act more assertively."
He also prodded the Association of Southeast Asian Nations and the international community, whose ships transit through the South China Sea, to diplomatically confront China over its "aggressive assertiveness."
Thayer went to Manila last year where he spoke during the two-day conference on the South China Sea.
He raised concerns over China's behavior in the disputed territory through "its actions and deliberate encroachments into the islands legally owned by the Philippines under international laws and agreements, including theUnited Nations Convention on the Law of the Sea [UNCLOS]."
He noted of the wave of Beijing's intrusions into the Kalayaan Island Group (KIG) last year, including the harassments by Chinese patrol boats of Filipino vessels that were conducting seismic surveys in the Reed Bank near Palawan.
Illogical sovereignty claim of China
ANALYZING China's behavior, Thayer said its incursions into the country's territory and even in areas occupied by Vietnam is a way of demonstrating its legal jurisdiction over the South China Sea, which it had falsely claimed through the so-called 9 dash line, 9-dotted line or Ox tongue, whose map it submitted to the United Nations Commission on the Limits of the Continental Shelf in May 2009.
"China's claim is based on the nine rocks it occupies in the Spratly archipelago. In other words, China claims that the rocks are in fact islands in international law and thus attract a 200-nautical-mile EEZ," he said.
"This is a legal fiction. Islands must be able to sustain human habitation on their own and have an economic function. Rocks, which do not meet these criteria, cannot claim EEZ or continental shelf," he added, echoing the belief of marine specialists.
Beijing's 9-dash mark cut into the EEZ of the Philippines and even Vietnam that have been firmly established under UNCLOS.
Still, the oil explorations in the Reed Bank and other areas in the KIG and even in Hanoi's occupied territory were viewed by China as acts of "plundering of resources" and a challenge to its existence.
Soong Enlai, chairman of the board of the China National Offshore Oil Corp. (CNOOC), had said his country had been losing about 20 million tons of oil annually or about 40 percent of China's total offshore production owing to such activities in the South China Sea.
Thayer said that in March last year; Chinese Foreign Minister Yang Jiechi declared that Beijing's foreign policy would serve the country's economic development.
The pronouncement was immediately followed by a warning against any exploration in waters it claimed in the South China Sea, increased maritime patrols and the recruitment of additional 1,000 personnel for China's marine service that would bring its staff to 10,000.
SINCE the South China Sea is not only being used by Southeast Asian countries but also by other countries, including India, the United States and its big allies as a shipping route, these regional powers should assist the Philippines and Vietnam in countering China's aggressiveness, Thayer said.
"It is in the interest of the United States and its allies as well as India to assist both nations [Philippines and Vietnam] in capacity building in maritime security. At the same time, this coalition of like-minded states should back ASEAN in its efforts to secure an agreement on a code of conduct for the South China Sea," Thayer said.
He added that the ASEAN could draw up a "Treaty on Conduct in the South China Sea," which after its ratifications should open it to accession by nonmember-states.
Thayer, however, doubted whether such could work among the members of the ASEAN since there are "nervous nellies" among its members.
Thayer revealed an alarming analysis over China's actions in the Reed Bank when it harassed Filipino vessels that are doing seismic surveys.
"Chinese actions in the Reed Bank area are designed to expose ambiguities in the US-Philippine Mutual Security [Defense] Treaty over whether or not the Kalayaan Island Group is covered by this treaty," he said.

Philippines will start the port and Airstrip development in Spratlys


The Philippines has finally determined its destiny to develop its territory to make it more accessible and open to all Filipinos who want to visit and see or tour to the controversial disputed Spratlys archipelago.
The Philippines must be thankful of China' Challenges to the country otherwise the country would be remain behind from all neighboring countries in Asia.
The act of aggressive invasion of China towards Philippines territory wakes up the Filipinos that the time has come to defend and time has come to have a good posture that the Philippines is an independent country and capable to defend its territory.
Finally, the Philippines have decided to develop the Kalayaan Municipality which worried china as they have already invested in their invasion to the undeveloped Philippines territory in Palawan province.
Last year 2011, china tried to delete the old history of the Spratlys archipelago by buying all antique maps around the world that could have a different name of the Spratlys and replaced it with a name Nansha to support the china's claim base on their self coined history for Spratlys.
Any map that would be different from what china proclaimed as the old spratlys were burned but still the UNCLOS is the strongest strength of the scared neighbor to stand and face the china's challenges.
China has expressed concern over the Philippines' plan to build a beaching ramp in the Kalayaan island group in the West Philippine Sea.
The Ministry of Foreign Affairs of China warned on Thursday against any move by claimants that may complicate the dispute.
"China claimed that it has indisputable sovereignty over the Nansha Islands or the Spratly islands and their adjacent waters. China opposes any country's illegal activities that infringe upon China's sovereignty over the Nansha Islands," said Foreign Ministry spokesperson Hong Lei in a press conference in Beijing.
The china's claim for indisputable sovereignty in the spratlys is the same as claiming having indisputable sovereignty over the Philippines as the Spratlys is in the Philippine Territory.
Beijing for the national pride of china strengthen is stance in claiming the islands and waters of the Philippines territory after they submitted to the United Nations the 9 dotted lines claiming most part of the Spratlys including the Philippines territory in 2009.
Beijing China has no way to back out as it could be a big shame to the world if they will back out its claim of the Philippines territory. Even though their claim is not according to the international law of seas (UNCLOS) and considered as illegal expansion by the international communities but still Beijing insist as they are now the world super power to admit defeat against small country like the Philippines.
The Philippines municipal government of Kalayaan, in coordination with the Philippine Ports Authority (PPA), will construct within the year a beaching ramp on Pag-asa, the largest of the Kalayaan group, which has been occupied by Filipino troops for decades. Apart from the troops, there are about 70 Filipino families living in Kalayaan, which is a municipality of Palawan.
Hong said Beijing is opposed to the Philippines' plan to build a simple wharf on Pag-asa, which China calls Zhongye and considers part of the Nansha Islands or the Spratly islands.
"Relevant countries should abide by the spirit of the Declaration on the Conduct of Parties in the West Philippines Sea (South China Sea) and avoid taking any move that may complicate the dispute so as to jointly maintain peace and stability in the South China Sea," he said.
Though Beijing is calling the ASEAN nations to abide the Declaration of Conduct (DOC) China itself keep violation it by harassing Filipino Fishermen in the Philippines waters and sending their warship in the area.
Mayor Eugenio Bito-onon of the municipality of Kalayaan in Palawan, which has jurisdiction over Pag-asa and other islets in the Spratlys, said the PPA would construct a beach ramp with the help of the Philippine Navy.
Bito-onon, who was visiting Manila last 3rd week of March 2012 for a series of coordinating conferences with concerned government agencies for the development of the island town, said the construction of the beaching ramp has been long delayed.
He said the island municipality needs the beaching ramp for easier delivery of supplies for local residents.
Once the ramp becomes operational, Bito-onon said this would further enhance the development of the area as roll-off/roll-on (RORO) vessels could be used to deliver and unload their cargo to the island municipality.
In the absence of a beaching ramp in Pag-asa, cargo delivered by boat from mainland Palawan are hauled ashore by smaller boats.
He said construction of the beaching ramp and the repair of the 1.3-kilometer airstrip are part of ongoing efforts to develop existing facilities in the Municipality of Kalayaan, Province of Palawan.
Classified as a 6th class municipality of Palawan, Kalayaan has a regulated population of 67 families, mostly fishermen, aside from the soldiers who are deployed in the area.
At present, the island has a water-filtering plant, power generators, weather station and a private telecommunication tower of Smart Telecommunications.
Aside from the Filipino military contingent, other claimant countries except Brunei has deployed forward troops in their occupied islets and atolls in the archipelago to bolster their respective territorial claims in the region.

US appache Helicopter now in Chinese Hands











Officials: US pledges $144M for Philippine defense



MANILA, Philippines—Washington has pledged to provide $144 million in addition to a warship this year to help bolster the Philippines’ territorial defense, officials said.

The Philippines has turned to the United States, a defense-treaty ally, and other Western countries to acquire warships, fighter jets and radar to strengthen its security amid a long-simmering territorial dispute with China and other countries in the West Philippine Sea (South China Sea).

The US has already provided one warship and approved the delivery of a second one this year.

Foreign Secretary Albert del Rosario confirmed the assistance late Wednesday and said he and other officials would visit Washington on April 30 to seek additional aid and discuss joint military exerci
ses.

USA Russia - Australia - Japan - Indonesia -- Supports Philippines for Spratly Disputes



USA Russia Australia Japan Indonesia -Supports Philippines for Spratly Disputes


In a historic bilateral meeting held in Moscow on Tuesday, Foreign Affairs Secretary Albert del Rosario and Russian Foreign Minister Sergey Lavrov agreed to further improve relations between the two countries, particularly in matters of political security, the fight against terrorism and transnational crime, trade, investment and tourism, migration, energy and culture.

According to the Department of Foreign Affairs (DFA), Del Rosario and Lavrov have "agreed to craft a joint plan of action that will chart their future relations in the next five years."

The Moscow visit, the DFA said, was a first by a Philippine foreign secretary in seven years and capped the yearlong celebration of 35 years of Philippine-Russian relations.

Del Rosario and Lavrov also discussed the challenges posed by maritime security in the Asia-Pacific region. "They agreed that the threats in this area should be approached using a rules-based regime based on transparency and diplomacy," the DFA said. "They affirmed their commitment to ensure safety of navigation and other security issues in the region."

The Philippines considers Russia an important bilateral partner as it shares similar views in the United Nations, the East Asia Summit, the Association of Southeast Asian Nations Regional Forum, the Asia-Pacific Economic Cooperation, the Asia-Europe Meeting and other regional groupings.

"These similar aspirations are based on both countries' adherence to sovereignty, territorial integrity and the maintenance of peace and stability in the Asia-Pacific region," the foreign office added.

The bilateral meeting was preceded by a wreath-laying ceremony at Alexandrovsky Garden, and was followed by a working lunch.

The DFA said the visit is deemed timely as Russia prepares to host the Asia-Pacific Economic Cooperation (APEC) Leaders' Meeting on September 5 to 6 in Vladivostok

Russia will support the Philippines for the Spratly Disputes against China's force

March 13, 2012: Russia Pronounce its support to the Philippines over Spratly disputes with china and other claimants.  Philippines - Russia is supporting the Philippines' stand that rules based on transparency and diplomacy should be used to resolve maritime issues.

Russian Foreign Minister Sergey Lavrov aired his government's support during his bilateral meeting with Foreign Affairs Secretary Albert F. del Rosario in Moscow on March 13, the Department of Foreign Affairs (DFA) said on Thursday.

The 2 officials tackled regional and international issues, including maritime security in the Asia-Pacific region.

"They agreed that the threats faced in this area should be approached using a rules-based regime based on transparency and diplomacy.  They affirmed their commitment to ensure safety of navigation and other security issues in the Asia-Pacific region," the DFA said.

The Philippines earlier asked China to end the disputes in the West Philippine Sea or South China Sea by validating the 2 countries' territorial claims under the United Nations on the Law of the Sea (UNCLOS).

Chinese Ambassador Ma Keqing declined to make a commitment on the issue but said Beijing is not ignoring the UNCLOS as a way to resolve territorial disputes.

Del Rosario and Lavrov also discussed Syrian crisis and the Arab Spring phenomena in their bilateral talks, according to the DFA.

The DFA chief met with Russian businessmen, diplomats and leaders of the Filipino community during his visit to Moscow.

He encouraged Russian businessmen to invest in the Philippines in the energy, tourism, public-private partnership, and business process outsourcing sectors.


USA Supports the Philippines for the Spartly Disputes



June 14, 2011. The Unites States (US) on Tuesday threw its support to the Philippines amid the escalating tensions over the disputed Spratly Islands in the West Philippine Sea (South China Sea).

"I assure you, in all subjects, we, the United States are with the Philippines," US Ambassador Harry Thomas said in his speech during the grand launch of the National Renewable Energy Program in Makati.

"The Philippines and the United States are strategic treaty allies. We are partners. We will continue to consult and work with each other on all issues, including the South China Sea," he added.

Malacañang earlier expressed confidence that the US will side on the Philippines, citing Mutual Defense Treaty (MDT) in case the territorial dispute in the West Philippine Sea heightens.

China warned the US should not intervene in the issue, noting that the US is not a party to the dispute.

US press attaché Rebecca Thompson over the weekend said the US does not take sides on the issue on Spratlys when it escalates into a shooting war.

This statement dismayed several lawmakers prompting them to call for the abrogation of the MDT since it is not beneficial to the country.

"It only proves that the MDT is a mere piece of paper that doesn't bind the two countries at all," said Anakpawis party-list Representative Rafael Mariano.

The Philippines is among the six countries claiming all or in part the disputed oil rich area at the West Philippine Sea.

Australia expresses support for Philippines on Spratlys dispute



November 14th, 2011. President Benigno Aquino III on Saturday received Australia's support for the Philippines' move to declare the West Philippine Sea (South China Sea) as a zone of peace, freedom, friendship and cooperation.

Mr. Aquino met with Australian Prime Minister Julia Gillard on the sidelines of the Asia-Pacific Economic Cooperation (Apec) summit, according to presidential spokesperson Edwin Lacierda.

"(The) Australian prime minister just mentioned that 20 percent of their exports pass through the West Philippine Sea. Basically, that's it and the President spoke on the solution of the West Philippine Sea being a zone of peace, freedom, friendship and cooperation," Lacierda said in a news briefing.

Asked whether there was an expression of support, Lacierda said, "Yes, yes."

Foreign Undersecretary Laura del Rosario, who attended the bilateral meeting, said Gillard also lauded Mr. Aquino's efforts to promote transparency and accountability.

"The Australian prime minister congratulated or applauded the President on his governance initiatives, in all his steps that he has taken to make sure that, he called it technical corruption, is also being addressed and that resources are being freed to address our need," Del Rosario said.

Del Rosario said Gillard asked Mr. Aquino to visit Australia possibly in mid-2012.

Asked about the invitation, the President told reporters on Saturday, "We're working on it."

Gas deposits

Energy Secretary Jose Rene Almendras on Saturday also elaborated on the President's statement on Friday about the discovery of substantial gas deposits.

"We're talking about Recto Bank, which really is not in the Spratlys area," said Almendras, a member of the Philippine delegation to the Apec summit.

He told reporters that Forum Energy, the contract service provider in the area, had been conducting seismic testing in the area. "The exploration has been continuing," he said.

On Friday, Mr. Aquino said that the gas fields included disputed areas in the West Philippine Sea and that the deposits there "dwarfs" the Malampaya oil fields. The President said operations there would begin next year.

But Almendras clarified on Saturday that the Philippines' gas fields were outside the Spratlys.

He also said that Manila would honor its agreement with its fellow claimants over disputed territories.

Seismic evaluation

"In the terms of China, depending on what they claim to be their basis of their claims, some of these areas will be questioned but as far as the acknowledged contested area is concerned by all of the parties involved whether China agrees to it or not is really the Spratlys area," Almendras said.

The gas fields in the Recto Bank, Almendras said, showed "very good results on seismic evaluation and even previous wells that were dug as early as 1976 (and) are not in the Spratlys area."

The President, in his State of the Nation Address this year, made an unequivocal claim over Recto Bank, saying being in the area is like being on CM Recto Avenue in Manila.

China, however, is also claiming the bank as one of its territories. Aside from the Philippines and China, claimants over the Spratlys include Vietnam and Malaysia, Taiwan and Brunei.

During a session of the Apec CEO Summit on commodity security, Mr. Aquino told a panel that work in a gas-rich area would commence next year.

Almendras clarified the President's earlier statement that the area would be in northern Philippines. He said the area of Recto Bank lay just north of Palawan.

"This is not in the contested area," Almendras said.

He acknowledged that the area was "a new field," as Mr. Aquino said, because it has yet to go into the "development mode."

New gas fields

The President referred to the new gas fields during a session on commodity security of the Apec CEO Summit when asked what his government was doing to address cost of electricity in the country—one of the highest in the region.

"There are substantial gas deposits that we believe are already in the proven scale at this point in time that will dwarf the Malampaya oil fields. Some of them are in areas that are part of the contentious disputes as to sovereignty over the same."

He said his government was working on "steps to determine as to who actually owns them consistent with the United Nations Convention on the Law of the Sea."

"We are hoping that all the signatories to the United Nations convention will adhere to the stipulations of the convention," Mr. Aquino said.

He said this included the 370-kilometer (200-Nautical miles) exclusive economic zone, "which clearly shows that the areas in dispute are in our favor."

The President said the Philippines could go for arbitration to settle the matter "once and for all and to have these resources benefit not only our country but our neighbors in the region."

Philippines gets Japan support on Spratlys dispute



September 28th, 2011.  President Benigno Aquino III on Tuesday night secured Japanese Prime Minister Yoshihiko Noda's support for a peaceful resolution of the six-nation dispute over the potentially oil-rich Spratly islands.

The maritime issue in the South China Sea, which Manila calls the West Philippine Sea, ranked high in the agenda of the two leaders' meeting that sought to elevate their country's bilateral relations to a more meaningful "strategic partnership."

In a joint statement, Mr. Aquino and Noda "confirmed that the South China Sea is vital, as it connects the world and the Asia Pacific region, and that peace and stability therein is of common interest to the international community."

The President reiterated the Philippines' "commitment to the Declaration on the Conduct of Parties in the South China Sea and to the peaceful resolution of maritime disputes over the South China Sea."

He also emphasized the importance of "a rules-based regime for addressing and resolving disputes and promoting cooperation."

Following the meeting, the President and Noda "confirmed that freedom of navigation, unimpeded commerce, and compliance with established international law including the UNCLOS and the peaceful settlement of disputes serve the interests of the two countries and the whole region." UNCLOS refers to the UN Convention on the Law of the Sea.

"They shared the recognition that these same interests should also be advanced and protected in the South China Sea," according to the statement.

Though not a claimant to the Spratlys islands, Japan came into the picture, saying vessels that deliver oil it imports from the Middle East pass by that vital sea lane.

Japan promised to assist the Philippine Coast Guard so it could better patrol the country's vast coast line. It will dispatch patrol vessels of the Japan Coast Guard to train its Filipino counterparts. Both countries also agreed to "promote exchanges and cooperation between their defense authorities."

The Philippines and China, along with Brunei, Malaysia, Taiwan and Vietnam, have conflicting claims to the Spratlys. Tensions spiked this year after the Philippines and Vietnam said China had become increasingly aggressive in staking its claims to the area, believed to hold vast deposits of oil and gas.

Deal for Filipino nurses

Mr. Aquino and Noda tackled the 3-year-old Japan-Philippine Economic Partnership Agreement (JPEPA), specifically addressing claims Filipino health workers are not getting a fair treatment from Japanese employers.

The two leaders agreed "to continue consultations in order to further improve the current situation, including the smooth dispatch and acceptance of Filipino candidates for qualified nurses and certified workers.".

The President thanked Japan for agreeing to conduct Japanese language training before nurses are sent to Japan.  He also "emphasized the importance of increasing the passing rates of Filipino nurses in the Japanese National Examination for nurses."

"We agreed to sustain our active economic cooperation founded on the framework of the JPEPA," Mr. Aquino said after the meeting. "Our governments will be working closely for its effective implementation and for the success of its first general review this year, so that we can maximize its prospective benefits."

During his four-day Japan visit, the President travelled to the tsunami-hit Ishinomaki in the north and will meet with Emperor Akihito before returning home on.

Before the start of the bilateral meeting at his official residence, Noda expressed his sympathy for the battering the Philippines was getting from Typhoon "Pedring."

"We hope the threats would be minimized as soon as possible," Noda told the President.

Development aid

The two leaders witnessed an exchange of notes on a package of development assistance from Japan, specifically on disaster preparedness and mitigation projects.

Topping the list was a forest management project worth 9.22 billion yen (or P5.87 billion), which was part of the overall official development assistance by Japan to the Philippines.

Mr. Aquino said the project would "help preserve critical river basins" in four regions of the country.

The President "renewed his appreciation for Japan's continuous assistance for the climate change mitigation and adaptation measures" in the Philippines and promised the "steady implementation" of other projects made possible by Japan loans.

Earlier, the President offered a "win-win" opportunity for Japanese investors in the Philippines and received pledges of  potential fresh investments worth at least $1.1 billion, according to spokesperson Herminio Coloma.

Japan is already the Philippines' top trading partner, with bilateral trade reaching $14.4 billion last year, according to government data.

Culture of transparency

The President sat down with more than 30 Japanese businessmen at the Tokyo Kaikan Hotel, presenting investment opportunities in the Philippines. Mr. Aquino also engaged in a round-table discussion members of the Japan-Philippine Economic Coordinating Committee and the Philippine-Japan Economic Coordinating Committee.

Coloma said Toyota Motor Corp. alone would invest P3.6 billion, which would create some 5,000 jobs. He said the top car-maker was also looking to put up a $170-million "next generation" manufacturing plant in the Philippines.

Murato Manufacturing Co. Ltd., one of the world's top producers of digital components, was also planning to establish a factory for its cutting-edge "monolithic ceramic capacitor" in a 23-hectare property in Laguna by October next year.

Coloma said Marubeni Corp. would engage in at least four power projects: the expansion of the Pagbilao coal power plant by 2015, expansion of the Sual facility, a 600-megawatt coal power plant in Subic, and the Leyte-Mindanao interconnection project.

"This is a good time to invest in the Philippines because this culture of transparency we are cultivasting will lead to a win-win situation for all stakeholders involved," he told the Japan Chamber of Commerce and Industry during lunch at the Tokyo Kaikan Hotel.

Rule of law

A palpable change, Mr. Aquino said, was the streamlining of business applications, which was part of a larger effort to "eliminate the preponderance of under-the-table transactions with bloated commissions secretly pocketed by corrupt officials."

Mr. Aquino noted that efforts to review previous government contracts led the Department of Public and Works and Highways to save  P4.652 billion worth of supposedly "questionable projects."

Critics blamed his cautious approach to public spending to the country's 3.4-percent economic growth rate in the second quarter this year. A recent Senate budget hearing showed that the DPWH spent only P16 billion out of its P90-billion budget for infrastructure as of last month.

But in his meetings here, the President said it was better to have a problem with "underspending" than to worry about lost money due to corruption. "All our efforts are governed by an overarching principle: an end to corruption means an end to poverty," he said.

Indonesia supports PHL stand on Spratlys



14 DECEMBER 2011.  Indonesian government assured the Philippines that its proposal to segregate parts of the disputed West Philippine Sea will not be rejected by the Association of Southeast Asian Nations (ASEAN) amid alleged bullying by China.

The Philippines and Indonesia concluded on Wednesday the 5th Joint Commission for Bilateral Cooperation (JCBC) in Manila where they discussed extensively the scheduled drafting of the legally binding Code of Conduct that will govern claimant countries to the disputed parts of the West Philippine Sea.

The drafting of the Code of Conduct will be adopted in time for the 10th anniversary of the signing of the Declaration of Conduct of Parties in the South China Sea between members of the ASEAN and China.

Claimant countries to the Spratly islands include four ASEAN members—the Philippines, Malaysia, Vietnam and Brunei—as well as China and Taiwan. Other ASEAN countries include Indonesia, Thailand, Laos, Burma, Cambodia and Singapore.

Indonesian Foreign Minister Marty Natalegawa said the Philippines's proposal on the establishment of a Zone of Peace, Freedom and Cooperation in the West Philippine Sea is not rejected by the Asean.

"The overall aura during the ASEAN summit [is] how we will link the Philippine proposal in drafting the Code of Conduct in the South China Sea next year. We won't move out of the script from what has already been [agreed upon]," said Natalegawa, adding that the Philippines's proposal is supposed to be integrated in the Code.

He said ASEAN leaders are looking forward to adopting the Code next year in time for the 10th year anniversary of the signing of the landmark Declaration of Conduct of Parties in the South China Sea.

"Leaving things hanging and not addressed is [will continue to cause conflict] to the peace and stability in the region," said Natalegawa.

"ASEAN as a whole has a very strong interest to settle the dispute peacefully in accordance with maritime laws."

In a joint statement on Tuesday, Filipino and Indonesian diplomats agreed to conclude a plan of action covering the period 2013 to 2015 that will cover trade, security, defense and border cooperation as well as cultural issues.

The Philippines also offered to host the 6th Meeting of the Joint Working Group of Senior Officials next year to implement the existing Agreement on Trade, Investments, Handicraft and Shipping, as well as to review and update the Border Trade Agreement.

The two archipelagic countries also agreed to cooperate on marine and fisheries development as well as push for programs that protect the rights of their migrant workers, with the most numbers particularly in Hong Kong, Malaysia and Singapore. 

"There were discussions at the JCBC on developments on the evolving regional architecture in East Asia and the international financial situation," said the joint statement.


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