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Tuesday, July 5, 2011

Aquino hopes Del Rosario: Resolve Spratly issue in China visit this year

The Philippines’ President Benigno Aquino III yesterday said Monday (July 4) he had directed Foreign Affairs Secretary Albert F. del Rosario to resolve disputes in the West Philippines’ Sea (South China Sea).

“One of the main topics would be the West Philippines’ Sea. That’s the essence of diplomacy. Settle the differences through talking rather than any other means and that is actually enshrined in the Constitution. So he will endeavor to have discussions on how to resolve this issue,” said Mr. Aquino, in an ambush interview during the celebration of the 113th anniversary of the Department of Foreign Affairs.

Citing the importance of engaging in a dialogue, he said that his office is fixing the date for a state visit to China where he will personally meet with his counterparts and settle the dispute diplomatically.

“Baka naman tayo magkasundo kaysa naman, hindi tayo puwedeng magdedmahan kung ganitong buhay ng mga tao ang nakasalalay [Perhaps we will come to an understanding. We can’t ignore each other when lives are at stake],” said Mr. Aquino.

“Barring any unforeseen circumstances, [the state visit] should happen this year.”

As to whether the President will raise the unidentified fighter jet that recently flew low at 6 meters in the West Philippines’ Sea (WPS) and intimidated Filipino fishermen, Mr. Aquino said he first has to know details of the incident.

“The last report was two unidentified planes that were in an intercept course with two of our patrols. I will have to get information with regard to that incident,” said Mr. Aquino.

In earlier interviews, Mr. Aquino had said he will report several incidents of incursion into Philippine territory to the United Nations, and will also raise the matter during his China visit.

The President has been consistent in his position that the Philippines should protect its national sovereignty, including maritime interests, using a “rules-based system for a peaceful, fair, advantageous dialogue, moving towards a resolution that is beneficial for all.”

He further noted that the problem would not have escalated had the Philippines stuck to the 2002 Declaration of the Code of Conduct of Parties in the South China Sea, and the previous administration had not decided to enter a new agreement -- the 2005 Joint Marine Seismic Undertaking -- inviting other countries, China particularly, to explore the seas within the Philippine national territory.

“Wala pong may gusto ng gulo, pero hindi rin po nito ibig sabihin na magpapakaladkad na lamang tayo sa mas malalaking mga bansa [No one wants a scuffle but that does not mean that we’ll allow bigger countries to run roughshod over us],” said Mr. Aquino.

“Kapag po hinayaan nating brasuhin lamang tayo, baka po ang mga susunod na Pilipino ay magsiksikan na lamang sa iisang isla. Kapag hinayaan nating itulak lang tayo ngayon, baka po bukas makalawa, ang 7, 100 islands natin ay maging two digits na lamang. Hindi naman po makatarungang angkinin na lamang ng iba ang malinaw namang sa atin talaga [If we allow ourselves to be bullied maybe the next Filipino generation will cram themselves in one island. If we allow ourselves to be shoved aside, maybe tomorrow our 7,100 islands will just be two digits. It’s not just for others to just take what is ours).”

President Aquino is adamant in talking with other claimant countries to present a united front on the issue, and said that the Philippines will continue to honor its international commitments.

However, the President clarified that foreign policy for the Philippines -- even in accepting or providing help to treaty ally United States -- is still geared towards what is advantageous to the Philippines.

“We chart our own foreign policy. It so happens that in this particular case, there was a convergence between the Americans and ours with regard to the West Philippine Sea that there’s a convergence of objectives by both sovereign countries.

“So it does not sit well with me when somebody says that we closely align, meaning we abrogate our charting of our own foreign policies to that of another country. That is not permissible. Now we will chart our foreign policy based on the interest of the Philippines,” said Mr. Aquino.

He was reacting to a question over a portion of his speech where he criticized the previous government for foregoing its promises to the US during the Iraq War, a complicated tangle involving the release of a Filipino, Angelo de la Cruz, an overseas worker captured by militants.

“Nangako tayo sa isang kaalyadong bansa. Kapag ugnayang panlabas ang pinag-uusapan, hindi tayo maaaring maging iwas-pusoy, magpapalit-palit ng desisyon, o bawiin ang ating ipinangako. Nagmistula tuloy tayong kapitbahay na walang isang salita, putak lang ng putak, ngunit kapag dumating ang unos, wala namang ginagawa. Imbes na tumibay, unti-unting natibag ang ating pakikiisa sa mga banyaga [We gave a promise to an ally. When we speak of foreign collaboration, we can’t take our cards back, be indecisive, or go back on our word. We gave the impression of a neighbor without conviction, someone who just talked and talked, but when the reckoning came, stayed inactive. We eroded rather than strengthened our unity with other countries.”

China, the Philippines, Malaysia, Vietnam, Brunei and Taiwan have competing claims in the oil-rich Spratlys in the West Philippines’ Sea (WPS) or also called as South China Sea.

 

If there be any other countries in the world for investing now it's the Philippines- Phillip Hagedorn

ATR-KimEng Asset Management Chairman Phillip Hagedorn: if there be any other countries in the world for investing now it’s the Philippines.

Two fund managers said Philippine stocks, which rose to an all time high in second week of July, will extend their gains, citing the country's debt rating upgrades, a narrowing budget deficit, and rising corporate earnings.

"If there's any country in the world I’d like to be investing, it's in the Philippines right now," Phillip Hagedorn, investment committee chairman at ATR-KimEng Asset Management, said in ABS-CBN News Channel (ANC) interview.

"What other country is getting upgrades? And our companies are being moved to investment grade. We’ve got growth. I think we're going to see stronger growth in the second half of the year than we did in the first half," he said.

Fitch Ratings and Moody’s Investors Service raised the Philippines’ debt rating last month, indicating Philippine bonds are less risky. That allows the government – and companies – to borrow at cheaper rates which benefits the economy via lower borrowing rates, expansion and investment.

Hagedorn indicated recent gains are the early part of a longer term rally because the market has come from an 8-month rest. It closed on Tuesday at 4,439.61.

"The market has not peaked above the 4,400 level, since October of last year," Hagedorn said. "So it’s been about an 8-month period of consolidation, of taking a break from the last 2 years that the market has had a very strong run up.’’

Hagedorn said company earnings should grow faster in the second quarter than the 11 percent increase for Philippine Stock Exchange Index companies in the first quarter. He projected this should continue through 2012.

"There are really a lot of interesting developments on the macroeconomic front,’’ BPI Asset Management Senior Vice President Theresa Marcial-Javier said on ANC. "There are the credit ratings upgrades by Fitch and Moody's, that has contributed to the strong sentiment in the stock market.  Also there is the fiscal progress."

Marcial-Javier said while inflation rose in June, it was below expectations. She said the central bank may refrain again from raising interest rates at its July 28 monetary policy meeting, partly because of recent declines in crude oil. Inflation edged up to 4.6 percent in June, from 4.5 percent in May.

"Expectations about declining inflation over the long term is sort of already being discounted in equity prices,’’ Marcial-Javier said. "Given the recent decline in oil prices, there is a reason for the Bangko Sentral ng Pilipinas to pause come July 28. But I'm not discounting the fact that in the September meeting, there is possibly another 25 basis point increase, if not maybe another increase in the reserve requirement.’’

The central bank paused last month after 2 successive increases in its overnight borrowing rates. Instead it raised reserve requirements, or the percentage of deposits banks must park with it instead of lending out, to reduce money supply.

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