U.S. Ambassador Francis J. Ricciardone

Remarks To The American Chamber of Commerce of the Philippines,
Manila Rotary Club and Makati Rotary Club At the Makati Shangri-la Hotel
Manila, Republic of the Philippines
January 20, 2005

Thank you very much for that generous introduction. Rob Sears, Presidents Yap and Borromeo of the Rotary Clubs, members of the two Rotary Clubs and the American Chamber of Commerce, colleagues and friends, Magandang hapon sa inyong lahat. Thank you for this wonderful opportunity of being with you today. Happy new year and congratulations to the Rotary Club International on your centennial year – this auspicious beginning of a very auspicious year for all of you. It’s a very special pleasure to be with you today – with such a distinguished group of community leaders and business leaders, and also because I’d like to take a minute at the outset to celebrate good corporate citizenship and governance in exemplary fashion shown by American companies here.

Secretary of State Colin Powell has called America's businesspeople abroad "our corporate ambassadors to the world." Your responsible corporate citizenship not only makes America prosper, but also spreads values and practices that have made America successful around the world and also strengthens our business partners around the world. You do this quietly and routinely, but sometimes, as today, we take a moment to hold up particular examples of success for emulation.

Each year since 1999, the Secretary of State has presented the Secretary’s Award for Corporate Excellence, A.C.E.- or the ACE award, to call attention to the best of American business contributions to our world.
Secretary Powell said that this award honors "companies that reflect the face of American business overseas… that are doing well by doing good. For ACE award winners and nominees, helping people help themselves is neither a chore nor an afterthought, but business as usual."

Last year, United States Embassies around the world nominated 50 companies for this prestigious award. And with hundreds of fine American companies doing business in the Philippines, it was pretty hard for us to limit our nominations to only three – three who are all truly exemplary AmCham members. They were Mirant, Texas Instruments and Ford Philippines. Secretary Powell selected nine finalists for 2004. I am pleased to tell you that one of those finalists was one of our very own nominees: Ford Philippines.

Since Ford established its operations in the Philippines in 1997, good corporate citizenship has been an integral part of how it does business here. Ford has worked hard to succeed in business, but just as hard to be a good, responsible neighbor and citizen.

Ford's investment in the Philippines has had a profound impact on Filipinos and their communities. Ford directly employs nearly a thousand Filipinos in state-of-the-art, truly world-class facilities, which I’ve visited twice now. And Ford’s Filipino suppliers employ many thousands more.

But Ford's contributions go beyond providing good livelihoods to Filipinos and great cars to its customers. The Ford Conservation and Environmental Grants for example, support over 29 projects with over $160,000 in funding. Ford also promotes responsible journalism by recognizing journalists who support automotive news in an ethical way. Since 2001, over 20 Filipino journalists have won the Henry Ford Journalism Award.

For these and for so many more contributions to our host country community, I am proud to present to Henry Co, if he is here – Henry, I’m sure you are - President of Ford Philippines, a plaque attesting to Ford Philippines' selection as a finalist for the Secretary of State's 2004 Award for Corporate Excellence.

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HENRY CO: When we started Ford in the Philippines about seven years ago, we told ourselves we wanted to create a company that not only created great products and services and satisfied its consumers, but we wanted to make sure that we created a company that was sensitive and that was meaningful to the community where we did business. I’m very pleased today that we have, after 7 years, been recognized for that, and I’d like to say thank you to the U.S. Government represented by Ambassador Ricciardone and his staff at the embassy. To the Philippines Government, Department of Trade and Industry and the Department of Finance, our partners in business – parts makers, bankers and of course our employees and people who ride around in Ford vehicles in the country. Thank you very much for your support. This encourages us to do more to help the community and I hope it encourages all other companies in the Philippines to do the same for this country needs a lot of help. Thank you.

RICCIARDONE: Mabuhay! We really are proud of the American companies here – all of the AMCHAM members – there are several other nominees we have sent in - in previous years for this award, including Quezon Power as I recall, and Intel Philippines.

One of my favorite official duties is to celebrate, as we have just done, the many great things that Filipinos and Americans are accomplished together in this country. I’m really proud of what we do together, and confident that we can accomplish so much more in this coming new year.
So I’d like to thank you Rick (Santos), Alex (Yap), and Freddie (Borromeo) and all the members of the prestigious organizations that you lead, for giving me the opportunity to speak with you at the outset of this bright new year.

With President Bush taking his oath of office in only about 12 hours, this is a particularly auspicious occasion to reflect on our partnership and our shared commitment to freedom and democracy.
2004 was a banner year for democratic renewal around the world -- in Afghanistan, Australia, Indonesia, the Philippines, and so many other key countries that really matter to the world, including the United States. Presidents Bush and Arroyo, who had paid state visits to each other in 2003, last year, won fresh mandates from your people through our respective constitutional democratic processes. The fresh energy of new administrations in both countries can only portend renewed dynamism and yet more advances in our relationship. President Bush has emphasized that his second term goal is to continue strengthening alliances especially in Asia. And during her confirmation testimony, barely two days ago, incoming Secretary of State Condoleezza Rice, again pointed to the Philippines specifically as “our partner and a country that has the will to fight terror.” She and her distinguished selection for Deputy Secretary of State, Bob Zoellick, both have directly experienced the vitality of the Philippines and the warmth of the Philippines during their visits here in President Bush’s first term.

We have a shared history. Moments that that have brought us together in grief and in joy. This year, as we look immediately ahead, we are celebrating many of the culminating victories of World War II here in the Philippines. Many of you joined last October’s commemoration of MacArthur’s landing at Leyte. Next month we will celebrate the liberation of Manila. We join not only to honor those who sacrificed for our liberty and our democracies, but also to reaffirm our determination to uphold their legacy, that were passed on to us at such a high cost with our parents’ blood and treasure.

We also repay that legacy when we stand together to relieve human suffering as we did in addressing the disaster here in the Philippines at the turn of last month in Quezon and Rizal and Aurora provinces. That experience where we had U.S. forces operating so effectively here didn’t happen by chance. It happened so well, so smoothly, so quickly, so effectively – because we exercise together, all year long, every year. And that experience – working together in the Philippines disaster – I’m sure served our forces in good stead as they provide relief services to other victims of this horrible tsunami across the Pacific.

We look beyond the immediate disasters and responses though, to our larger mission which this membership in both the Rotary Clubs and the AMCHAM have heard me re-state many times which is to “revitalize and carry to maturity the US-Philippines partnership and alliance.” My three years in Manila have been an exciting time in that partnership. As I begin my fourth year in the Philippines next month, we remain focused on our three main business lines as I described them to you when we first met three years ago, early in my tenure:

· first, strengthening our mutual security,
· second, building our mutual prosperity, and
· finally, serving the American and Filipino public.

Now we aim to be the best United States Embassy in the world – not one of the best – the best - as we strive for excellence in all of our three business lines. So our motto is:
“Security, Prosperity, Service, and Excellence.”

When our friends are strong and secure, we are strong and secure. Hence our support for the Philippines Defense Reform initiative, pressed forward by both Presidents Bush and Arroyo. This comprehensive, multi-year program, to which the Philippine Government has dedicated over $17 million and my government $7 million so far, will improve training, procurement, finance, information management. All the mundane, routine, but vital functions of any effective organization. It will enable the Philippine military to perform to its highest potential. It will improve transparency and accountability top to bottom. Defeating the enemy of corruption within the Armed Forces of the Philippines also will require vigorous investigation and relentless prosecution of alleged violators of the Philippines law. Success in this campaign for renewal of the Armed Forces of the Philippines will help President Arroyo create a “virtuous cycle" and bring all government agencies to the “tipping point” at which “rampant honesty” and good government can break out.

Our security support extends beyond the military to strengthening the rule of law throughout the civilian agencies of the government and civil society. I cannot overstate this point: Backing the Philippines in strengthening the rule of law is the most important contribution we feel we can make to our mutual security and prosperity. Our support in this area is multi-faceted. We contributed over $7 million in counter-terrorism training in 2004 and trained over 900 members of the Philippine National Police in vital law enforcement skills. We have helped train the Ombudsman’s expanded forces of anti-corruption, investigators and prosecutors, as well as the investigators and prosecutors of the anti-Trafficking in People Task Force within the Department of Justice. And next month we’re going to conclude the Baker Piston exercise which we just began this week in Davao — this is another major bilateral, cross-agency, civilian-military counter-narcotics exercise.

Your government’s success in fighting not only terrorism but also corruption, narco-trafficking, trafficking in people, kidnapping, money-laundering, and other crimes is vital to improving the business environment. Security and the rule of law are indispensable to create and sustain prosperity, to attract long-term, stable investment from Filipinos as well as from foreign investors.

Just as defeating crime and terrorism are necessary to increase prosperity, we agree with President Arroyo that the reverse is also true: we must sharply reduce the poverty, ignorance, hate and hopelessness that can incubate terrorism and other crimes. Hence America supports the Philippines Government’s top priorities of creating jobs and alleviating poverty. We do this through promoting trade, investment, and travel; through our economic assistance; and through our other programs including, since 2004, stepped up educational assistance and exchanges. And here am I doing a commercial for many members of the AMCHAM and Rotary’s as well. As I’m with you today, colleagues of mine are in Mindanao once again launching another joint public sector-private sector, U.S.-Philippines local-national project in education. It’s called television for education in Mindanao. TEAM - Mindanao. That’s being launched in Datu Paglas on this very auspicious Muslim feast day of the Feast of the Sacrifice of Abraham in Datu Paglas. Tomorrow, I will be going to Cebu to join a conference of mostly Filipino-Americans but with return Filipino expatriates from all over the world who are celebrating coming home to their country – and we are launching with the Ayala Foundation a new program to bring computers to every high school in the Philippines. And not only computers – to link them up to the Internet. And not only to link them up to the Internet but to train teachers on how to get the most out of the Internet for their students. That’s the goal of this GILAS project as it’s called, to bring them to every high school in the Philippines in the next five years. This is a perfect example of the kind of partnership we like to have. USAID has put up a million dollars for this, the Ayala Foundation has come up with another and members of the AMCHAM like Sun Microsystems, Intel, Microsoft, are all involved. I’m sure there are others. We’re just getting up a list of them. IBM I believe is another. Rick Santos is on the advisory board, I understand. We’re doing great things together. This country can succeed -- it does not have to fail. It’s not likely to fail with people like you doing things like this.

The premier American initiative in this context of development assistance in the Philippines, is the Millennium Challenge Initiative. This new compact for development, proposed by President Bush in 2002, will dramatically increase our assistance to developing countries. The Millennium Challenge Account operates on the premise, the fact that development initiatives succeed only when linked to sound policies that are implemented and not just professed.

Late last year, we designated the Philippines as one of six countries in the Millennium Challenge Account's 2005 Threshold Program. Ladies and gentlemen, the United States delivers on its promises, and we act fast. Last night, the Millennium Challenge Corporation’s Vice President, Clay Lowery, and his delegation arrived in Manila. In the next several days, they will be meeting with Filipino business leaders, and with senior officers across the Government whom President Arroyo has charged to draft a performance concept proposal – the reform goals and measurement standards to be set by Filipinos for the Philippines. The Millennium Challenge Corporation’s acceptance of that proposal, and the Government’s accomplishments of the results it sets for itself, will trigger initial United States funding – beyond current economic assistance – to ensure that performance plan delivers results on the three standards of the larger Millennium Challenge that President Bush has laid down. Those are:

· Number 1, Good governance – meaning turning the tide against corruption;
· Number 2, Opening economic opportunity – meaning making it easier for Filipinos themselves to do business;
· And finally, investing in people – meaning in public health and education.

Getting meaningful results in these areas will require bold legislative, judicial, and executive reforms and action: measures to raise revenue; to prosecute and convict corrupt officials; to improve health care and education by bringing national investment in the citizenry, and population growth, into line.
The United States is eager to expand trade with the Philippines. We have a long history of being the largest market for the Philippines. The Philippines is our 19th largest export market – something like 18 billion dollars again last year in trade and we hope to see that grow and diversify.
We’re putting resources behind our advocacy and our policies to promote trade and investment. In 2004, the United States Ex-Im Bank completed 36 transactions in the Philippines for about $56 million dollars. That’s the second largest number of transactions with any country in the world after Mexico. Many of these loan guarantees helped small and medium-sized enterprises. Helped these companies purchase operating equipment from American companies, so that they can provide value-added products and services to the Filipino economy. In agriculture, the United States provided $60 million in PL-480 concessional loans to the Philippines over the last two years, making it far and away the largest recipient of PL-480 food support in the world. These agreements provide funding for Philippine government programs that promote food security, poverty alleviation, and broad-based and equitable agriculture, not just U.S. food exports to the Philippines but development of your agricultural sector. They include the Fulbright-Philippine Agriculture Scholarship Program, which aims to support Agriculture and Fisheries Modernization. Such direct U.S. funding in support of mutual trade and development is exactly what we mean when we say our job is to “build our mutual prosperity.”
We’ve also worked hard through the TIC program – the Trade and Investment Committee -- to remove the barriers and obstacles to further trade. In the past year our TIC committee has worked on issues ranging from mangoes and coconuts, to bio-technology, fiscal and customs reform, and the protection of intellectual property.

I’d like to spend a minute on intellectual property because there’s a United States National Intelligence Council global estimate – looking ahead 15 years – pointing to ability to compete in the knowledge economy as the key to my country’s success, so that it could be the key to the Philippines’ success and every country’s success that must compete in the global economy. We’re not going to win in that competitive race without investing in education. We’re not going to win in that unless we develop a strong, national level rule of law to protect the creation and use of intellectual property. And that is still not done here in the Philippines.

IPR remains an issue both for domestic Filipino producers of intellectual property, and in our bilateral business relationship. Here again, the weakness of the rule of law is the challenge. Passage and signing of the Optical Media Act at the beginning of last year was a positive step. However, the Congress of the Philippines has been unwilling to address a small but significant technical flaw, and a year after passage, complete implementing regulations still are not in place. Many members are working hard on this problem – we give them full credit and all the support we can. But while some legislators continue to protect subtle but gaping loopholes to help out pirates of intellectual property at the expense of Filipino producers and foreign producers of intellectual property, the Philippines is suffering. The Philippines is suffering lost investment, and the jobs and other opportunities that flow with it. For example, the import of counterfeit medicines will continue to endanger Philippines public health. And the overall international “branding” of the Philippines as a country striving for world business standards will continue to suffer.

Beyond these immediate concerns, protecting Intellectual Property is essential for the country's economic future. Every industry one way or another, depends on intellectual property. Here in the Philippines, your growth businesses that are really moving - from biotech to telecom, from software to entertainment all interlink for the protection of intellectual property. So I hope we’ll see some progress on that early in the new year.

Whenever I meet with groups such as yours or these exact groups – the American Chamber or the Rotary Clubs – other business and community groups – I reiterate our embassy’s commitment to that third point of our mission as I mentioned, which is service.

It is our bedrock reason for having the third or fourth largest American Embassy in the world, in this country. With some three million Filipinos and Fil-Ams in the United States, well over one hundred thousand Americans in this country, in this warm and beautiful and welcoming country, I should add, we have two very large and overlapping publics that we seek to serve. We matter to each other in the most deep and personal and direct ways. Americans and Filipinos readily “go native” in each other’s countries. As I look around you – I see all my American colleagues that are wearing barongs -- I wish I could have worn one today and be far more comfortable -- we go native. We tend to fit right in as Americans in the Philippines and Filipinos notoriously fit right in, in the United States.

Ladies and Gentlemen, thank you very much again for just sketching out in a couple of minutes some of the things we’re working on in this bright new year. I wish you all a wonderful year of peace and prosperity and joy and much success in all your endeavors. Maraming salamat sa inyong lahat, at Mabuhay!

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Q & A Session with U.S. Ambassador Ricciardone before a joint meeting of the AMCHAM and Rotary Clubs of Manila & Makati
January 20, 2005

Q: Mr. Ambassador, it’s really one question but it’s a question A and B. There are rumors that you will be leaving very soon. Yes or No, Mr. Ambassador? Let me repeat the question. There are rumors that Mr. Ambassador would be leaving soon, is that true or false? Part B of the question, Mr. Ambassador, is we understand that President Arroyo wants you to stay and lobby Washington to extend your stay?

A: (Laughter) Well, I’m flattered. I wish I could be -- I wish there were such a job as permanent U.S. Ambassador to the Philippines. I’d sign right up! My honest answer is I do not know. I am approaching my third anniversary. As I said, I am looking forward to staying here for as long as the President would let me stay. I have no word of another assignment at this point. When the White House decides, if and when the White House decides that the President has something in mind for me, we’ll all probably find out at the same time. But I haven’t. So I am focusing on 2005 in the Philippines, and I’m just glad I’m here. There’s still a lot to do.

Q: Thank you.

Mr. Ambassador, there is a short question here. Tell us please about Iraq and the election?

A: Sure. I’ve been – as you know, I’ve been away from Iraq for a long time since I spent the first six months of 2004 there. I continue to get emails from Iraqi friends, some of the ones you see on television and mostly people you don’t, and from colleagues who serve in Iraq. Some people from our Embassy in Manila are now serving there, and it’s a very difficult environment and situation. But a process is underway.

Ten days from now is a very important day. We’ll see how it will turn out, but it’s not the ending, it’s only the beginning of an incredible series of democratic exercises for 2005, in a country that has not had a democratic election of any sort, any plausible sort since the 1950’s. Now, think about that. All the infrastructure of conducting an election – voter lists, and just how you do it, isn’t there. It needs to be brought in, invented, people have to be registered, people signed up, security provided, ways of tallying votes that would be credible. All that needs to be invented. They’re starting that ten days from today, just starting it with an election to establish a Transitional National Assembly. That assembly will elect from within itself an executive leadership. The TNA, the Transitional National Assembly, then, is to get to work on drafting a constitution.

Do you remember what it’s like drafting a constitution in this country in 1986, 1987? It was hard. And you had a democratic tradition to build on, at least one that was within memory. The Iraqis do not, and they’re going to have to be working on a constitution from now through September or October. In October or so, September or October, the plan -- according to the United Nations Resolution 1548, which the Philippines chaired the voting of in June -- they’re supposed to have a referendum on that constitution and adopt the constitution. And then, by the end of 2005, they’re supposed to have fresh elections under that constitution, to have their final democratically representative government. That is one huge, tall order, and it’s going to be hard. But it’s so important to the future of Iraq that many Iraqis are literally dying to vote, and dying to stand for office.

Many candidates have been killed, and they’re going ahead anyway. It’s amazing but the heroism of those people is, for me, inspirational, maybe because I know them. I know some of them personally. I know some of those whom have been killed personally. So, it’s a great historic year for democracy in the Middle East. It’s going to be hard. There will be violence. There are people who don’t want to see this succeed so desperately that they, too, are dying, and killing as they do it. I saw there were four suicide bombers in 90 minutes yesterday in Baghdad. All I can tell you is that the United States is going to stand behind those Iraqis who are trying to make something of their country, and their democracy. I don’t think we’re going to desert them. Good question.

Q: Thank you, Ambassador.

Mr. Ambassador, the next question from the floor. The U.S. dollar is in its historical lows versus the Euro and other currencies, primarily due to the large historical trade deficit that needs to be reduced. Would the move to reduce the deficit reduce the monetary assistance to the Philippines as a percentage of total assistance given the emerging Asian markets in terms of trade, security and investment?

A: Well, I’m not a prophet. But certainly our need to reduce our own budget deficit is going to put pressure on all government programs both foreign and domestic, and I should expect that it would put pressure also on our foreign assistance programs.

However, President Bush has requested additional funding from the United States Congress, specifically, as I mentioned, through the Millennium Challenge Account. That is specifically requested as additional American foreign assistance of up to 5 billion dollars over the next three years, in the original plan. Whether we’ll get that from the Congress, I don’t know, but that would be roughly doubling U.S. foreign assistance. We’ve expanded our foreign assistance in many areas particularly HIV, through USAID worldwide. We’ve certainly expanded it here in the Philippines. That’s part A response. Yes, there’s pressure.

Secondly, we’re expanding our foreign assistance anyway. Part B, for the Philippines, is renewed hope that in the next five and a half years of President Arroyo’s term, all of you, not just the President, but as she calls upon her countrymen to join her, you can turn this country around, and you can get out of the aid recipient business. Why not? Why not have a milestone, a goal of making this country so strong and prosperous economically in the next five years that you won’t have to worry about pressures on the U.S. foreign assistance budget, or World Bank funding, or anyone else.

You can do this. This country is wealthy enough. You’ve still got residual investments in education that aren’t lost yet. You still have advantages. You still have people who are the most desired workers from all levels -- manual workers to brain workers all over the world. You have a lot to trade on. This country does not have to be an aid recipient forever.

Q: Thank you, Mr. Ambassador.

Mr. Ambassador, the Rotary would be celebrating its 100 years this June in Chicago. While many Rotarians would like to attend this convention, quite a number of them have been denied visas in spite of the fact that their intentions are simply and only to attend this convention. Advice? What can be done to help these Rotarians to enable them to attend the convention? Perhaps the Consul General, David Donahue…

A: Yes, I try never to do a public speaking event without having the Consul General or one of his representatives here. Am I left unprotected today or is there someone? Do we have a Consular officer?

I welcome the question. I was going to do a commercial for this. Thank you, Rotarians, for looking ahead and thinking about your visas now. If you haven’t already, if you’ve had a visa in past years, please look at the expiration date and make sure your visa is current. And if it’s not, or if you’ve never had a visa, please come to us as soon as you possibly can. Don’t wait till June or even May or even April. Apply now to get it out of the way.

There should be no problem, to be honest. There should be no problem for anyone who is a member of the Rotary Clubs here. You’re established people, your ties to your country are very clear, you ought to be able to go. Your typical case would be no problem at all. Really, I’m distressed if there really are people who are being denied. Usually, in each case we try to give a clear explanation why the denials are there, and people are free to present additional information to overcome the denial. But I would think for 90% of Rotarians, there would not be much question at all, and the other 10% can answer the questions and get their visas. But if there is a problem -- take it to our Consul General. [laughter]

Q: And that is Consul General David Donahue.

A: David Donahue.

Q: Mr. Ambassador, just a follow up question on the visas. What is the status of immigration visas for nurses? Will the quota of visas last, and until when?

A: Now, I know we really need a consular officer here. I honestly don’t even attempt to understand where we are on the quota numbers or the status of it. I do know this. I know we still very much want people from around the world to visit the United States. We particularly welcome Filipinos, for our historical affinities, and for many other good reasons -- maybe because we’re all relatives. We all have relatives and want to visit each other. We particularly also need, in the business or economic areas, we need nurses, we need teachers. The quota systems involved for both of those are hopelessly complex for a simple person like me to understand. I do know from David Donahue that he can dumb down an explanation for me. The bottom line is: we still welcome Filipino nurses. There are certain limits in place. I gather from David that the problem is that the Philippines quickly maxes out on the worldwide, country-by-country allotment of visas for nurses. You’ve got a huge supply, we have a huge demand, and both of those have to be funneled through fairly narrow bottleneck.

Q: Thank you, Mr. Ambassador.

The next question Mr. Ambassador, is please comment on the lavishness of the inaugural ball of President Bush. For people outside of the United States, it gives the impression of the insensitivity and self-interest priorities of the United States instead of the caring, sensitive global leader should be promoting?

A: Here we are in Makati, in a five star hotel having a nice lunch -- I don’t think there are too many poor people in here or people who have stayed away saying “I want to sacrifice my lunch for the tsunami victims.”

Look, from time to time people get together. President Bush has led, I believe has led a worldwide effort to provide relief for tsunami victims just as we did for the Philippines, where, you know, no one else in the world paid attention. I know the European Union helped, other countries helped, and the Red Cross helped, and so forth but we didn’t get the headlines in the world for the work we did together up in Rizal province and Aurora. That was terrible enough a few weeks before Christmas. And we responded because that’s us, and you’re you, and we’re friends, and we’re able to do it, and you needed the help, that’s the way it was.

When the tsunami hit, I think it took everybody in the world some days to understand the enormity of what happened. No one wanted to believe it. It took a long time for information to filter in. But as it did, we geared up not only to provide money, official U.S. Government money; not only the private sector, American citizen direct contributions, which have already far exceeded U.S. official funding; but we also did something else. We took the most powerful military forces in the world, who are engaged, by the way, in two active wars, and we put a hundred aircraft into the effort, and I don’t know how many ships. We were the only ones in the world that could do that.

And if you saw the news programs, Muslims in Aceh and elsewhere were saying where is the world, where is the United States of America? They weren’t saying, you know, where is the United Nations? They were saying where is the United States of America?

So, we responded. You know, that doesn’t mean that every hour of the day every American is going to go around thinking about the tsunamis. We’re having a change of government. That’s a big deal in the United States. The most powerful country in the world has just gone through a democratic process of renewal peacefully, though contested hotly. This is something we celebrate as Americans. It’s a big deal for us. We’re proud of it. And, you know, there maybe will be some bands playing, speeches given, I think in a fairly modest way. This is quite right within our traditions and our respect for the people who are engaged in so many difficult challenges around the world. So, I guess I’m bothered that we’re here in Makati, a nice rich part of the country which has people suffering outside, and people are wondering why the United States of America is celebrating its democracy. … I don’t know… .

(Applause)

Q: The next question, Mr. Ambassador. I guess this is a two part-question. What would be the changes in U.S. policy towards the Philippines with the expected assumption of Condoleezza Rice to become the Secretary of State, and what policy changes might we expect from her globally?

A: I think Americans reelected President Bush because we were pretty confident of the course that we’re on, and we’re expected to stay on. No one is expecting radical changes of direction of the United States around the world or in the Philippines, I think. President Bush has paid more attention to the Philippines, I think, than most American presidents in recent history anyway. He certainly came here and had a lovely visit. He was welcomed by the President of the Philippines, and pays attention to this place. Condi Rice came with him and experienced the place. As I mentioned, Bob Zoellick, whom Dr. Rice has chosen as her number two, is the United States’ leading expert in promoting free trade. He came here, and announced the United States’ willingness to open up further trade with ASEAN, and with the Philippines.

In her opening statement to the Senate, I don’t know how many countries Dr. Rice mentioned, probably not more than half a dozen or ten. One of them was the Philippines. So I think there is consciousness of the importance of this relationship with the United States. It’s going to continue, and as I mentioned in my remarks, I think all signs are go--precisely because with the election – you’ve had an election, you’ve got a new administration at the outset of its term, there’s energy, there’s vision, there’s momentum, and we have the same. You put them both together, and we should be off to the races. So, I don’t expect any changes. I see upside possibilities rather than downside risks. Or should I say, upside possibilities outweighing the downside risks, by a great deal.

Q: Mr. Ambassador, what do you think the Philippine Government should do to show that they are indeed serious in cutting down on corruption?

A: You know, I’m the U.S. Ambassador. It’s not for me to advise the Government of the Philippines. And if I do want become permanent ambassador, the way of truncating that assignment is to offer public advice that is unsolicited by the Government. We do speak a lot. We do have expertise and we bring experts in. President Arroyo has reached out for experts from around the world. Tony Kwok from Hong Kong, who helped turn around Hong Kong some years ago, has been a frequent visitor to Malacañang. We -- I actually am convinced that President Arroyo is serious, and that many in the government are serious. The plans are there, the people are there, the machinery is being built. I think what would convince all of us is – we need the seriousness of intent. The intent is there. It’s really serious. I guess what we all want to see, I think what Mrs. Arroyo wants to see, is results. Against that clear intent, she wants to see prosecutions, and convictions, and so do we, of people who steal from their fellow citizens -- whether they steal from the soldiers, whether they steal from businessmen, at the ports. She means business, I believe. Let’s see if results come. Let’s see if some bad guys just don’t get removed from their jobs and forgotten about, but removed from their jobs and put in prison as an example to others.

Those kinds of results are what, I know, she and her corruption-busters within the Government are working so hard on. So, my heroes from this country are people like Sonny Marcelo, the Ombudsman; Connie de Guzman; Haydee Yorac. There’s so many working away on this. The Secretary of Trade and Industry, Cesar Purisima, has been appointed by the President to work on the Millennium Challenge Initiative across the agencies. And I know they’re bearing down on the corruption issues, and that’s number one. So, I’m optimistic. I’m convinced that the Government is serious, and we’re hopeful now for results.

Q: Thank you, Mr. Ambassador.

A: Thank you very much.

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