USA & Philippines prepare for combat drills in the Spratly Islands Province of Palawan - claimed by China

U.S. and Philippine marine forces are preparing for the annual Balikatan Exercises (Shoulder-to-Shoulder) to hold combat drills at an oil rig in the Spratly Islands, Province of  Palawan - West Philippines Sea (South China Sea) island which are claim by china to bolster the defense of such sensitive facilities in a bold move that may provoke protests from China, which claims waters in the surrounding areas or near the location of islands which under controlled by china.

Lt. Gen. Juancho Sabban, commander of the Philippine military's Western Command, said that the exercises will be held in March or April 2012 off western Palawan province and should not alarm China because these will be done within Philippine territorial waters.

The drills involve U.S. Marines training their Philippine counterparts in defending and retaking oil and gas rigs captured by security threats like terrorists, Sabban said, adding military organizers from both sides did not contemplate on China as an imaginary target when they planned the drills.

"We need this special training so we can defend our oil and gas platforms," Sabban said. "We're doing it in an actual oil rig. We have many of these oil rigs we need to protect."

The drills are part of an annual joint military exercises by the longtime defense allies called Balikatan, which aims to improve the capability of the two countries' forces to respond militarily to threats that include terrorists, pirates and smugglers or deal with natural disasters.

The Balikatan or "shoulder-to-shoulder" exercises have mostly been done around the main northern Luzon Island in past years but will be held in Palawan for nearly a month starting in mid-March. More than 500 U.S. soldiers and marines, along with their warships and aircraft, will take part in the exercises with about 1,000 Filipino military personnel, Sabban said.

Aside from the combat drills, the military participants will undertake school repairs and medical missions.

"It's an annual exercise and should not cause any concern to China," Sabban said.

Still, the Balikatan exercises may likely invite Chinese protests.

Palawan province lies near the Spratlys, a potentially oil- and gas-rich chain of islands, shoals, coral outcrops and sand bars being disputed by China and the Philippines, along with Taiwan, Vietnam, Malaysia and Brunei. The Spratlys have long been feared as Asia's next potential flashpoint for conflict.

China, which claims virtually all of the South China Sea on historical grounds, has routinely protested military exercises near the disputed territories. The Chinese Embassy in Manila did not immediately respond to an AP request for a comment.

Sabban said the upcoming oil rig drills will be held in Philippine waters northwest of Palawan near an area called Malampaya, site of the country's largest natural gas field.

It has been learned that China last year claimed new territory in or near the venue of the planned drills. The Recto Bank with 84.77 Nautical Miles from Mainland Palawan  and within the Philippine Waters was claimed by china.

China protested in July 2011 a publicly-announced plan by the Philippine government to explore for oil and gas in waters called "areas 3 and 4," the nearest point of which lies less than 50 miles (80 kilometers) from Palawan. The Philippines has dismissed China's claims, arguing the areas were well within the country's territorial waters and too far off mainland China, Energy Undersecretary Jose Layug Jr. has said.

The new areas being claimed by China are not part of the Spratlys because it is inside the Philippines 200 Nautical Miles Exclusive Economic Zone and at the Philippines Backyard.

The Philippines has appropriated more funds to protect Malampaya and outlying waters and secure foreign companies exploring for oil and gas, Budget Secretary Florencio Abad said. The Philippines received its Dividend from Malampaya Amounting to $1.1 Billion US Dollars which could be used to boost the needed Warfare upgrade to protect the areas of oil and gas exploration which was lately disrupted by china.

"What creates uncertainty is this looming threat coming from China," Abad said. "It hasn't really helped the cause of everybody who are active players in the region for China to be unpredictable and for countries not to be able to read the direction of Chinese government policy."

Beijing has been asserting its territorial claims more aggressively as its economic and diplomatic muscle has grown. In March 2011, two Chinese vessels tried to drive away a Philippine oil exploration ship from Reed Bank 84.77 Nautical Miles, another area west of Palawan.

Two Philippine air force planes were deployed, but the Chinese vessels had disappeared by the time they reached the submerged bank.

The Philippines did not mention if they are going to spend the $1.1 Billion US Dollars for Armaments upgrade but it was lately pronounced by Philippines President Benigno Aquino that they will upgrade and purchase a squadron F-16 Multirole jetfighter from the United States.

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Philippines 3rd most preferred market for global fund - positive outlook

The Bank of America-Merrill Lynch survey citing the Philippines as the third most preferred market for global fund managers reflects the positive outlook for the Philippine economy that is enhanced by the accountability, transparency and good governance espoused by the Aquino administration, a Palace official said Wednesday.

Presidential spokesperson Edwin Lacierda said the Aquino administration remains positive that the Philippine economy will continue to grow amid the economic situation in the US and Europe.

"I think when the survey was taken, it has taken into account all the factors -- external and internal. The external factors are the factors that are experienced globally while certainly they look into the internal factors," Lacierda said.

"They have seen the promise of good governance . . . Our efforts to anti-corruption will certainly lead to good governance and would lead to a situation where the Philippines has been perceived as an attractive area for investment," he said.

The Bank of America-Merrill Lynch survey said the Philippines comes after China and Indonesia in the list of most preferred markets in the world for global fund managers.

"This is borne of expectations that in the wake of four credit upgrades, the country will be further upgraded to investment grade later this year. The survey also cites investor confidence being boosted by the President's reform agenda," Lacierda said.

"The simple fact is justice, accountability, transparency, good governance, and the improvement of the economy to accomplish inclusive growth are an indivisible whole. An economy that is inclusive is one in which citizens are empowered to improve their lives and contribute to the well-being of the national community," he said.

The Philippines received upgrades last year from London-based Fitch Ratings, from BB to BB+ and the Moody's Investors Services in June 2011. Standard & Poor's upgraded the country from stable to positive in November of 2010.

Meanwhile, Malacañang Wednesday hailed the Senate Blue Ribbon committee for recommending plunder charges against former President Arroyo for alleged mismanagement of the Philippine Charity Sweepstakes Office (PCSO) funds.

Lacierda said the Office of the Ombudsman must now look into the fourth plunder complaint against Arroyo recommended by the Senate committee.

"The findings of the blue ribbon committee on the mismanagement and plunder of PCSO funds shows what happens when the misdeeds of the past are exposed to daylight. We commend Senator Teofisto Guingona III's graft-busting investigation. Congressional oversight is a crucial weapon in the fight to punish wrongdoing and hold erring officials to account," Lacierda said in a Palace news briefing.

"The ball is now in the court of the Ombudsman to file charges for plunder against the officials involved," he added.

Lacierda said the government is determined to rectify the wrongs of the past despite the obstacles set by Arroyo and her allies.

The Senate Blue Ribbon committee earlier claimed that Arroyo should be charged with plunder and technical malversation for the release of ₱325 million in PCSO intelligence funds in her last three years in office.

Three other plunder cases have been filed against Arroyo, currently under hospital arrest pending a trial for electoral sabotage charges. (With a report from Genalyn D. Kabiling)

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Philippines: Sen. McCain & Lieberman take PH side in West Philippine Sea dispute with China

Manila - The name John McCain is no stranger to the Philippines, It was here where as a young man the senator's father served as commander at the former US Naval base at Subic Bay. McCain first tasted freedom from years as prisoner of war touching down at Clark Field on the Island of Luzon.

With few exceptions; the American senator and his companions have probably one of the longest and strongest personal ties to the country. When McCain as well as Joe Liberman, as well as Sheldon Whitehouse from Rhode Island and Kelly Ayotte of New Hampshire met with Foreign Affairs Secretary Albert F. del Rosario; issues discussed included U.S. defense and development assistance to the Philippines.

McCain: Concern over intrusions into 'West Philippine Sea'

Senator McCain, who in his remarks referred to the "West Philippine Sea" and issues over Chinese Navy intrusions into the Philippine Province of Palawan's waters.

The DFA also briefed updated the delegation on US funded programs like "the Mindanao Peace Process, ASEAN, the ASEAN Regional Forum (ARF), Myanmar, climate change and the renewed engagement of the U.S. in the Asia Pacific. "

The Philippine Foreign Secretary expressed, "Appreciation for U.S. Senate Resolution 217, which was passed on 27 June 2011, which called for a peaceful and multilateral resolution to maritime territorial disputes in the disputed islets and reef just off shore of the Philippine Island of Palawan and over several hundred miles from China."

Del Rosario; also thanked the Senator for his position about the need to maintain freedom of navigation in the West Philippine Sea; and for stressing the need for U.S. support in defense of the Philippines as America's former commonwealth and oldest and closest ally in ASEAN.

Senator McCain, expressed "strong affinity" for the Philippines and noted the "long and friendly personal relationship" between the two countries, conveyed that the best way to avoid confrontation with China is to maintain freedom of navigation.

Secretary del Rosario also requested the U.S.' assistance on the Philippine Government's request for a third Weather High Endurance Cutter (WHEC), which would enable the Philippines to attain minimum credible defense posture and to enhance maritime domain awareness.

In response, Senator McCain committed that they "will try to get a waiver on the cutter" as he sees that it would be unreasonable not to give it" to the Philippines. He also said that they would do whatever they could to help the Philippines improve its maritime security." A media release on the event from the Philippine Department of Foreign Affairs said.

Lieberman: Philippine cooperation on counter-terror 2nd to none

As chair of the U.S. Senate Committee on Homeland Security, Senator Lieberman conveyed his gratitude for the Philippines' cooperation in counterterrorism and requested updates on the Mindanao Peace Process.

Foreign Affairs Undersecretary Rafael Seguis provided updates on the Government of the Philippines-Moro Islamic Liberation Front (GRP-MILF) Peace Process, and expressed optimism that a peace agreement will be signed between the two panels before the end of the Aquino administration.

The visit of Senator McCain and his delegation to the Philippines is part of their trip to Southeast Asia which includes Vietnam and Myanmar. The visit's purpose is to broaden and deepen the existing defense and security relations between the two countries.

The Quartet of US Senators met with Philippine President Benigno Aquino III later Tuesday night - Aquino who says he "Will continue to focus on the country's economic growth." earlier in the week he also welcomed Chinese investors into the country. Palace officials note both Taiwan and PRC investments are most welcome to Manila. But "Naval incursions are not" in side remarks to visiting US senators.

The Aquino Administration which says it is firm in "its commitment to good governance, it also would not waver in pursuing equitable economic growth, citing solid accomplishments such as creating an additional 2.1 million jobs last year, as well as having increased tourist arrivals by about a million additional visitors in 2011," Presidential Spokesman Edwin Lacierda said in a statement released to the media on Tuesday afternoon said.

"The great strides that have been made in curbing corruption, fighting poverty, and promoting good governance—the achievements of the past one and a half years—are only indicators of the changes that will continue to sweep the Philippines in the coming years," he added.

In the recent meeting of the President with the members of the US Congress, Lacierda said the American legislators expressed their confidence in the reform agenda of the Aquino administration.

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