Black Gold investment in the Philippines pushed!

Department of Agriculture (DA): Senator Francis "Kiko" Pangilinan has urged the national government to develop the coffee industry in the Philippines, which he tagged as the Philippine "black gold."

"The country could be missing out on a great opportunity if it fails to pay attention its well-regarded coffee beans," said Pangilinan, Chairman of the Senate Committee on Agriculture and Food.

Pangilinan, who hails from this province, said he allocated ₱5 million from the Priority Assistance Development Fund (PDAF) of his office for the purchase of a common service roaster that will enable farmers to increase the value of their beans, thereby increasing their own earning potential.

"There is resurgence in the popularity of coffee shops, and it is unthinkable that we are not making the most out of this opportunity by marketing the Philippines' coffee beans," Pangilinan said.

The lawmaker has also encouraged businesses to advocate coffee bean agriculture development in the Philippines.

"I enjoin our countrymen to support our proudly Pinoy-made coffee beans. Our beans are renowned for their unique taste," he added.

Pangilinan said the Philippines must be able to capitalize on the good quality of coffee beans harvested in the country to boost the local coffee industry and empower local farmers and all those whose lives are dependent on the said valuable commodity.

The senator is also advocating the "Sagip Saka" movement, an advocacy to achieve sustainable modern agriculture and food security by transforming agricultural communities to reach their full potential, improving farmers' and fishers' quality of life, and bridging gaps through public-private partnerships.

"Sagip Saka is meant to give agriculture and fisheries the primacy that it deserves by focusing on improving the quality of life of our farmers and fisherfolk and, in doing so, building sustainable farming communities nationwide as a means to achieve food security. Only through strong public-private partnerships can we achieve this," he said.

The senator said opening access to market, rolling out infrastructure, and strengthening research and development in the field of agriculture would help millions of farmers in the country to increase their income, thereby improving the quality of their lives.

Coffee farm in the Philippines boost during the late 80's to 90's but faded away because of less support from the government. Black Gold Philippines' Coffee could be grown under the coco farms and banana plantations. 

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Philippines - New Billion Dollar Creditor Helping IMF – Europe Crisis

Economy: Philippines - From being a user of the resources of the International Monetary Fund for decades, the Philippines has attained creditor status, with half of its $251.5-million contribution to the IMF as of December tapped to help European countries such as Ireland, Portugal and Greece ease the impact of the financial crisis in the euro zone, the Bangko Sentral ng Pilipinas (BSP) said.

The BSP said the country's improved status has become evident with its being a participant in the Financial Transactions Plan (FTP) of the IMF since 2010.

The FTP is the mechanism by which the IMF finances its lending and repayment operations through transfer of foreign exchange from members with strong external position to borrowing members.

"A member is said to have a creditor position in the Fund when the latter has used the holdings of the member's currency to provide financial assistance to other members," the BSP clarified.

The member gets interest earnings in return which reflect in its gross international reserves (GIR). The country's GIR is expected to hit a record level of $79 billion this year from about $75 billion last year.

By virtue of their participation in the FTP, emerging market economies like the Philippines have joined international cooperation efforts to mitigate the spillover effects of Europe's sovereign debt crisis.

The BSP said the country's participation in the FTP would pave the way for the central bank's admission to the New Arrangements to Borrow (NAB) facility of the IMF.

The NAB facility is a credit arrangement between the IMF and member countries or institutions aimed at forestalling situations that could impair the international monetary system.

"The participation in the NAB would be a significant step in strengthening international cooperation. This would also demonstrate the BSP's strong commitment to global efforts to help address threats to the international monetary system," it said.

The Philippines' participation in the FTP marks a transition in the country's relationship with the IMF.

In 2006, the BSP pre-paid all outstanding debts with the IMF, allowing the country an early exit from the fund's Post-Program Monitoring Arrangement.

With its stronger external payments position, the country has achieved balance of payments surplus in the last seven years. In the region, the Philippines is also a contributor to the $120-billion Chiang Mai Initiative Multilateralization (CMIM) facility among member states of the Association of Southeast Asian Nations, China, Japan, South Korea, and Hong Kong.

The Philippines, through the BSP, has a contribution commitment of $4.552 billion to the CMIM.

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USA formally offers 2nd warship to AFP of the Philippines

Philippines top military official exposed Saturday (18^th February 2012) that the United States has formally offered to the Philippines a second warship that is expected to boost the country's territorial defense capability.

Navy chief Vice Admiral Alexander Pama said the US sent last week a letter notifying them about the availability of another US Coast Guard cutter, Dallas.

"They (US) sent a letter offering us formally (the ship). They are telling us this is available and their government has approved (the giving of the ship to the Philippines). They are asking us if we are interested," Pama said.

He said the Armed Forces of the Philippines (AFP) is expected to reply to the letter next week.

"We will respond to the letter and tell them that we are interested. Once they receive that, the formal, detailed discussion would start," Pama said.

The Navy chief said the transfer of the warship might be held in May if discussions run smoothly.

"If the talks are continuous and smooth flowing, we are looking at a formal transfer to be held in May," Pama said.

The transfer cost would be funded by proceeds from the Malampaya natural gas project off Palawan that the Department of Energy will provide.

Officials have said the transfer cost for the cutter Dallas would be close to the P450 million spent for the first Coast Guard cutter that the Philippine Navy acquired last year.

The first Coast Guard cutter that was converted into the BRP Gregorio del Pilar was acquired from the US Coast Guard last year to improve the Philippines' territorial defense capability.

The Gregorio del Pilar is the Navy's first Hamilton-class vessel and was acquired under the US Foreign Military Sales program.

The ship is 380 feet long and is now the Navy's largest ship. The ship is currently deployed in Palawan since Dec. 23 to secure the country's natural resources.

The Philippines deployed the ship amid a territorial row over the Spratly Islands, an area in the West Philippine Sea that is rich in mineral and marine resources.

The Philippines, China, Brunei, Malaysia, Vietnam and Taiwan claim either part or the entire Spratly Islands, which has been the subject of a territorial dispute in the region.

Last November, US Secretary of State Hillary Clinton said her government is ready to provide a second war ship to the Philippines.

Clinton, who visited Manila to celebrate the 60th anniversary of the Mutual Defense Treaty, said the US would remain "in the corner" of the Philippines, its "trusted ally."

Early this month, US Rep. Ed Royce said the ship "should soon be on its way to Manila" and that the review process for its transfer would be completed soon.

Dallas is a weather high-endurance cutter and has features similar to that of Gregorio del Pilar.

The US Coast Guard had used the ship for drug and migrant interdiction, law enforcement, search and rescue, living marine resources protection, and defense readiness.

The ship can accommodate up to 180 officers and sailors.

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₱2.8 billion New combat choppers arrives Philippines airbase

 

Four new combat utility helicopters acquired from two foreign firms have arrived in the country, the military said yesterday.

Armed Forces deputy chief for plans and programs Maj. Gen. Roy Deveraturda said the helicopters arrived at Clark Airbase in Pampanga.

"We can use these for transporting troops, air evacuation of the wounded or disaster response," Deveraturda told reporters in Camp Aguinaldo in Quezon City.

Air Force spokesman Lt. Col. Miguel Okol said the helicopters were purchased from Augusta PZL Swidnik of Italy and Poland.

Okol said four more combat utility helicopters from Augusta PZL Swidnik are expected to arrive in the last quarter of the year.

The eight helicopters are worth ₱2.8 billion.

Okol said the "Sokol" (Polish for "falcon") helicopter is an ideal air asset since it can be fitted with equipment depending on its mission.

He said the helicopters are night-vision goggle-capable and equipped with an SN 350 Autopilot.

Each Sokol helicopter can accommodate 10 passengers and reach a maximum range of 402 nautical miles in a single flight with airspeed of 140.5 knots.

"A Sokol is fitted with gun mounts for the M-60D MG [7.62mm machinegun] on both sides and when utilized during search and rescue or over water operations, it can be equipped with pilot-controlled Emergency Floatation Gear attached to the lowest portion of the aircraft," the Air Force said.

The Air Force has 40 operational utility helicopters in its inventory.

Some P3.4-billion worth of military modernization projects will be completed this year. The projects include the delivery of eight combat utility helicopters, three multi-purpose attack craft, equipment for coast watch stations, and 33 multi-purpose rocket launchers for the Presidential Security Group.

Deveraturda said the delivery of the four helicopters set into concrete action the eight-year modernization program that Defense Secretary Voltaire Gazmin charted for the Armed Forces.

Gazmin wants to acquire armored vehicles, radar systems, missile-guided and multirole vessels and aircraft that include f-16 fighter jets under the program with a projected total cost of at least ₱70 billion.

Since the amount needed is too large, he said the acquisition will be pursued through a Congress-approved Multi-Year Obligation Agreement, with government to government as the procurement mode.

Deveraturda said the military is also hoping to sign the contract for the delivery of another Hamilton class cutter from the United States until March 2012 this year.

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High Grade Gold intercepted by Aus Firm in the Philippines

Lindian Resources intersects new zone of high grade gold at Masapelid in the Philippines

An Australian firm; Lindian Resources (ASX: LIN) has discovered copper and high grade gold at the Masapelid Project in the Philippines, following assays from two recent drill holes.

Drilling on a new target at the Sabang Prospect, on the southern portion of Masapelid, has identified supergene copper-silver-gold mineralization between 20 meters and 96 meters depth above an extensive interval of banded gold-silver-copper mineralization.

The new target zone is located 300 meters to 400 meters south of Sabang Hill.

In the lower, banded zone, gold and silver are generally dominant.

Drilling in the supergene copper-silver-gold zone returned:

- 385.1 meters at 0.79 grams per ton (g/t) gold, 6.54g/t silver and 0.32% copper from 20 meters, including 76 meters at 0.25g/t gold, 17.55g/t silver and 0.78% copper; and

- 44.4 meters at 0.35g/t gold, 26.75g/t silver and 0.4% copper from 21 meters, including 10 meters at 1.35g/t gold, 61.56g/t silver and 1.12% copper.

In the gold-silver-copper zone, best intercepts included:

2 meters at 35.48g/t gold,

34.4g/t silver and 0.14% copper from 103 meters

including 1 meter at 68.96g/t gold,

43.2g/t silver and 0.11% copper:

- 8 meters at 11.23g/t gold,

5.89g/t silver and 0.29% copper from 372 meters,

including 3 meters at 27.89g/t gold, 12.67g/t silver and 0.58% copper; and

 2 meters at 11.04g/t gold,

5.9g/t silver and 0.2% copper from 275 meters.

Assays from two neighboring drill holes are pending, and Lindian plans to re-enter and extend one of the two holes already assayed, which was terminated at 45 meters depth due to core loss issues.

Further holes are planned to the northwest and southeast of the existing holes, to provide an understanding of the potential strike extension of the mineralization.

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Apple’s big bite: Billions USD gains - No justice to its iPad2 users

 

Apple Craze hit not just Philippines but all around the World

Computer and software giant Apple took a huge bite of profits recorded at a staggering $13.1 billion for its first quarter ending Dec. 31, 2011 – far above analysts' predictions. Total sales registered at $46.3 billion, almost double the $26.7 billion posted for the same period a year ago, with huge holiday sales of the iPad and the iPhone 4S attributed to the consumer electronic firm's windfall. Despite initial negative reviews, consumers snapped up the iPhone 4S when it went on sale a week after founder Steve Job's death on Oct. 5 last year. Many of the iPhone 4S buyers reportedly switched from other platforms like Android and Blackberry, and a renewed surge in the Apple smartphones' popularity saw them selling like hotcakes with 37 million units sold for the October to December period alone.

No doubt Apple is awash with cash, accumulating an estimated $97.6 billion and leaving its rivals struggling to keep up. The company's market value has increased to over $437 billion, putting it at the top of the pile in Standard & Poor's 500 Index. According to Apple CEO Tim Cook, they couldn't manufacture iPhones fast enough. The way things look; the same could be said with the Mac and the iPad, the other stars of the company. More than 5.2 million Macs were sold in the quarter – up from 4.1 million for the same period last year. On the other hand, 15.4 million iPads were sold for the period from October to December – proving that it is the most popular tablet – cornering more than 60 percent of the market.

More and more people are certainly appreciating the iPad with its breathtaking applications that have surpassed expectations. Even kids find it the most exciting tool for getting information from the net, with apps that make learning even more engaging. As a matter of fact, the Dubai Ministry of Health recently developed an iPad app for cancer patients, allowing them to link up with a doctor any time of the day – definitely making it easier for homecare patients.

One of the industries that has benefitted from the iPad is publishing – with interactive features that make reading more engaging than ever. In the Philippines, PeopleAsia magazine's iPad app version has been a great success – and it will be even more so since the app is getting an upgrade after the successful People of the Year awards night at the Dusit Thani Manila .

Shame on Greeks

Grappling with a debt-laden economy, the Greek government has launched a "name and shame" campaign to force tax evaders to pay up. Over 4,000 people figured in a list – which reads like a "who's who" in Greek society – finally released by the government after keeping it under wraps for months following a change in privacy laws. Greece has some $77.5 billion or 60 billion Euros in unpaid taxes – equivalent to 25 percent of its economy, and the 4,000 or so tax evaders owe an estimated 15 billion euros, more than enough to cut the Greek government's huge budget deficit.

In the Philippines, the BIR has been going after tax cheats via its Run After Tax Evaders (RATE) program, with the focus now on professionals and other self-employed individuals like doctors, artists and lawyers. According to the BIR, they are raising tax collection targets from these self-employed individuals to over P222 billion. Finance Secretary Cesar Purisima told us the tax collections last year have been below expectations but they are confident that more Filipinos will now be more conscientious about paying the right taxes. He admits there are still collection inefficiencies, but efforts would be focused on going after tax evaders, smugglers and all those who are not paying the right taxes.

Apple – No Justice for Apple users

Many apple consumers are complaining for the shift of focus of apple instead of "service to the customers" shifting into money from consumers. Though apple posted high gains for their iPhone and iPad gadgets; many are losing loyalty to apple for the less of justice issue to their consumers.

A customer in the Philippines who bought apple's iPad2 3G + WIFI admitted that his insufficiency of information as a big mistake of buying Apple's iPad2 3G+ WIFI  as he was convince the logic that if there is 3G means there is communication mobility that includes call and text or SMS but not exist in the iPad2 3G+Wifi.

"I chose the highest specs of iPad2 3G+ WIFI a 64GB plus leather cover because I believe that I could work even outside the office as long as I am connected to the internet but so disgusting because of limited compatibility of Apples software to MS Office, plus I could not receive call and text with my micro SIM inserted in my iPad2 3G+WIFI slot" this is a big regret he said.

"Apple fanatics must have to think many times because apple product is a thrill that hangs you in everlasting regrets . Para bang isang taong inutil, meron naman sana, Kompleto pero Hindi ma pakinabangan, parang taong baog at impotent na walang silbi, maganda lang tingnan sa panlabas pero Hindi Magagamit. Sinayang ko pa ang Perak o, I spent more than $1 Thousand USD para sa gadget na to plus oras ko para mag pa palit ng SIM ko from regular SIM into a micro SIM para magagamit sa iPad2 ko per laking pagtataka ko di matatawagan kahit naka 3G ang iPad ko" He added.

Apple's shift from giving value to its user's satisfaction over fashion and money into purely business might have a pitfall ahead that could lost its customer's loyalty.

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Philippines Tops As best Investment Site in Asia

JETRO Competitiveness Survey In Asia

The Philippines has emerged as the most competitive country among seven Asian economies as an investment destination and doing business whether in manufacturing or services sectors, the latest survey conducted by the Japan External Trade Organization (JETRO) revealed.

Trade and Industry Undersecretary Cristino L. Panlilio said that JETRO came out with this Philippine Competitiveness survey by comparing the Philippines with six other Asian countries wherein the Philippines bested China, Malaysia, Thailand, India, Vietnam, Indonesia and Myanmar in most categories. Competitiveness indicators included in the survey are financial costs, sufficient labor supply and reasonable salary (for manufacturing and non-manufacturing personnel).

The survey was conducted by JETRO on Japanese-affiliated Firms in Asia and Oceania for the period August-September 2011.

"We are the cheapest in almost all categories of doing business," Panlilio said.

The Philippines garnered favorable ratings in terms of competitiveness advantage on business environment in comparison to other Asian countries, the report said.

Based on the survey results, the Philippines has the cheapest rates when it comes to labor, rentals and land prices. The Philippines also has the least problem on the competency of its labor pool.

In terms of sufficiency of labor supply, the Philippines emerged to have the most plentiful number of workers and second to Malaysia when it comes to the availability of executives.

"In terms of employment retention, we have the best loyalty record. In terms of problems of workers competency, we have the least problem," Panlilio said. .

"The implication of this project is that even in Asia, we are now very competitive. In fact, we are the most competitive when it comes to those factors of business or investment decision making," Panlilio said.

Specifically, the JETRO survey showed that when it comes to problems on increasing financial costs in the Philippines, the country had the lowest percentage rating of 4.6 percent while China had 64.1 percent. Comparatively, ratings of Indonesia, Vietnam, India, Thailand and Malaysia ranged from 51.9 to 61.5 percent.

In terms of problems in shortage of land/offices, rising land prices/rental, the survey results showed this is not a major problem in the Philippines considering that the 5.8 percent rating is way far lower than the 32 percent rating of India, which is the highest. Ratings of Malaysia, Thailand, Indonesia and Vietnam ranged from 9.8 percent-18 percent for this particular indicator.

On problems in skyrockettng payroll costs, again the Philippines had the lowest rating of 18.2 percent with Vietnam having the highest 61.3 percent. Malaysia was second lowest with 27.5 percent while ratings of Indonesia, India and Thailand ranged from 40.8 to 48.1 percent.

On sufficiency of labor supply, the survey showed the Philippines had the lowest rating of 3.2 percent followed by India, 4.2 percent and Indonesia, 4.4 percent respectively, in terms of difficulty in recruiting general staff.

This particular rating means there is a large pool of general staff which MNCs can recruit or hire. Ratings of China, Thailand, Malaysia and Vietnam ranged from 28.6 percent to 36.7 percent with Vietnam having the highest rating when it comes to difficulty in recruiting general staff.

On the difficulty in recruiting executives, Malaysia had the lowest rating of 37.9 percent followed by the Philippines 39 percent. Myanmar had the highest rating of 64.3 percent while the ratings of Thailand, China, Indonesia, India and Vietnam ranged from 40 to 52.8 percent.

Another indicator is low rate of worker's employment retention with the following results: where

• the Philippines had a rating of 30.6 %, the lowest among ratings of other Asian countries.
• Vietnam had 48.7 percent rating so far the highest,
• Thailand, China, India and Malaysia ranged from 33.6 % to 42.5 %.

The Philippines boasts of highly competent and English-proficient labor force. Thus the rating of 37.9 percent the lowest which means our country does not have a major problem when it comes to worker's competency compared to Thailand, Indonesia, Malaysia, India, China, Vietnam and Myanmar, with ratings from 40.9 percent to 56.3 percent with Myanmar having their highest percentage when it comes to problems on worker's competency.

For the manufacturing sector only, when it comes to difficulty in quality control Philippine ratings of 26.7 percent, the lowest so far among other Asian countries in the report, proved that manufacturing firms had minimal problems on quality control compared to India with the highest rating of 45.5 percent. Indonesia, Vietnam, Thailand, Malaysia and China with rating of 28.7 to 43.4 percent.

Reasonable salary, another competitiveness indicator, showed that the Philippines had 5.3 percent rating salary base-up rate for 2011-2012. Malaysia followed with 4.5 percent. Vietnam had the highest rating of 17.1 percent for said indicator while Thailand's rating was third from the lowest at 6 percent, followed by Indonesia, 9 percent; China, 11.4 percent and India,, 12.8 percent

For the annual salary (including bonuses, allowances, benefits like SSS, Pag-Ibig etc) of the manufacturing staff, the Philippines ranked third from the lowest giving an annual salary of $4,048.

The lowest was Vietnam with annual salary of $2,196 followed by Indonesia, $3,980. Annual salary ranges of India, Thailand, China and Malaysia were from $4,495 to $6,340 with Malaysia giving the highest annual salary for its manufacturing staff.

0n annual salary (including bonuses, allowances, SSS, etc) for manufacturing engineers, again, Vietnam's annual salary of $4,793 was the lowest, followed by the Philippines, $6,494.

Malaysia had the highest annual salary for manufacturing engineers at $16,092 while annual salaries of Indonesia, China, India, and Thailand ranged from $9,937 to $11,464.

On annual salary (including onuses, allowances, SSS, Etc) for mfg managers, still Vietnam's annual salary of $11,526 was the lowest annual salary of $5,199 again followed by Indonesia and the Philippines at $6,852 and $7,324, respectively. Malaysia had the highest annual salary for non-mfg staff at $14,554 while annual salaries of India, Thailand and China ranged from 10,088 to $12,334.

On annual salary (including bonuses, allowances, SSS, etc) for non-manufacturing manages, again Vietnam continued to be giving the lowest annual salary of $14,977 for non-mfg managers, followed by the Philippines and Indonesia at $19,187 and $23,068, respectively.

Consistent for annual salaries, all categories, Malaysia had the highest annual salary at $35,117 while annual salaries of India, Thailand and China ranged from $25,179 to $27,610.(Bernie Cahiles-Magkilat)

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Philippines Defense will acquire Italian Fighter-bomber Jets, Frigates, Destroyer & unmanned surveillance Aircrafts

Philippines signed a 5 year contract in Italy Defense Ministry to acquire the following;

• Italian Fighter-bomber Jets
• Frigates
• Destroyer
• Unmanned surveillance Aircrafts

Mr. Gazmin together with a team from the Department of National Defense's newly formed Acquisition Defense System (ADS), went to Italy to sign a five-year contract with that country's Defense Ministry for the acquisition of fighter-bomber jets, a frigate, a destroyer and unmanned surveillance aircrafts, among others.

Gazmin said the government is working on an earmarked ₱70-billion budget to boost the military's capability in territorial defense.

US no more bases like Subic bay Clark in the Philippines

A Senior US official said despite the growing need to increase security engagement with the Philippines, the US still does not plan to have permanent bases in the Philippines but remains committed to helping the country address internal security threats.

Andrew Shapiro, State Department assistant secretary for political and military affairs, said the Philippines's internal security threat has now shifted from terrorism to maritime concerns as the country continues to raise concerns on the Chinese intrusions in the disputed islands on the West Philippines Sea (South China Sea).

During his visit to the Philippines, Shapiro met with senior officials from the Departments of National Defense and of Foreign Affairs to discuss measures on redirecting US military assistance to address internal security threats.

Shapiro said the traditional military assistance that the US gave to the Philippines for fighting terrorism in Mindanao, gave the country "great successes" as proven by the recent deaths of top bandit and terrorist leaders operating in the southern Philippines.

"Given the progress in addressing that threat [terrorism], we can transition our support toward maritime security," said Shapiro in a press briefing on Friday with Manila-based journalists.

"Discussions [focused] on how to deepen partnerships and to work very closely for support to the Philippines's internal security and with their maritime security needs as well," said Shapiro.

Shapiro said the US Congress has recently approved transfer of US military equipment [Coast Guard Cutter] that will further help in the Philippines's maritime security needs. The US also intends to increase humanitarian assistance in disaster areas.

He reiterated that Washington does not intend to set up permanent bases in the Philippines amid recent decisions to strengthen military cooperation.

He said the 600 US troops in Mindanao are still there but will not be stationed in the country permanently.

"We have no plans for bases here… we are talking about ways, in which at the invitation of the Philippine government... we can work together to help support security needs," said Shapiro.

Asked if the US plan to strengthen maritime security of the Philippines is aimed to counter China's increased military buildup on the West Philippines Sea (South China Sea), he said, "Our goal in this dialogue is to help the Philippines with their defense needs as they identify them. It is best to work together in a number of different defense needs... and it is not designed to target any country… it is [aimed] to address the security requirement of the Philippines."

Shapiro maintained that, "the US has not taken a position on the claims [on the South China Sea], we believe it will not be resolved through the use of force. We will continue to press that point to all the parties, that's been the US policy under the Obama administration."

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Maoist CPP NPA Oppose US Pivot to Asia over Spratly’ Philippines – China conflict

Maoist Communist Party of the Philippines (CPP) NPA in the Philippines accused US of using the Philippine Navy as its "frontline force" against China in connection with the brewing conflict over the Spratly Islands.

The China's funded Maoist CPP communist NPA in the Philippines even rejected by China recently show a gestures of supporting back China over Philippines Spratly territorial disputes to gain back the support of the Asian Communist Giant.

NPA irk the armament upgrade of the Philippines as Washington will turnover another Hamilton Class Cutter warship to the Philippines' government this year (2012). "The transfer of another naval cutter from the US government serves the purpose of US military buildup on the West Philippines Sea (South China Sea). Through such, the US is able to employ the Philippine Navy as an augmentation force in the course of its operations to permanently project its military presence and power in the area and secure the trade routes and Asian markets in the interest of US monopoly capitalist companies," the communist CPP NPA said in a statement.

Recently, Defense Secretary Voltaire Gazmin confirmed talks about the acquisition of another Hamilton-class cutter.

However, Vice Admiral Alexander Pama, Navy flag officer in command, said there is no formal offer yet from the US government on the acquisition of another 40-year-old cutter.

Last year the Navy acquired its first cutter from the US Coast Guard under the Excess Defense Articles Program of the US.

Renamed to BRP Gregorio del Pilar (PF15), the US ship that was refurbished and put into operational mission by the Navy last December 2011 was deployed for maritime security patrol on the West Philippines Sea (South China Sea) right after the another intrusion of China on December 11 & 12, 2011 in the Sabina Shoal of Palawan Province with less than a hundred mile distance from the mainland Palawan island.

Also, the CPP NPA accused that transfer of the second Hamilton Class cutter to the Navy "further heightens" tension and is "provoking" China.

"Officials of the US Congress announced that its Foreign Relations Committee is about to wrap up the decision to transfer the US naval cutter Dallas by the end of the week or the 3^rd week of February 2012 and plans to sail it to the Philippines soon thereafter. The naval cutter Dallas was commissioned by the US Coast Guard in 1967," it said.

But defense and military officials averred that the acquisition of new war materiél is part of the long-stalled modernization program of the Armed Forces and has nothing to do with the dispute over the Spratly Islands.

The government earlier announced that it was also negotiating with the US government for the acquisition of several F-16 "Fighting Falcon" jet fighters.

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USA to build new Military base in Spratly Islands -Negotiation with Philippines Government

Zachary S. Welch/AP - Two decades after evicting U.S. forces from their biggest base in the Pacific, the Philippines is in talks with the Obama administration about expanding the American military presence in the island nation, the latest in a series of strategic moves aimed at China.

Two decades after evicting U.S. forces from their biggest base in the Pacific, the Philippines is in talks with the Obama administration about expanding the American military presence in the island nation, the latest in a series of strategic moves aimed at China.

Although negotiations are in the early stages, officials from both governments said they are favorably inclined toward a deal. They are scheduled to intensify the discussions Thursday and Friday in Washington before higher-level meetings in March. If an arrangement is reached, it would follow other recent agreements to base thousands of U.S. Marines in northern Australia and to station Navy warships in Singapore.

Among the options under consideration are operating Navy ships from the Philippines, deploying troops on a rotational basis and staging more frequent joint exercises. Under each scenario, U.S. forces would effectively be guests at existing foreign bases.

The sudden rush by many in the Asia-Pacific region to embrace Washington is a direct reaction to China's rise as a military power and its assertiveness in staking claims to disputed territories, such as the energy-rich West Philippines Sea (South China Sea).

"We can point to other countries: Australia, Japan, Singapore," said a senior Philippine official involved in the talks, speaking on the condition of anonymity because of the confidentiality of the deliberations. "We're not the only one doing this, and for good reason. We all want to see a peaceful and stable region. Nobody wants to have to face China or confront China."

The strategic talks with the Philippines are in addition to feelers that the Obama administration has put out to other Southeast Asian countries, including Vietnam and Thailand, about possibly bolstering military partnerships.

The United States already has about 600 Special Operations troops in the Philippines, where they advise local forces in their fight with rebels sympathetic to al-Qaeda. But the talks underway between the Philippines and Washington potentially involve a much more extensive partnership.

Officials in the Philippines — which has 7,107 islands — said their priority is to strengthen maritime defenses, especially near the South China Sea. They indicated a willingness to host American ships and surveillance aircraft.

Although the U.S. military has tens of thousands of troops stationed at long-standing bases in Japan, South Korea and Guam, as well as the island of Diego Garcia in the Indian Ocean, it is seeking to solidify its presence in Southeast Asia. Some of the world's busiest trade routes pass through the South China Sea and the nearby Strait of Malacca.

Instead of trying to establish giant bases reminiscent of the Cold War, however, Pentagon officials said they want to maintain a light footprint.

"We have neither desire nor any interest in creating a U.S.-only base in Southeast Asia," said Robert Scher, a deputy assistant secretary of defense who oversees security policy in the region. "In each one of these cases, the core decision and discussion is about how we work better with our friends and allies. And the key piece of that is working from their locations."

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Word War begin Hong Kong Vs Mainland China like West Philippines Sea (South China Sea)

Kong Qingdong, a direct descendant of the Chinese philosopher Confucius, stands in front of a painting depicting celebrities and world leaders, including a dancing Russian Prime Minister Vladimir Putin, at the Confucius Peace Prize ceremony in Beijing December 9, 2011

For China's newest battle in the West Philippines Sea (South China Sea), look no further than Hong Kong.

As reported by India base news online, China's dominant website called the people of the Philippines, Vietnam and Southeast Asian (ASEAN) as beggars, dogs, dirty pigs and must be slaughter or be burn alive.

The semi-autonomous island is home to immoral people, most of whom are thieves, dogs and bastards, according to Kong Qingdong, a professor of Chinese studies at Beijing University.

"As far as I know, many Hong Kong people don't regard themselves as Chinese. Those kinds of people are used to being the dogs of British colonialists — they are dogs, not humans," Mr. Kong said in a recent interview on Chinese news website v1.cn. See video here

Mr. Kong's comments came after a recent survey from the University of Hong Kong in which 34% of Hong Kong's seven million people said they think of themselves as Chinese.

They were also in response to a debate that emerged after a video of a squabble between Hong Kong residents and mainlanders went viral last week. The video captured a subway squabble between a mainland visitor who was eating on the Hong Kong train and local passengers who informed her that eating on the subway was forbidden. See video here

The spat turned into a yelling match, sparking another passenger to hit the train's emergency button, calling for subway staff to intervene. After a train representative arrived, a Hong Kong passenger told him, "No need to speak to them. That's what mainlanders are like."

In Hong Kong, Mainland residents are better known for spitting and littering than they are known for their etiquette. "There is no denying that the manners and etiquette of some visitors from the mainland do not meet the standards set by the local Hong Kong residents. But poor manners are considered only a nuisance," said Huang Xiangyang, a writer for state-run China Daily, last week in an op-ed column addressing the subway brawl.

Mr. Kong's response to the video was not well received in Hong Kong. Protests erupted on the island over the weekend, according to Hong Kong broadcaster RTHK. Scores of Hong Kong citizens, many of whom brought their dogs with them, gathered at the Liaison Office of the Central People's Government, Beijing's main representative office in Hong Kong, urging China's mainland residents and officials to understand Hong Kong's values.

A battle has been brewing as of late between this special administrative region, still influenced by its history as a former British colony, and its onlookers to the north, who represent the world's second-largest economy and have a strong sway over the future of Hong Kong.

Earlier this month, 1,500 Hong Kong mothers took to the streets to protest the flooding of local hospitals by a growing tide of pregnant mainland women who rush to Hong Kong to give birth, ensuring their children are Hong Kong citizens and have access to the administrative region's schools and subsidized health care.

Also in January, hundreds of Hong Kong citizens rallied outside an outlet of the Italian luxury brand Dolce & Gabbana after the store's security told local citizens that only visitors from China's mainland could snap photos of the shop.

Tensions between China and Hong Kong have heightened since 1997, when British authorities returned Hong Kong to China after more than 150 years of colonial rule. Hong Kong residents, who speak Cantonese, not the mainland's Mandarin, and drive on the left side of the road, have been eager to preserve their own culture. Many are afraid that businesses are slowly pushing them aside, discriminating against them in favor of wealthy mainlanders with whom they feel they do not identify.

Mr. Kong warns Hong Kong residents who think they their morals are better than the mainlanders': "Don't have anything to do with us. We will stop supplying your water. We will stop supplying your vegetables. We will stop growing your rice. You can grow it all yourself."

A recognized descendent of Confucius, Mr. Kong last year participated in a ceremony awarding the Confucius Peace Prize, China's unofficial answer to the Nobel Peace Prize, to Vladimir Putin.

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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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