JPRS-SEA-86-174
26 SEPTEMBER 1986
Southeast Asia Report
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JPRS-SEA-86-174
26 SEPTEMBER 1986
SOUTHEAST ASIA REPORT
CONTENTS
PHILIPPINES
Columnist Discusses Strategic Factors of U.S. Bases
(Hermes Vittorio; THE MANILA EVENING POST, 29 Aug 86) .....
Paper on USAID ‘Pressure’ on Palay Support Price
(Michael D. Marasigan; BUSINESS DAY, 2 Sep 86) ....eseeeees
Use of Peso Counterpart Funding for Loans Proposed
(Daniel Cc. Yu; BUSINESS DAY, 5 Sep 86) eeeeeeeeeereeeeeeeeee
NDF International Representative at Nonaligned Summit
(PANA, 3 Sep 86) eeeeeeaeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
Government ‘Finally’ Outlines Economic Thrust
(BUSINESS DAY, 3 Sep 86) eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
Foreign Debt Repudiation Still Being Considered
(THE MANILA CHRONICLE, 8 Sep 86 ) eseeeeereeeeeeeeeeeeeeeeeeeee
Economic Minister Wants Foreign Debte, Exports Linked
(BUSINESS DAY, 5 Sep 86) e*eeeeeeeeee ee eeeeeeeeeeeeeeeeee eee
Minister Rules Out Total Lifting of Import Controls
(Claro Fernandez; THE NEW PHILIPPINES DAILY EXPRESS,
2 Sep 86) eeeee eee ee ee eee eeeeeeeeeeeee eve ee eee eeeeeeeeeeeee
Minister Announces More Import Liberalizations
(NEW DAY, 8 Sep 86) eeeeeeeee eee ee eeee eee eeeeeeeee ee eeteaeeeee
Rise of Raw Material Imports Reported
(BUSINESS DAY, 2 Sep 86) eeeeeeet eee eeeeeeeceae eee ee ee ee eeeee
Coconut Exports Rise 115.6 Percent
(BUSINESS DAY, 8 Sep 86) eeeeeveeeeeeeeeeeeeeeeeeee eee eeeeee
10
13
14
15
16
17
19
Justice Minister Stresses Need for Land Reform
(Rey G. Panaligan; MANILA BULLETIN, 6 Sep 86) ..........--
Farmers’ Sub-Poverty Level Incomes Highlighted
(Rodolfo Alancastro; THE MANILA TIMES, 6 Sep 86) .........
Development Bank's Non-Performing Assets Sold
( THE MANILA TIMES, 3 Sep 86) seer ewveeeeeeeeneeeeeeeeeeeeeee
Peso's Exchange Rate Declines; Dollars Sold
(Noel D. de Luna; BUSINESS DAY, 5 Sep 86) eee eeeeeeeeeeee
Central Bank Sells All Three-Year Treasury Notes
(MANILA BULLETIN, 6 Sep 86 ) see veeeeeeeeeeeeeeeerereeeeeeeee
Central Bank Reduces Rediscount Rate
(BUSINESS DAY, l Sep 86) see ereeeeeeeeeeeeeeeeeneneeeeneeeeeee
Commercial Banks' Assets Drop 1.5 Percent
(BUSINESS DAY, l Sep 86) eee eeeeeeeeeeeeeeeeeeeeeereeeeee
May 86 Retail Price Index Rises Slightly During May
(BUSINESS DAY, 3 Sep 86) eeeeeeeeeeeeeeeeeeeeeeeeervreceeeee
Economic Indicator on Decline of Gross Credit
(BUSINESS DAY, 1 Sep 86) “ee eeeeeeeneeeteeeneneneeneeeneeeeeeeeeee
Economic Conditions in Central Visayas Worsening
(Manuel S. Satorre; BUSINESS DAY, 3 Sep 86) ....seccceeess
Food Authority Faces Rice Surplus Problem
(BUSINESS DAY, 3 Sep 86) eeeeeeeeeeeeneeereeeeeeeeeeeeeee eee
Production Value Index Drops 7.6 Percent
(BUSINESS DAY, 5 Sep 86) *eeeeeeeeeeeeeeeeeeeeeeeeeeee ee ee
Domestic Liquidity Rises 5.89 Percent
(BUSINESS DAY, 8 Sep 86) *eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
Labor, Management Disagree Over Conference
(M. Selirio; BUSINESS DAY, 3 Sep 86) seeneeeeneenrereeeeeeeeeeee
Article on Ailing Institutions Cost to Government
(Daniel Cc. Yu; BUSINESS DAY, 8 Sep 86 ) eeeeeeeeeeeeeeeeeee
Deputy Minister Says CHDF To Be Retained
(Romy Dizon; PHILIPPINE DAILY INQUIRER, 2 Sep 86) ........
Special Report on Situation in Negros
(Amando Doronila; THE MANILA CHRONICLE, various dates) ...
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25
27
28
30
31
33
35
37
39
42
44
46
49
51
Weekly on Political Background of Misuari
(Alex S. Villanueva; NEW DAY, 8 Sep 86) ....ccicecccccceees
MALAYA Editorial Lauds Aquino-Misuari Meeting
(ANG PAHAYAGANG MALAYA, 8 Sep 86) eeeeeeeeeeeeeeeeeeeee eevee
Sison Hits U.S. Bases Before Japanese Audience
(THE MANILA EVENING POST, l Sep 86) eeeeeeeeereeeeeeeeeeeeee
NPA Member Tells of Setback After ‘Revolution’
(FHILIPPINE DAILY INQUIRER, 6 Sep 86 ) ereeeeeeeeneeeeneereeeee
NPA Guerrillas Attack Town Hall in North
(AFP, 1 Sep 86) seep eeaeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
Columnist Laments CP?'s ‘Uncompromising Position’
(Orlando F. Aquino; MANILA BULLETIN, 2 Sep 86) ....eeeeeees
Paper Urges Listening to All Sides in Mindanao
(Editorial; MANILA BULLETIN, 6 Sep 86) eseeeeeeeeeeeeeeeeeee
Tatad on Military Fears Over Talks
(Francisco S. Tatad; BUSINESS DAY, 3 Sep 86) ...seseeeseees
Columnist on Handling of Ceasefire Talks
(Melchor P. Aquino; MANILA BULLETIN, 3 Sep 86) .....seeee+.
Army Official Assures Capability of Military
(BUSINESS DAY, 3 Sep 86) eeeeeee eo eee eeee ee eee eeeeeeeeeeeeee
Supreme Court Warns Military on Rights, Abuses
(R. G. Panaligan; MANILA BULLETIN, 6 Sep 86) ....seseeeseees
Bicol Military Accused of Human Rights Violations
(THE MANILA JOURNAL , S Sep 86) eeeeeeeeeeeeeeeeeeeeeeeeeer ee
Officers Group Denounces Military Discrimination
(Proculo Maslog; THE NEW PHILIPPINES DAILY EXPRESS,
2 Sep 86) eeeeeeee ee eee eee eee eee eeeeeeee eee eee eeee ee eeeeeee
Military Says NPA Set Up Davao del Norte Ambush
(THE NEW PHILIPPINES DAILY EXPRESS, 2 Sep 86) ...ceeseeeess
Paper on Insurgency's Impediment to Democracy
(Editorial; MANILA BULLETIN, 2 Sep 86) eeneeeeeeeeeeeeeeeeee
Military Denies Breaking Davao del Norte Ceasefire
(Lito Mangaser; THE MANILA CHRONICLE, 3 Sep 86) ...sseeeees
Analysis Notes ‘Fast-Rising' Level of Frustration
(Luis V. Teodoro; THE MANILA CHRONICLE, 1 Sep 86) ......6..
eo Eg @=
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67
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69
70
71
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74
76
78
89
82
85
86
National Political Party for Women Organized
(BUSINESS DAY, 5 Sep 86) see eeereeeeeeeeeeeeeeeeeeeeeeeeeeee
Valencia on Formation of Partido NG Bayan
(Teodoro F. Valencia; THE NEW PHILIPPINES DAILY EXPRESS,
2 Sep 86) eee eee eeeeee eee eeeeeeeeeeeeeeen eee eee eeeereeeeeeee
Commission Opens Heariags on Marcos Wealth
(AFP, l Sep 86 ) eee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeete
3,000 Loyalists Hear Taped Marcos Interview
(Lito Zulueta; THE MANILA CHRONICLE, 8 Sep 86) ..cesececees
Briefs
Trade Zones’ Export Earnings
New Political Party Formed
Military Participation in Peace Talks
VIETNAM
INTERNATIONAL RELATIONS, TRADE, AND AID
Leaders Receive National Day Greetings From Socialist Countries
(VNA, various dates; Hanoi Domestic Service, 6 Sep 86) ....
GDR, Hungarian, Other Messages
Polish, Nicaraguan Greetings
Praise From Afghanistan
Bulgaria, Poland, Cuban Greetings
Japanese, Others Mark National Day
UK Amity Group Marks Day
Greetings on Bulgarian National Day
(VNA, 8 Sep 86) eevee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
/7310
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JPRS-SEA-86-174
26 September 1986
PHILIPPINES
COLUMNIST DISCUSSES STRATEGIC FACTORS OF U.S. BASES
HKO11426 Manila THE MANILA EVENING POST in English 29 Aug 86 p 4
("The White Paper" column by Hermes Vittorio: "U.S. Military Facilities:
Their Strategic Factors")
[Text] In a few days, the Con-Com [Constitutional Commission] will hold a
plenary session on the controversial issue of U.S. military facilities in the
Philippines and their foreign policy implications. Despite the raging polemics,
there is a growing sense that the majority of the Con-Com members still favor
the retention of the facilities until 1991.
These facilities are here to stay.
Despite the majority votes favoring retention, however, the supporters of the
U.S. facilities should come clean and candidly admit that these facilities are
not primarily for Philippine but for American strategic policy. In the scheme
of things, military calculations will show that the Philippines is merely
secondary in American strategic thinking.
Based on the U.S. global security network, the military facilities in the
Philippines have two purposes: an "ideal" deterrent system, and as part of the
command, control and communications (3 C's) system vital to the development of
weapons technology and strategic doctrine.
According to U.S. military calculations, intelligence and early warning systems
(EWS), of which Clark and Subic are major installations, more than deter a per-
ceived surprise attack. They identify targets necessary for the planning of
counterforce attacks as well as locate missile silos and bomber bases, enemy
command and control centers and other military installations of the American
enemy. Without the Clark and Subic facilities, current U.S. strategic doctrine
would have to be changed entirely. This they can carry out right now.
Consequently, the strategic implications for the Philippi.es are not indepen-
dent of U.S.-Russian strategic thinking. Because of the unstable global
strategic structure, there is no doubt that the Philippines is a cockpit in
the nuclaer arena. Both the U.S. and the Soviet Union, by their very state-
ments, have targeted the Philippines as a potential for counterforce attacks
and selective and flexible response by America's enemy. Any military conflict
involving the great powers in the area will not preclude the Philippines as a
prime target of attack. Since these facilities are more strategic- than
tactical-oriented, the argument that they are here to defend the Philippines
does not follow. These facilities will never be used in isolation. This means
that they are for American rather than Philippine reasons. They will be used
ior American reasons and purposes. They are not and have never been for mutual
defense. Commitments therefore are doubtful.
American military facilities in the Philippines are unreliable in terms of
Philippine defense against Philippine enemies. The U.S. will decide whether
aid is to be given or not. In terms of strategic rather than conventional
thinking, these facilities therefore become a reason for threat. Remove them
and the threat disappears.
The Con-Com therefore is called upon to study the realities in the area before
any decision on the U.S. military facilities is finally made.
/7358
CSO: 4200/1425
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
PAPER ON USAID ‘PRESSURE’ ON PALAY SUPPORT PRICE
HKO31253 Quezon City BUSINESS DAY in English 2 Sep 86 p 2
[Article by reporter Michael D. Marasigan]
[Text] Notwithstanding the repeated denials of Agriculture and Food Minister
Ramon Mitra and his deputy minister Emil Ong of the National Food Authority
(NFA), the United States Agency for International Development (USAID) may
have indeed pressured the government into lowering the support price for
palay.
Documents obtained by BUSINESS DAY showed that Peter Timmer, a USAID grains
expert, has submitted to the government as early as April a working paper on
alternative palay procurement prices and retail prices for rice.
The government, through the NFA council, last week approved in principle to
reduce the support price of palay from P3.50 to P3 a kilo. Sources further
said a reduction in the support price of corn, from P2.90 to P2.50 per kilo,
will also be implemented once the NFA is provided its procurement funds.
Several farmer organizations protested against the NFA decision, claiming
that the government has again yielded to pressure from foreign interests, in
this case, USAID. However, both Mitra and Ong denied that there was such a
pressure.
The USAID has been extending soft loans to the Philippines to finance develop-
mental projects. It agreed last week to convert about $99 million worth
of long-term loans into grants. In addition, it also approved last week a
$20-million grant to finance agricultural projects.
NFA employes admitted that there was really pressure from the USAID. They
claimed it was related to the country's consumption of wheat. The U.S. is
the Philippines’ biggest supplier of wheat.
The strategy is simple, the sources said. Once the support price for palay
is brought down, fevmers will be discouraged from planting palay since it is
no longer profitable. In a scenario like this, it will be justifiable to
increase wheat importation.
There is a ban on rice and corn imports but there is no such restriction on
the importation of wheat. Too much importation of wheat could adversely
affect both the rice and corn industries.
Thus, increased wheat importation should first be justified. Rice production
should be inadequate so that consumers will buy more bread products.
But wheat is not only used for bread. It could also produce feed substitutes
(by-products) such as bran and pollard. This could severely affect the animal
feed market for corn and rice bran.
This issue, however, is not discussed in the Timmer working paper. The
government's official reason for lowering the support price for palay is to
enable the FNA to buy more despite its limited funds.
On the other hand, the Timmer report emphasized that the NFA will need a huge
subsidy if the difference between palay procurement prices and rice retail
prices is narrow.
But if the margin is wider, the NFA would only need a little subsidy or no
subsidy at 211. Thus, the support price should be lowered to widen the margin.
The Timmer report cited several prices for palay procurement (ranging from
P2.70 to P3.50 per kilo) and rice retailing (ranging from P6.50 to P8 per
kilo).
At a support price of P2.70 per kilo, the NFA would only require a subsidy
amounting to P8 million if it retails the rice at P6.50 per kilo. No subsidy
will be required if the retail price is raised to P7 per kilo.
At a support price of P3 per kilo, the subsidy would amount to P363 million
at a retail price of P6.50 per kilo. The subsidy could go down to P77 million
if the retail price is brought up to P7 per kilo. No subsidy is necessary if
the retail price is set at P7.50 per kilo.
At a P3.50 support price, however, the subsidy would start at P163 million
if the retail price is fixed at P8 per kilo; P490 million at P7.50 per kilo;
P980 million at P7 per kilo; and a staggering P1.63 billion if the retail
price is maintained at P6.50 a kilo.
In a dialog with agriculture officials, farmer leaders of the Kilusang
Magbubukid ng Philipinas [Peacants' Movement] yesterday said that instead of
widening the margin, the government should convert the P3.50 support price
into a “floor price.”
If this is not possible, the farmers asked that the support price be maintained
at P3.50 and the government's procurement funds be increased.
Deputy Minister for Agriculture and Foo Carlos Dominguez told the farmers
that their requests will be considered. However, he informed the farmers
that the government is really short of funds and may not be in a position
to increase the NFA's procurement budget.
At the same time, he saic, it will be difficult to mandate a floor price
since this would run counter to the government's policy of minimizing market
intervention. There is also a possiblity that traders would refuse to buy
palay if the support price is converted into ~ floor price,” he said.
/6662
CSO: 4200/1415
JPRS-SEA-86-174
26 September 198
PHILIPPINES
USE OF PESO COUNTERPART FUNDING FOR LOANS PROPOSED
HKO51529 Quezon City BUSINESS DAY in English 5 Sep 86 p 2
[By Daniel C. Yu]
[Text] The Philippines has proposed to the Japanese Government the use of the
peso counterpart funding of three loans from Japan's Overseas Econonic
Cooperation Fund (OECF) to finance critical government expenditures this year.
Finance Minister Jaime V. Ongpin submitted the proposal concerning the eight,
ninth and a portion of the present 13th OECF yen package to fund the
government's Rural-Based Eaploysent Progras.
Ongpin said the Japanese gcvertaoment's approval of the request would be
regarded highly and that future budget programs would give priority to
providing peso counterpart funding for conventional Japanese-assisted
projects. Ongpin's proposal would mean a P5,777-million net inflow into the
expenditure progrum for this year, basud on the current exchange rate.
Documents made available to BUSINESS DAY indicate that the eighth yen loan
package has $74.8 million undisbursed since May 1984, when the yen package was
made available. They also show that the ninth yen loan package has $103.6
million which can be tapped, and a proposed special commodity loan {n the 13th
yen package, can provide $103.3 sillion.
The Philippines has agreed to drop 4 «? 11 projects in the 13th yen package.
It has proposed that credit for the 4 projecte be converted into a special
commodity loan.
Ongpin said this conversion would be “essential in building up (the country's)
international reserves and in financing the government budget deficit.”
A BUSINESS DAY source in the Japenese embassy yesterday said Japan has
received the Philippine request for the use of the peso counterpart funding to
finence the employment programs but has not yet responded. The source
explained thet the Philippines and Japan agreed last December to convert one-
third of the $245 million in the 13th yen loan package into a commodity loan
to finance imports, and to use the remainder to finauce 11 projects [word
indistinct] the previous administration to the (CF.
The rew government has scrapped four of the projects because they were
“political projects” of persons close to the past administration. The embassy
source said that in view of the “already long pipeline of credit assistance”
available to the Philippines, the Japanese Government has asked for additional
documents to justify the conversion of loans for the four projects into a
commodity loan. The Central Bank and the Ministry of Finance have submitted
the documents. The source said the Embassy understands the government's
urgent need to get Tokyo's response. A follow-up cable was sent to the OECF
Tokyo office the other day, other sources said.
Ongpin also told the Japanese government that complete disbursement of the
eighth OECF loan is expected by the end of this month. He said regulatory
limitations had previously prevented fast use of the facility. Libralized
rules have stcpped up disbursements, he said.
Ongpin proposed that, to facilitate disbursement from the ninth loan and the
special commodity loan, the same liberalized procedures be adopted and that
the list of commodities eligible for funding be expanded.
Ongpin said Japanese government support through new OECF commodity loans and
liberalized procedures for disbursements would help the Philippines greatly in
achieving a favorable balance of payments this year.
/12913
CSO: 4200/1413
PHILIPPINES
NDF INTERNATIONAL REPRESENTATIVE AT NONALIGNED SUMMIT
MBO40510 Dakar PANA in English 1418 GMT 3 Sep 86
[Text] Harare, 3 Sep (PANA)--The Philippines needs the assistance of anti-
imperialist and other democratic forces in the world to get rid of U.S. domin-
ation so as to become genuinely independent and thereby make full contribution
for peace and non-alignment.
This was said by the representative of the opposition National Democratic
(NDF) [as received] of the Philippines, Luis Jalandoni, in an interview with
PANA.
He said that his front would continue to press for the dismantling of the more
{words indsitinct] military bases in the Philippines as well as the domina-
tion of the economy by [words indistinct] country's trade.
Jalandoni said the Philippines cannot qualify to be a nonaligned country if
the military bases of the U.S. are not (?dismantled) because these were
being used as launching pads for attacks against other countries.
The front condemns the misuse of the U.S. bases in the Philippines for sending
aircraft carriers, troops and war material to the coast of Libya to threaten
the people and Government of Libya and endanber peace and security in that
region of the world, Jalandoni said.
He said this was not the first time it had used the military bases in the
Philippines as launching pads of intervention. It did this in the 1960's
against the people of Vietnam, he said.
On the peace talks between his front and the new government of President
Corazon Aquino, he said these were being sabotaged by the U.S. which had
doubled military aid to the Aquino government and was pressing it to go for
a military solution to the Philippine problem.
He reiterated the resolve of his front to achieve a peaceful settlement based
on a comprehensive agreement which would include a nationwide ceasefire.
However, he said, this was being sabotaged by Defence Minister Juan Ponce
Enrile and the Armed Forces chief of staff, (?Gen.) Fidel Ramos, who had
intensified military repressions especially in the countryside, where he
claimed his front controlled 62 of the 73 provinces.
He said his front's 30,000 combatants were implementing a policy of active
defence and were restraining themselves from nationwide tactical offensive.
However, we reserve the right to actively prevent troops of Defence Minister
Enrile and Gen. Ramos from committing acts of harassment and brutality
against the people and entering our guerrilla fronts, Jalandoni said.
He said Aquino had a genuine desire for a negotiated solution but her defence
minister and Army chief of staff were sabotaging her efforts.
On the ongoing summit of the Nonaligned Movement, Jalandoni [words indistinct]
being taken to increase the anti-apartheid struggle in Namibia and South
Africa and the Frontline States.
We hope that concrete steps will be taken so that the self-reliance efforts
of these peoples and states will be complimented by militant assistance and
solidarity to bring about the definitive abolition of apartheid, he said.
/6662
CsO: 4200/1415
JPRS-SEA-86-174
26 September 19
PHILIPPINES
GOVERNMENT ‘FINALLY’ OUTLINES ECONOMIC THRUST
HKO31420 Quezon City BUSINESS DAY in English 3 Sep 86 p 2
[Text] Six months after it assumed power, the Aquiono government has finally
put together a broad outline of its economic thrust, strategies for develop-
ment and overall thinking on key policy issues which businessmen and invest-
ors alike have been waiting for.
The broad outline was drafted by a number of close presidential advisers in
preparation for President Aquino's trip to the United States starting the
middle of this month.
In a capsule, the Aquino government, according to this broad outline, will
endeavor to keep the Philippine economy open, vigorously encourage local
and foreign investments, abandon a labor-intensive industrialization program
and scrap a commodity-led export strategy.
The Aquino government is committed to a policy of an open economy and is
distancing itself from the "isolationist stance" advocated by some quarters
in the economy.
At the same time, however, the new government does not intend to swallow
prescriptions of the International Monetary Fund-World Bank “hook, line and
sinker." In fact, it said, some economic prescriptions of the IMF and the
World Bank are seriously flawed.
The new government does not intend to focus its export strategy simply on
the export of raw materials. It said export-led development should be
seriously restudied in the light of new developments in the international
economic environment.
At the same time, the Aquino government does not intend to make economic
growth purely dependent on the country's labor-cost advantage. In today's
environment and in view of recent technological developments, labor-intensive
technology is no longer effective especially with the advent of robotics, it
said.
Labor, in today's international economic setting, no longer provides the so-
called comparative advantage which was true during the ‘60s and ‘70s. In
10
the coming decade, the new government believes capital will be the key to
development .
The economies that provide the cheapest cost of capital for development will
most likely be the ones to succeed in the coming years. Thus, the real rate
of interest must be brought down, the government said.
In addition, the new government will increasingly shift its attention away
from the never-ending negotiations with the IMF, the World Benk and the
country’s creditor-banks. It will widen its scope of coverage to include
as well other sources of capital fund.
In view of these, the Aquino government would work toward making the invest-
ment climate in the country as attractive as possible for both local and
foreign investors.
These [as published] broad policy outline which the President will discuss in
her visit to the U.S. was disclosed yesterday by Jesus P. Estanislao, chair-
man of the Development Bank of the Philippines (DBP) and who is believed
to be one of the key presidential advisers that drafted the framework.
Estanislao yesterday spoke before the American Chamber of Commerce of the
Philippines and said this broad indication of the stand of the new government
principally reflects a new approach as a result of international developments.
Basically, he said, the notion of an inter-linkage between agriculture and
industry in development has slowly been eroded and that worldwide developments
indicate that such a linkage has already been broken with agriculture and
industry going their separate ways.
In the case of industry, there is no longer a connection between industrial
production and industrial employment as data on the world economy during the
last decade (1975 to 1984) showed that while industrial production went up by
40 percent, industrial employment actually fell by five million people.
Estanislao also pointed out that there is no longer any linkage between capital
movement and trade surplus. A clear example, he said, is the United States
which continues to suffer a substantial trade deficit but, on the other hand,
continues to attract capital.
Estanislao said the Aquino government's economic program, which is now being
finalized, will be completed by the end of this month.
Principally, it will focus on the development of farm products for domestic
consumption. There will be a deliberate effort to reduce the total number
of food items imported by the country.
At the same time, the government will work toward rebuilding its consumer
goods industry. The rehabilitation will be undertaken in line with the need
to upgrade the industry's standard in order to meet international competition.
Tariff protection of 5 percent to 10 percent will be given.
11
The Philippines will also go into production sharing arrangements. These
will entail the linking of the Philipoine economy with international produc-
tion processes, something which an observer noted, is what t*> IMF-World Bank
wants.
Industry observers told BUSINESS DAY that the pronouncements made by the
government on its economic orientation would perhaps clear once and for all
the leaning of the Aquino government.
/6662
CsO: 4200/1415
12
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
FOREIGN DEBT REPUDIATION STILL BEING CONSIDERED
HKO81113 Manila THE MANILA CHRONICLE in English 8 Sep 86 p 9
[Text] Economic Planning Minister Solita C. Monsod has not given up efforts
to reduce the country's foreign debts through her controversial case-to-case
disengagement, or the nore diplomatic term for selective debt repudiation.
Monsod said that she already has an itemized listing of the foreign loans
stating the nature of the borrowing, the names of the borrower and creditors
and the date they were contracted. She said that she was furnished the
listing by the Central Bank [CB] last month that contained the loans inventory
made by the CB 1984. Monsod pointed out that she would ask the help of some
businessmen in identifying which of the foreign loans would be eligible for
the case-to-case disengagement scheme. She said that the eligible loans would
be those with which the tacit knowledge of the creditors, were contracted for
projects that were grossly overpriced and non-feasible and those where there
is strong evidence that the money was incurred to finance “ghost” projects and
essentially aimed at capital flight.
While many in the Aquino Cabinet favor such scheme in reducing the country's
debt burden, some bankers have cautioned that this could further delay the
planned restructuring negotiations with the foreign creditor banks. The delay
in the approval of the standby credit by the International Monetary Fund (IMF)
has already pushed back the planned talks with the commercial bank creditors.
Monsold' case-to-case disengagement plan, however, could well serve as a good
bargaining point in the Philippines’ negotiations for a lighter debt burden
with the foreign banks.
For one, part of the loans identified as eligible for litigation could be
traded off for lower interest charges on rescheduled loans.
/12913
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PHILIPPINES
ECONOMIC MINISTER WANTS FOREIGN DEBTS, EXPORTS LINKED
HKO51525 Quezon City BUSINESS DAY in English 5 Sep 86 p 3
[Text] Economic Planning Minister Solita C. Monsod is proposing that the
Philippines pay interest on foreign debts only if there is foreign exchange
left after deducting import payments from export earnings.
If imports equal or exceed exports, the unpaid interest will be considered
“new loans" automatically, according to her proposal.
Monsod said she would “push very hard" for such an arrangement with foreign
credit banks, calling it an “interest conversion scheme."
"I'm going to be pushing for it so hard, as hard as I'm pushing for internal
structural reforms," she said.
She said she expects the creditor banks to “react very badly because auto-
matic capitaliziation of interest is a no-no," but added, “we just have to
keep pushing."
The minister emphasized that the Philippine economy "is trying to grow,”
and that growth is impossible when all of the country's foreing exchange
earnings are spent on foreign debts.
A local banker interviewed by BUSINESS DAY said Monsod is following the
example Peru has set in dealing with international creditors, but is
“modifying” it. Whereas Peru has acted unlaterally in limiting foreign debt
payments to a portion of its export income, the Philippines hopes to ne-
gotiate with its foreign creditors to accept the proposal.
However, the banker said, "We're just going to be buying time with that
proposal, I guess. She (Monsod) cannot convince the bankers to turn the
unpaid interest into equity.”
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14
MINISTER RULES OUT TOTAL LIFTING OF IMPORT CONTROLS
HKO21515 Manila THE NEW PHILIPPINES DAILY EXPRESS in English 2 Sep 86 p 8
{Article by Claro Fernandez]
[Text] Trade and Industry Minister Jose S$. Concepcion Jr. yesterday said
that a number of products would continue to receive protection from the
government.
This means that of the 304 items still excluded from the government's trade
liberalization program, only about 138 products will be liberalized.
Concepcion made this disclosure in reaction to earlier reports that the
International Monetary Fund (IMF) and World Bank (WB) “were dismayed" by a
government decision declaring a three-month moratorium in the full implement-
ation of the import liberalization scheme.
Covered by the moratorium were 304 products on which the government were to
conduct hearings to determine which of the items “will be free and which will
continue to receive protection."
The government has so far lifted import controls on some 939 products or
short of the 1,243 items demanded by the IMF.
The IMF has demanded the lifting of import curbs on the products in connection
with the country's bid for a new standby credit.
According to Concepcion, the IMF and WB should not be dismayed over the
moratorium declared on the 304 products “because the government is doing a
‘tailored program’ to come up with a healthy compromise on the issue."
He added “the Philippine government, through Finance Minister Jaime Ongpin,
will be sending a telex to the IMF today to explain the deferred implementa-
tion of import liberalization program."
The telex will include the results of the 12 public hearings that the MTI
[Ministry of Trade and Industry] has so far conducted.
The moratorium on the liberalization program will expire this October 31.
/6662
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JPRS-SEA-86-]
26 September
PHILIPPINES
MINISTER ANNOUNCES MORE IMPORT LIBERALIZATIONS
HKO80956 Quezon City NEW DAY in English 8 Sep 86 p 16
{[Text] The government will liberalize the importation of 80 more commodities
by the end of this month. They are among the 137 commodities that were sche-
duled to be liberalized last April 30, Trade and Industry Minister Jose S.
Concepcion Jr. said.
Concepcion also said the government will comply with the deadline set by the
International Monetary Fund and the World Bank on May 1, 1988 on the absolute
deadline for the deregulation of the remaining commodities under the current
program which covers a total of 1,232 items.
Among the 80 items to be liberalized this month are steel products (which
accounted for 43 items), high tariff rubber-based and wood-based items, new
tires, vinyl-asbestos tiles and sheets, synthetic resins and paper products.
The remaining 54 items due for liberalization in April are currently being
reviewed and a plan of action on what to do will be available by the end of
next month, Concepcion said.
The 80 items will be deregulated as soon as adjustments on their import taxes
are made within this month.
Other commodities still regulated, including 169 items scheduled to be liber-
alized by the end of this year and anothe: 77 items by the end of June next
year, will be reviewed and a program of action will be available by the end
of this year, he added.
The import liberalization program is one of the key policy reforms that the
government has committed to undertake under the letter of intent it had sub-
mitted to the IMF.
The government has furnished the IMF with the results of consultations with
the affected sectors. Substantial compliance with the import liberalization
plan is one of the IMF requirements for approval of a Philippine request for
a new standard by arrangement.
/6662
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16
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
RISE OF RAW MATERIAL IMPORTS REPORTED
HKO21538 Quezon City BUSINESS DAY in English 2 Sep 86 p 2
["Economic Indicator" column: "Raw Material Imports Rise"]
[Text] The country's imports of raw materials and intermediate goods in the
first half of 1986 rose by 15.30 percent to $1,246 million from $1,072 mil-
lion during the first six months of 1985, latest data from the Central Bank
showed.
This represented 51.04 percent of vital imports of P2,441 million in the
first half of the year.
These commodities included wheat, inedible crude materials, animal and vege-
table oils and fats, chemicals, manufactures, embroideries, materials and
accessdries for the manufacture of electrical equipment, and iron ore (not
agglomerated).
Purchases of raw materials used in the manufacture of rubber, paper and
paper products, textile yarn, fabrics and made-up articles, iron and steel,
nonOferrous metals and metal products reached $291 million, up 19.26 percent
from last year's $243 million. Responsible for the increase was the substan-
tial 44.72 percent growth (from $65 million in 1965 to $94 million) in the
purchase of raw materials used in the manufacture of iron and steel.
In terms of volume, 330,000 metric tons of these materials were imported at
a unit price of $284 per metric ton compared with the 169,000 metric tons
purchased in 1985 at a unit price of $384 per metric ton.
[Word indistinct] reason for the increase was the 41.94 percent hike in the
purchases of raw materials for textile manufacturing to $28 million during
the first six months of 1986 from $62 million in 1985.
[Table on following page]
17
Raw Materials and Intermediate
Foods Imports
January to June 1985 & 1986
(FOB value in million US dollars)
Commodity 1986 1985 Z of change
Wheat 60 51 17.65
Crude materials, inedible 113 67 68 .66
Animal & vegetable oils & fats 6 8 (25.00)
Chemica! 328 270 21.48
Manufactures 291 244 19.26
Embroideries 106 102 3.92
Materials & accessories for manu-
facture of electrical equipment 308 304 1.32
Iron ore, not agglomerated 24 26 (7.69)
Total 1,236 1,072 15.30
Source: Central Bank
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18
PHILIPPINES
COCONUT EXPORTS RISE 115.6 PERCENT
HKO81211 Quezon City BUSINESS DAY in English 8 Sep 86 p 3
[Text] A generally much lower price for coconut oil pushed up the volume of
coconut product exports by as much as 115.6 percent to 1,260,582 metric tons
in copra terms during the period of January to July this year from 564,637
metric tons last year.
The average coconut oil price for the seven-month period was reduced by sore
than half to $311.29 per metric ton from the previous year's record of $684.46
per metric ton. As a result, total export receipts increased by only 6.6
percent from $313,511 million to $334.04 aillion despite the substantial
increase in volume.
The latest available data from the United Coconut Association of the
Philippines, Inc. (UCAP) showed that coconut ofl accounted for the bulk in
terms of both volume and value.
Representing 86.3 percent of the total volume (copra terms), coconut oil
shipped during the period amounted to 685,622 metric tons, marking a 127.8
percent increase from lest year’s 301,000 metric tons.
In terms of value, coconut oil improved 3.6 percent from $206.02 aillion to
$213.43 million, accounting for 63.9 percent of the total for all coconut
products.
The second biggest earner among coconut products was copra meal with $39.97
million or 191.7 percent sore than last year's $13.7 aillion. The total
shipment likewise went up 152.3 percent to 460,262 metric tons from 182,412
metric tons.
All copra seal exports went to Western Europe which has become the
Philippine's biggest buyer of coconut products. The continent, during the
period, again edged out the United States as the country’s biggest buyer of
coconut oil.
Although the US and Western Europe combined accounted for almost half of the
country's total coconut oil shipments, buying 45.7 percent and 42.8 percent,
respectively, Europe's total coconut oil purchase increased gore than three-
fold fro 73,730 metric tons last year to 313,181 setric tons.
19
The US reported a 71.6 percent increase from last year's volume of 171,079
metric tons to 293,609 metric tons. In terms of value, however, the United
State's $92 million worth of coconut ofl purchased during the period was not
very far from Europe's $%6.26 million.
It was only in 1983 that Europe bought more coconut oil from the Philippines
than the US. During that year, the Europeans bought 442,339 metric tons
against the Americans’ 426,612 metric tons. In terms of value, however, the
USA's purchases were bigger at $225.92 million against Europe's $204.96
aillion.
Exports of copra which resumed last March also went mostly to Europe. During
the period, a total of 26,153 metric tons were exported to Korea, Taiwan,
Japan, and Europe. Total shipments were valued at $3.33 million.
Europe accounted for more than a third, buying 9,000 metric tons for $1.14
million.
Exports of coconut products are expected to increase this year following a
substantial improvement in production. According to UCAP’s initial forecast
for 1986, total output will reach 2.15 million metric tons, a 9 percent
increase from last year's 1.973 million metric tons in copra terns.
Due to the expected increase in overall production, UCAP estimates that the
total exportable volume will reach 1.795 million metric tons from 1985's 1.254
million metric tons.
/12913
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JPRS-SEA-86-174
26 September 1986
PHILIPPINES
JUSTICE MINISTER STRESSES NEED FOR LAND REFORM
HKO81217 Manila MANILA BULLETIN in English 6 Sep 86 p 8
[By Rey G. Panaligan]
[Text] Justice Minister Neptali A. Gonzales warned yesterday of communist
take over if the government fails to implement immediately a genuine land
reform in the country.
Speaking before a group of lawyers of the Ministry of Agrarian Reform (MAR),
Gonzales said that “a genuine land reform must be a reality in our time.” He
said that failure on the part of the government “may drive the people into the
despair and hopelessness, and force them to embrace communism that seeks to
destroy everything we believe in and install a new political, social, and
economic order.”
“When this shall come to pass, the landed amongst us may lose their land,
their property, their freedom, and those of us in government may lose not only
our jobs but our heads.”
He urged the MAR lawyers “to sharpen their legal tools and strengthen the
administrative apparatus so that they can act as catalysts in the realization
of an age-old dream of providing the toilers of our soil a newer and better
life.”
It was in 1963 when the government started impleventing the program of land
reform which is aimed at breaking up the feudalistic monopoly in the ownership
of land through the distribution of land to tenant farmers.
During the martial law regime of then President Marcos, a decree was issued
proclaiming the entire country as a land reform area, he said. Thereafter,
another decree was issued emancipatiag tenants of rice or corn land holding
from the bondage of the soil and transferring to them ownership of the land
they till.
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JPRS-SEA-86-174
26 September 1:86
PHILIPPINES
FARMERS’ SUB-POVERTY LEVEL INCOMES HIGHLIGHTED
HKO90256 Manila THE MANILA TIMES in English 6 Sep 86 p 4
[By Rodolfo Alancastro, PHILIPPINE NEWS AND FEATURES]
{Text} How much does an ordinary farmer earn?
If data gathered during the recent 2nd Annual Congress of the Kapisanan ng
Uring Tagapagsaka sa Quezon [Association of Farmers’ Groups] serve as a basis,
an ordinary rice farmer earns less than P14 per hectare per day, while a
coconut farmer earns even less—about P4.70 (provided he does all the work
involved in copra production and does not hire help).
Another group, a Canadian fact-finding mission, came up with a higher income
figure for Negros Occidental rice farmers--less than P20 per hectare per day.
This means that, depending on the region, an ordinary rice farmer's income
ranges from P420 to P600 per hectare per month, while that of a coconut farmer
averages only P123 per hectare per month.
According to recent figures, the average land size for rice tilled by a farmer
is 1.8 hectares, while for coconut land, the average is 2 to 3 hectares. This
gives the rice farmer a real income of from P756 to P1,080 per aonth, while a
coconut farmer nets P246 to P369 per month. This income range is way below
the country's poverty line income set by the National Economic and Development
Authority at P2,200 per month.
The Quezon farmers based their income figures on a test case in Candelaria,
Quezon where farmers harvest an average annual yield of 160 cavans for two
crop seasocus.
At the prevailing market price of P120 per cavan a farmer grosses P19,200.
From this, production costs amounting to P14,280 are deducted, leaving a net
of P4,920.
A coconut farmer working on a hectare planted to about 150 coconut trees will
average 5,000 nutes per harvest. Per estimate, 100 nuts yield 25 kilos of
copra. Thus, 5,000 nuts would yield 1,250 kilos of copra. At the current
price of P1.20 per kilo of copra, a farmer would gross P1,500.
From this amount, P250 would be deducted as transport cost for 1,250 kilos of
copra (based on a rate of P120 per 100 kilos), leaving ea difference of P1,250.
The difference is divided between the landlord and the farmer based on the
usual 60-40 sharing ratio in favor of the landlcrd. Thus, the landlord gets
P750 while the coconut farmer gets P500.
Total production cost is actually greater than the farmer's real income of
P500. He, therefore, incurs a loss of P145. How does the coconut farmer
reverse this loss?
Usually, he takes a co-worker to help him in copra production, thea divides
his net earnings and savings on production cost (totalling P1,145} equally
between him and hie co-worker. Thus, each man gets P5/72.50, which represents
earnings for three months.
Since a coconut farmer harvests three times a year, he earns P1,717.50 per
year, or around P4.70 per day.
A group belonging to the Canadian Catholic Organization for Development and
Peace (CCODP) which visited the country last June also gathered data on the
economic conditions of Filipino farmers. Their findings reveal that an
average farmer in Negros Occidental earns less than P20 per day.
In its report, the Canadian-based organization, which sponsors development
projects for Third World countries, estimated a farmer's income to be merely
P7,146 per year.
They arrived at this figure upon computations based on a maximum harvest of
120 cavans per hectare. At P110 per cavan, the farmer grosses P13,200.
Gross earnings per harvest (P13,200) less production costs (P11,612) gives the
farmer a real income of P1,588 per hectare per harvest.
Multiplying real income by 5 (being the number of crops every two years)
results in P7,940. Half of this (P3,970) represents the farmer's income per
hectare per year.
Since the average size for rice land is 1.8 hectares, the farmer's real income
amounts to P7,146 per year, or abcut P19.35 per day, according to CCODP.
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JPRS~SEA-86-174
26 September 1986
PHILIPPINES
DEVELOPMENT BANK'S NON-PERFORMING ASSETS SOLD
HKO30946 Manila THE MANILA TIMES in English 3 Sep 86 pp 1, 2
[Text] The Development Bank of the Philippines [DSP] told President Aquino
Monday more than P900 million worth of DBP’s non-performing assets has al-
ready been sold to the private sector.
The [BP board of governors met with the President to brief her on the recent
achievements of the bank.
DBP Chairman Jesus Estanislao also told Mrs Aquino the DBP had already re-
sumed agricultural lending. He said since the takeover of the new DBP
management, about 163 loans for small and medium-scale agricultural projects
had already been granted.
In line with Mrs Aquino's priority program to develop the countryside,
Estanislao said, most of these loans were given to beneficiaries in the
provinces.
Tomas Apacible, a member of the DBP board, said only 10 out of 163 loan reci-
pients come from Metro Manila.
Apacible said the President, contrary to reports, “is very happy about
these developments."
He said the DBP board also briefed President Aquino about the two foreign
offers to buy the Cebu Plaza Hotel in Cebu City. These offers, he said,
came from an Australian businessman and from a Japanese group.
The Cebu Plaza Hotel was constructed during the Marcos administration using
DBP funds.
Apacible added that the Australian businessman has offered to buy the hotel
for P212 million, while the Japanese group for P2111 million. He noted that
the hotel was being sold during the previous administration for only P90
million.
He said the two offers "are very good," but the DBP still needs the recommen-
dation of the Ministry of Tourism before awarding Cebu Plaza to any of its
bidders.
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24
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
PESO'S EXCHANGE RATE DECLINES; DOLLARS SOLD
HKO51527 Quezon City BUSINESS DAY in English 5 Sep 86 p 2
[Article by Noel D. de Luna]
[Text] The peso'’s exchange rate slipped further to P20.533 per U.S. dollar
during yesterday's expanded trading on the foreign exchange trading floor
of the Bankers Association of the Philippines [BAP].
Off-floor transactions, handled during the morning session and technically
not within the BAP floor trading--saw Philippine Banking Corp. selling
$2 million and Equitable Banking Corp. selling $1 million, both to the Land
Bank of the Philippines at a rate of P20.61 to a dollar.
During the afternoon session, which is the trading floor exercise, the
Central Bank [CB] sold $4 million to the Philippines National Bank and
$1.4 million to the Associated Bank at a rate of P20.49 per dollar.
The resulting average for the day was P20.533, up by P0.021 from Wednesday's
P20.512.
On the black market, BUSINESS DAY sources said, the rate was P20.99 to a
dollar for telegraphic transfers and P20.45 for greenbacks.
Traders were divided on the CB's dollar selling, which was first noted last
Wednesday.
Some said the CB was merely posting its price "for display” and that no
deliveries were taking place. They considered the CB-PNB and CB-Associated
Bank deals as “wash sales."
Other traders said the CB may really deliver dollars to PNB for reselling to
a major oil multinational company. Traders confided that an oil multinational
needed at last $9 million for today and that the dollars therefore should
have been ordered through the interbank network in the past few days. During
the past two days, two government banks bought $7.7 million.
Traders sympathetic to the CB argued that had the CB not priced its dollars
below those of other sellers, there would have been wide fluctuations in the
exchange rate.
25
The CB has pledged to the International Monetary Fund, not to intervene in
the dollar market but does not look kindly on wide fluctuations, they said.
The traders said a PO.10 fluctuation is wide enough for a thin market and
the CB will have to bring the rise down to a maximum of 70. 05.
They also said the market for this month is an [word indistinct] because of
the dollar demand of oil companies.
Since the market is rather narrow, a sudden surge in demand may cause wild
gyrations in the exchange rate, which can cause panic in the business commun-
ity.
Except for oil companies, importers are not yet putting on pressure on the
dollar market. Banks, on the other hand, are still awash with dollars.
However, some traders are positioning for a yearend rate of P21 to P21.50
per dollar, and are speculating on the profit they can make.
Such a rate “would still not be that bad," a trader said.
For the moment, those with money prefer to buy dollars because of the low
interest rate on pesos. They put their dollars on call deposits, such as
those in Singapore and London, and earn almost the same interest rates as
they would in peso accounts, with the advantage that the peso yet depreciate
in the future. [as received]
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JPRS-SEA-86~174
26 September 1986
PHILIPPINES
CENTRAL BANK SELLS ALL THREE-YEAR TREASURY NOTES
HKO81213 Manila MANILA BULLETIN in English 6 Sep 86 p 17
[Text] The Central Bank [CB] announced yesterday that the entire P3.5 billion
issue of three-year treasury notes had been sold out over the counter after
barely a week from its public offering.
The CB, acting as fiscal agent of the government, said sales of the treasury
notes were at yields to maturity ranging from 16 to 17 percent based on
graduated volume.
The P3.5 billion floatation was earlier authorized by the Monetary Board and
approved last month by President Aquino on the recommendation of the Minister
of Finance. The notes were publicly offered last 28 August.
The CB noted that the brisk sales turnout is significant in view of previous
investor preference (prevailing since 1984) for short-term securities such as
treasury bills and CB bills and considering that the notes comprised the first
publicly-offered medium-term treasury issue which experienced rapid favorable
market response in recent years.
The yield scale of the notes was initially perceived as being conservatively
pegged owing to the withholding of the 20 percent final tax on the
corresponding discount for the entire three~year term. Under this
methodology, the pricing mechanism at one secondary market will have to be
adjusted accordingly and financial intermediaries will have to equate such
factor against possible market resistance.
The CB said the brisk sellout, however, indicated otherwise, signalling some
degree of market optimism toward current development despite the front-load
tax.
Of the total amount sold, banks accounted for P2.14 billion or 61.10 percent
while non-banks absorbed P1.36 billion or 38.9 percent.
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JPRS-SEA-86-174
26 September 109;
PHILIPPINES
CENTRAL BANK REDUCES REDISCOUNT RATE
HKO11314 Quezon City BUSINESS DAY in English 1 Sep 86 p 2
[Text] The Central Bank [CB] has reduced the rediscount rate--the interest
rate it charges commercial banks for loans--by one percentage point to 11.75
percent from the previous 12.75 percent. The reduction takes effect today.
The move is intended to encourage banks to be more active in lending to busi-
ness and industry by making it cheaper for banks to borrow from the CB in
order to meet the reserve requirement.
The Monetary Board, the policy-making body of the CB which approved the re-
duction last Friday, noted that in the period October 1985 to August 1986,
rates on borrowing instruments of banks generally dropped.
This meant that the rediscount rate of 12.75 percent announced under Circular
No 1086 dated Nov. 29, 1985 was no longer consistent with market rates.
In particular, the board noted that the weighted average rate on outstanding
savings, time and demand deposit liabilities and promissory note issues which
stood at 12.83 percent in October 1985 (which was close to the 12.75 percent
rediscount rate prevailing then) gradually dropped to 11.23 percent in June,
to 10.81 percent in July and to 0.35 percent in August this year.
The CB said the extent of the reduction in the rediscount rate was based
however on banks’ marginal costs which, in turn, was based on the average
90-day Manila Reference Rate (MRR-90) and rates on time deposits of 61 to
90 days, among other considerations.
The rediscount rate is considered one of the key monetary instruments avail-
able to the CB in controlling the overall credit condition in the economy.
It is also considered as a financial barometer which reflects the direction
of current CB policy.
A high rediscount rate generally discourages banks from lending in excess of
the required reserves since it is expensive for banks to turn around and
borrow from the CB to fill up reserve deficits.
A high rediscount rate thus has the effect of slowing down overall economic
activity since business and industry, under normal conditions, rely heavily
on bank loans.
On the other hand, a reduction in the rediscount rate encourages commercial
banks to increase their lending activities since they can easily, if needed,
borrow from the CB.
Banks generally go to the rediscount window of the CB only when they are
really hard pressed for cash since the rediscount rates of the CB are often
higher than those charged by other sources of funds.
Since the start of this year, credit demand has remained soft primarily be-
cause of the slowdown in business activity.
During the first half of the year, the commercial banking system as a whole
experienced a decline in its loan portfolio, with interest on loans, which
constituted more than 48 percent of the total income of the system, contracting
by a hefty 30.4 percent.
From the tight credit situation that persisted during 1984 and 1985, commer-
cial banks this year have seen a gradual increase in their overall liquidity,
basically as a result of the drop in loan demand.
This highly liquid condition of banks has been increased further by the deci-
sion of monetary authorities to loosen their grip on the growth of overall
money in the system by reducing the banks’ reserve requirement.
The reserve requirement, or the amount of deposits money banks are required
to set aside under the law to meet sudden and massive withdrawals, has been
reduced to 21 percent early last month from 24 percent before September 1985.
The reduction by one percentage point in the reserve requirement last month
released some P950 million into the money stream which can be tapped by
banks for lending.
Loan demand however remains weak despite a corresponding drop in banks’
lending rates as a result of the series of adjustments in the reserve require-
ment.
In fact, the reserve positions of commercial banks, even without considering
the impact of the latest reserve requirement reduction, is already in excess
as shown by CB data.
Latest CB data covering the July 28 to Aug 1 period, showed banks with ex-
cess reserves of P335 million. This followed the P708-million excess re-
serves posted for the previous week ending July 25.
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JPRS-SEA-86-174
26 September 1986
PHILIPPINES
COMMERCIAL BANKS ASSETS DROP 1.5 PERCENT
HKO11322 Quezon City BUSINESS DAY in English 1 Sep 86 p 2
{Text] The Central Bank [CB] reported that the combined assets of the coun-
try's commercial banking system amounted to P276 billion as of end-July, down
1.5 percent from the previous month's ending level.
The CB noted that two component groups of the system--private domestic anks
and the local branches of foreign banks--experienced a contraction in their
assets in July.
The CB said funds to cover deposit withdrawals, new loans and increases in
other asset accounts exceeded funds generated from additional borrowings and
partial liquification of trading account securities and government bond hold-
ings. The situation resulted in a P2.8-billion slippage in cash position.
Net outflow in all types of deposits-—-in both domestic and foreign currencies--
reached P3.6 billion and was very apparent within the private domestic group.
The government and foreign sectors recorded dips in demand deposits only.
The total P3.6-billion decrease in deposits was the second to, but way below,
the highest P10.1 billion suffered in January this year.
After a P1.3-billion increase in July, the combined loan portfolio of the
commercial banking system reached the P127.8-billion level, while investment
accounts dropped to P29.3 billion from the previous month's P33.1 billion.
Results of operation for the first semester of 1986 registered a faster pace
of decrease in gross revenues than in the reduction of expenses. Interest on
loans, which constituted more than 48 percent of the total income of the sys-
tem, contracted by 30.4 percent. This slump coincided with the consistent
downtrend in loan portfolio during the first semester of 1986. Interest on
deposits, which composed about 40 percent of total operating expenses,
likewise contracted but at only 20.9 percent.
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JPRS-SEA-86-174
26 September 1986
PHILIPPINES
MAY 86 RETAIL PRICE INDEX RISES SLIGHTLY DURING MAY
HKO31533 Quezon City BUSINESS DAY in English 3 Sep 86 p 2
["Economic Indicator" column: "Retail Price Index Inches Up in May"]
[Text] The retail price index (RPI) for all items in Metro Manila grew slighly
by 0.66 percent in May from the year-ago level, statistics gathered from the
National Census and Statistics Office (NCSO) indicated. Using 1978 as the
base year, the RPI last May came to 366.6 index points, 2.4 index points
higher than the 364.2 index points registered in the same month in 1985.
The RPI measures the monthly changes in prices at which retailers dispose of
their goods to consumers and and-users. Its market basket contains approxi-
mately the same food and non-food items included in the consumer price index
(CPI) basket. It however includes more construction materials but excludes
light, water, rentals, wages and other service items.
The May increase came about despite the 1.15 percent drop in the wholesale
price index (WPI) during the month from 408.1 index points to 403.4 index ;
points.
Among the RPI items, mineral fuels, lubricants and related materials regis-
tered the highest decline in its index, a 16.29 percent drop from 510.7 index
points in May 1985 to 427.5 index points. The main factor for the decline
was the rollback in the prices of kerosene and fuel which was approved by
the government last March.
Retail Price Index in Metro Manila
(1978 equals 100)
Year/ All Food Beverages Crude Mineral
Month Items & Tobacco Materials Fuels,
Except Lubricants
Fuel & Related
Products
1985 366.4 338.6 346.3 369.0 519.0
January 365.1 336.6 333.2 359.2 548.9
February 363.8 333.5 335.6 361.9 548.2
31
Year/ All Food Beverages Crude Mineral
Month Items & Tobacco Materials Fuels,
Except Lubricants
Fuel & Related
Products
March 361.9 333.1 338.7 363.9 519.9
April 363.9 335.6 341.1 369.7 511.6
May 364.2 336.5 341.2 365.4 510.7
June 363.1 334.4 345.6 367.0 511.5
July 368.4 342.0 350.0 365.4 512.6
August 367 .6r/ 340.3 353.3 366.7 512.6
September 367.0 339.1 353.5 375.3 512.6
October 368.5 340.7 353.1 376.3 512.7
November 370.8 344.1 354.9 377.8 513.2
December 373.2 347.4 355.7 379.8 513.2
January 337.8 354.7 365.1 383.7 505.7
February 373.4 350.8 369.8 384.2 454.1
March 373.1 349.5 373.7 382.0 448.8
April 369.4 344.5 376.9 376.0 433.9
May 366.6 343.2 379.2 377.7 427.5
Year/ Chemicals Including Manufactured Machinery Miscellaneous
Month Animal & Vegetable Goods Classi- & Trans- Manufactured
Oils & Fats ified Chiefly port Articles
by Materials Equipment
1985 411.2 416.7 295.2 404.6
January 404.1 415.4 293.2 395.1
February 405.2 416.9 293.1 398.2
March 407.8 413.8 294.4 401.5
April 408 .8 416.4 295.3 403.0
May 412.0 416.1 297.3 402.6
June 412.6 415.3 297.1 2.8
July 412.6 417.1 295.2 404.3
August 413.3 417.7r/ 294.2 404.4
September 412.6 417.0 294.6 405.4
October 414.4 418.3 295.1 409.8
November 415.1 417.9 295.5 2.0
December 416.5 418.4 297.1 6.3
1986
January 419.1 416.2 301.9 416.7
February 422.6 418.1 312.0 421.2
March 430.5 418.7 317.2 423.2
April 434.4 418.8 318.9 424.3
May 428.7 409.1 317.5 419.0
r/--Revised
Source: National Census and Statistics Office (NCSO)
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JPRS-SEA-86-174
26 September 1986
ECONOMIC INDICATOR ON DECLINE OF GROSS CREDIT
HKO11320 Quezon City BUSINESS DAY in English 1 Sep 86 p 2
["Economic Indicator" column: “Banks Gross Credits Fall 7.4 Percent")
[Text] Gross domestic credits of deposit money banks as of the fir: : semester
of the year fell 7.4 percent from the yearago level, latest date from the
Central Bank [CB] showed. These credits consist of domestic securities and
loans and advances extended to the national government, local and semi-
government entities and private businesses and individuals, as well as credits
to the CB.
Indicative of the soft loan demand during the period, gross credits slid
down to P142,622.1 million from P154,143.7 million in the first half of 1985.
Credits contracted because of the weak demand for loans and advances which
accounted for the bulk or P112,893.3 million. This marked a decline of 9.80
percent from last year's P125,155.4 million.
Most of the loans and advances were extended to private businesses and indi-
viduals who borrowed P97,420.4 million this year. Their borrowings, however,
dwindled 9.19 percent from last year's P107,277.4 million.
Likewise, credits to the CB decreased 4.15 percent from P8,256.3 million to
P7,914.0 million this year.
On the contrary, domestic securities went up 5.22 percent ot P21,814.8 mil-
lion from P20,732.0 million. All sectors increased their domestic securi-
ties borrowings from deposit money banks.
[Table on following page]
33
Gross Domestic Credits of Deposit Money Banks
As of June 1986 and 1985
(in million pesos)
1986 1985
Grand Total 142 ,622.1 154,143.7
Domestic Securities 21,814.8 20 ,732.0
National Government 11,498.7 11,302.3
Local & Semi-government Entity 2,727.8 2,261.6
Private Business & Individuals 7,588.3 7,168.1
Loans and Advances 112 ,893.3 125,155.4
National Government 1,360.1 1,509.7
Local & Semi-government Entity 14,112.8 16 ,368.3
Private Business & Individuals 97,420.4 107 ,277.4
Credits to the CB 7,914.0 8,256.3
CBCIs 547.8 1,523.8
CB Bills 7,366.2 6,732.5
Source: Central sank
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34
JPRS-SEA-86-174
26 September 1996
PHILIPPINES
ECONOMIC CONDITIONS IN CENTRAL VISAYAS WORSENING
HKO31351 Quezon City BUSINESS DAY in English 3 Sep 86 p 4
[Article by Manuel S. Satorre Jr. of Depth News (Cebu City)]
[Text] Exactly 74 percent of the nine cities and 123 municipalities in Cen-
tral Visayas fall in the category of depressed areas.
This was among the latest findings of a National Economic and Development
Authority (NEDA) survey of Cebu, Bohol, Negros Oriental and Siquijor to deter-
mine actual economic conditions in the region in the face of growing insur-
gency problen.
Considered depressed cities and towns are those having an annual income of
less than P400,000, per capita income at P1,500 and below, and 11 percent and
above malnutrition rate, and an infant mortality rate of 24 percent or higher.
Of the 123 towns surveyed, the study notes that a total of 97 municipalities
or 75.3 percent fall under the depressed area category. At least two cities,
Canlaon in Negros Oriental and Lapulapu in Cebu, belong in this bracket.
Of the 10 most depressed towns in the region, the study reveals that seven
are in Cebu with the two of Poro in Camotes Island as the poorest. The other
six Cebu towns are Pilar, Aloquinsan, Alegria, Cordova and Samboan.
Included in the top list are the towns of Vallehermoso and Tayasan in Negros
Oriental and Duero in Bohol.
Surprisingly, Cebu city, considered the regional capital of Central Visayas,
ranks only sixth as the most non-depressed area in the region. Manjuyod,
a remote town in Negros Oriental, got the top rating as most non-depressed
area, followed by Cortes in Bohol, Boljoon in Cebu, Dumaguete in Negros
Oriental and Loboc in Bohol.
According to NEDA regional director Rey Estanislao Crystal, this is actually
the second poverty level study conducted by his office. The first was made
in 1977 which had a different basis in the determination of a depressed arec.
35
There were: the number of central place functions found in the town, number
of noncentral or industrial functions in the municipality, agricultural
productivity per hectare of land cultivated, and municipal revenue for the
past fiscal year. In addition to spotting the depressed areas, the earlier
study also indentified growth centers.
The results of the first survey showed that out of the then ni.e cities and
122 towns in the region, 38 or 29 percent were depressed. Particularly
alarming in the initial finding is the situation in the province of Siquijor
in which all its six municipalities appeared to be depressed in all four
counts.
In Cebu, 19 out of five cities and 48 towns were depressed. Nine out of one
city and 46 towns in Bohol and four out of three cities and 22 towns in
Negros Oriental we - also depressed. In all these municipalities, the study
found that agricultural proc ctivity and the level of economic activity were
the lowest in the whole province.
Crystal explains that the latest survey held in April 1986 was conducted to
determine whether the number of depressed areas in the region had increased
and decreased.
Government also wants to know whether the depressed areas then are
still the ones considered depressed nine years later, he said.
Although the results of the 1986 study may not be comparable with the 1977
study, since both studies use different variables, Crystal says the new
study clearly indicates an increase in the number of depressed areas.
Municipalities earlier considered as growth centers have been found to be
among those areas identified as depressed, he adds.
He warns that this condition necessitates immediate attention of regional and
national government officials to redirect priorities for development, parti-
cularly in the light of the growing insurgency problen.
If nothing is done by government and even by the private sector to reverse
conditions in these depressed cities and towns in Central Visayas, Crystal
says, a more serious social problem can be expected in the near future.
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36
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
FOOD AUTHORITY FACES RICE SURPLUS PROBLEM
HKO31321 Quezon City BUSINESS DAY in English 3 Sep 86 p 22
{Text] With a projected 11 percent increase in rice production, the National
Food Authority (NFA) will face a bigger problem: how to dispose of rice
surplus next year.
A proposed solution is to export some 500,000 metric tons of rice by next year.
However, this will means losses to NFA which will have to be funded by about
P2.7 billion to procure 10 percent of the projected harvest of 9.1 million
metric tons of palay.
The NFA council last week approved in principle a reduction in the support
price of palay by 50 centavos or from P3.50 to P3 per kilo. The reduction
will have to be effected in order to boost NFA's procurement capabilities.
A much lower support price will enable NFA to procure 10 percent of total
harvest instead of its traditional procurement volume of 6 percent of total
production if it maintains the support price at P3.50.
The NFA is set to buy at P3 per kilo by this month. At 10 percent, NFA will
procure 910,000 MT of palay or its equivalent of 591,000 MT of rice at a re-
covery rate of 65 percent.
This additional volume, however, will add to NFA‘'s growing problem of excess
rice inventory. As of last month, the food agency is saddled with a huge
inventory of 540,000 MT of rice, of which 170,000 MT are imported stocks.
This huge inventory is giving NFA a headache. It cannot dispose of the rice
stocks in the domestic market since it may be severely disrupted. Selling
its stock to that market at the rate of 70 MT a day (against a national
consumption rate of 16,00 MT), NFA will take 21 years to dispose of its
total inventory.
The food agency is currently finding ways to dispose its present inventory
without necessarily disrupting the market. It proposes to supply the rice
requirements of government agencies, including the military and public school
teachers. This sector will account for about 27 percent of NFA‘s total in-
ventory. This scheme, however, will require approval from Malacanang since
selling the rice stocks to government employes may mean subsidies.
37
Another way to dispose of excess rice supply is to donate some of NFA's
stocks to poverty stricken province of Negros Occidental. Ministry of Agri-
culture and Food officials told BUSINESS DAY that a working paper is being
prepared on how to dispose of the rice stocks through donations to the
province.
A third solution is to export the excess rice stocks. Agriculture and Food
Minister Ramon Mitra earlier said about 300,000 MT of NFA's present rice
stocks will have to be exported even at a loss. Prevailing world market
prices of rice stand at P4 per kilo as against domestic prices of P6 to P8
per kilo.
However, even if the government sells its rice stocks at a loss, these seems
to be no willing takers. Worldwide production of grains is on the upswing
and at its highest level at the moment.
Indonesia which exported to the Philippines 100,000 MT of rice last year has
not responded to the government's notice that it will pay back the rice loans
with NFA's excess rice stocks. It is stipulated that the Philippines can pay
its rice loans in cash or in kind. But after about four months of silence,
Indonesia is deemed uninterested in accepting NFA rice stocks as payments.
Mitra said last month that some countries like South Korea had expressed
interest to buy the country's rice surplus. However, MFA sources said there
has been no fresh development on this matter.
When Mitra announced the projected 11 percent increase in rice production,
he qualified that the increase will be sufficient only to "meet our needs.”
However, he seemed to fail to recognize that the country's total consumption
is only being taken care of by the commercial traders, and NFA accounted
for less than 1 percent of the total requirements.
NFA sources claimed that if the present stock of 540,000 MT is not disposed
of at the proper time, the incoming stocks of more than 500,000 MT will give
NFA additional headaches.
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PHILIPPINES
PRODUCTION VALUE INDEX DROPS 7.6 PERCENT
HKO51515 Quezon City BUSINESS DAY in English 5 Sep 86 p 3
{"Economic Indicator" column: "Production Value Index off 7.7 Percent")
[Text] The value of production in key manufacturing enterprises, according
to a monthly survey by the National Census and Statistics Office (NCSO),
dropped 7.66 percent in May from the year-ago level.
The NCSO, surveying 500 top manufacturing companies based on Metro Manila,
registered the production value index at 97.7 points, down 8.1 from 105.8
in May last year.
Base year of the index is 1985.
Declines were recorded in the indices of seven subsectors: petroleum prod-
ucts, wood and wood products, basic metals, tobacco, beverages, food, and
miscellaneous manufactures. These decreases more than offset increases in
eight other subsectors.
Petroleum products registered the biggest decline of 45.5 percent, from 126.6
index points in May last year to 69.0.
The index of value of production measures the cost incurred by a manufactur-
er in producing goods and services in a particular month as compared to the
corresponding figure for the base year. Generally, it includes the cost of
direct labor, raw materials and the sanufacturing overhead.
Index of value of production of key manufacturing enterprises, by industry
May 1985-1986
(1985 :100)
1985
Sector May June July August
Manuf ecturing 105.8 96.3 96.6 98.0
a. Food 99.4 102.3 98.4 96.1
b. Beverage 109.3 100.5 90.9 92.7
c. Tobacco 106.1 93.5 102.6 105.1
May June July August
d. Textile 92.6 98.7 107.2 102.6
e. Wearing apparel 100.2 93.9 110.2 107.1
f. Wood and wood products 112.6 105.9 99.0 95.0
g- Paper and paper products 92.2 86.6 92.6 96.7
h. Chemicals 97.5 84.8 93.6 93.2
i. Rubber products 94.8 83.1 101.2 105.5
j. Petroleum products 126.6 90.5 86.0 91.1
k. Non-metallic mineral products 108.2 104.1 111.1 109.9
1. Basic metals 113.0 86.1 93.1 110.4
m. Transport equipment 86.6 112.9 115.3 122.5
n. Electrical machinery 110.4 104.5 92.5 89.9
o. Miscellaneous manufactures 103.8 106.2 111.2 94.9
Sept Oct Nov Dec
88.4 103.4 100.9 108.0
a. 88.4 97.4 91.3 93.7
/ b. 92.4 92.6 100.8 106.2
f c. 99.6 107.4 102.2 97.5
d. 105.9 118.3 114.1 90.6
e. 108 .9 108.7 102.2 122.2
f. 78.2 84.7 86.8 72.4
g- 99.8 108.6 106.9 97.1
h. 100.0 99.6 100.9 112.7
i. 101.9 117.3 86.8 115.3
4. 62.0 120.8 113.0 121.7
k. 93.3 71.1 89.8 114.8
1. 106.1 103.9 103.3 150.5
m. 98.6 107.3 107.8 124.4
n. 86.0 89.2 92.7 86.7
0. 90.5 84.4 82.6 59.8
1986
Jan Feb Mar Apr May
Manufacturing 89.0 98.9 95.3 95.7 97.7
a. Food 99.4 98.5 96.1 93.5 94.4
b. Beverage 80.9 73.5 76.5 95.0 92.9
c. Tobacco 107.6 94.0 75.6 81.5 84.2
d. Textile 109.1 116.6 111.9 128.0 134.2 8
e. Wearing apparel 88.9 94.4 90.5 113.9 113 8 me
f. Wood and wood products 42.2 61.3 61.1 66.9 6*
g. Paper and paper products 83.2 98.5 112.8 118.5 ll, .o
h. Chemicals 100.4 91.8 103.2 95.9 97.9
i. Rubber products 93.2 101.8 98.6 98.4 99.6
4. Petroleum products 93.9 93.1 88.3 75.8 69.0
Jan Feb Mar Apr May
k. Non-metallic mineral products 94.1 98.9 111.7 108.7 134.3
1. Basic metals 74.0 94.8 99.2 119.8 88.8
m. Transport equipment 81.7 81.2 87.8 98.4 96.0
n. Electrical machinery 67.3 92.0 98.4 88.7 126.4
o. Miscellaneous manufactures 91.1 115.5 108.0 123.0 102.2
Source: Monthly Survey of Key Manufacturing Enterprises
Economic Census Branch, National Census and Statics
Office (NCSO)
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41
PHILIPPINES
DOMESTIC LIQUIDITY RISES 5.89 PERCENT
HKO81201 Quezon City BUSINESS DAY in English 8 Sep 86 p 2
[“Economic Indicator” column: “Domestic Liquidity Rises 5.89 percent”)
[Text] Domestic liquidity (M3) improved 5.89 percent in July to P124,206.5
million from P117,297.0 million in the same month of last year, according to
the latest available data from the Central Bank.
Domestic liquidity consists of money supply, quasi-money and deposit
substitutes. It roughly determines the availability of credit in the systen.
The increase in domestic liquidity came mostly from the 14.58 percent rise in
money supply. Money supply, the total currency in circulation and peso demand
deposits, went up P4,139 million to P32,532.2 million from P28,393.2 million
last year.
Quasi-money, which accounted for the bulk of domestic liquidity, also
increased 6.19 percent of P84,217.3 million from last year's P79,308.8
million.
The preference for easily withdrawable deposits over time deposits was
reflected in the 31.84 percent rise in savings deposits and the 15.69 percent
decline in time deposits.
On the contrary, deposit substitutes fell 22.28 percent to P7,457.0 million
from P9,595.0 million a year ago. Deposit substitutes consist of promissory
notes, purchase agreements, trust certificates and other debt instruments used
for the purpose of relending or purchasing receivables and other obJigations.
Domestic Liquidity
as of July 1986 and 1985
(in million pesos)
1986 1985
Total Domestic Liquidity 124, 206.5 117,297.0
Money Supply 32 ,532.2 28 393.2
Currency in Circulation 21,176.8 18,196 .6
Currency Issue 24 ,125.2 20 ,974.9
42
Less: Inactive Cash
Peso Demand Deposits
Local Government
Semi-government Entities
Private Businesses
US Government
Cashier's, Manager's Checks
Less: Coci, Others
Quasi-Money
Savings Deposits
Time Deposits
Deposit Substitutes
Source: Central Bank
/12913
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43
2,948.4
11,355.4
1,060.4
471.1
8,780.2
59.2
1,318.9
334.4
84,217.3
48 ,138.6
36 078.7
7,457.0
2,751.3
10 ,196.6
791.6
579.4
7,744.7
43.1
1,517.2
479.4
79 ,308.8
36,514.2
42,794.6
9,595.0
PHILIPPINES
LABOR, MANAGEMENT DISAGREE OVER CONFERENCE
HKO31529 Quezon City BUSINESS DAY in English 3 Sep 86 pp 2, 11
{Article by reporter Gethsemane M. Selirio]
[Text] Labor and management are in disagreement over the holding of the
second National Tripartite Conference to review the Labor Code, which is
scheduled to be held next month.
In separate pretripartite meetings held with Ministry of Labor and Employ-
ment (MOLE) officials last week, it became apparent that the reason for the
disagreement is the mch-delayed ministry guidelines on labor relations.
Labor groups want the tripartite conference postponed until after the release
of the executive orders covering the Labor Day announcements of President
Aquino. Management, on the other hand, wants the conference to go on as
scheduled before the executive orders are issued.
The main argument of labor for a postponement of the conference is the lack
of official [word indistinct] for the May 1 announcements of Aquino. Without
the executive orders, labor believes the liberalized strike and union [word
indistinct] would remain mere announcements.
Labor also wants to protect the gains it won last May 1. The Labor Day
announcements may be revised when a tripartite conference is held.
Labor leaders during their meeting with MOLE officials indicated that the
President may have already reneged on a few of her Labor Day commitments.
Aquino's order allowing security guards in the private sector to organize
have been put on hold due to "security risks.” The requirements for a strike
vote even in union-busting disputes has been reaffirmed by the ministry in its
draft guidelines, although Aquino said unions can ignore the cooling-off
period and "take action immediately."
The MOLE is still in the process of reviewing ite labor relations guidelines.
There are, however, no definite plans on whether the executive orders will
be issued ahead of the guidelines, if at all.
44
"We want executive orders, not ministry guidelines," said Rolando Olalia,
chairman of the militant Kilusang Mayo Uno (KMU) [1 May Movement]. The
legality of the guidelines is questionable unless it has supporting legis-
lation, he said.
In contrast to labor's position, management believes that the tripartite
conference should be held precisely to discuss what provisions an executive
order amending the Labor Code should contain.
A member of the Employers Confederation of the Philippines (ECOP) insisted
that the Labor Ministry should detach itself from the past practice of
making “instant amendments" througl. presidential decrees. The ministry, he
said, must utilize tripartism as a medium for genuine consultation.
"Let us not be pushed by labor. Let us bide our time until consultative
meetings are held. Labor already knows it has the advantage with the May 1
pronouncements," another employer said. George Drysdale of the American
Chamber of Commerce of the Philippines recommended the creation of a small
tripartite group to review the May 1 announcements and to use the ministry
draft guidelines as a “working draft."
The major announcements of Aquino, however, should be immediately implement-
able, according to the labor sector. Labor was referring in particular
to the repeal of the 2/3 strike vote requirement, the 15-day cooling-off
period in union-busting cases and the repeal of Letter of Instructions No
1458 which authorizes the labor minister to order the replacement of workers
who defy return-to-work orders.
Aquino's proposed agenda for the national conference are the amendments to
Batas Pambansa Blg. [National Law Number] 130 (Strike and Peaceful Picketing
Law) and 227 (Anti-Scab Law), removal of exemptions from present wage decrees,
including the integration of the cost of living allowance (COLA) into the
basic pay, and the exploration of a mechanism for profit sharing.
Aside from this, Aquiono wants labor and management to sign a Code of Indus-
trial Harmony which would signify to would-be investors that the government
is in control of the industrial relations situation.
In the first tripartite conference held May 28 and 29, labor and management
groups failed to negotiate such a code. The government could try again at the
second tripartite conference, if it could get labor and management to meet in
first place.
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45
JPRS-SEA-85-174
26 September 19%
PHILIPPINES
ARTICLE ON AILING INSTITUTIONS COST TO GOVERNMENT
HKO90257 Quezon City BUSINESS DAY in English 8 Sep 86 p 2
[Article by Daniel C. Yu]
[Text] The national government stands to lose as much as P70.3 billion, de-
pending on what valuation scheme will be adopted, when the so-called non-
performing assets (NPAS) of four cash-strapped government financial institu-
tions are transferred to its account.
A study made by the Ministry of Finance in connection with the decision of the
government to absorb these NPAS also showed that the minimum loss to the
national government will still be hefty, at least P4 billion.
The study, made available to BUSINESS DAY, also indicated that the total NPAS
proposed to be transferred to the account of the national government would
approximate P143.2 billion with the Development Bank of the Philippines (DBP)
accounting for the bulk with total NPAS worth P72.4 billion. The Philippine
National Bank (PNB) has P51.9 billion, the National Investment and Develop-
ment Corp. (NIDC) P13 billion and the Philippine Export and Foreign Loan
Guarantee Corp. (Philguarantee) P5.9 billion.
The decision to transfer these NPAS to the nationa . sent was made by the
Monetary Board, the policy-making body of the Centre. 3 [CB], last July as
part of the major reforms for government financial insti.utions.
The transfer is one of the conditions set by the International Monetary Fund
(IMF) and the Work Bank for reducing government involvement in the banking
sector while at the same time rehabilitating these state-owned enterprises
and orienting them toward more productive activities.
The transfer of the NPAS from DBP and PNB, together with the corresponding
liabilities, to the national government, will reduce the total resources of
DBP to about P10 billion and PNB to about P24 billion. Their net worth will
likewise go down to about P2 billion and P3 billion, respectively.
The transfer of the NPAS to the national government was prompted by the ser-
ious adverse impact these accounts have had on the operations of these two
state-owned banks.
46
There are about 260 large companies to which some P142 billion have been
lent by the two banks. Some of these companies have already been taken over
by the government. Others will be taken over after the required legal steps
are completed.
As a result of these NPAS, the national government has been compelled to
subsidize DBP and PNB operations through periodic infusions of funds amount-
ing to P8 billion in 1984, P10 billion in 1985 and P19 billion in 1986. For
this year alone, the two banks account for 17 percent of the total government
budget of P113 billion.
The Finance Ministry study also showed that total NPAS of DBP, PNB, NIDC and
Philguarantee stood at P205.5 billion as of the first quarter this year and,
for the moment, the government is considering absorbing 70 percent of this
total of F143.2 billion.
The P143.2 billion includes the total exposure of the government financial
institutions plus unbooked interest (outstanding interest receivables of these
institutions) and unbooked charges (penalties and other charges). These
were no longer allowed to be booked by the CB when the accounts were declared
non-performing.
To top it all, these NPAS have collaterals with an estimated appraised value
of only P79.1 billion or just half of the total exposure of the government
financial institutions.
Further, the bulk of the collaterals are in the form of machineries and
equipment whose value would depreciate over time. These appraisal values
were made prior to 1985 which means that they do not reflect present values,
particularly in cases where these equipment were not properly maintained.
The Finance Ministry study also noted that more losses may have to be should-
ered by the government. Additional losses may be incurred by the government
in servicing the maturing liabilities that it will assume. Losses will also
arise from its assumption of foreign exchange risks.
The study recommended that the government assume the NPAS based on booked
exposures, composed of government financial institutions’ loans receivables,
accured interest receivables, equity investments and acquired assets, so it
could cut its losses.
This will exclude actual advances made by the government financial [word
indistinct] for the rehabilitation and maintenance of the acquired assets,
outstanding interest receivables after they became NPAS and other penalties
and charges due, both of which were not allowed to be included in the account
by the CB.
By transferring these NPAS based on booked exposure, the government will
lose only P4 billion for the initial P143.2 billion that will be transferred.
47
Such a move however is being opposed by the government financial institutions
which claim they would lose heavily if accrued interest charges and penalties
are not tagged on to the total financial charges due then.
The national government would lose as much as 746.9 billion if total exposure
and up to 70 percent of these charges are included. If the total NPAS are
transferred eventually to the national government under such a valuation
scheme, the government loss would come to about P70.3 billion.
This would exert further pressure on the already strained national budget
which this year expects a deficit of P27.9 billion.
Non-performing Assets of Government Financial Institutions
Proposed To Be Transferred to the National Government?
(In billion P)
No. of Booked Total Total
Accounts re a/ Exposure b/ Claims c/
DEP “Yor oe PO.5 STS
PNB 42 31.5 40. 51.9
NIDC 26 4.7 6.0 13.0
Philguarantee 7 5.7 5.9 5.9
Total 176 P83.1 P113.3 P143.2
a/ Composed of government financial institutions (GFIS) loans receivables,
accrued interest receivables, equity investments and acquired assets.
b/ Booked exposure plus actual advances made by CFIS for the rehabilitation
and maintenance of acquired assets.
c/ Total exposure of GFIS plus unbooked interest (outstanding interest
receivables of GFIS) and unbooked charges (penalties and other charges}. The
latter were no longer allowed to be booked by the Central Bank when accounts
were declared non-performing.
*#This covers the initial 176 accounts.
Appraisal Value
(in billion P)
Percentage
Land P 3.8 4.9
Buildings 6.8 8.5
Machineries and equipment 57.1 72.5
Others 11.4 14.4
Total P79.1 100.0
Source: Ministry ef Finance
/6662
CSO: 4200/1415
PHILIPPINES
DEPUTY MINISTER SAYS CHDF TO BE RETAINED
HKO31547 Manila PHILIPPINE DAILY INQUIRER in English 2 Sep 86 p 10
[Article by Romy Dizon]
[Text] Camp Olivas, Pampanga--The 45,000 Civilian Home Defense Forces (CHDF)
will have to be retained because of their vital role in the counter-insurgency
campaign of the government.
This was disclosed Friday by Defense Deputy Minister Wilson Gamboa during
an inspection of military camps to get feedback from the soldiers and offi-
cers in line with the policy of the New Armed Forces of the Philippines
[NAFP].
Gamboa told local officials led by Pampanga Governor Bren Guiao that the mili-
tary does not intend to abolish militiamen because they are effective in the
anti-dissident campaign of government.
Militiamen know better the tarrain and the political, economic, social condi-
tions of communities which recently arrived soldiers did not know adequately,
Gamboa said.
To prevent abuses, the CHDF members are currently undergoing retraining.
There is also an ongoing reprocessing to professionalize the militiamen and
isolate them from control of politicians and other sectors who may employ
them for their personal interests.
Under the NAFP plan, the CHDF will be under the direct control and super-
vision of professional military men Gamboa said.
The MND [Ministry of National Defense] official also stressed that OICs
[officers-in-charge] cannot terminate the services of CHDF members who are
still under the control of the military.
OLCs, however, may recommend removal or retention of CHDF personnel in their
respective areas.
49
Earlier, OICs and human rights groups recommended to President Aquino the
abolition of the CHDF because of abuses by militiamen. These included murder,
salvaging, and violation of human rights.
During his visits to Camp Olivas and other military camps in Region 6, 3,
and Mindanao, Gamboa said he discovered that the soldiers are the most
neglected government employes, especially those assigned to rural areas.
Many of these soldiers have no shoes, uniforms, and sometimes eat only twice
a day, instead of three times, Gamboa said.
He also said that the administration discovered unpaid claims of the soldiers
amounting to P6.5 million and salary increases and COLA [cost of living allow-
ance] hikes still unimplemented.
/6662
CSO: 4200/1415
50
JPRS-SEA-86-174
26 September 1996
PHILIPPINES
SPECIAL REPORT ON SITUATION IN NEGROS
HKO31222 Manila THE MANILA CHRONICLE in English 30-31 Aug, 1-3 Sep 86
{30 Aug 86 pp 1, 6 Part I]
["Special Report" by editor-in-chief Amando Doronila: "Spasms of Negros"]
[Text] Early this month, a mob of about 90 landless peasants, some of them
armed, descended on rice fields in Bago city, about 20 km south of Bacolod
City, harvested the ripening grain overnight and took possession of the land.
The land was part of a sugarcane hacienda and the peasants occupied only the
rice lands, claiming tenancy rights under existing agrarian reform legislation
which places rice lands, but not sugar lands, within its scope.
The Philippine Constabulary [PC] commander in Negros Occidental, Lieutenant-
Colonel Miguel Coronel], told me that once the peasants had claimed tenancy
rights, the PC was inhibited from intervening to evict them because juris-
diction goes to the Ministry of Agrarian Reform.
This unilateral act of land seizure--which is similar to occupation of vacant
space by squatters in Metro Manila--is being repeated with alarming frequency
in several parts of the province that has been socially and economically
devastated by the collapse of the sugar industry.
Around the middle of the month, peasants occupied rice lands in Hinigaran,
further south of Bacolod City. Since last March, according to provincial
authorities, five cases of land occupation by what planters call the rural
"squatters" have been reported--two in Hinigaran, two in Bago and one in
Isabela, in the southeast near the foothills of Mt. Kanlaon, the sanctuary
of an estimated 1,200 communist New People's Army guerrillas. There, a
Vietnam-type guerrilla war is going on between the government's armed forces
and the NPA.
Even though the scale of war is small, it is nasty. Large mortar shells have
exploded on peasant villages, thousands have been driven to evacuation in the
town, thatched nipa homes have been burned, and soldiers have taken undis-
closed casualties. Engagements are probably in platoon size units in the
hit-and-run warfare.
51
It is not clear whether the Small Farmer Association of Negros, which has
claimed responsibility for the land seizures, is linked to the communist
guerrillas. But what seems clear is that their march on the land has opened
a new dimension of the class war which is now a grim reality in Negros Occi-
dental, just as it was in Central Juzon during the Huk rebellion in the late
1940's and in the 1950's.
The land occupation signals an act of wealth redistribution by the peasantry--
another form of rebellion of the poor--a time when landlord power is on the
wane in a province whose agrarian structure is probably the most glaring
example of land concentration in the country today.
One measure of the diminished power of the Negros landlords--who were con-
sidered the most influential power brokers during pre-martial law politics-—-
is that when a committee of the Constitutional Commission held hearings in
Bacolod City last month on land reform, the planters were not invited,
although they did manage to accredit their representatives. It is a reflec-
tion of the shift of the balance of forces in the province that there was a
preponderance at the hearings of organized representation from newly emerging
militant social groups including unionized farm workers, the tiny Negros mid-
dle class and Roman Catholic Church groups involved in social action.
A group of planters I talked to in Bacolod City have expressed anxiety that
the land marches will continue. Some landowners are already considering
formation of vigilantes to defend their land. If this goes ahead, armed
clashes are foreshadowed.
In northern Negros, yet another type of class conflict is developing--this
time within the rural proletariat itself. Landlords have organized private
armies recruited from the large floating rabble of rural jobless and have set
them upon farm workers on strike against low wages and poor working conditions
in some haciendas. The workers are paid wages as low as P14 to P18 a day,
compared with the minimum wage of P32.50 a day for agricultural workers.
Indeed, poverty and deprivation have not only intensified the conflict between
the landed and the landless; they have also given opportunities for the rich
to exploit the poor and pit them against their kind.
In Cadiz City, also in northern Negros, former Congressman Armando Gustilo
holds forth with his private army and continues to hurl, through his radio
station, defiant words against the government of President Aquino. Gustilo,
a landlord who was one of deposed President Marcos’ principal instruments of
political control over the sugar industry in Negros Occidental, has refused
to accept not only the authority of the new central government but also the
reality of social and political change.
The instability of the central government which is being pulled apart by
conservative and populist tendencies represented in the Aquino coalition
cabinet has somewhat contributed to the paralysis of public authority in
Negros Occidental Province.
52
[31 Aug 86 pp 1, 7 Part ITI]
[Text] The inability of the National Government ot enforce its political will
over its rebellious provincial subjects offers a superficial explanation to
the breakdown of public authority in Negros. The economic and social dis-
location in the province has deeper structural roots than the weakness of
the political center in Manila.
The key to understanding the Negros crisis is sugar--the utter dependence of
the provincial economy on a monoculture crop upon which the social structure
was built and polarized between the extremely rich and the extremely poor.
For a long as sugar fetched good prices in the world market and enjoyed sub-
stantial quotas in the protected United States market at premius prices, the
provincial economy boomed from the spin-off of the sugar profits. Although
wages of farm workers remained wretchedly low, the sugar planters were able
*o maintain a sort of patronclient relationship in which they supplemented
low wages with the traditional paternalistic subsistence aid. The maintenance
of this paternalistic relationship bonded landlord-peasant ties.
But when in the early 1980's the world sugar prices plunged, the Negros
sugar industry contracted. The fall of prices came as a severe blow because
the Philippines no longer enjoyed the shelter of the guaranteed substantial
US quota (980,000 metric tons) following the expiration of the Laurel-Langley
agreement in 1974. The ability of the industry to absorb the price shock
was further impaired by the mismanagement of funds of the industry by the
monopolistic control imposed by the Marcos regime on sugar trading.
This disruptive contraction of the sugar industry cut cane acreage by 30 per-
cent, causing mass unemployment. It is estimated that more than 100,000
sugarcane workers are either unemployed or underemployed.
The unemployment problem is particularly serious in Negros island which has
accounted for more than 50 percent of sugarcane acreage in the country and
has employed more than 200,000 sugarcane workers. Because the province is
almost exclusively dependent on sugar, there are few job alternatives in:
other sectors of the local economy, which itself has shrunk from the sugar
depression. In the process, paternalistic landlord-peasant relationship also
snapped, casting workers adrift and making them susceptible to recruitment
by revolutionary forces.
The most vivid evidence of the pauperization that has resulted from the crisis
are the emaciated children facing a joyless future in the malnutrition wards
of the provincial hospital in Bacolod City. Foreign correspondents never
miss the chance to visit these wards and portray with horrifying vividness
the human suffering produced by severe economic and social crisis.
Hunger and malnutrition continue to ravage the children. The latest statistics
at the malnutrition ward of the provincial hospital give evidence of the depth
of the economic depression. A total of 648 malnourished children our of
53
5,310 admitted into the ward died in 1985, compared with 370 deaths in 1984
and 221 in 1983.
In 1984, 66.7 percent of pre-school children weighed were malnourished at
varying degrees. Those belonging to the second and third categories--the
worst cases--represented a quarter of all the children weighed. In 1985,
Negros Occidental posted the highest second and third-degree malnutrition
rates in Western Visayas.
Poverty is also reflected in the infant mortality rate [IMR]. In contrast
to the declining national IMR between 1980-83, that in Negros rose to 82.3
per 1,000 live births in 1983, from 71 in 1979. The number of mothers dying
soon after childbirth is higher than the national average in 1979-83. In
1979, the maternal death rate in Negros was 89 percent, rising to 1.16 per-
cent in 1983. The maternal death rate for the country was 0.95 percent in
1981.
There is no need to labor the point with further grim statistics. The shape
of reality emerged during a visit to the malnutrition ward. I saw a three-
year-old boy from La Carlota, nearly a skeleton wrapped in dry skin, staring
blankly at the wall. He was blind from malnutrition. I asked his sister what
his father was doing. She said he was cutting firewood and selling it. I
asked what here monther was ning. The mother was insane. I stopped the
interview and left the ward. One can suffer the truth only so much.
It is pointless to indulge in the exploration of the cruelty of poverty or of
agrarian capitalism--unless we place the problem in perspective. True, the
malnutrition wards are our images of our own Buchenwalds and Auschwitz's of
poverty in which the young are hopelessly trapped.
But what is easily being missed is that behind these impassive masks of
children who are neither dead nor alive is a larger landscape of change
sweeping the feudal structure of Negros economy and society and transforming
them into something perhaps more equitable and resilient.
The conflicts previously cited--the land seizures by the peasants, the war-
lords’ defiance of central authority, the guerrilla war of the NPA--are merely
symptoms of disruptive change. They need not bring despair--for no society
ever dies. Negros society has an immense capacity to renew itself.
[l Sep 86, pp 1, 6, Part III]
[Text] The initiative to turn the Negros economy around, to reorient it from
twoo heavy dependence on sugar and to halt the slide towards social revolution
comes from concerned planters led by the acting provincial governor. Daniel
Lacson.
The 39-year-old Lacson is widely seen as a dynamic executive who, under
crisis, has inspired creative approaches aimed at turning back the revolu-
tionary tide. His best-known initiative calls for the acceleration of crop
54
diversification, use of part of sugarlands for food production projects
(agri-enterprises), and voluntary land sharing with farm workers. I shall
discuss details of this plan later.
Lacson, who is a big landowner himself, wants to channel the process of change
into the conduits of reform and he knows he is racing against time. In recent
speeches to private organizations in Bacolod City, Lacson said that "Unless
we turn the situation around in two years, perhaps we may have to join the
boat people."
There is no doubt about the life-or-death intensity of this upper-class led
campaign to snatch the province from falling into revolutionary hands. What
is problematic is whether there is time left to reverse the slide and whether
the initiative from the center offers too little.
A realistic assessment of the prospects of reformist initiatives succeeding
requires us to examine the present state ofthe sugar industry's crisis.
A World Bank study dated 6 March 1986 on sugarlands diversification in the
Philippines gives an overview, the highlights of which are summarized:
The sugar industry has been one of the important foreign exchange earners in
the Philippines. During 1973-82, sugar exports averaged 1.4 million tons
annually (about 60 per cent of total domestic production) and accounted for an
average of 12 percent of total value of exports. Following declinign world
prices, the value of sugar exports fell to about $300 million in 1983 or
about 6 percent of the total value of exports.
During 1973-82, sugar contributed about 6.5 percent of the gross value added
to the agricultural sector in 1972 constant prices. The contribution declined
to slightly over 4 percent in 1983. In 1983-84, about 500,000 workers were
annually employed in the industry. On an average family size of six members,
about three million people depended on the industry.
About 73 percent of sugarcane workers live and work regularly on farms, 25
percent live in nearby villages and are employed seasonally and about 2 per-
cent are migrant seasonal workers called sacadas.
In 1975-76, the sugarcane area and total sugar production peaked at about
550,000 hectares and 2.9 million tons. In 1984-85, in response to the fall
of sugar prices in the world market, both area and production declined to
385,000 hectares and 1.7 million tons, respectively. Further declines cre
projected for 1985-86 to 321,000 hectares and 1.3-1.5 million tons, respect-
ively, or about 28 percent and 36-45 percent below the respective five-year
averages up to 1983-84.
About 70 percent of all sugarcane is grown in Negros Island and Panay. The
heaviest concentration is in Negros Occidental where more than 70 percent of
cultivated area has been devoted to sugarcane.
55
The five-year avarage of cultivated sugarcane area in Negros Island during
1979-80 to 1983-84 was 233,999 hectares.
Of the total 30,000 sugar planters in the country (10,661 are in Negros
Island), about 77 percent own farms below 10 hectares, 18 percent, own mediun-
sized farms [words indistinct] to 50 hectares and 5 percent, large farms of
above 50 hectares. In terms of the total sugarcane area, small farms account
for only about 22 percent while medium and large farms account for about
35 and 43 percent, respectively, indicating that land distribution is highly
askewed. In Negros Island, of the total sugarcane area of 211,456 hectares,
farms of over 100 hectares account for 44,258 hectares or 41.4 percent.
Sugarcane yields per hectare are much higher on small and large farms com-
pared to those on medium-size farms. This has implications for land reform.
There are 41 sugar mills in the country (14 in Negros) with a total milling
capacity of about 184,500 tons of cane a day, or an equivalent of 3.5 million
tons of raw sugar a year. In 1979-80, to 1983-84, capacity utilization
averaged 70 percent, and fell to about 50 percent in 1984-85.
The contraction of the sugar industry since 1984-85 can be traced mainly to
the decline in financing available to the industry since 1984, the deteriora-
tion of law and order in Negros and since late 1984, the inability of the
Philippines to export sugar profitably since its cost of production (about
10 US cents to 12 US cents a pound) exceeds the current world price of raw
sugar (about 5 cents a pound).
The financing problem has been severe and made the industry contraction
very disorderly. The main factors responsible for the decline in financing
since «arly 1984 include: the cash squeeze in the economy resultirg from
the ’ :os government's economic stabilization program; the closure of the
Centcai Bank's rediscounting window which was the largest source of credit
for the sugar sector; reluctance of some banks to lend for sugar because of
the instability and uncertainty of government sugar marketing policy. This
refers to the National Sugar Trading Corporation's [Nasutra] monopoly in the
marketing of sugar. The failure of Nasutra to account for funds to planters
aggravated planters’ cash flow.
Because of the sudden and disorderly contraction in the industry many
good sugar lands, which could be used for other crops, are lying idle,
causing either unemployment or underemployment for about 100,000 sugarcane
workers.
The job lay-offs are particularly severe in Negros because they account for
more than 50 percent of sugarcane area in the country and has employed more
than 200,000 workers. The almost exclusive dependence on sugarcane has left
very limited alternative employment opportunities.
I am quoting the following portions of the World Bank report because of their
implications for land reform covering sugarlands.
56
--A possibility following the approval by the Constitutional Commission of a
resolution calling for sweeping agrarian reform:
Because of the impact of the industry's contraction on unemployment, “crop
diversification has thus become a major issue in Negros. It is not an issue
in other sugar areas since, overall, sugarlands account fcr less then 5 per-
cent of cultivated area in the Philippines and, in half of the areas growing
sugarcane (outside Negros), sugarcane itself can be regarded as a diversified
crop as these areas formerly grew rice and other crops. In essence, mono-
cropping in Negros is a problem if it produced largely for the world market
where prices fluctuate sharply inducing severe instability in production and
employment....
"The unemployment and underemployment problem in Negros and other sugarlands
has been aggravated by the highly skewed land distributed. If land distri-
bution has been less skewed, the problem would not have emerged at its present
scale, despite the financing problem, since small farmers would be mostly
self-financed. Moreover, given the need for sugar industry contraction,
crop substitution and the provision of alternative employment opportunities
would have occurred much faster on smaller farms since, unlike large planters
who usually have other sources of income, small farmers cannot afford to leave
their lands idle for long."
[2 Sep 86 pp 1, 6, Part IV]
[Text] Im the previous article, it has been demonstrated that land concentra-
tion in Negros Occidental stands in the way of crop substitution and diversi-
fication as a means to wean the provincial economy away from excessive depend-
ence on sugar.
The World Bank study previous cited stressed that crop substitution and
diversification be given top priority because of their implications for
unemployment and underemployment, which are fuelling social unrest.
The study recommended that limited land reform seemed the practicable option,
rec gnizing that a general redistribution of sugarlands at this time “would
create serious instability and merely compound ¢he already severe problems of
the industry.”
Land Reform is a dreaded word in Negros. It conjures images of not only
losing land but also political power and influence associated with land
ownership, and giving up a sumptuous way of life enjoyed historically by the
Negros landed aristocracy. Perhaps there are few provinces in the country
where the notion of private property and the power that lies behind it is more
sacrosanct and deeply ingrained into the bones of its inhabitants than in
Negros.
It is in Negros where one still sees the hacienda whose community centers
are laid out to depict the dependence of farm workers on and their subser-
vience to the hacenderos. This pageant of lord and peasant is played out
57
every day--just as it has been since the British financed the expansion of the
sugar industry the 19th century, following the opening of the port of Lloilo,
across Negros Occidental, to international trade. The haciendas transport
one back to the past--and time is frozen there.
Thus, these findings: > World Bank leave little comfort for landowners.
Neither do they appeai co the revolutionaries who demand drastic land redis-
tribution. But the World Bank report answers arguments that have been tradi-
tionally cited to resist land redistribution. According to the report:
"Experience of other major sugar producing countries of the world shows that
concentration of land ownership is a deterrent to diversified farming systems.
This also appears to be the case in the Philippines. The large farmers have
part on all of their sugarcane areas lying idle and have not opted for crop
substitution and diversification fast enough due to problems which are mainly
associated with large farm sizes.
"The issue is whether land redistribution would help resolve the problems
of the sugarcane areas, particularly those of unemployment and underemploy-
ment. When the sugar industry was expanding, planters were protected from
land redistribution. Now, in a period of industry contraction, continued
protection is justified only if large planters are more efficient than small
planters. Available evidence, however, shows that the cost per hectare and
per unit of sugar output in the Philippines is lower on small farms than
larger farms. Consequently, there seems to be little basis to believe that
the breakup of sugar lands into small farms would adversely affect the cost
of competitiveness of the Philippines in sugar. In particular, there appears
to be no rationale for exempting sugarlands, which will be taken out of sugar-
cane as a result of industry rationalization, from land reform.
"The argument against a general redistribution of sugarlands...is pragmatic:
It would create serious instability in the short term and merely compound the
already severe problems of the industry....
"It appears that a limited land reform would be practicable in the sugarlands
at this stage. Public support to land reform is likely given the fairly
widespread concern for the situation of the sugarcane workers in Negros. In
fact some degree of land redistribution is already in progress. A few socially
conscious planters, some of whom are supported by private voluntary organiza-
tions, have entered into land-sharing arrangement with their workers under
which the latter have been given permission to use plots of land for food pro-
duction.
"Moreover, the banks have already foreclosed on an estimated 10,000 hectares in
Negros belonging to planters, and government is considering giving these lands
to workers’ unions. They are also reportedly considering foreclosing on all
sugar farms with arrears; this could include as much as 100,000 hectares in
Negros alone. According to representatives of government banks, attempts
to sell foreclosed properties have generally not been successful. Since the
banks have no experience in running the farms themselves, most of their fore-
closed properties are currently unused. Under these circumstances, land
redistribution seems to be a practicable option.
The World Bank study recommended that the government consider a land redistri-
bution policy in sugarcane areas based on four elements:
1. Voluntary land sharing arrangements (including share tenancy) should be
encouraged.
2. The lands foreclosed by the banks should be sold to sugarcane workers’
unions who had previously worked on those lands.
3. On mortgaged sugarlands with arrears but which have not yet been fore-
closed, a land-sharing arrangement with workers should be made conditional
for any debt rescheduling. (About 80 percent of Negros »lanters are in srrears
for crop loans with the Philippine National Bank and the Royal Traders Bank.
They are asking for restructuring of these loans to free some of their funds
for crop diversification).
4. Sugarcane lands not planted to any crop at recognized plant densities for
three consecutive years should be made subject to land reform. This measure
is likely to put pressure on large planters to accelerate crop substitution
and diversification.
The study also urgges the government to give highest priority in the next
few months to land redistribution and a financing plan to back it because of
its impact on alleviating poverty.
Sugarcane workers remain one of the country's main poverty groups. The in-
dustry’s contraction, as well as the mechanization program wadertaken by the
Marcos government in 1983 to increase efficiency and productivity so the
industry could be more competitive in the world market, have worsened the
unemployment problem. Mechanization was halted because of financial con-
straints and its social costs but it has displayed thousands of farm workers.
In 1982, 62.3 percent of Negros families were below the poverty threshold,
or earning less than P9,387 a year. This meant three out of five Negros
families would be considered poor. According to Roque Hofilena, planning
and development coordinator of the Negros Provincial Development Staff,
as much as one-half of the province's total income goes to just 5 percent of
the highest income earning families in the province.
{3 Sep 86, pp 1, 6, Conclusion]
[Text] Governor Daniel Lacson's vision, as well as that of the forward look-
ing planters, of the economic transformation of Negros Occidental does not
align with the World Bank's rather moderate proposal for limited land redis-
tribution.
59
He plans managed change under the auspices of the private capitalist sector
in which the planters are the agents of economic development while they
retain most of their land. The concrete expression of this program is the
so-called 60-30-10 plan. Under this plan, 60 percent of sugarcane lands is
set aside for sugar production, 30 percent for diversification or agri-business
and 10 percent for voluntary sharing with farm workers.
The formula derives from the distribution of the sugar crop. It is estimated
that distribution of the production for crop-year 1987-1988 would be 950,000
metric tons for domestic use, 2,000,000 metric tons for the US quota, and
150,000 metric tons as reserve sugar, totalling 1.3 million tons. This pro-
duction level is equivalent to only 60 percent of the industry's capacity.
The Sugar Regulatory Administration has set a production target of only 1.3
million metric tons for crop year 1987-1988. This quota reduces sugar area by
as much as 40 percent. A total of 267,000 hectares is devoted to sugarcane
production in Negros Occidental. The 40 percent decrease leaves 160,000
hectares to sugarcane and frees 106,700 hectares for other uses.
This quota also affects milling capacity. It reduces use of the 41 sugar
mills in the country (14 of which are on Negros Island) by as much as 40
percent. Rationalization plans of the government on the mills calls for the
closure cf half of the sugar mills. This would render jobless thousands of
mill workers.
Of the 160,000 hectares in Negros freed from sugar production, 30 percent,
or 80,000 hectares, will be used for crop diversification and agri-business
(animal husbandry, for example), and 10 percent, or 26,700 hectares, for
voluntary land use schemes.
Under the land use scheme, resident farm workers would have access to 10 per-
cent of the hacienda land in which they may plant crops for food production
to augment incomes, in addition to wages earned from normal farm work.
The plan envisages eventual ownership of the 10 percent by the peasant cul-
tivator. How soon, there is no fixed time.
The principle, as explained by Lacson, is that “the sugar workers should first
learn how to be a productive farmer before he can be expected to take care of
a bigger piece of land."
He envisages that the 30 percent for diversification and agri-business is a
potential growth area from which land-based enterprises may develop and cre-
ate jobs.
The plan is biased against land refore. Said Lacson: “The experience of the
land reform program in rice and corn should have driven home the lesson that
the majority of our rural families are not yet prepared for a sudden trans-
fer of bigger pieces of land. Besides, it is obvious that the developed land
resource of Negros Occidental is not enough really to go around. Even if all
sugarlands were distributed to the landless sugar workers’ families, the net
result would be a little [words indistinct] hectare per family.”
He wants to transform the planter into a modern agri-business entrepreneur
who would [word indistinct] the economic recovery effort within the frame-
work of free enterprise.
So far, the unionized workers under the Federation of the Negros Sugar Workers,
the largest union of workers in the province, have indicated interest in the
10 percent land use scheme, provided that land title is transferred right
away to workers’ cooperatives. Landlords resist immediate land transfer.
It is not disputed that land use in homelots of 500 to 1,000 square meters
planted to food crops, such as vegetables and fruits, can augment workers’
incomes. This has been demonstrated in Gov. Lacson's 120-hectare hacienda
Otilla in Talisay, about seven kilometers north of Bacolod City. He is one
of few hacenderos who have adopted the land use concept. Their numbers are
growing.
Crop diversification looks promising on blueprint, but closer examination
shows that the most likely cash crop substitutes--rice and corn--have limited
market. The Philippines is nearly sufficient in rice and a shift of acreage
to rice would result in surpluses which cannot be exported because our cost
of production is not competitive. Surplus rice could depress local rice
prices.
Some planters have gone into prawn production which fetches profits of about
400 percent, but capital investments are high for transforming sugar lands
into prawn ponds. Socially, it does not help much in relieving unemployment
because it is capital, rather than labor, intensive.
In diversification, the biggest problem is financing. Planters are short
of cash and the National Government is not yet financially prepared to bail
them out with fresh loans. The launching of the emergency employment program
of the Aquino government may help alleviate unemployment and poverty but
this is a short-term measure.
The vagaries of international capitalism--in which world sugar prices batter
the domestic sugar industry--and the depleted national treasury conspire
against the planters’ enterprise to turn the local economy around.
There is no lack of concern on the part of the planters to alleviate the
suffering of the Negros poor. Concerned organizations, such as the Women of
Negros, go out of their way to help feed malnourished children or set up wel-
fare distributing projects. They promote cooperatives that encourage crop
diversification. Many in these groups are wives of planters.
But the sugar landlord of today is a vastly diminished social force. He is
on the run. Deposed President Marcos broke the power of the “sugar bloc”
with the declaration of martial law in 1972 and the establishment of the sugar
monopoly in trading through the Nasutra (National Sugar Trading Corporation)
61
in 1977-85, and the Philsucm (Philippine Sugar Commission) in 1977-85. The
latter dictated sugar policy.
The suspension of the Congress and electoral [word indistinct] during the
martial law years deprived the landlords of a pwer base through which they
protected and promoted the interests of the suger industry. They had enough
power to exclude sugarlands from land reform legislation.
The sugar monopoly squeezed them of cash, sending them to their knees for
crop loans. When sugar prices dropped, the economic resources of landlords
dwindled and even reduced their capacity to hold the loyalty of farm workers
whom they were no longer able to aid with interest free loans.
sense
» these events led to the disruption of the social structure of
Negros and opened the way for realignment of social forces of which landlord
was onger the dominant group.
1
The fall of the Marcos regime ended strong state intervention in the sugar
industry and the noninterventionist nature of the Aquino government has left
a vacuum in which interests of the organized peasantry, the mass organiza-
tions, some of them sponsored by the Roman Cathoic Church, and the landlords
are competing for supremacy.
Initiatives from the landlords are emerging from this disequilibrium. Whether
they will succeed in transforming the provincial economy into a free enter-
prise agro-economic society is hard to tell. Events are moving rapidly to
unravel the old social order. So far, only palliatives are being delivered.
But can the Negros poor wait for the solutions of the planters to trickle
CSO: 4200/1421
62
JPRS-SEA-%6-174
Sep
PHILIPP™.S®
WEEKLY ON POLITICAL BACKGROUND OF MISUARI
HKO90253 Quezon City NEW DAY in English 8 Sep 86 p 2
[By Alex S. Villanueva]
{Text} Wur Stet Misuari, the leader of the Moro National Liberation Front
(MNLF), has gone far for a son of a fisherman in Tapul, Sulu.
When ¥ ‘wari came to Jolo in 1970 after finishing his college at the
Univer ty of the Philippines in Diliman, Quezon City, he taught at an obscure
school n Jolo, the Philippine Muslim College, where dropouts at the Notre
Dame co” ‘olo College enrolled.
Misuari used to go to the office of the SULU STAR, the lone weekly newspaper
of Sulu of which I was the editor. My assistant was Nelly Sindayen, now the
Philippine correspondent of TIME magazine.
Nur, as his friends call him, was planning to run as a delegate to the
Constitutional Convention in 1971. Wot having any background in politics, he
was no threat to the traditional politicians such as the Abubakars, th Annis
and Sangkulas. Nur was not discouraged. He formed a young group from the
students of Philippine Community College, the Jolo Community College, and the
Notre Deme of Jolo College and merged them into an association called
Paghambuuk which means “untied” in Tausug.
When martial law wae declared the members of the Paghambuuk were put in jail.
Those who were not put in jail joined Misuari in the hills.
During the election campaign, the group toured the seven towns of the Jolo
mainland and the island towns during the election campaign. In some of the
election sorties, I was with the group and I had to pay the price for being
seen with Misuari: when martial law was declared, I was in and out of the
military stockades eight times. As [words indistinct] lost in the Concon
election in Sulu in 1971, landing fifth, losing to the fourth placer only by a
few moes. Sulu was entitled to three seats. But Misuari made a deep
impression on the Sulu politicos because [word indistinct] in Jolo, Sulu's
capital town, placing number one among the eight candidates.
Paghambuuk filed a protest against election frauds, prompting the Comelec
[Commission on Elections] .sairman Jaime Ferrer to conduct a public
63
investigation on the complaint. Ferrer stayed in Jolo for three days and
conducted public hearings.
In those hearings, the members of the Paghambuuk testified that there was
rampant cheating in some island towne-
A Paghambuuk member, Zenaida Hamada, testified that the voters were more than
those in the voters list. Hamada was a watcher of Misuari's political party.
During the testimony of Hamada, the members of the Paghambuuk openly cried and
pleaded with her to stop testifying because they feared for her life. But
Hamada went on and Ferrer made a drastic move by annulling the votes of the
third place winner. The third slot was given to lawyer Benjamin Abubakar,
former Sulu governor.
After the election, Misuari was hardly seen in Jolo town anymore. But many
parents had reported their sons leaving their homes to join the training
grounds of Misuari somewhere in the hinterlands of Talipao and Panamao towns.
Most of the political leaders of Misuari's Paghambuuk group were students and
graduates of the University of the Philippines. Notable among them were the
Tan Sisters--Desdemona and Leonila, daughters of a rich Jolo businessman, the
late Tuchay Tan, a former provincial board member.
Desdemona, who has a master's degree in social work, later on married Misuari,
while Leonila is reportedly the treasurer of the MNLF. Nijam Abubakar, the
son of Jolo Mayor Aminkadra Abubakar, became one of the trusted sidekicks of
Misuari. Abubakar reportedly was active in numerous fire-fights with the
military.
Dr Farouk Hussein, a trusted man of Misuari, was formerly the municipal health
officer of Jolo, while Dr Basil Jajurie, was a former Kagawad [official] of
Jolo, and one of Jolo's best known physicians.
Since Desdemona's mother is an Abubakar, Misuari could claim affinity to the
big Abubakar clan in Jolo which also includes a big Ututalum clan. That is
why in late 1973 before the 7 February burning of Jolo in 1974, only Mayor
Abubakar could go out of Jolo to negotiate with the MNLF and dissuade it from
attacking Jolo.
In 1973, out of the 16 towns of Sulu, only Jolo town was not under the control
of the MNLF. The MNLF eventually captured Jolo for a day on 8 February 1974.
Misuari was able to win in Jolo during the Concon election in 1971 because of
the influence of the family of his wife and the Abubakars. Another factor was
the backing of the student groups from the three colleges in Jolo.
While the MNLF made a name for itself internationally and Misuari became an
international figure, the property damage and the loss of thousands of lives
in Mindanao the rebellion has caused cannot be replaced. Even today,
thousands of former Jolo residents have refused to go back home because of
uncertainties in Jolo. Their primary concern is that fighting can always
erupt again.
Many Joloanos now live in Negros Oriental and they refuse to go back. Many of
them hope and pray that President Aquino can solve the conflict. They are
banking on Mrs Aquino's courage to meet with Misuari in Jolo and solve the
problem once and for all.
Many Joloanos recall the times when deposed President Marcos had gone to Jolo
twice incognito dressed as an ordinary soldier. They were asking then why
there was a need for Marcos to go there incognito.
For me, a long-time Jolo resident, Jolo was the safest place to live among the
places in the Philippines. We hope that President Aquino will also have that
feeling and sentiment after her talk with Misuari.
/12913
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65
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
MALAYA EDITORIAL LAUDS AQUINO-MISUARI MEETING
HKO81205 Quezon City ANG PAHAYAGANG MALAYA in English 8 Sep 86 p 4
{Editorial: “A Giant Leap for Peace”™]
[Text] Whatever apprehensions wee there before the mest, it has now emerged
with telling clarity that a giant leap has been scored for the cause of peace
in Mindanao. Those who have entertained the healthiest skepticisms about the
talk, the security problem it posed with the President's sally to Jolo, the
violation of protocol or niceties since Nur Misuari is not a chief of state,
these were but some of the major hurdles the historic meet had to undergo.
That is went through without any hitch is a tribute to the sincere desire of
both parties in their quest for peace and thus offers the biggest hope that
more steps in the future will be taken and will be forthcoming to complete the
journey so auspiciously started. Confucius observes that the journey of a
thousand miles begins with its first step. That momentous first step has been
taken.
The “continued cessation of hostilities,” as contained in the joint statement,
ig an excellent basis to govern the conduct of future negotiations.
Certainly, it is the continued hostilities that have exacerbated the situation
in Mindanao and heightened the bitterness between the warring factions,
ironically between brother Filipinos. As President Corazon Aquino put it,
“Mindanao belongs to all, be they Muslim or Christian, who have expanded
sweat, tears, and blood to make it a home for Filipinos.” And Misuari echoed
her sentiments with the words: “The message is peace.”
The President's trip is a success in setting the stage for future talks. A
lot will depend on implementation of the agreement already forged by the two
leaders, who have named the officials from both sides who shall carry the
brunt of the negotiations from here on. If the sincerity and good faith shown
at that historic meet will mark the conduct of the negotiations, there is no
doubt that the elusive peace will be achieved.
The chance of a lifetime is here and waiting for those who like to see peace
reigning at last in the troubled South. If they are not aware of it yet, the
negotiators stand at the threshold of history; they either will enter it or
remain as outsiders looking in.
/12913
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JPRS-SEA~86~174
26 September 1986
PHILIPPINES
SISON HITS U.S. BASES BEFORE JAPANESE AUDIENCE
HKO21536 Manila THE MANILA EVENING POST in English 1 Sep 86 p 1
[Excerpt] Jose Ma. Sison, alleged leader of the Communist Party of the Phil-
ippines and Partido ng Bayan founder, has assailed anew the continued pre-
sence of U.S. bases and foreign domination of the country's economy and
vital industries.
Adressing 500 Japanese “Peace Boat" participants and 300 Filipino guests,
during the reception on board the "Coral Princess" at the South Harbor's
Pier 15, Sison said the Philippines and Japan belong to the same region, and
face the same problem on the preservation of peace and the existence of U.S.
bases with nuclear weapons.
Sison said the Japanese and Filipinos share the same objectives of seeking
and banning nuclear weapons and vessels and creating a nuclear free zone in
the Asian and Pacific region.
He said "the noble and lofty purposes of the ‘Peace Boat’ are similar to
the primary aims of Bayan (Bagong Alyansang Makabayan) [New People's Al-
liance]--to promote peace, understanding, and goodwill, and fight for
solidarity, justice, freedom, and democracy."
Sison urged Filipinos and Japanese to unite and work for peace by fighting
U.S. imperialism and domination.
He said “our peoples should work for closer links to fight for peace in the
whole world.”
Other cause-oriented groups attended the reception to exchange views and with
their Japanese counterparts. These groups included Bayan, the National
Alliance for Justice, Freedom, and Democracy, and Nuclear-Free Philippines
Movement, and the Anti-Bases Coalition (ABC).
/6662
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67
PHILIPPINES
NPA MEMBER TELLS OF SETBACK AFTER ‘REVOLUTION’
HKO81229 Manila PHILIPPINE DAILY INQUIRER in English 6 Sep 86 p 14
[Text] Camp Evangelista, Cagayan de Oro City--A captured NPA member disclosed
that the rebel movement in the Agusan Provinces and Surigao del Norte is still
reorganizing after many of its members deserted or surrendered to government
after the people's power revolution last February.
The rebel leader identified as Narcisco Albacite alias “Commander Mike",
also said the February revolution that installed President Corazon Aquino
was a great setback for the rebel movement.
The NPA has practically lost face among the people in these areas, making
it even difficult for the movement to recruit new members, Albacite said.
Albacite was captured during an encounter Aug. 2 in Tagbina, Surigao del Sur
with government troopers from the 28th Infantry Battalion.
Albacite, who was wounded during the encounter, is being treated at the
army station hospital in Camp Fvangelista upon order of Brig. Gen. Mariano
Adalem, RUC [Regional Unified Command] 10 commander.
According to the captured rebel leader, he does not intend to go back to the
rebel movement after his hospitalization because he would be a dead man if
he returns. He also said there are more opportunities under present leader-
ship.
Albacite said he did not expect to be brought to a hospital for treatment by
the government troopers, adding that many of the teachings of the rebel move-
ment are all fabricated.
/6662
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PHILIPPINES
NPA GUERRILLAS ATTACK TOWN HALL IN NORTH
HKO11440 Hong Kong AFP in English 1428 GMT 1 Sep 86
[Text] Manila, Sept 1 (AFP)--Three people were killed when communist guer-
rillas attacked a town hall and a house occupied by the military in the
northern Philippines, the official PHILIPPINE NEWS AGENCY (PNA) reported here
Monday.
Twenty New People's Army (NPA) guerrillas raided a military “safe house” or
hideout in Atimonan Town Saturday but were driven. [sentence <s received]
Two of the attackers and a government militiaman were killed in the gunfight
in the center of the town, 120 kilometers (72 miles) south of the capital
in Quezon Province, PNA added.
In Mindoro Island south of Manila, some 30 NPA rebels seized nine firearms,
briefly abducted three policemen and commandeered a jeep during a raid Friday
on Calinton Town, the agency said.
The insurgents met no resistance, and freed the policemen when they were
far away from the town, it added.
Military spokesmen here could not immediately confirm the two reports.
The NPA is the 16,500-strong armed wing of [words indistinct] Communist Party
of the Philippines. Both belong to the underground coalition National Demo-
cratic Front how holding peace talks with the government of President
Corazon Aquino.
The Armed Forces Monday denied reports that government troops had torched 12
houses inside an experimental ceasefire zone in the south Philippines.
Retreating NPA men who ambushed an army patrol Wednesday set fire to the
houses, PNA quoted deputy Armed Forces Chief for Logistics Brigadier General
Antonio Lukman as saying.
An official panel monitoring the two-week-old ceasefire reported after an
inspection of the village near San Vicente Town Saturday that residents had
told them soldiers burned their houses and exevuted three farmers.
The PNA report made no mention of the alleged casualties.
/6662 6s
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PHILIPPINES
COLUMNIST LAMENTS CPP'S "UNCOMPROMISING POSITION’
HKO21534 Manila MANILA BULLETIN in English 2 Sep 86 p 6
[Colum by Orlando F. Aquino: "Back to Square One?"
[Excerpt] It is most unfortunate that the Communist Party of the Philippines
(CPP) has chosen to take a hard, uncompromising position in virtually reject-
ing attempts by the Aquino administration for a ceasefire so that peace talks
can begin between the government and the Marxist rebels.
That is the inevitable impression given by the CPP announcement that it does
not recognize the truce forged by military authorities and rebels in the
Davao provinces--and then adding that “the NPA in Mindanao as in other parts
of the country are under orders to counter all attacks by the AFP [Armed For-
ces of the Philippines] and defend the people.”
Stripped of all the communist rhetorics and demagoguery, one can only con-
clude that the CPP is trying to pressure the government into giving in to
its terms for the start of ceasefire negotiations ostensibly from a position
of strength--at least that is the impression it wants to convey to the people.
To our mind, the CPP is testing how far the government is willing to compromise
to obtain a ceasefire although one is made to believe from the published state-
ment that the CPP is not giving any concession. And if any concession is
to be given it should come from the government.
The optimistic view, of course, is that the CPP is still open to bargaining.
But in our book, it seems that everything is back to square one because good-
will and good faith--basic elements in ceasefire talks--are missing.
/6662
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PAPER URGES LISTENING TO ALL SIDES IN MINDANAO
HKOS1111 Manila MANILA BULLETIN in English 6 Sep 86 p 6
{[Editorial: "Mindanao's Other Voices")
[Text] Neither the administration nor the Nur Misuari faction of the MILF
should forget that there are many powerful groups and voices in Mindanao.
While it is the time of Misuari to be heard, the others must also be heard
and their sentiments taken into account. That would be abiding by the
democratic spirit.
What destroyed the peace early in the last decade was the lack of communica-
tion between the government and many of the Muslims as well as among the
Muslims themselves. The false impression created by the lack of communica-
tion was that the government was fighting the Muslims on religious grounds,
which was far from the truth. This mis-impression was dashed but only after
thousands of lives were lost.
"Disinformation" may rear its ugly head and sow destruction in the South. One
of the ways to prevent its occurrence is to give a chance to each of the dis-
parate groups to air its side. If that is done, the picture that is likely
to emerge is that the Filipinos in the South are not as radica! as they are
sometimes portrayed to be.
If it were true that some provinces in the South are dominated by extremist
elements, those provinces would not have participated in past elections and
their leaders would not have participated in the government. Those provinces
would have been constantly in turmoil.
Except for a few sporadic incidents, peace reigns in the souchern islands
and we think that the arrival of Nur Misuari on the invitation of the admin-
istration will not put an end to peace.
/6662
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71
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
TATAD ON MILITARY FEARS OVER TALKS
HKO31412 Quezon City BUSINESS DAY in English 3 Sep 86 p 4
[ere and Now" column by Francisco S$. Tatad: “The President as Negotiator")
[Text] The military is apprehensive that some “naifs" in the Cabinet, hope-
fully not the President herself, are incapable of appreciating the implica-
tions of the National Democratic Front demand for legal recognition as a pre-
condition for the ceasefire negotiations. They seem ready to accede to
anything just to get on with the talks. This touches a raw national secur-
ity nerve, and could create a flashpoint.
The CPP [Communist Party of the Philippines]/NPA/NDF [National Democratic
Front] are now in a non-loss position, whatever happens to the talks. They
did not seek this meeting. This was purely Mrs. Aquino's inspired initiative.
She seemed convinced that even without a clear negotiating strategy or posi-
tion, she could set down with the CPP/NPA/NDF and get them to give up their
revolutionary movement.
Presidential naivete has seeped down to the lower echelons, at great cost to
the government. For instance, using taxpayers’ money, government TV has pro-
duced more propaganda for the communist-led insurgency than for itself. In
addition to government TV, which need not be classified as an NDF organ, the
NDF has been allowed to run unhampered a very active press office, which
regularly floods the media with more information than one eve gets from the
combination of Minister Teddy Boy Locsin, spokesperson Rene Saguisay and
deputy spokesperson Alice Villadoli.
Now, the NDF gets infinitely better propaganda mileage and has bee. able to
project itself as better organized and more coherent than Mrs. Aquino's
government. Though its chief leaders may not be as popular as Mrs. Aquino
herself, its negotiators Satur Ocampo, Tony Zumel and Bobby Malay are likely
to be quoted by the press and hounded by autograph seekers instead of the
government's Ramon Mitra and Teofisto Guingona.
Thanks to Mrs. Aquino'’s charistmatic and unplanned initiative, they have the
absolute upper hand in the propaganda war against the government. They prob-
ably deserve to have the edge, having worked so hard at it for years. But
they have the edge, not only because they have developed their skills over
72
the years, but also because the government seems to have so many babe-in-the-
woods notions about politics.
In Marcos's time, the government negotiated a settlement with PKP (Partido
Kemunista ng Philipinas), the old communist party, in whcih the latter laid
down its arms in order to help Marcos implement land reform. Eventually,
Marcos described the settlement as a surrender, and critics of the PKP ac-
cused it of having capitulated. There is no danger of anything like that
happening to the CPP/NPA/NDF.
If any capitulation is being packaged, it seems to be the capitulation of
the Aquino government. And the damming thing is that Mrs. Aquino seems to
have decided to take a beauty sleep in the middle of it, leaving it in the
hands of some of her human rights lawyers to fend off objections from the
military as obstructionism from the right. One hopes she will wake up in
time and seize the initiative.
But this is not all. On the Moro National Liberation Front, Malacanang has
announced that Mrs. Aquino would soon meet with Nur Misuari, MNLF chairman.
The pianned venue is not the Malacanang guesthouse where she holds office
and normally receives dignitaries, but somewhere in Jolo. This would be
Misuari’s first time to come home since the outbreak of hostilities in
Mindanao in the seventies had compelled him to establish his headquarters in
the Middle East. For Mrs Aquino, this would be--in the words of BULLETIN
columnist Joe Guevara--her "third official foreign visit."
The announcement came after a meeting between Misuari and the President's
brother-in-law, Agaptio "Butz" Aquino, in Damascus. What the two discussed
there, and what Mrs. Aquino and the MNLF chief will later discuss in Jolo are
well-guarded state secrets. So well-guarded in fact that Malacanang decided
to ban the reporter of the INQUIRER for breaking the embargo on the announce-
ment of Jolo as the meeting place. While it is safe to speculate that the
talks will focus on the MNLF question, it remains a mystery what Mrs. Aquino
has already committed to Misuari through Butz, and what formal agreement,
if any, she is prepared to sign when they meet.
The need for a just settlement of the "MILF problea” demands ar. open rather
than a secret agreement. But a secret meeting in Jolo invites all sorts of
speculation. Everything becomes suspect if the meeting is held without any
public indication of what was discussed in Damascus and what the government
can not legally and formally concede at the meeting.
There are other wiestions. If the President's purpose in going to Jolo is to
give her seal of approval to whatever accord had been reached in Damascus,
then Misuari should be received in Malacanang, not elsewhere. If, on the
other hand, the purpose is simply to continue talks started in Damascus,
then this is another person's job, not the President's. One can do with the
office of brother-in-law as one pleases. But one needs to be a little sore
careful about the Office of the President.
/6662
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PHILIPPINES
COLUMNIST ON HANDLING OF CEASEFIRE TALKS
HKO31531 Manila MANILA BULLETIN in English 3 Sep 86 p 6
{Column by Melchor P. Aquino: "Ceasefire Problems")
{[Text] The continuing failure of the government to impress the fact upon the
general public that there are no ceasefire talks in progress between govern-
ment and rebel negotiators is sowing confusion in certain sections of the
news media, and compounding the psychological problems facing the state.
Certain news reports tend to create the impression that there is an impasse
in negotiations between the state and the communist rebels. In point of
fact, there have never been any ceasefire talks.
Certain problems have to be resolved between the government and the communist
rebels before ceasefire talks could formally start. As pointed out by our
distinguished colleague, Mr. Jesus Bigornia, the communist rebels are demand-
ing 1) issuance to their negotiators of transferable safe cor luct passes,
with stipulation of untrammelled movement anywhere in the country, 2) the
right to designate areas “under the control of the National Democratic Front
(NDF)" as supplementary sites for negotiations, Manila being accepted as the
principal venue for talks, and 3) the right to fly the red communist flag
alongside that of the republic whenever and wherever negotiations are held.
The rebels, according to Mr. Bigornia, insist on the registration of all
agreements and under-takings reached in the talks, with United Nations.
(t is extremely doubtful if the New Armed Forces of the Philippines [NAFP]
would ever consider issuing transferable safe conduct passes to the commun-
ist negotiators. In fact, the passes that have been issued by General Fidel
Ramos, NAFP chief of staff, are personal to Messrs. Antonio Zumel and Satur
Ocampo. There absolutely is no precedent, in law and practice, for the
issuance of the type of the safe conduct passes demanded by the communist
rebels. Transferable passes would be prolific instruments of mischief and
evil.
Pending the conclusion of a peace settlement, the government would hopelessly
be in error to ensure to the communist negotiators untremmelled movement
74
within the country. Cabinet ministers who talk about such a concession to
the communist negotiators are ignorant of, or oblivious to, the requirements
of law and practice.
The government should make short shift of second and third demands of the
rebels. The only venue for the talks should be Manila--of any other city
or place outside the area or areas of hostilities. In terms of propaganda
and psychological warfare, holding talks in supplementary areas under commun-
ist control would be, for the state, a horrendous giveaway. Flying the red
communist flag alongside that of the republic would be an unspeakable affront
to national dignity and honor. Equating the communist banner with the national
flag would be a legal and moral monstrosity too vast for words.
We agree with Mr. Bigornia that the registration of agreements and under-
takings reached in the negotiations with the United Nations, would unduly
accord belligerent status to the New People's Army (NPA).
The biggest problem facing the government with respect to ceasefire negotia-
tions is that the cabinet has not defined any terms of reference for the
government negotiators. One grievously underestimates the intelligence of
the communists who thinks that he can negotiate with them simply on the ad
hoc basis. The communist know their trade, they are at home in their craft,
and they do their homework.
If there are any such terms of reference, they should be made know to the
people.
But how can the cabinet define guidelines and objectives for the state
negotiators when there apparently is no agreement among its members as to
how to seek a solution to communist insurgency? Opposing counsels of accommoda-
tion, appeasement, and resistance do not make for common approaches and
goals.
In fine, whose councel should prevail, that of Defense Minister Juan Ponce
Enrile and General Ramos or that of such cabinet ministers as would supinely
yield to communist demands for the sake of achieving a modus vivendi with
the rebels?
The national leadership could well lose the battle against communist insur-
gency through inept handling of the ceasefire talks.
/6662
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PHILIPPINES
ARMY OFFICIAL ASSURES CAPABILITY OF MILITARY
HKO30944 Quezon City BUSINESS DAY in English 3 Sep 86 p 22
[Text] Armed Forces deputy chief Maj Gen Salvador M. Mison said yesterday
the military can secure every inch of territory in the country “if we want to.”
Mison said the military remains on top of the insurgency situation despite
recent ambushes staged by the New People's Army (NPA) in some parts of the
country.
The latest was in San Vincente, Davao del Norte, where 15 Army Rangers vere
killed and 15 others wounded.
He said the military is only holding its firepower in view of President Cora-
zon C. Aquino’s current peace talks with the rebels.
But, the military is always prepared to deal with any eventuality that may
arise, Mison said.
He admitted that people are apprehensive about the ongoing peace talks
between the government and the National Democratic Front (NDF), the political
arm of the Communist Party of the Philippines (CPP).
“This is because people really do not know the outcome of the dialog,” Mison
said.
While others hoped that the dialog will end the bloody 1/)~year insurgency,
many ere unsure how the conflict will end, he said.
"If the communists are really that good as they claimed, they should not
employ terrorism,” Mison said.
Unfortunately, the NPA rebels have resorted to all kinds of violence to
intimidate the people, be said.
He said commmist liquidation squads are roaming the countryside, killing
not only soldiers or policemen but also innocent civilians who refused to
cooperate with thes.
76
He said communist killings continue unabated every day in the hinterlands
but many of the incidents are not reported in the media.
A report received by his office yesterday said a policeman of Lopez, Quezon,
Monday was assassinated by a four-man NPA Sparrow unit in barangay Talolong,
Poblacion, Lopez, Quezon. Killed was P/Cpl Florencio Espejo.
Espejo's firearms, a point 45 caliber pistol and M-16 rifle, were taken by the
rebels.
Last Saturday, four members of a family were aroused from their sleep and then
shot to death by NPA rebels in baragay Sinawilan, Matanao, Davao del Sur.
The victims were identified as Arnold Dipalobos, 22; Silfredo Dipalobos, 27;
Roland Dipalobos, 21; and Rodolfo de los Santos, 28.
The military also said heavily armed NPA rebels burned last Thursday several
residential houses in sitio Banahaw, barangay Central Mati, Davao Oriental.
Meanwhile, chs iscal military command has warned against a pousible attack by
communist 1tevels in Metro Cebu either to rescue their comrades holed up in
Balamban, Cebu.
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JPRS-SEA-86-174
26 September 1986
PHILIPPINES
SUPREME COURT WARNS MILITARY ON RIGHTS, ABUSES
HKO81225 Manila MANILA BULLETIN in English 6 Sep 86 pp 1, 12
[By R.G. Panaligan]
[Text] The Supreme Court warned the military yesterday against human rights
violations in its fight against rebellion and insurgency.
In a decision acquitting a suspected member of the New People's Army (NPA),
the Supreme Court said that utter disregard of constitutional rights and
protections “will only fan the increase of subversive activities instead of
containing and suppressing thea.”
Acquitted on the ground of reasonable doubt was Ruben T. Burgos, a farmer of
Tiguman, Digos, Davao del Sur, who was arrested by the ailitary on 13 May
1982.
Based on the evidence presented by the ailitary and the police and the
testimony of a lone witness, Burgos was convicted by the Davao del Sur
Regional Trial Court of illegal possession of firearms in the furtherance of
subversion. Burgos was sentenced to a prison term ranging from 20 years to
life. He elevated his case to the Supreme Court.
In a decision written by Justice Hugo Gutierrez Jr., the Supreme Court found
that Burgos was arrested without a warreat of arrest and that a firearm and
alleged subversive materials were confiscated without a warrant. It also
found thet Burgos was not assisted by a lawyer during his custodial
investigation by the military and the police.
With the extrajudicial confession, the firearms, cnd the alleged subversive
documents declared in admissible in evidence against Burgos, the only proof to
sustain the charge was the testimony of Cesar Masamlok, the lone witness.
Masemlok's testimony prompted the silitary to arrest Burgos. But the Supreme
Court found that Masamlok's testimony was uncorroborated and “considering that
he surrendered to the silitary, certainly hie fate depended on how eagerly the
he cooperated with the authorities.”
Masamlok was considered an interested witness by the Supreme Court.
78
The Supreme Court said: “Violations of human rights do not help in overcoming
a rebellion. A cavalier attitude toward constitutional liberties and
protections will only fan the increase of subversive activities instead of
containing and suppressing thea.”
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79
PHILIPPINES
BICOL MILITARY ACCUSED OF HUMAN RIGHTS VIOLATIONS
HKO90641 Manila THE MANILA JOURNAL in English 6 Sep 86 p 8
[Text] A human rights group yesterday accused the military anew of human
rights violations as it reported 76 cases in Bicol] including salvaging and
torture, strafing and looting.
The incidents took place in the period of March to July of this year, the Task
Force Detainees [TFD] said.
Two persons listed as killed in a strafing incident were identified as Delia
Bacoloy, 46, and Arthur Aloquin, 12.
The strafing of Enriquito Aloquin's house in Pawican, the TFD report said, was
done by a combined force of police and ailitiamen, two of whom were identified
as Patroleea Banaag and Cabisilla.
Six days later, on 16 July, the residence and store of Francisco Albarina in
Sitio Busay, Saa Isidro, Palanas, Masbate was razed to the ground allegedly by
constabulary and Integrated National Police elements. The arsonists were not
identified since they were no nameplates [as published], the TFD said.
Both strafing attacks were due to suspicions that the houses were being used
as New People's Army headquarters, the TFD said.
Other victias of strafings were brothers Jose, 51, and Gerardo, 36, and
Antonio, 29, Macadonia, all of Gogo, Dugcal, Camaligan, Camarines Sur. TFD
reported that the alleged perpetrators, were CIC Antonio Asico of the PC
[Philippine Constabulary, his brother and cousin identified only as Noel ara
Melchor respectively. Asico was allegedly drunk when he shot up, with an M16
rifle, the house of the Macadonias. The victias suffered serious injuries.
Torture victias were also reported. A victim identified as Eusebio Gache, 23,
panner, farmer, of Sto. Domingo, Vinzon, Camarines Norte, who positively
identified his tormentor as Nemesio Tribuna of the Philippine Army PA
{Expansion unknown], claimed he was heavily tortured with fist blows and kicks
when he failed to present his Res! ‘*oce Certificate when apprehended by the
suspect who was allegedly drunk. Aetle added that he was hogtied and
submerged in the gudpool nearby w being interrogated by the PA trooper and
80
his companions who were members of the Scout Rangers based in a military
detachment at Mabilo II.
Dioscoro Llanilo, 48 and Diego Altabano, 40, both farmers, were also heavily
tortured with fist blows allegedly by Sgt. Prudencio, Sgt. Fongo, and Sgt.
Vargas of the PC based at the 257th PC company at Barangay Ezperanza, Pilar
Sersogon.
Llanilao narrated that he was hit with fist blows at the back and on his chest
and that one of the alleged perpetrators shoved a fragmentation grenade into
his mouth causing lacerations on his lips.
Another torture victim was identified as Laduvice Fernando, 16, farmer, of
Maypangi, Castilla, Sorsogon, who was arrested and hogtied allegedly by the
same troopers who tortured Llanilao and Altanbao on 22 August.
/12913
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81
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
OFFICERS GROUP DENOUNCES MILITARY DISCRIMINATION
HKO21522 Manila THE NEW PHILIPPINES DAILY EXPRESS in English 2 Sep 86 p 3
{Article by Proculo Maslog]
[Text] Cagayan de Oro City--A newly-formed organization of military officers
called Integrees and Reserve Officers Group (IROG) yesterday denounced dis-
criminations in the military resulting in demoralization among some members
of the officers’ corps.
An officer of the newly-formed group said the fraternity was organized to
protect the interests of its 200 members, who claimed being at the losing end
in terms of promotions and other benefits in the armed forces.
The source, who requested anonymity for fear of being persecuted, claimed
members of the Reform the Armed Forces Movement (RAM), who are mostly grad-
uates of the Philippine Military Academy [PMA], get promoted faster and
corner most of the choice assignments.
"The PMA graduates are lording it over in the officers corps, and cornering
all choice positions while the crumbs are assigned to non-regular officers,"
their spokesman said.
For as long as the AFP [Armed Forces of the Philippines] cannot correct dis-
criminations within the organization, we can expect factionalism to continue
within its ranks," the spokesman said.
The group was formed in this city two weeks ago following the adoption of its
constitution and by-laws during a meeting attended by more than 200 charter
members coming from the different major commands of the AFP.
The new organization is particularly bitter about the implementation of
Presidential Decree 1638 which establishes a new system of retrenchment and
separation for AFP personnel, which they claimed is grossly unfair to most of
IROG members, the spokesman said.
He was referring to provisions under Section 10 of the decree which calls for
the separation of all commissioned officers from captain to lieutenant colonel
unless they get promoted over a prescribed period of time.
82
If we go by this particular provision, most of the IROG members will be at the
losing end, since many of them have been in their present ranks longer than
those specified [in the] timetable for promotions to the next higher rank,”
the spokesman said.
IROG is the third fraternal organization in the AFP. The two others are the
RAM, and the Guardians, which was also organized in this city.
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83
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
MILITARY SAYS NPA SET UP DAVAO DEL NORTE AMBUSH
HKO21458 Manila THE NEW PHILIPPINES DAILY EXPRESS in English 2 Sep 86 pp 1, 2
{Text} Brig. Gen. Antonio Lukban, acting deputy chief of staff for logistics,
yesterday sai“ “he ambush of government troopers in San Vicente, Davao del
Norte was se: ip by the NPAs.
In his report to Gen. Fidel V. Ramos, AFP [Armed Forces of the Philippines]
chief of staff, Lukban said based on his ocular inspection and interviews
at the ambush site, the incident was a well-planned trap which extensively
used land mines planted along the route to be taken by the soldiers.
In that incident, which happened in the ceasefire area concluded recently
between CPP [Communist Party of the Philippines]-NPA representatives and the
local officials of Davao del Norte, 15 soldiers were killed and another five
more were wounded, mostly from shrapnels and explosions triggered by the
claymore mines.
Lukban said before the ambush, there were about 200 NPAs who were strategic-
ally deployed in several huts of families living along barangay Sta. Josefa,
San Vincente. The mines, it was gathered, were also placed in 15 nipa huts
where the soldiers would likely seek cover in the event of an ambush.
He said the members of the lst Scout Rangers regiment were badly outnumbered
and taken by surprise but retaliated, causing the NPA to withdraw under cover
of darkness.
Much of the bodies of the slain soldiers, he said, were badly mangled and
peppered with shrapnels of the claymore mines.
Meanwhile, 30 heavily armed NPAs, led by Commanders Ka [Comrade] Warren and
Ka Nestor, attacked the municipal hall and the INP [Integrated National
Policy] police station of Calintaan, in Occidental Mindoro, Saturday and kid-
napped three policemen. The policemen, identified as Pfc. Bautista and
Carlitos and Patrolman Perigrino were used as human shield in their retreat
but were later released outside of the town proper.
/6662
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PHILIPPINES
PAPER ON INSURGENCY'S IMPEDIMENT TO DEMOCRACY
HKO21523 Manila MANILA BULLETIN in English 2 Sep 86 p 6
[Editorial: "The Democratic Attitude"]
[Text] Democracy will remain flawed as long as the rebellion is of a signi-
ficant magnitude, for it hinders elections and compels people to take the law
into their hands.
The natural reaction of those who would like to see the reflowering of demo-
cracy is '.o hope and work for the end of the conflict.
In a few short months, we have seen how the administration has prepared the
way for an early settlement of the conflict. It has been releasing political
prionsers and minimizing rights violations by military personnel.
It has not obstructed the access of suspected communists to the mass media
and has allowed them to travel abroad.
It has allowed the peaceful political activity of people who could not
move freely during the previous administration. And now the administration
is well on the way to formal talks with rebel leeders on a ceasefire.
The general approach taken by the new aaministration should be compared with
that adopted by its predecessor. The old administration went mercilessly
after the rebels but succeeded only in enlarging the mass base of the rebellion.
The new administration acts more like a father of the family. And while it
preserves its fighting arm, it does not close the door to reconciliation.
The administration's attitude toward the rebellion is typically democratic.
Without waiving the right of the state to act in its defense, the democratic
attitude is tolerant of political differences. This may be seen in the
guarantees to the civil and political rights in the Constitution. People
should get used to those rights and freedoms.
/6662
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85
PHILIPPINES
MILITARY DENIES BREAKING DAVAO DEL NORTE CEASEFIRE
HKO31014 Manila THE MANILA CHRONICLE in English 3 Sep 86 pp 1, 6
[Article by Lito Mangaser]
{Text} Three senior military officials broke their silence yesterday on accu-
sations that military troops had violated the cease-fire agreementin Davao
del Norte, saying that the cease-fire agreement forged August 14 between local
government officials and New People's Army commanders in that province was
not officially in force yet.
Their statements came three days after Prospero Amatong, Davao del Norte
of ficer-in-charge and a signatory to the August 14 agreement, had accused
the military of fielding two companies of Scout Rangers which were con-
sequently ambushed, Aug. 27, in a ceasefire zone resulting in the death of
at least 15 government troops.
Although some military officers had expressed their disgust over Amatong's
accusation, they had not allow the media to quote them until yesterday.
Brig. Gen. Romeo Recina, senior commander in the region and the main target
of the charge, criticized yesterday the Aug. 14 agreement for violating the
polictes laid down by President Aquino on cease-fire negotiations.
Quoting the President, Recina said that “there will be no cease-fire with
return of the troops to the barracks that will leave the insurgents a
free zone within which to operate with impunity.”
Earlier, Amatong had said the agreement provided that "there would be no
patrols whatsoever and the military must stay in the barracks."
Brig. Gen. Antonio Lukban, AFP [Armed Forces of the Philippines] logistics
officer sent by AFP chief Fidel V. Ramos to the ambush site, told the
CHRONICLE Monday that the ».+t»rn portion of Davao del Norte which was sup-
posed to be the cease-fire s, was virtually being run by the communist
rebels since the Aug. 14 agrees:.4*.
He said that the rebels could just be taking advantage of the informal cease-
fire to effectively control the area.
Brig. Gen. Luis San Andres, AFP civil relations service chief, criticized
Amatong for allowing himself to be used by the communist rebels.
"It appears by his (Amstong’s) pronouncements and actuation that he is the
office in charge of the shadow government and the office in charge of the
present government in Davao del Norte,” he said.
Major Gen. Eduardo Ermita, AFP deputy chief of staff, said that the soldiers
in Davao del Norte and the rest of the country would continue to patrol their
areas. He said there was no way the military troops would be kept to their
barracks.
“The Davao incident,” he said, “should serve as a lesson for the silitary
not to lower its guard.”
Other military officers who had been interviewed by the CHRONICLE since the
start of the cease-fire negotiations in June had expressed disappointment
over the exclusion of the uwilitary from the cease-fire and peace negotiations,
a condition which the communist rebels had demanded before they agreed to sit
down with gover’aent negotiators.
The officers felt that it was unfair to exclude the military because it was
the counterpart of the New People's Army in the negotiations.
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87
PHILIPPINES
ANALYSIS NOTES "FAST-RISING’ LEVEL OF FRUSTRATION
HKO11448 Manila THE MANILA CHROWICLE in English 1 Sep 86 pp 1, 6
["Philippine News and Features’ Analysis” Wy Luis V. Teodoro: “Frustrations
Erase Euphoria”)
[Text] Manila--Six months after the Aquino government came to power, frustra-
tion levels are fast rising among Filipinos who thought the overthrow of
Ferdinand Marcos last February would usher in a new era.
Although the Aquino government has restored civil liberties, released politi-
cal prisoners and appointed a number of liberal ministers, few Filipinos
today would be as hopeful as they were last February that the problems of
the country could still be adequately addressed.
The political instability Marcos left behind is still very auch in evidence.
The Aquino government is nowhere near the kind of stability that could inspire
the confidence of even its most ardent well-wishers. An event normally
routine for other governments--presidential state visits to the Philippines’
ASEAN neighbors and to the United States--became the occasion for debate in
government circles and has put the country on virtual war-footing, with its
250 ,000-man armed forces on red alert.
There are fears that Mrs Aquino's absence from the country could tempt the so-
called Marcos “loyalists” to try another grab for power similar to the July 6
Manila Hotel incident. In addition, even Mrs Aquino’s liberal government
ministers are privately leery of the loyalties of the anti-communist officers’
corps, some of whom, they fear, could launch a coup attempt with the knowl-
edge if not approval of Defense Minister Juan Ponce Enrile.
These officers have not hidden their disgruntlement over what they insist is
the Aquino government's "kid-glove” policy towards the 15-year guerrilla war
being waged by the communist-led New People's Army.
Mrs Aquino'’s assurance that the populace has no reason to fear that 4 coup
is forthcoming did little to halt coup jitters in Manila. The persistence of
coup rumors, and their embellishment by those who pass them on, of course
suggest a perception that the Aquino government is unstable.
The main threats to its stability, however, have come from within it: from
Enrile's supposed disaffection with the government for example, and Vice
President Salvador Laurel's resurrected presidential ambitions.
Earlier hopes pinned on the Aquino-appointed Constitutional Covmission also
appear to be waning. At one time expected to enshrine in the Constitution it
is drafting a state commitment to economic and social reforms, the commission
has so far been reformist only in the Bill of Rights it has approved.
The Constitution it is completing is almost certain to have only a minimal
commitment to land reform, and none to nationalist industrialization, the
dismantling of US military bases, and state control over mltinational corpora-
tions.
A consensus is developing among Filipino nationalists that the commission
has taken a generally conservative position on key issues. This perceived
conservatism resulted in the resignation of six commissioners belonging to the
nationalist bloc. Although five of the resigned commissioners were persuaded
to return to the Commission, the conservative majority is nevertheless still
doing all it can to give a constitutional mandate to foreign interests and
dominance in Philippine affairs.
/6662
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JPRS-SEA-86-174
26 September 1986
PHILIPPINES
NATIONAL POLITICAL PARTY FOR WOMEN ORGANIZED
HKO51521 Quezon City BUSINESS DAY in English 5 Sep 86 p 26
{Text} Baguio City--A new political party is currently being organized by
activist-feminist Maita Gomez. Tentatively called the Women's Political
Party (WPP), Gomez's group is scheduled so hold a founding congress on
September 28 in Manil-.
Gomez, who was here recently to organize the party's Baguio chapter, ex-
plained to a group of women the need for WPP.
"If there are gore women in government, there might be more democracy,” she
said.
The WPP's organization, however, doesn't mean that it will work exclusively
for women's rights; it will also advocate the rights of both sen and women,
she added.
Gomez claimed that WPP is feasible because about half of the population in
the country is women and “there's now a need [words indistinct] for women's
rights in our society.”
Gomez said forsing WPP at this time is “just right” because of the current
political situation in the country where qulti-party system is emerging.
"No single party dominates the country's politics hence, the impending birth
of WPP is just right. If you do it next year, it wight not be successful,”
Gomez said.
The WPP will be independent from other political parties, although a coalition
with other parties is not ruled out, she said. Such a coalition will depend
on the strength of the other party and on commonality of stand on crucial
issues.
The proposed women's party will seek to change or redirect traditional
Philippine politics from patronage, personalities and promises to one which
is based on issues or programs, Gomez said.
According to Gomez, if the WPP will succeed in organizing Filipino women,
then it will set a precedent of sorts, since no countryin the world has a
successful political party of women.
Gomez said organizers of the WPP founding congress are targeting about 500
women participants as charter founding members.
The name of the party and the constitution will be approved during the congress,
she added.
Gomez has been traveling all over the country to organize local chapters of
WPP.
In each place, she has urged women to unite and organize from the barangay
level, since as a political party WEP has to start from the grassroots.
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JPRS-SEA-86-174
26 September 1095
PHILIPPINES
VALENCIA ON FORMATION OF PARTIDO NG BAYAN
HKO21509 Manila THE NEW PHILIPPINES DAILY EXPRESS in English 2 Sep 86 p 4
[over a Cup of Coffee" column by Teodoro F. Valencia: "Partido ng Bayan:
an Analysis"]
[Excerpts] The formation of the Partido ng Bayan [People's Party] was per-
fect as to timing and objective. Whatever happens to the ceasefire talks,
the left-of-center people are assured a political arm. The communists have
an army (NPA), a central executive arm (NDF) [National Democratic Front}, and
now a political organization that will fight it out with other parties for
the favor of the masses. The PNB initiative caught everybody by surprise--
some were shocked.
—
The hundreds of foreign correspondents must have gone to town to report the
Partido's birth. Minister Augusto Sanchez is now assured of political
backing. The leftists in government no longer are orphans--they have solid
support where it counts. There will be many more reactions to this political
happening.
Now that the leftists have formed their own political party, the Partido ng
Bayan and the Laurels have sworn to revitalize the old Nacionalista Party,
the President's leaders want to put up their own party. The trouble is that
we have too many political parties and they are all dedicated to achieving
power. What we need is a party with a program of government, a party that
can offer us a solution for our problems.
Tae Partido ng Bayan had to be formed to stop people from branding its lead-
ers as communists or leftists. Now that they have a party, they won't mind
the label anymore. For unionists who are not leftists or even left of center,
the Partido ng Bayan must be most welcome. This party separates the left
from the non-left.
If you remember how many political parties there were before the 1986 presi-
dential election, you'll understand what is going on. This is a mere re-
assertion of leadership by those who banded together to fight the KBL. Now
it seems they want to reassert their identities. If at all they will stay
with the President's group, they want to keep their individual personalities
so that when they move out of the Aquino orbit, they still have their own
identities.
92
The Partido ng Bayan, of not outlawed at a later date, will force all the
non-left parties to coalesce for their own protection. Divided, the right,
right-of-center and the non-left will be snowed under by the Partido ng Bayan
unless they band together and put up their own program of government. The
left definitely has its own ideas to push. They have discipline which the
rightists don't have.
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93
JPRS-SEA-86-174
26 September 1986
PHILIPPINES
COMMISSION OPENS HEARINGS ON MARCOS WEALTH
HKO11250 Hong Kong AFP in English 1238 GMT 1 Sep 86
[Text] Manila, Sept 1 (AFP)--A presidential commission opened hearings here
Monday on Ferdinand Marcos’ alleged ill-gotten wealth, with the government
presenting evidence on how he allegedly set up fronts for diverting money
into Swiss banks.
Some documents, signed by Mrs. Marcos, dated as far back as 1968 and allegedly
showed that the deposed president already maintained a Swiss bank account,
government lawyer Eduardo Montenegro told the Presidential Commission on
Good Government hearing.
The commission is acting as state prosecutor on a cowplaint filed by the office
of the Solicitor General alleging that Mr. Marcos and his associates had used
public funds for their personal benefit during his 20 years in power.
Under Philippine law, state prosecutors decide whether a complaint is backed
u. by evidence before elevating the dispute to a court.
President Corazon Aquino, who came to power following a popular revolt that
toppled the Marcos regime in February, created the five-man commission to
track down and recover the Marcoses' alleged ill-gotten wealth.
Mr. Marcos, now living in exile in Hawaii, and his associates were repre-
sented by their lawyers during Monday's hearing. But they did not make any
statement to the panel and only asked for transcripts of the proceedings.
The documents shown to the commission, which the government said they dis-
covered at the presidential palace after the Marc.» family fled into exile,
show the first couple allegedly setting up va ious foundations.
These were then allegedly used as conduits in the transfer of funds to
secret Swiss bank accounts under the name of William Sauders of Jane Ryan,
allegedly aliases used by Mr. Marcos and his wife Imelda.
The commission was told that the documents included letters, statements of
accounts, and deeds of trust all supporting the government's contention that
Mrs. Marcos committed graf..
94
i Ü. ————————7
"We keep coming across foundations," Mr. Montenegro said. He added that he
did not know how much the Swiss accounts actually contained but said it
could be “billions of dollars."
Press estimates of the Marcoses' worldwide empire come up to 10 billion
dollars.
Mr. Montenegro said they were still going through a "roomful of documents."
"Without these exhibits...I think it would be impossible" to trace all the
Marcoses' money, the lawyer told the commission.
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95
PHILIPPINES
3,000 LOYALISTS HEAR TAPED MARCOS INTERVIEW
HKO90825 Manila THE MANILA CHRONICLE in English 8 Sep 86 pp 1, 2
{[Article. by correspondent Lito Zulueta]
{Text] Banned from rallying at Rizal Park, 3,000 loyali::s yesterday massed
at the Quezon Memorial Circle in Quezon City to praise former fiscal Felizardo
Lota as a “champion of constitutionalism" and hear a taped interview with de-
posed president Ferdinand Marcos.
The loyalists have not held a rally for the past three Sundays, breaking a
promise to hold continuous demonstrations until President Aquino steps down.
They have been barred from Rizal Park since July 27, when goons mauled to death
Steve Sa) cedo whom they spotted wearing a yellow T-shirt.
Yesterday the loyalists listened as Marcos warned that the Philippines may
become another Vietnam and raised the spector of a Third World War starting
here.
The taped interview with the ousted president was aired by loyalists radio
station DZEC and played at yesterdzy's rally.
The 15-minute interview was preceded by the reading of a letter from a
"concerned citizen of the Philippines" to Marcos asking him to return and
save the country from communism.
Marcos said that with the present government's policy of conciliation with the
insurgents, a “communist takeover is inevitable."
He said the United States might in the end be forced to involve itself in
the insurgency problem.
"This time," he said, “not only would the American Navy be involved as it
was during the Vietnam war, but also U.S. foot soldiers, pilots, etc."
He said the entry of the U.S. in the war would force the other superpowers
to take sides, signaling the outbreak of World War III.
96
At the same time, he stressed that “survival is in our hands with the half of
our ally, the U.S."
He concluded the interview with a prayer: "I hope to God that I will be
allowed to return to the Philippines with the blessing of our ally, the United
States, of the Filipino people, and the military to avert the crisis of 1986
which may be jotted down in history as the year of the outbreak of the Third
World War."
Yesterday's rally was dedicated to Lota who was shot to death Aug. 19.
Police have charged another loyalist leader, Fernando Diaz, for Lota's murder.
Former MP Rafael Recto who also spoke yesterday, said he had intelligence
information that President Aquino had already signed orders for the arrest
of several loyalist leaders.
CapCom [Philippine Constabulary-Integrated National Police Capital Regional
Command] soldiers and policemen were deployed at Rizal Park to prevent any
loyalist rally there. Entrances to the Malacanang Palace were also barricaded.
/6662
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JPRS-SEA-86-174
26 September 19%
PHILIPPINES
BRIEFS
TRADE ZONES’ EXPORT EARNINGS--Export earnings of the existing export
processing zones in the country amounted to $171.4 million during the first
six months of the year, Export Processing Zone Authority (EPZA) administrator
Jaime Guerrero said. The amount was 20.66 percent more than the $142.05
million realized by the existing enterprises in the zones in January to June
last year, Cuerrero said. Based on the EPZA figures, about $93.57 million of
the total export earnings recorded during the six-month period came from the
three regular zones in Bataan, Baguio City and Mactan. The bulk of increase,
however, was accounted for by the special zones, whose earnings reached $77.84
million during the period as against the previous year's $50.38 million.
[Text] [Manila MANILA BULLETIN in English 8 Sep 86 p 21 HK] /12913
NEW POLITICAL PARTY FORMED--Lucena City--Members of the Kilusang Bagong
Lipunan (KBL) in vote-rich-Quezon province have started regrouping themselves
and forming a new political party in preparation for the local elections.
Former Vice Governor Hobert R. Dator said the new political party will be
composed of KBL members, Marcos Loyalists and other oppositionists. He said
the new party will put up its own candidates in the local elections. Lawyer
Pedro Pujalte Jr., another KBL stalwart and former member of the Quezon
Sangguniang Panlalawigan, said there is an urgent need for a new political
opposition in this southern Tagalog province. “It is only fair and proper
that the province of Quezon be represented in the national leadership,”
Puljante said, “and this can be attained by forming a new party composed of
honest, tested and dedicated leaders who are pepular with the masses.”
Dator said the name and composition of the new party will be made known after
the arrivai of former Governor Eladio Caliwara, who is at present vacationing
in the United States. It will be recalled that the KBL suffered two
successive electoral defeats in the 14 May 1984 Batasan Polls and 7 February
1986 snap presidential elections. [By Noel Magturo] [Text] [Manila THE
MANILA JOURNAL in English 7 Sep 86 p 8 (tentative) HK] /12913
MILITARY PARTICIPATION IN PEACE TALKS--lloilo City--Former Member of Parlia-
ment Homobono Adaza has called for the participation of the military in the
current peace negotiations between the government and the rebels. "The mili-
tary knows the real insurgency situation in the country," he said. Adaza,
an erstwhile vocal fiscalizer of the government, said the participation of
top military or Ministry of Defense officials should be considered because
negotiatore in the rebel side are themselves top officials of the democratic
front. The government should not rely on politicians alone to negotiate with
the rebels as the current peace and order situation is very cluid, Adaza
said. Adaza, director of the San Miguel Corp., was in Iloilo City Friday
as guest speaker of the government public information officers of Western
Visayas. [Text] [Quezon City BUSINESS DAY in English 3 Sep 86 p 23 HK) /6662
98
CSO: 4200/1415
INTERNATIONAL RELATIONS, TRADE, AND AID VIETNAM
LEADERS RECEIVE NATIONAL DAY GREETINGS FROM SOCIALIST COUNTRIES
GDR, Hungarian, Other Messages
OWO80805 Hanoi VNA in English 0723 GMT 8 Sep 86
[Text] Hanoi VNA 8 September--Vietnamese leaders have received more greetings
from ebroad on the recent Vietnam's 4lst National Day.
The joint message from Erich Honecker, general secretary of the Socialist
Unity Party of Germany (SED) Central Committee and president of the State
Council, Willi Stoph, chairman of the Council of Ministers, and Horst
Sindermann, chairman of the People's Chamber of the GDR says:
“The Socialist Republic of Vietnam has made important contributions to the
struggle for peace and against the policy of confrontation and the arms race
of imperialism. The constructive policy of dialogue of the SRV aimed at
making Southeast Asia a zone o* peace, stability and cooperation is a factor
of increasing importance.”
The message jointly signed by Janos Kadar, general secretary of the Hungarian
Socialist Workers’ Party Central Committee; Pal Losonczi, president of the
Presidential Counci! of the Republic; and Gyorgy Lazar, chairman of the
Council of Ministers of Hungary, reads:
“Our people have followed with interest and sympathy the great efforts made by
the Vietnamese people under the leadership of their party with the view of
developing economy and social welfare, settling by political means all
regional problems and consolidating peace. The friendship and cooperation
between our countries and peoples based on the principles of Marxism-Leninism
and Internationalism are widening in all fields.”
From Mongolia, J. Batmonh, general secretary of the Mongolian People's
Revolutionary Party and chairman of the Presidium of the People's Great Hural,
and D. Sodnom, chairman of the Council of Ministers, say in their message:
“Actively implementing its external policy of peace, the Socialist Republic of
Vietnam is making worthy contributions to the common struggle of the socialist
community and all progressive forces to preserve and consolidate peace and
security of all nations.
99
“The Mongolian People's Republic now as before supports the constructive
initiatives and tireless efforts of the fraternal Indochinese countries aimed
at seeking a political solution to the urgent questions in Southeast Asia to
turn it into a region of peace, stability, and cooperation.”
The joint message from Czechoslovak President Gustav Husak, who is also
general secretary of the Communist Party of Czechoslovakia Central Committee,
and Prime Minister Lubomir Strougal “highly appreciates the SRV's principled
external policy of peace, in its international unity with the People's
Democratic Republic of Laos and the People's Republic of Kampvchea, with a
view to making Southeast Asia a zone of peace, stability and cooperation.
These countries’ peace proposals are an important contribution to
consolidating peace and security in the whole Asia-pacific region as well as
to the world's struggle to avert the danger of nuclear conflict.”
From Albania, Ramiz Alia, first secretary of the Central Committee of the
Albanian Party of Labour and president of the Presidium of the People's
Assembly, and Adil Carcani, chairman of the Council of Ministers, note in
their message:
“The Vietnamese people are marking their National Day with substantial
achievements in national reconstruction and all-sided development. The
Albanian people are following with interest these achievements and sincerely
wish the fraternal Vietnamese people still greater successes in socialist
construction for the sake of progress, prosperity, and national defence.”
The message from Nicolae Ceausescu, general secretary of the Romanian
Communist Party Central Committee and president of the Republic; C.
Dascalescu, prime minister; and N. Giosan, chairman of the Grand National
Assembly, says:
“The Romanian people are following with sympathy the great efforts made by the
Vietnamese people in building socialiem in their homeland, and are sincerely
elated at the achievements recorded by the latter under the leadership of the
CPV in all domains of socio-economic development, and in taking the country to
socialism aad improving the people's living standard both material and
cultural.”
In his message Kim Il-song, general secritary ot the Workers’ Party of Korea
Central Committee and president of the Democratic People's Republic of Korea,
says: “I am convinced that the friendship between our two countries will
further develop, and wish you and the Vietnamese people still greater
achievements in the struggle for the prosperity of your country.”
On this occasion Korean Premier Kang Son-san has sent greetings to his
Vietnamese counterpart.
100
JPRS~SEA-86-174
26 September 1986
Polish, Nicaraguan Greetings
0WO081940 Hanoi VNA in English 1506 (4T 8 Sep 86
[Text] Hanoi VNA 8 September--The Polish Ministry of Culture and Art gave a
film show in Warsaw on 2 September in celebration of Vietnam's 4lst National
Day. The same day, a photo exhibition on Poland's assistance to Vietnam ‘n
restoring historic relics was opened in the capital city of Poland.
The Nicaraguan Society of Friends ip with socialist countries held a meeting
in Managua on 2 September in commemoration of Vietnam's 4lst National Day.
Mrs Leticia Herrera, member of the Central Committee of the Sandinista
National Liberation Front, vice chairperson of the National Assembly and
president of the Sandinista Commission of Defence, addressed the meeting.
She praised the Vietnamese people's arduous and valiant struggle, under the
leadership of the Communist Party of Vietnam and President Ho Chi Minh, for
national independence and freedom. She reiterated the Nicaraguan people's
resolve to promote the unbreakable militant solidarity between Vietnam and
Nicaragua.
A talk on Vietnam was held by the Nicaraguan Ministry of Interior in Managua
on 3 September in the presence of the revolutionary commander Luis Carrion,
member of the National Leadership of FSLN and first Vice Minister of Interior.
The Mongolian newspaper RED STAR, NOVOSTI MONGOLII, YOUNG PEOPLE'S TRUTH,
HODOLMOR, and ULAN BATOR NEWS, have run articles praising the Vietnamese
people's achievements in national defence and socialist construction over the
past 41 years. They expressed high appreciation of Vietnam's foreign policy
of peace and its active contributions to making Seutheast Asia a region of
peace, etability and cooperation.
On this occasion, the Mongolian radio and television broadcast special
programmes on Vietnam's land people.
Many exclusive articles have been released on the Ethiopian people's firm
support to and solidarity with the Vietnamese people in national defence and
development.
Praise From Afghanistan
0WO70741 Hanoi VNA in English 0710 GMT 7 Sep 86
[Text] Hanoi VNA 7 September--A mass meeting was held in Kabul on 2 September
to mark the 41st National Day of Vietnam.
Addressing the meeting, jointly sponsored by the peace, solidarity and
friendship organization of Afghanistan, the Afghanistan-Vietnam Frierdship
Association and the Vietnamese Embassy in Kabul, president of the Host
Association N. Mohammad praised the Vietnamese people's struggle for
independence and freedom as well as the three Indochinese countries’ important
contributions to maintaining and consolidating peace in Southeast Asia and the
rest of the world. He reaffirmed the Afghan people's support for Vietnan,
Laos, and Kampuchea in their efforts to turn Southeast Asia into a region of
peace, cooperation, and stability, and expressed his wish for further
consolidation and development of the militant colidarity between Afghanistan
and Vietnan.
101
JPRS-SEA-86-174
26 September 1986
In celebrations of Vietnam's National Day, meetings were arranged in Baghdad
(Iray) on 31 August by the Iraq-Vietnam Friendship Society and in London
(Great Britain) on 2 September by the Britain-Vietnam Association. A film
sbow was given in Maputo, Mozambique, on 28 August by the Vietnamese Eabassy
to Mozambique. Many leading officials of the Mozambican committee for
friendship and solidarity with other peoples and representatives of mass
organizations attended.
Bulgaria, Poland, Cuban Greetings
0W06U929 Hanoi VNA in English 0746 GMT 6 Sep 86
[Text] Hanoi VNA 6 September--Party General Secretary and State Council
President Truong Chinh and chairman of tlhe Council of Ministers Pham van Dong
have received messages of greetings from Polish, Bulgarian, and Cuban leaders
on the 4let National Day of Vietnan.
The message jointly signed by Wojciech Jaruzelski, first secretary of the
Polish United Workers’ Party Central Committee and president of the Council of
State and Zbigniew Messner, chairman of the Council of Ministers says:
“The Socialist Republic of Vietnam enjoys a true international prestige.
Vietnam's constructive initiatives on international issues are concrete
contributions to preserving peace, stability and cooperation in Southeast
Asia.”
The message praises the Vietnamese people for their past struggle against
imperialism and their present national economic restoration and development in
line with the Communist Party of Vietnam's orientations.
The message from general secretary of the Central Committee of the Bulgarian
Communist Party and State Council President Todor Zhivkov and chairman of the
Bulgarian Council of Ministers Georgi Atanasov praises the victories of the
Vietnamese people in their struggle for national reunification, socialist
building and the defence of their revolutionary achievements, and against
interventions of imperialist and international reactionary forces.
“We fully support the continuous struggle of the Socialist Republic of
Vietnam, together with the Lao People's Democratic Republic and the People's
Republic of Kampuchea, to consolidate peace in Asia and restore the good
neighbourliness among the countries in Southeast Asia, thus turning it into a
zone of peace, security, and cooperation,” the message stresses.
from Cuba, Fidel Castro, first secretary of the Communist Party and president
of the State Council and chairman of the Council of Ministers, says in his
message:
“On the international scale Vietnam, together with the Socialist community and
other progressive forces, has always united with other nations in the just
struggle for national independence and sovereignty. In Asia, Vietnam's
efforts in sveking a peaceful way to solve regional conflicts continue to play
an important role.”
JPRS-SEA-86~-174
26 September 1986
Japanese, Otxers Mark National Day
0W060919 Hanoi VNA in English 0742 GMT 6 Sep 86
[Text] Hanoi VNA 6 September--The Japan-Vietnam Friendship Association
organized in Tokyo on 4 September a meeting to celebrate Vietnam's 4lst
National Day (2 September).
Speaking on the occasion, the Association president, Professor Makoto
Kandateu, reaffirmed the continued support of the Association and other
progressive forces in Japan for the cause of national construction and defence
in Vietnan.
In Afghanistan the leading paper KABUL NEW TIMES runs an article aighly
praising the Vietnamese people for their struggle against foreign invasions in
the past as well as their national construction and defence at present. The
paper reiterates Afghanistan's total support for the Vietnamese people's
present struggle to preserve independence and build socialisa.
The Swedish paper NORSKENS FLAMMAN carries an editorial entitled “41 Years
After August Revolution” to mark the event. It praises Vietnam for their
assistance to Laos and Kampuchea's struggle for peace, social progress and
socialism. The article expresses its conviction that the Vietnamese people
will certainly overcome the present difficulties to build a prosperous and
happy life.
UK Amity Group Marks Day
BKO70349 Hanoi Domestic Service in Vietnamese 2300 GMT 6 Sep 66
[Text] The British-Vietnamese Friendship Association [BVFA] and the
Vietnamese Embassy in Britain joiutly held a solemn ceremony in the grand
meeting hall of the London City Council's headquarters on the afternoon of 2
September to commemorate the August Revolution and the SRV National Day and to
mark the BVFA's 35th anniversary.
Representatives of the embassies of various socialist countries and nonaligned
nations, national liberation movements, and British political parties,
friendship associations, and trade unions attended the ceremony. Also sm hand
were members of the British Parliament, journalists, and sesbers of the
Foreign Diplomatic Corps.
After the opening speech delivered by Member of Parliament Robert, president
of the BVFA, Lord (Rockway), member of the House of Lords and honorary
president of the BVFA, made an address. He pointed out: Our relations with
the Vietnamese people are more special than with any other people in the world
because Vietnam is the most heroic nation on the globe.
/12913
CSO: 4200/1412
103
JPRS-SEA-86-1
26 Septerber
INTERNATIONAL RELATIONS, TRADE, AND AID VIETNAM
GREETINGS ON BULGARIAN NATIONAL DAY
0WO82007 Hanoi VNA in English 1713 GMT 8 Sep 86
[Text] Hanoi VNA 9 September--Vietnamese party and state leaders today
extended warmest greetings to their Bulgerian counterparts on the 42nd
National Day of Bulgaria (9 September).
The message of greetings, jointly signed by Truong Chinh, general secretary of
the Communist Party of Vietnam Central Committee and president of the State
Council, Pham Van Dong, chairman of the Council of Ministers, and Nguyen Huu
Tho, chairman of the National Aceeably, was addressed to their Bulgarian
counterparts: Todor Zhivkov, Georgi Atanasov, and Stanko Todorov,
respectively.
After hailing the great achievements recorded by the Bulgarian people under
the Bulgarian Communist Party's leadership, the message says:
“These brilliant achievements, together with the Bulgarian partr and state's
peace and dynamic policies, have raised the international prestige and
position of the People's Republic of Bulgaria, thus making considerable
contributions to consolidating the strength of the socialist community and
safeguarding peace and international security. The Vietnamese people greatly
rejoice at these achievements of the fraternal Bulgarian people, and wish
them, and the leadership of the communist perty headed by esteemed Comrade
Todor Zhivkov, ever greater successes in the implementation of the resolutions
adopted at the l3th Party Congress, with a view to taking Bulgaria to new
heights in building developed socialism. The Vietnamese communists and people
always treasure the close friendship ard the aultifaceted cooperation between
the two parties and peoples on the basis of Marxism-Leninism and socialist
internationalism. We are resolved to do our best to constantly consolidate
and strengthen this reiationship.”
On this occasion, Foreign Minister Nguyen Co Thach has sent his greetings to
Bulgarian Foreign Minister Petur Mladenov-
/12913
CSO: 4200/1412 END
104
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