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Although the investigation into the Zhong Xing
Telecommunications Equipment Corp. (ZTE) appears to focus on
corruption by RP officials, there is an undercurrent of China
bashing in the whole controversy. This is, of course, my reading
between the lines.
Take note that the ZTE was an
ordinary contract between two sovereign governments until April 20
this year. But it became a front-page story when United States
ambassador to Manila Kristie Kenney wrote the National Economic and
Development Authority, expressing interest in the government deal
with China.
It is a rare instance that a
diplomat would complain about a contract forged by the host
government, which was what the letter of Kenney was all about. But
the diplomatic note must be important to Washington based on the
timing. It was delivered to then NEDA Chief Romulo Neri a day before
President Arroyo was to go to China to witness the signing of the
deal.
I am not sure if the department
heads deciphered the fine print in Kenney’s letter, even if the
language was couched in a call for transparency. If I were in
government, I would have concluded that Kenney simply wants to tell
the Philippines: “Don’t mess with us in this deal. You are in
effect allowing China to dominate the cyberspace in Philippine
territory which remains our sphere of influence. That is
unacceptable.”
Although China and the United
States have good relations on a strategic plane, this does not imply
that the US would allow the Philippines to open its cyberspace to
China. In retrospect, the President should have consulted the
Department of Foreign Affairs about the implications of the ZTE
deal, before allowing the technicians in the DOTC to negotiate the
transaction.
Our diplomats in the DFA are
expected to know the geopolitical implications of the ZTE deal. Had
they been consulted, the blunders in the agreement would have been
avoided. From what I saw in the Senate hearings, I was disappointed
that it was the DOTC officials—instead of the DFA—being asked to
define what is an executive agreement as applied to official
development assistance.
There must be a James Bond in the
ZTE deal. Who do you think stole the copy of the agreement in the
hotel room occupied by the Philippine delegation during the signing
in Boao? One does not have to think much to know that there are
powerful forces that are against the deal.
Now that the ZTE has become too
hot to handle, the other agreements with China are being reviewed.
The dominoes seem to be falling. Agriculture secretary Arthur Yap
has just announced the suspension of two approved projects with
China. While these two accords are aboveboard, and could be defended
in Plaza Miranda, Mr. Yap is exercising prudence over these
projects. Para walang ng masabi, as we say in Tagalog.
We in the Philippines are a
victim of the trade war between Washington and Beijing. We are being
caught in the middle of two fighting giants—at a time when China
exercises its muscles in trade and international finance. Another
cause of US’ insecurity is China’s capability to compete with
the US in the marketplace.
For all our links with the US, we
cannot totally ignore China. Only China offers the most reasonable
terms in trade and official development assistance. Can the United
States, our former colonial master, match the low interest rates
offered by China? Does the United States have goods that they can
sell to the Philippines when they have already outsourced their
needs?
The ZTE investigation will
somehow slow down the flow of China’s resources to the
Philippines. But with the US busy with Iraq, in the long run, China
will continue to be a big player in Asia and the Philippines.
BRIEF NOTES. MMDA Chairman Bayani
Fernando is the latest to say that he is available for draft in the
2010 presidential elections. Fernando will bank on his management
ability shown in the handling of Marikina as former mayor. Even in
his absence, his wife, Mayor Marides, is doing the job as town
executive… With the entry of Fernando, there are two mayors
entering the fray, the other being Mayor Jejomar Binay of Makati
City… Gov. Jose Zubiri of Bukidnon, also president of the
Confederation of Sugar Planters, has teamed up with Mr. Antonio
Villar, the antismuggling czar, to check the illegal entry of sugar
to the detriment of sugar planters. In their agreement, the sugar
planters’ group was authorized to undertake operations with the
police. President Arroyo has approved the plan… President Arroyo
has appointed Gen. Avelino Razon as the new chief of the Philippine
National Police. This is a popular choice, like her earlier
designation of Gen. Alexander Yano as chief of the Philippine
Army… Political leaders of Sibuyan Island in Romblon have banded
together to oppose mining in the island. They have joined the
religious in insuring that the famous Mount Guiting Guiting in the
island is not destroyed by irresponsible mining of iron ore, nickel
and gold.
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