Oct 202014
 

http://wikileaks.org/cable/2007/01/07MANILA212.html#

Reference ID Created Released Classification Origin
07MANILA212 2007-01-18 08:59 2011-08-30 01:44 CONFIDENTIAL Embassy Manila
VZCZCXRO1128
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #0212/01 0180859
ZNY CCCCC ZZH
O 180859Z JAN 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4780
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE
RUEHBJ/AMEMBASSY BEIJING IMMEDIATE 5960
RUEKJCS/SECDEF WASHDC IMMEDIATE
RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
C O N F I D E N T I A L SECTION 01 OF 02 MANILA 000212

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/18/2017
TAGS: PREL ECON CH RP
SUBJECT: VISIT OF CHINA PREMIER WEN JIABAO HIGHLIGHTS ENHANCED ENGAGEMENT

REF: A. MANILA 179

¶B. 06 MANILA 4972

Classified By: Pol/C Scott Bellard, reasons 1.4 (b) and (d)

¶1. (C) Summary. During a January 15-16 official visit to
Manila, Chinese Premier Wen Jiabao and his delegation signed
about 30 bilateral agreements with a value of over US$6
billion, focusing on agriculture, ethanol production,
development assistance, and on economic and technical
cooperation. Premier Wen met with President Arroyo, Senate
President Manuel Villar, and House Speaker Jose de Venecia
Jr., who praised him as “one of the world’s great leaders.”
According to Philippine Chief of Staff General Esperon, plans
for Philippine military cadets to study at China’s military
academies have now been finalized. Both sides describe
enhanced China-Philippine engagement as in a “golden age,”
with prospects for ever closer ties in the future. End
Summary.

———————–
Expanding Economic Ties
———————–

¶2. (SBU) Chinese Premier Wen Jiabao’s 19 hour official
visit to Manila followed his participation in the East Asia
Summit and related Association of Southeast Asian Nations
summits in Cebu January 14-15 (ref a). In a joint statement,
President Arroyo and Premier Wen “reaffirmed that
China-Philippine relations are at a golden age of
partnership.” Department of Foreign Affairs’ China and North
Asia Division Director Daniel Espiritu confirmed to poloff
that the two leaders presided over the signing of about 30
economic and technical agreements during the visit (a partial
list of agreements is in para 7). Eighteen new agri-business
agreements will bring US$4.9 billion in Chinese investments
in the Philippine agricultural sector. Additionally, China
extended US$1 billion of developmental assistance in the form
of preferential buyer’s credits targeting rural development
and the Northrail Project (ref b). Espiritu said that
Chinese and Philippine firms had signed an additional four
agreements on ethanol production. He predicted that the pace
of interaction will increase still further in 2007 and
beyond.

¶3. (U) Joining Premier Wen at Malacanang Palace were Vice
Minister of Finance and Commerce Liao Xiaoqi, Export-Import
Bank Governor Li Ruogu, and President of the China National
Technical Import and Export Corporation Jiang Xinaheng.

———————————-
“One of the World’s Great Leaders”
———————————-

¶4. (SBU) On January 16, Premier Wen met separately with
Senate President Manuel Villar and prominent members of the
Filipino-Chinese community, and also attended a luncheon
hosted by House Speaker Jose de Venecia Jr. During the
lunch, Speaker de Venecia presented Premier Wen with the
Congressional Medal of Achievement, the highest award
bestowed by the House of Representatives, and hailed him as
“not only one of the region’s great leaders, but one of the
world’s great leaders.” Speaker de Venecia also lauded the
agreements entered into by the Philippines and China during
the visit.

¶5. (C) Armed Forces of the Philippines Chief of Staff
General Hermogenes Esperon privately told Pol/C that the two
sides had now formalized an agreement for Philippine military
personnel to attend Chinese military academies. General
Esperon added that the Philippine cadets are unlikely to
begin these courses for at least 1-2 years, because they will
first need language training.

¶6. (C) Comment: Premier Wen’s visit is another example of
China’s successful “charm offensive” in the region. The
presence of Chinese investors and tourists is increasingly
noticeable in major cities around the country, although the
PRC has not yet formally opened its new Consulate in Laoag in
Northern Luzon. While some Philippine pundits agonize that
better relations with the PRC will necessarily come at the
cost of straining even more important ties with the U.S.,
more thoughtful observers welcome the greater engagement and
believe that China and the U.S. have complementary roles to
play in advancing goals of peace and prosperity in the
Philippines and the region. End Comment.

¶7. (U) Among the agreements signed during Premier Wen’s
visit are:

MANILA 00000212 002 OF 002

– a framework agreement, covering the next ten years, on
expanding and deepening bilateral economic and trade
cooperation;

– a memorandum of understanding establishing an Economic
Cooperation Working Group responsible for projects in
priority areas;

– a US$1.9 million agreement expanding and deepening
agriculture and fisheries cooperation;

– an agreement on economic and technical cooperation to
include a grant of US$1.9 million;

– a framework agreement for the provision of a concessional
loan to the Philippines for the Non-Intrusive Container
Inspection System Project;

– a memorandum of understanding for the provision of a US$500
million loan for the first phase of Northrail project;

– a US$500 million preferential buyer’s credit from the
Export Import Bank of China to finance rural development
programs in the Philippines;

– an engineering procurement and construction contract for
the rehabilitation and upgrading of the Philippine Mainline
South Railway Project Phase 1;

– an agreement on the protection of cultural heritage;

– a memorandum of understanding allowing the Chinese Fuhua
Group Ltd. to invest US$3.8 billion to develop one million
hectares for higher-yielding corn, rice and sorghum;

– agreements with the Beidahuang Group, a corporate state
farm of Heilongjiang province, providing for the agricultural
development of 200,000 hectares in Northern Luzon and a
US$120 million project for the construction of all-weather
greenhouses for the cultivation of flowers and off-season
produce for export to Japan, Hong Kong, and Taiwan; and,

– an agreement with the Jiangnan Wholesale Market that
permits the Philippines to sell fruits such as papaya,
bananas, pineapples and mangoes to China.

Visit Embassy Manila’s Classified website:
http://www.state.sgov.gov/p/eap/manila/index. cfm
KENNEY

   

 

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