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100435Z Jun 05 C O N F I D E N T I A L SECTION 01 OF 02 MANILA 002691 SUBJECT: DEFENSE SECRETARY WILLING TO TACKLE TOUGH POLICY QUESTIONS Classified By: (U) Political Officer Paul O'Friel for reasons 1.4(b) and (d). 1. (C) SUMMARY. Secretary of National Defense Cruz appears ready to explore three key policy questions in the US-RP defense relationship: combined rules of engagement; a legal framework for counterterrorism cooperation; and cooperative security locations. In doing so, his emphasis seems to be on finding practical approaches that take into account the realities of Philippine politics. END SUMMARY. 2. (C) In a June 7 meeting with US Pacific Command (USPACOM) Commander Admiral Fallon on the margins of the Mutual Defense Board talks, Secretary of National Defense Avelino Cruz indicated his willingness to discuss three key policy issues in the US-RP military relationship: -- development of combined rules of engagement; -establishment of a legal framework for

counterterrorism cooperation; and, -- identification and development of cooperative security locations. ---------------------------COMBINED RULES OF ENGAGEMENT ---------------------------3. (C) Taking Admiral Fallon's point that it was useful for militaries that operate together to have agreed upon rules of engagement, Secretary Cruz noted the Philippine constitution had unique provisions governing the use of force. However, he suggested the GRP could examine a US template and adapt it to meet specific Filipino constitutional and legal requirements. "We might be able to sign something by the end of the year," Cruz stated. ------------------------------------------------LEGAL FRAMEWORK FOR COUNTERTERRORISM COOPERATION ------------------------------------------------4. (C) Either the Mutual Defense Treaty (MDT) or the Visiting Forces Agreement (VFA) could offer a framework for US-RP counterterrorism cooperation, Cruz observed. Cruz opined, however, that it might be a "stretch of the English language" to include terrorism within the 1951 MDT's definition of "armed external attack." Such an interpretation had not been tested in the Philippine Supreme Court. The Court had, although, ruled in Lim vs. the Executive Secretary that the VFA covered counterterrorism cooperation that was temporary, exercise-related, and consisting of "combat related activities." While it might be possible to have

two coordinated but separate mechanisms associated with the VFA and MDB, Cruz said, as a lawyer, he preferred to use the VFA as the principal legal basis for counterterrorism cooperation. 5. (C) Cruz did not discount the possibility of a future treaty that would cover cooperation on counterterrorism, disaster relief, and transnational crime. The Philippine Senate was examining this as a potential option. Nonetheless, while not out of reach, any amendment of the MDT or new treaty would involve a long process. -----------------------------COOPERATIVE SECURITY LOCATIONS -----------------------------6. (C) Cruz rapidly grasped the US need for cooperative security locations (CSLs). "It's a prearranged fit between a facility, and what you may want to do in the future," he observed, adding, "It's logical from an operations point of view." However, Philippine history and the cultural sensitivity to bases required a well thought through approach. While the issue was not complicated in theory, Philippine historical baggage presented challenges. If not handled properly, the opposition could exploit the issue. "The trick is to run the gantlet the right way," Cruz said. "We have to be agile and nimble. With the right approach, we'll get there; with a clumsy approach, we won't." 7. (C) Cruz advocated dispensing with the terms "CSL" and "access," which could have negative connotations in the Philippines. "CSL conjures up too many ghosts; lengthening a runway, or storing

fuel do not," he said. Cruz suggested AFP and PACOM J5 staffs -- in collaboration with the Department of National Defense (DND) -- develop a "game plan" to arrive at an agreement based on common sense and evaluation of respective RP and US national interests. Speaking separately to the PACOM J5, Rear Admiral Tracy, DND Undersecretary for Legal and Priority Concerns Rodel Cruz indicated he believed consensus on CSLs was well within reach. 8. (C) COMMENT. Cruz has confidently committed himself to addressing three complex questions. In doing so, his emphasis appears to be on finding practical solutions that take into account Philippine realities. His caution in dealing with the fractious Philippine Senate is well founded. Some of its members would be all too ready to exploit any of these issues for narrow political gain. 9. (U) Neither Admiral Fallon nor Rear Admiral Tracy had the opportunity to review this telegram before their departure. Visit Embassy Manila's Classified website: http://www.state.sgov.gov/p/eap/manila/index. cfm MUSSOMELI (Edited and reading.) reformatted by Andres for ease of