Filipinos in South Korea

Thailand: China threats (ASEAN Countries) unacceptable

A frontal view of Brunei's new Prime Minister's Office, the venue for the 22nd ASEAN Summit, in Bandar Seri Begawan. (Photo: Reuters / Bazuki Muhammad)

Chinese officials began their meeting with Asean foreign ministers in Brunei this week by accusing their 10 neighbors of an anti-Beijing conspiracy over disputed South China Sea territory. China singled out the Philippines, calling Manila a provocateur and threatening war.

It was hardly a display of Chinese diplomacy at its best. Now, China has agreed to discuss a code of conduct with Asean, but Beijing clearly is going to take a hard line in the talks.

Brunei is playing host this week to a string of meetings of foreign ministers from Asean, and from the group's partners and neighbors. There is no denying the political and historical issues at work at the meeting.

China has conflicting claims over the China Sea with Japan, South Korea and four Asean members _ the Philippines, Malaysia, Vietnam and conference host Brunei. Reasonable people would agree such a meeting of senior diplomats would provide a golden opportunity for discussions seeking solutions to vexing problems.

China's startling threats, made through the top mouthpiece of the ruling Communist Party, are worrisome.

Starting a discussion with a threat of violence seems unhelpful to any solution, and Beijing knows full well that abject surrender by its six disputing fellow members of the world community is no option.

The People's Daily, however, sent a different message on the eve of the Brunei meetings. It began with an attack on the Philippines for asserting its claim over parts of the Spratly Islands. The Communist Party's official journal then moved on to an attack on Asean as an "accomplice" to the Philippines, saying the 10-member group was trying to gang up on China by sticking together. Finally, it threatened: "If the Philippines continues to provoke China ... a counterstrike will be hard to avoid.

On the face of it, China's accusations range from exaggerated to false. It is ludicrous for Beijing, after its decades of stunning diplomatic successes and acceptance in every Asean country to now claim there is a conspiracy against China, on this or any issue.

Only one explanation seems logical. It is that China, once again, is attempting to gin up xenophobic nationalism as a national issue. The old, cold-war attempt by China to claim it is being isolated by all its neighbours will certainly fool no one outside the country's borders.

Beijing refuses to accept that any other country can feel as strongly or as righteously over China Sea territory as China itself. The attempt to belittle and denigrate other countries is beneath China. Yet Beijing officials continue to do just that. Now they are including all Asean countries, including Thailand, in their attacks and threats. This is unacceptable.

Brunei was hoping to lead a discussion of the great and dangerous problem of the China Sea disputes. Certainly, neither the host nor other Asean members was preparing for a threat of violence from one of the other guests. And here is the fact Beijing should be addressing _ China, Vietnam and the Philippines have all resorted to violence among themselves in the Spratly Islands in recent years. It achieved nothing,

Thailand and its Asean partners should spend this week counselling and urging each other to remain calm, as well as China, South Korea and Japan. There is no scenario to justify war in the Spratlys or the East China Sea. China in particular should tone down the anger, approach the code-of-conduct talks with an open mind, and vow to solve problems peacefully.

Editorial from Bangkok Post

Philippines Central Bank: Liquidity widens 16.3% to ₱5.3Trillion in May 2013

Liquidity or money circulating in the financial system expanded by 16.3 percent to 5.3 trillion in May from 4.6 trillion, fueled largely by domestic lending activities by banks, Bangko Sentral ng Pilipinas reported Friday.

"This growth was faster relative to the 13.3-percent expansion recorded in the previous month," the central bank noted. Money supply reached $5.188 trillion in April from $4.6 trillion year-on-year.

"The continued expansion in domestic liquidity during the month indicates sufficient liquidity to sustain the economy's growth momentum," Bangko Sentral said.

Net domestic assets increased by 28.2 percent in May from 19.4 percent in April, largely on credits to the private sector that reflected the robust lending activity of commercial banks.

Claims on the public sector grew by 8.3 percent in May after rising by 12 percent in April, reflecting an increase in credits to the national government.

Net domestic assets refers to a country's commercial bank and central bank lending to private or government borrowers.

Net foreign assets, however, slowed down to 0.9 percent in May from 2.9 percent in April. Bangko Sentral's position on this account rose by 4.4 percent in the same comparable period, helped overseas Filipinos' remittances and business process outsourcing receipts.

According to Bangko Sentral, net foreign assets of banks declined with a corresponding increase in foreign liabilities that reflect deposits by foreign banks with other banks while their foreign assets continued to decrease as their loan receivables from and deposits with foreign banks declined.

Bangko Sentral said it is monitoring monetary conditions to ensure that liquidity levels support economic activity without stoking too much of inflation.  

Yahoo News / GMA News

Philippines Slams China's Threatening of War as "Uncivilized Provocative Language" instead of PEACE

New recruits of the Chinese Navy march with their guns during the parade marking the end of their first training session in Qingdao, Shandong province. Reuters/Stringer

PH slams China for retaliation threat

Philippines scored China's "provocative" threat of retaliation in the West Philippine Sea (South China Sea) on Saturday, urging Beijing to defer instead to peaceful means of resolving maritime disputes under the United Nations Convention on the Law of the Sea.

In a statement, the Department of Foreign Affairs reminded China of its obligation under international law to settle disputes without the use of threat or force.

"China has an obligation under international law, especially the UN Charter, to pursue a peaceful resolution of disputes, meaning without the use of force, the threat to use force such as this recent provocative statement of a counterstrike," said DFA spokesperson Raul Hernandez.

"There is no place in the relations of civilized nations to use such provocative language," he added.

Hernandez made the statement in response to the Chinese People's Daily's scathing commentary on the Philippines on Saturday, which warned of a "counterstrike" as it accused Manila of "seven sins" in the disputed West Philippine Sea, which is how the Philippine government calls part of the South China Sea that is within in exclusive economic zone.

Among other things, the paper, a mouthpiece of the Chinese Communist Party, accused the Philippines of "illegal occupation" of the Spratly Islands, part of which Manila contends to be within its exclusive economic zone.

The commentary also blasted the Philippines for advocating the "internationalization" of the waters, a critical international sea lane that has been under the close watch of Philippine allies, the United States in particular.

Navy trainees show their capability during a log-handling exercise in Sangley Point in Cavite City on Tuesday. Danny Pata - Manila Standard Today

China issued its criticism amid war games between the Philippines and the US Navy off the Panatag (Scarborough) Shoal, a territory in the West Philippine Sea that saw a tense standoff between Philippine and Chinese ships last year. At least three Chinese patrol vessels are known to still be in the area.

The commentary also came out as leaders of the Association of Southeast Asian Nations met in Brunei in hopes of drafting a legally binding Code of Conduct that is aimed at ensuring peace in the disputed waters.

Despite Beijing's sharp statements, the DFA called for sobriety and invoked peace in hopes of averting further escalation of tensions.

"We call on China to be a responsible member in the community of nations. The way towards a peaceful resolution of disputes is through the dispute resolution mechanism under the UN Charter, which is rules-based, transparent, binding and non-provocative," said Hernandez.

"A peaceful and rules-based resolution to the disputes in the West Philippine Sea is durable and beneficial to all and will ensure peace and stability in the region," he added.

The Philippines haled China to arbitral proceedings in the United Nations in January in a bid to peacefully settle the maritime dispute. The move has gained the support of the United States, the European Parliament and Japan, which also has a dispute  with China in the East China Sea.

Now pending before a five-member arbitral tribunal, the legal action seeks to prevent further Chinese incursions into established Philippine maritime boundaries in the West Philippine Sea and to invalidate Beijing's "excessive" nine-dash line claim encompassing almost all of the South China Sea.

China has rejected the proceedings, asserting "indisputable sovereignty" over the West Philippine Sea. It has been calling for a bilateral solution to its territorial disputes with the Philippines, Vietnam, Brunei, Malaysia, and Taiwan. The Philippines has meanwhile been pushing for a multilateral approach.

With report from Inquirer

After invading Panatag and Panganiban reef; China ask the Philippines to trust them for peace

Why Should Philippines trust China?

China asked the Philippines to have access for Panganiban reef as their fishermen's shelter in Palawan province during stormy days. Since China and the Philippines maintain mutual trusts, the Philippine government allowed them to fish in the Philippine waters and used the Panganiban reef (Mischief Reef) then later china ban the Philippines from entering Panganiban reef and converted the place into china's military garrison in Palawan. This incident triggered a question if the Philippines should continue trusting china or not.

The previous years, Philippines start banning Chinese fishermen after the incident in Palawan province where the guns of china in Panganiban reef are now aiming towards Palawan inside the Philippine territory. The mutual trusts of the Philippines to china ended into invasion.

Last year, the Philippine Coast Guard while continue patrolling the country's Exclusive Economic Zone, a group of Chinese ships found harvesting endangered marine species in Panatag Shoal (Scarborough Shoal) which Philippine Coast Guard supposed to board the illegal fishermen's ship but china government blocked the Philippine government ended into standoff.

Both the Philippines and China agreed to leave the shoal for peace but later then china returned back to Panatag Shoal and blocked the access of the Philippines in its territory then controlled the shoal shoooeing away Filipino fishermen.

China is so determined in invading and bullying the Philippines that even claimed that the Philippines is part of china as said in their Government Television.

With the series of incidents of china's aggression, should the Philippines maintained mutual trusts with china?

Push for peace, China tells Philippines

China on Thursday urged the Philippines to work for regional peace after Manila revived plans to build new air and naval bases at Subic Bay, a former U.S. naval base that American forces could use to counter China's creeping presence in the disputed South China Sea.

The bases would allow the Philippines to station warships and fighter jets just 124 nautical miles from Scarborough Shoal, a contentious area of the South China Sea now controlled by China after a tense standoff last year.

"China urges the Philippines and regional countries to meet one another halfway, make joint efforts to maintain mutual trust between countries, make positive efforts towards regional peace and security and play a constructive role," Foreign Ministry spokeswoman Hua Chunying told a regular news conference in Beijing.

The Philippine navy, whose resources and battle capabilities are no match for China's growing naval might, has yet to formally present its 10-billion-peso (230 million U.S. dollars) base development plan to President Benigno Aquino.

But senior officials say they believe it has a strong chance of winning approval as Aquino seeks to upgrade the country's decrepit forces.

There is no plan to allow the United States to rebuild its old bases, a sensitive issue in the Philippines where a nationalist backlash against the U.S. military helped lead to the 1992 closure of Subic and Clark Air Base.

New Philippine air and naval bases, however, would give visiting U.S. warships more security to launch operations in the South China Sea and elsewhere in Southeast Asia. A Visiting Forces Agreement, ratified by the Philippine Senate in 1999, allows U.S. forces full access to Philippine bases.

With report from ABS-CBN News 

United Nations Sea Tribunal picks new judge for Philippines-China Sea disputes after Sri-Lanka resigned

UN picks new judge for Philippines-China dispute

The International Tribunal on the Law of the Sea has named a judge from Ghana to replace the recently resigned Sri Lankan member of a United Nations five-man arbitral tribunal set up to hear the Philippines' complaint over China's territorial claims in the South China Sea, a Philippine official said Tuesday.

Raul Hernandez, spokesman for the Philippine Foreign Affairs Department, said Ghanaian judge Thomas Mensah has been named to replace Sri Lankan Judge Chris Pinto.

Pinto removed himself from the tribunal on May 6 to avoid potential accusations of conflict of interest because he is married to a Filipino woman.

The five members of the tribunal under the U.N. Convention on the Law of the Sea were appointed in April with Pinto serving as president.

Mensah will serve as president of the arbitral tribunal, which will determine whether it can acquire jurisdiction over the Philippine complaint and proceed to look into Manila's case.

The other four judges are Rudiger Wolfrum of Germany, Stanislaw Pawlak of Poland, Jean-Pierre Cot of France and Alfred Soons of the Netherlands.

"The five-member arbitral tribunal will now organize itself and establish its own rules and regulations," Hernandez said.

The Philippines filed its Notification and Statement of Claims against China last Jan. 22 in a bid to resolve the two countries' territorial disputes in the South China Sea.

China has rejected the Philippine move which Beijing sees as a "political provocation under the disguise of legal procedures."

At the ASEAN senior officials meeting in Bandar Seri Begawan, Brunei earlier this month, a diplomat said China had asked the Philippines to drop the case.

Manila has ignored Beijing's plea, saying compulsory arbitration is imperative to counter China's expansive "9-dash line" claim in the South China Sea.

Manila insisted that arbitration is "a peaceful and durable form of dispute settlement pursuant to international law."

"We have everything to gain in this legal exercise, we have nothing to lose," a Philippine diplomat told Kyodo News, adding the Philippines' filing of the arbitration case is consistent with its rules-based approach to the South China Sea dispute.

"Arbitration is not an unfriendly act but a peaceful way of resolving disputes," the diplomat said.

The islets, reefs, shoals and cays in the South China Sea and West Philippine Sea are claimed entirely by China, Taiwan and Vietnam, and in part by Brunei, Malaysia and the Philippines.

Source: Kyodo News / ABS-CBN News

$1.4 Billion USD (₱60 Billion PHP) LRT 1 Extension Push through in spite of China-Railway linked protest

Ecorail Transport Services Inc. - businessman Reghis Romero II tied up with China Railway Construction Corporation disqualified the bidding for late submission filed a case in the Supreme Court to stop the bidding.

DOTC to proceed with LRT 1 Ext bidding

The Department of Transportation and Communications (DOTC) is set to push through with the bidding of the proposed 60 billion project extending the Light Rail Transit line 1 (LRT 1) all the way to Bacoor in Cavite from Baclaran in Pasay City despite a law suit filed by a disqualified bidder.

DOTC Undersecretary Jose Perpetuo Lotilla said in a text message that the agency would pursue the largest infrastructure project under the Aquino administration despite the case filed by Ecorail Transport Services Inc. of businessman Reghis Romero II before the Supreme Court seeking to stop the bidding process.

"The DOTC stands by its decision to bid out the project and believes that there is no legal basis for the suit," Lotilla stressed.

Ecorail, which was disqualified by the DOTC during the pre-qualification process, filed a petition for certiorari, prohibition, and mandamus, with application for the issuance of a temporary restraining order (TRO) and writ of preliminary injunction against the DOTC and the Light Rail Transit Authority (LRTA) before the High Tribunal to stop the bidding process.

Ecorail specifically named Rene Limcaoco, who is the DOTC undersecretary for planning and vice-chairman of the Special Bids and Awards Committee, as a respondent in the suit.

In a five-page urgent motion for the issuance of a TRO, Ecorail asked the Supreme Court to enjoin the DOTC and LRTA from proceeding with the bidding process of the LRT Line 1 South Extension Project.

Ecorail has tied up with China Railway Construction Corp. in submitting a proposal to the DOTC to undertake the entire 60 billion project, including the 30 billion acquisition of trains as well as the 30 billion civil works, claiming it has enough funds to undertake the entire project.

Under its proposed joint venture, Ecorail said the participation of the government would be to provide the land for the project. In return, the government would get a share in fare revenues.

The company claimed in its petition that the DOTC issued a General Bid Bulletin calling interested parties to submit their bid proposals for the project while negotiations between Ecorail and the DOTC were on-going.

For his part, Transportation Secretary Joseph Emilio Abaya lamented Ecorail's move to file a case before the Supreme Court after failing to prequalify for the project because of late submission.

"It is quite unfortunate that Ecorail had to go up to the Supreme Court. They actually participated in the bid but did not prequalify," Abaya said in a text message.

Last November, the DOTC's special bids and awards committee cleared the participation of the Light Rail Manila Consortium, MTD-Samsung Group, San Miguel Infrastructure Resources Inc., and DMCI Holdings Inc. after beating the Oct. 22 deadline.

The Light Rail Manila consortium is led by First Pacific's Metro Pacific Investments Corp. (MPIC) with 33 percent, followed by diversified conglomerate Ayala Corp., while the MTD-Samsung group is composed of MTD Capital Bhd. and Samsung C&T Corp.

Diversified conglomerate San Miguel Corp., through San Miguel Infra Resources Inc., lead the group composed of GS Engineering and Construction Corp. and POSCO Engineering and Construction Co Ltd, while DMCI has tied up with Marubeni Corp. and Sistema Tranporte Collectivo Metrorey.

Of the total project cost, the government is spending P30 billion for the acquisition of 39 new light rail vehicles (LRVs) for the project through an official development assistance (ODA) loan from the Japan International Cooperation Agency (JICA).

With report from philSTAR

Chinese Ship entered and anchored Cebu Malapascua for more than 1 month undetected by the Philippine Authorities

Chinese cargo ship seized in Cebu

Authorities took custody yesterday of 24 Chinese crewmen after their cargo ship was seized while anchored near a marine sanctuary in Cebu for the past 33 days, allegedly without informing the government of their arrival in the country.

Commodore William Melad, Philippine Coast Guard (PCG) Central Visayas district commander, said that the 19,998-gross ton M/V Ming Yuan, a Hong Kong-flagged bulk carrier built in 2007, has been staying in the country since May 19 but failed to notify the Bureau of Immigration (BI), Philippine Ports Authority (PPA) and the Bureau of Customs (BOC).

Melad admitted that it took some time before the Chinese crew cooperated with authorities because it did not immediately allow the PCG personnel, accompanied by officers from the BI, BOC and the Bureau of Quarantine (BOQ), to board their ship yesterday morning.

"They would not allow us to board. Normally, they would lower the accommodation ladder. But we insisted, so finally they allowed us to board the ship. We properly identified ourselves on radio that we are from the Philippine Coast Guard and we have the BOC and BI with us. Maybe there was just a miscommunication at the beginning of the discussion," Melad added.

It took them about two hours to convince the foreigners to allow them to enter the vessel and another two hours of ship inspection before they were told to transfer to another site where they would be better monitored by the PCG.

He explained that the Ming Yuan was a commercial vessel and normally when they enter the country they should have a notice of arrival to the corresponding agencies such as the BOC, BI and the PPA.

The problem is there was no notice of arrival and the ship has been here since May 19, he said.

The Chinese were in the area between Malapascua Island and Carnasa Island.

The ship was anchored in the area, a famous beach area and dive spot located near a marine sanctuary.

Melad admitted that this was the second time that they boarded the ship.

Last week, they entered the ship's premises but it was for port state control purposes where they only checked the seaworthiness of the vessel. The ship passed the inspection.

But at past 4 a.m. yesterday, the officers from the four different government agencies again approached the vessel anchored some 5.3 nautical miles off Malapascua Island.

"So (at 6 a.m.), we found out that they had no notice of arrival so definitely there is a violation here. The Bureau of Immigration confiscated their passports and seaman's book because they did not ask permission to enter (the country)," the PCG official said.

The Chinese nationals are not allowed to leave their ship.

Melad also believed that the ship should not be staying near Malapascua so the PCG escorted them to another anchorage area for foreign vessels specified by the PPA, which is located in the northern part of Cebu where there is a PCG detachment that could guard the Chinese ship.

The PCG also learned that the Chinese ship plans to go to Leyte where the vessel owner was reportedly looking for clients and cargo to transport.

When they checked the ship, it appeared that they had not yet found any client since the cargo hold was empty.

He also wondered why the vessel was anchored in Cebu, which was in Region 7, when their intended client was in Region 8.

The latest seizure of the Chinese ship came at a time when the Philippines and China are embroiled in a territorial dispute in the West Philippine Sea.

Last April, 12 Chinese crewmembers were ordered arrested and detained after their vessel ran aground at the Tubbataha Reef in the Sulu Sea.

PCG Cebu commander Weniel Azcuna said on the first week of June, local fishermen and officials of Malapascua reported to the PCG the arrival of the foreign cargo vessel.

Azcuna said that the captain of the Ming Yuan informed the PCG that the vessel came from Taipei, Taiwan before the ship stopped in Malapascua en route to Isabel, Leyte.

Azcuna said the ship captain claimed that the Ming Yuan was supposed to pick up cargo in Leyte but since it was not yet ready, the crew chose to temporarily stay in Malapascua.

Azcuna said that the owner of the vessel would have to pay fines to the BI and customs bureau for not notifying the agency of their presence.

He clarified that the PCG deals more with ship safety.

"It's a newly built ship, so when we conducted the inspection, there was no violation detainable to the coast guard," said Azcuna.

The PCG vessel 3502 escorted the Ming Yuan yesterday to the port in Hagnaya, Cebu.

Meanwhile, in a separate inspection by local executives, Logon barangay chairman Rex Novabos, Association of Barangay Captains (ABC) president, said he has sent the Bantay Dagat Team as well as policemen to the area to check on the activities of the Chinese ship.

Novabos said they checked if the ship has a hose used to extract sand after some residents reported that the vessel could be extracting sand from coastal areas.

"This is mostly the activity of most stranded ships in our island, which is to get white sand and transport it to another beach. But due to language barrier, we were not able to talk to the crew," he said.

Novabos said the team reported that there was no hose and they did not find any sand on board while crewmembers were painting the vessel floor. –

With Jaime Laude, Marigold Lebumfacil/Freeman

With report from philSTAR

Shell to build 2nd Philippines' LNG facility in 2 to 3 years, then BG Group and Korea Western Power

Royal Dutch Shell aims to build the Philippines' first liquefied natural gas (LNG) import terminal in the next two to three years, as Asia's fastest-growing economy seeks to diversify its energy sources to meet robust demand.

The terminal will be a floating facility near Shell's Tabangao refinery in Batangas province, one of only two refineries in the Philippines.

"We could make a final investment decision within the next 12 months," Mr. Roger Bounds, Vice President Global LNG at Shell, said at a media briefing. He declined to give any figures for the investment or other details of the project.

Shell's new terminal would add the Philippines to a growing number of Southeast Asian nations, including Thailand, Indonesia, Malaysia and Singapore, who have come to the market in recent years, and will have to compete for supplies with larger, established LNG buyers like Japan.

Southeast Asia's LNG demand is expected to more than double to 20 million tonnes by the end of the decade from around 9 million tonnes in 2015, according to PFC Energy analysts.

A final decision for Shell to invest in the Philippines project would depend on regulatory approvals and off-take agreements that the company can sign.

Global trade in LNG will grow by nearly a third by 2018, with supplies from the United States and Australia reversing a shortage expected over the next two years, according to the International Energy Agency.

The Philippines, whose economy grew 7.8 per cent year-on-year in the first quarter, imports almost all of its fuel requirements. Several other companies, including BG Group and Korea Western Power, have also proposed LNG receiving terminals in the Philippines, but have yet to finalize development plans.

REUTERS / Today Online

160 years old “Pinoy Tanduay Rum” with a natural effect like of Viagra is coming soon to America

Tanduay Rum coming soon to the USA

Tanduay Distillers Inc. a 160 years of pinoy rum brand spirit has marked its foray into the export market after tapping a US marketing Consultant Company in a bid to export rum to the US market starting July 2013.

In a statement, Tanduay Distillers Inc. said it has tapped Brand Action Team, Beacon Beverage Imports and MHW Ltd. to drive the introduction of its rum product to the US market.

"As we began to lay the groundwork for making Tanduay a global brand, it was clear that the United States was an important, yet untapped market," Tanduay Distillers president Lucio K. Tan, Jr. said in a statement.

Rum exports to US will start next month, targeting an initial volume of 5,000 cases, said chief operating officer Wilson T. Young.

"This is our first foray into the export market," he said in a phone interview.

"We believe in the brand and that the world is ready for Tanduay. We chose the US market because it has a growing market for rum."

On Wednesday, LT Group president Michael Tan said that the brand is banking on its authenticity to expand overseas.

"Tanduay rum is known worldwide, and we're the authentic rum while others have flavored rum," he said.

Tanduay Asian Rum will introduce Silver Tanduay and Gold Tanduay in the US. The launch of these rums is scheduled this summer in select markets.

"Tanduay is a true Asian jewel. With more than 160 years of heritage pleasing rum lovers around the world, Tanduay is ready to hit the market. This is a brand that US consumers are going to love," said Brand Action managing partner Steve Raye.

Brand Action is a marketing consulting company specializing in helping spirit brands enter and grow in the US market.

Beacon Beverage will focus on distribution and key account management while MHW Ltd. of Manhassey, New York will be responsible for the administrative, regulatory compliance, transportation, logistics and other services related to the import and physical distribution of Tanduay in the US.

Established in the Philippines in 1854, with more than 160 years of heritage pleasing rum lovers around the world, Tanduay is ready to hit the US market. This is a brand that US consumers are going to love, and we're thrilled to bring this award-winning rum to America," Brand Action Team managing partner Steve Raye said.

Tanduay is the second biggest-selling rum in the world next to South American brand Bacardi, said the company.

With report from ABS-CBN, GMA News and Rappler.com

Philippines, US to hold exercises near Panatag Scarborough Shoal

File photo of US marines and their Philippine counterparts take part in joint Philippine-US military exercises, April 15, 2013. (AFP/Ted Aljibe)

The United States and the Philippines are to hold joint naval manoeuvres in the South China Sea next week between the main island of Luzon and a reef claimed by both China and Philippines, the Filipino navy said.

The exercises taking place from June 27 to July 2 by the two allies are to be held about 108 kilometers (67 miles) east of Scarborough Shoal, navy spokesman Lieutenant-Commander Gregory Fabic told AFP.

Chinese government vessels are still believed to be patrolling the waters around the shoal after a lengthy stand-off last year with the Philippines, which ended with a Filipino retreat.

"This was planned way back in 2010. Whatever happened since then was purely coincidental," Fabic said when asked if holding the exercises there this year were a way for the Philippines to reassert its sovereignty over the shoal.

The manoeuvres would be held over 12,347 square kilometers (4,767 square miles) of waters, he added.

Chinese embassy spokesmen in Manila could not be reached for comment on Thursday.

Beijing claims it has sovereign rights over nearly all of the South China Sea and West Philippine Sea, even waters far away from its main landmass and approaching the coasts of Southeast Asian countries.

The Philippines, Vietnam, Malaysia, Brunei and Taiwan also claim parts of the sea, and the area has for decades been regarded as a potential trigger for major military conflict in the region.

Since last month, the Philippine navy has also been monitoring Chinese government vessels in the South China Sea stationed off a Filipino-controlled reef in the Spratly Islands called the 'Anguyin Reef" or  Second Thomas Shoal.

Fabic said an unspecified number of US Navy ships, Marines and aircraft will take part in the exercises alongside Philippine Navy and coastguard vessels and aircraft, Filipino Marines, and navy and coastguard special operations teams.

"We will focus on communications, naval surface operations, counter-terrorism and maritime security," he said.

"This is to increase the level of inter-operability between the Philippine Navy and the US Navy in the conduct of combined naval operations."

- AFP/fl

Channel News Asia

DILG-Philippine National Police (PNP) to procure 2,500 patrol vehicles worth ₱2.08 Billion

Secretary of the Interior and Local Government Mar Roxas today, June 19, revealed that the Department of Interior and Local Government (DILG) and the Philippine National Police (PNP) would procure some 2,500 units of patrol vehicles worth P2.08 billion to increase police visibility, mobility, and crime-fighting ability.

Roxas assured an "open, transparent and fair bidding" process before senior executives of about a dozen car manufacturers and dealers whom he invited at the PNP headquarters at Camp Crame to show them what the PNP is specifically looking for.

The patrol vehicles would be a "single cab pickup with a carrier at the back." "We want the best price, we want the best value," he said.

Roxas said one of the objectives in inviting car dealers and manufacturers was to show them a transparent bidding, which will be a "two-envelope" process involving technical and financial evaluation. Only those who pass the technical evaluation would be qualified to enter the financial evaluation phase.

"Hindi natin papayagan na ang tuwid na daan ni Presidente PNoy ay mababahiran. Inaasahan natin na ang bukas at malinis na prosesong ito ay mag-aambag sa ating isinusulong na kultura ng dangal sa hanay ng kapulisan," Roxas said.

He assured car manufacturers of the availability of funds for the entire procurement because "we are buying 2,500 units, bulto at hindi sachet-style ang procurement."

Several old-generation PNP patrol vehicles were put on display on the street fronting the multi-purpose building. Roxas invited the senior executives from Mitsubishi Motors Corp., Toyota, Kia, Mazda, Isuzu, BMW, Honda, and other major car manufacturing groups in the country to "look under the hood and check out the specifications to get an idea of what the PNP wants."

The Secretary was accompanied at the briefing by the PNP Deputy Chief for Administration Ager Ontog Jr. and the PNP Deputy Chief for Operations Felipe Rojas.

"Ang pinakamahalagang prinsipyo na iiral dito ay ang pagiging hayag, maayos, transparent at hindi darating sa hablahan," Roxas said. "Rerebisahin at papatibayin yung bagong specs upang hindi magkaroon ng bahid at mantsa ang proseso."

"We will go through the process of RA 9184," he added, referring to the Government Procurement Reform Act, which governs all government bidding and procurement processes.

In a Power Point presentation for the bidding process, PNP Deputy Director Rojas explained that before the procurement, the DILG and PNP will come up with several stages, which include planning, specification, public bidding, delivery, and acceptance, and payment to the winning bidder.

Roxas said there would be a timetable for the bidding process to enable bidding participants to prepare and complete their documentary, technical and financial requirements.

The bidding process, he said, would start once the DILG-PNP shall have placed an advertisement for an 'invitation to bid' in major newspapers of general circulation, which will indicate the type of vehicle to be bought, its specifications, the bidding date and the ABC.

Seven calendar days after the 'invitation to bid' appeared in the papers, the DILG-PNP and the prospective bidders will conduct a pre-bidding conference, which will set the dates (to be done within 12 to 30 days) on the receiving and opening of bids (opening of 1st envelope, technical and preliminary exam; and 2nd envelope, financial; and later, bid evaluation and ranking.)

After the opening of the two envelopes, there would be a Post Qualification or determination of the winning bidder, to be followed by the issuance of 'Notice of Award' from 7 to 30 calendar days. The Notice of Award is being issued by the Head of the Procuring Entity.

Once the Notice of Award is issued to the winning bidder, the concerned PNP officials will prepare and sign the necessary contract. When the contract is signed and approved, the winning bidder will be issued a "notice to proceed' which means the delivery of the procured vehicles. All deliveries will still be subject to examination/scrutiny by members of the Delivery and Acceptance Committee of the PNP.

According to Rojas, the funds for the vehicle procurement would be sourced from the unused  funds, the following:

  • 241.5 million PNP Capability Enhancement Program (CEP) for 2012;
  • 894.4 million from CEP 2013
  • 944.4 million from the PNP Operational Transformation Plan (PNP OTP).

Both amounts from the CEP for 2013 and PNP OTP are still awaiting issuance of Special Allotment Release Order or SARO.

The DILG chief has tasked the officials of the PNP to come up with new specifications for the new vehicles it would bid out which include its fuel, engine displacement, horsepower, transmission among others.

"On the part of the PNP, I will give them the challenge of coming out with new specs for the new vehicles to be procured, the attachment of roofing and convertible seats, with the end in view na walang question on their end, na walang bahid ng anomalya o kontrobersya" the DILG chief said.

The car manufacturers interested in joining the bidding would be required to produce a prototype of the vehicle they would supply to the PNP.

"We will give them (car dealers) 30 to 45 days to come up with their respective prototypes which they would present to the various PNP offices involved in the bidding," he said.

www.gov.ph

www.dilg.gov.ph

From the Department of Interior and Local Government

Flawed Philippines – USA Mutual Defense Treaty Resulted the loss of Scarborough Shoal – New Doctrine for External Security Seen

In Photo: Defense Secretary Voltaire Gazmin (center), Air Force chief Lt. Gen. Lauro Catalino de la Cruz (right) and Sweden's SAAB Vice President Kaj Rosander  in a huddle during the "Air Power" symposium on Thursday held at the SMX building at the Mall of Asia in Pasay City. (Zaff Solmerin)

Philippines's shift to external defense seen

The Philippines has experienced a number of territorial issues over the last several years. Most of these issues have involved China intruding into territorial waters, and in some regard have resulted in the loss, if not invasion, of Philippine sovereign territories such as the Mischief Reef in Palawan and the (Panatag) Scarborough Shoal off Zambales Province.

In the last six months, those issues have further extended to other neighbors such as Malaysia, Taiwan and Vietnam.

Effectively, the Philippines has no naval or air forces to impede or deny access to its territorial waters, thereby the only recourse has been through diplomatic means, which have yielded very little results.

Over the last several decades, the Philippines has focused on internal security operations (ISO) and has relied on its Mutual Defense Treaty with the United States to tend to its external defenses.

However, given the new global climate wherein the United States has shifted focus to Asia, US alignment has broadened to several other nations, including those involved in current territorial issues with the Philippines.

This, coupled with the current US financial crisis, has caused the Philippines's historical treaty partner to step back and away from Philippine territorial issues.

As a result, the reliance on the Mutual Defense Treaty with the United States has effectively resulted in the loss of external defenses for the Philippines at a period in history where it is needed most.

The current direction of modernization was conceptualized under different circumstances, limited understanding and obvious misconceptions.

During those times, it was a widely held belief that the United States would continue to support external defense through the US Navy (USN) and aid in modernizing the Philippine Navy (PN) and Air Force (PAF).

However, recent history has shown that Philippine expectations on the political will of the US to support the Philippines's military modernization plans have been gravely misconceived.

The 1960s era retired Hamilton-class US Coast Guard cutters supplied to the PN clearly demonstrates this misconception. Expected to be a modern combat vessel, the BRP Gregorio del Pilar, the fist to be delivered, showed a number of flaws, to include improper ballast system, lack of spare parts, need for restoration and insufficient power generation. Furthermore, the electronics equipment and weapons systems were completely removed and replaced with an antiquated 76mm gun and no longer state-of-the-art fire control systems.

In the case of the PAF, its attempt to obtain the F-16 multirole fighters would have been the next and most appropriate evolution from their F-5 fighters decommissioned in 2005.

Evolution to the F-16 has been the case for many other nations worldwide with full support from the US.

However, in the recent global climate, the political will of the US to support its allies directly in conflict with China have diminished. For the PAF, the supply of F-16 fighters were negated owing to the official US position that maintenance costs were found to be excessive for the Philippines. Although this point could be argued, the larger perspective shows Taiwan also being denied the purchase of F-16 fighters during the same time period. Taiwan already has an F-16 fleet, so some other political issue was used to prevent supply of the fighter plane to Taiwan.

In a broader perspective, other ASEAN (Association of Southeast Asian Nations) countries have purchased missiles from the US for their aircraft, but the US has withheld the deliveries, storing them instead in US facilities until the US government determines an appropriate time for their release.

With that, one must consider how a sovereign nation can purchase articles for its own national defense, and yet be at the mercy of another nation's discretion as to when and if they can use them.

Recent history has demonstrated that the original concept for Philippine military modernization with regards to external defense has been flawed, simply because of a lack of consideration to the changing environment and a misconception of support from the US. This direction would further degrade the sovereignty of the Philippines and allow continued unimpeded access by other countries to its sovereign territories.

Foundation for territorial defense concepts

EXTERNAL defense has traditionally been a concept of preventing invading forces from reaching Philippine soil. However, a new outlook toward Territorial Defense must be taken in order to defend Philippine resources at sea and understand the need to properly modernize and prepare the PN and PAF for combat readiness to defend the Philippine exclusive economic zone.

For an archipelago such as the Philippines, traditional thinking requires massive naval forces to defend its seas and littoral areas. However, military and political history has shown that an arms race, such as that of the US and the Soviet Union during the Cold War, can be won on the financial front, and not necessarily on the front lines.

Furthermore, conventional warfare can be extremely expensive when an opponent follows a more unconventional, guerrilla doctrine as shown in the wars in Afghanistan and Iraq.

Spearheaded by the special operations community, an evolution in warfare has developed into a cost-effective unconventional doctrine that focuses on having greater situational awareness and conducting more precise and effective use of forces.

Learning from these new doctrines, the Philippines can benefit from many of the advantages to include efficient use of resources, rapid employment of new technologies and increased operational readiness

With report from Business Mirror

The Philippines Joins G8 Global Partnership as 26th Member

Libyan nuclear material being loaded on a C-17 cargo aircraft for disposition in the United States. State Dept Image / Jan 27, 2004 / Tripoli, Libya

The U.S. Department of State congratulates the United Kingdom, 2013 Chair of the Global Partnership Against the Spread of Weapons and Materials of Mass Destruction (GP), as they welcome the Philippines as the 26th member of the GP.

The Philippines' membership marks an important expansion of Southeast Asian representation in the GP, a subsidiary body of the G8, which addresses nuclear and radiological security, biosecurity, chemical security, and scientist engagement, as well as facilitates the implementation of UN Security Council Resolution 1540 through cooperative projects.

The Global Partnership, now 26 members, began at the 2002 Kananaskis G8 Summit as a 10-year, $20 billion initiative to prevent terrorists or states that support them from acquiring or developing weapons of mass destruction (WMD).

Since then, the Global Partnership has grown to include 26 members and has allocated more than $21 billion world-wide to enhance WMD security to include locking down vulnerable weapons and materials, destroying Russian nuclear submarines and chemical weapons, export controls, and engaging with scientists and other technical experts with knowledge and experience dealing with these items.

At the 2011 G8 Summit in Deauville, leaders agreed to extend the GP beyond 2012 and to make it truly global. The membership of the Philippines is an important step in this progress.

For more information about the Global Partnership, please go to the Bureau of International Security and Nonproliferation's website: http://www.state.gov/t/isn/

First Supercomputer in ASEAN countries; Philippines to Use Blue Gene for Weather Forecasting & Studies

Blue Gene IBM Super Computer is one of the Fastest Computer in the World. is an IBM project that can reach operating speeds in the PFLOPS (petaFLOPS) range, with low power consumption. The project created three generations of supercomputers, Blue Gene/L, Blue Gene/P, and Blue Gene/Q. Blue Gene systems have led for several years rankings of the most powerful and most power efficient supercomputers. Photo from Wikipedia

The Philippines to Use Blue Gene Supercomputer for Weather Forecasting

By the end of 2013, the Philippines will be the first country in Southeast Asia to acquire an IBM Blue Gene Supercomputer to improve its weather forecasting system and genomics research.

"The Blue Gene supercomputer opens many doors for the country and reduces our uncertainty (in R&D). Our vision for a Smarter Philippines needs breakthrough instruments such as this, to propel us toward advancement," said Department of Science and Technology Secretary Mario G. Montejo.

Considered as one of the fastest and most powerful computers in the world, the Secretary said it will enable local scientists to perform highly technical and scientific calculations in the areas of weather and climate modeling, and genomics.

The project was formally announced last month, with the Secretary highlighting its capability to further improve the government's Nationwide Operational Assessment of Hazards project.

"Aside from greatly enhancing our climate change scenarios or modeling, we can make more accurate area-specific weather forecasts and extend our prediction from three days to up to seven days," he said.

In the area of genomics, the IBM Blue Gene will facilitate the analysis and management of data, and provide computational requirements for the recently established Philippine Genome Centre. The latter seeks to explore areas for genomic applications – from varietal improvement of crops, livestock, and other raw materials, to drug discovery and development of advanced, personalized medicines and diagnostic tests, among others.

Meanwhile, DOST R&D Undersecretary Dr. Amelia Guevarra, said other government agencies are also free to use the Blue Gene for their R&D efforts and activities.

Asia Pacific FutureGov

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