DFA and UNCLOS

Secretary Albert del Rosario with the approval of President Aquino has challenged China’s claims to the South China Sea utilizing the provisions of the UN Convention on the Law of the Sea (UNCLOS).  It was done after considerable deliberation which in my opinion constituted complete staff work.  There was much carping on how slow-footed the DFA has acted. I respectfully submit that too many behaved on this issue of significant national importance in a “Rambo-like seat of the pants” manner.  On the other hand, the Secretary performed in the appropriate manner expected of our diplomatic service.   

The foreign press has been very positive. One foreign columnist referred to it as a diplomatic coup.  The Philippine position did not ask the tribunal to decide on the issue of sovereignty nor a delineation of any maritime boundary.  It asked the Tribunal to determine the legality of China’s claim based on their “nine-dash line” which allegedly covers the entire South China Sea.   

William Choong in the Straits Times/Asia News Network wrote: “By asking the tribunal to decide on the legality of China’s nine-dash line under UNCLOS, the Philippines has essentially dealt a clever hand -China might have to clarify the extent and basis for its nine-dotted line claim.”  During the Carlos P. Romulo Foundation Forum on the South China Sea last October 2011, many participants asked for clarification on nine-dash line but the Chinese delegates refused to comment.

I will not discuss this further because the local and foreign press will cover this in greater depth in the weeks to come. I am certain other claimants will evaluate the wisdom of taking this approach. Without doubt the Chinese government is considering how to respond even as they realize international opinion will most likely consider the Philippine position favorably, win or lose.

Secretary Del Rosario and the DFA Staff deserve our commendation for acting in the best interest of the nation.

US-Philippines Society

The three-day visit of the Society was filled with productive and informative meetings.  On Jan. 22, the Society met with the President in Malacañan Palace. Ambassador John Negroponte (co-chairman), Hank Greenberg (honorary chairman) and top corporate executives were part of the Society’s delegation. Particularly noteworthy was the presence of Mrs. Carla Anderson Hills, the former US Trade Representative.  The Philippine side was represented by Manuel V. Pangilinan (co-chairman), Washington SyCip (honorary chairman) as well as local Filipino executives including Ramon del Rosario Jr. of Phinma and chairman of the Makati Business Club. The President was accompanied by the Secretaries of Foreign Affairs, Finance and Trade as well as the Cabinet Secretary.

The American side was favorably impressed with the informal, informed and frank responses of the President. On the issue of ASEAN competitiveness, Mrs. Carla Hills was pleasantly surprised on how conversant the President was on the ASEAN Integration policy. On the other hand, Ramon del Rosario voiced MBC’s hope that there could be a “surgical amendment” of the Constitution particularly in the economic area. The President commented that it was a noble aspiration but that it would not be possible.  

After the meeting in the Palace, the group proceeded to the Peninsula Hotel where there were presentations by the Departments of Foreign Affairs, Finance, Trade and Defense.  This was followed by a lunch hosted by Secretary del Rosario. Washington SyCip hosted the dinner in his residence when the American side was given the opportunity to meet with other captains of industry.

On Jan. 23, the board of the US-Philippine Society met in the PLDT board room to discuss past performance and to review future plans. At the instigation of Hank Greenberg, the board agreed that the main focus of their 2013 program would be on business opportunities in trade and investment. On a related but off line discussion with me, Mr. Greenberg confirmed that he was looking for business opportunities. He was working on having a CV Starr corporate presence in Manila this year.

Following the board meeting, the Makati Business Club hosted a lunch at the Tower Club. A policy forum was held after lunch. Three former ambassadors to the Philippines: John Negroponte, Richard Murphy and Thomas Hubbard gave a personal perspective of the global challenges confronting all of us.

The Policy Forum was followed by a business dialogue.  Presentations were given on energy, mining, infrastructure and water.  That evening, a dinner was hosted by Manuel V. Pangilinan. On the following day, the American side of the Society visited Clark.  Dennis Wright of Peregrine Development International was the host and guide of the tour.

Perhaps I have written too much about the day to day schedule of our American visitors. I would suggest that this is a template that should be used in the future for other distinguished visitors from other countries.  It is my further hope that there can be similar organizations organized for European, Asian countries as well as the ANZ region.   

Davos

There have been many critical comments about the President’s visit to Davos.  If there is anyone to blame, it is those who convinced him to go despite the late decision to accept the invitation.  The World Economic Forum (WEF) develops its programs months ahead of the event.  Considering the short notice, the Forum had him speak in two meaningful sessions.  One should keep in mind two important points: 1) Invitations are not issued to every head of state/government. They are quite selective. This was the second time he was invited. 2) For the first time ever, the regional WEF will be held in the Philippines.  It is a meaningful recognition of the worth of our country.  May I further point out that the critics have never been in Davos and were not in a position to critique what was an important session.  For me, the President’s presence in WEF is not for his personal aggrandizement.  It is for the benefit of the nation if we wish to attract foreign direct investment.