Businessmirror january 14, 2017

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ABE’S SOFT POWER PLAY WINS HIM BREAKFAST AT DUTERTE’S DAVAO HOME

Fine display of subtle and personal diplomacy

J

apanese Prime Minister Shinzo Abe sat for breakfast on Friday at the modest home of President Duterte in Davao, making him the first national leader to set foot in the new Chief Executive’s green bungalow.

The personal touch shows Abe’s determination to maintain ties with the Philippines, as Japan competes with China for business deals. Security ties between the Southeast Asian nation and the US have deteriorated under Duterte and, with China growing increasingly assertive in the region, Abe is seeking to convince his counterpart to stick with Japan and the US. After a summit in Manila on Thursday, Abe said there is a link between the territorial spats in the South China Sea and regional peace, adding that he affirmed with Duterte the importance of not militarizing the disputed waters. Sure to strengthen the foundations of Abe’s relationship with Duterte is that unlike US and European leaders, he has refrained from criticizing Duterte’s war on drugs that has so far seen about 6,000 people killed. “Abe is using an exquisite combination of subtle and personal diplomacy, proactively reaching out to Duterte, who has maintained very close ties with Japan, while recalibrating relations with America and China,” Philippine-based political analyst Richard Javad Heydarian said. “Abe will likely try to convince Duterte to be wary of China and restore ties with America” under President-elect Donald J. Trump. Duterte visited Tokyo last October, days after announcing in Beijing a foreign-policy pivot to China, away from the US military ties between Tokyo and Manila appear solid, with the countries car-

$8.7B

The funding and investment commitments pledged by the Japanese prime minister during his PHL visit rying out small joint naval exercises near Subic Bay last week.

Funding, trade

Abe pledged on Thursday to provide ¥1 trillion ($8.7 billion) in funding and investment to the Philippines. Japan is the Philippines’s largest provider of aid, a major source of remittances and was the second-biggest source of foreign investment in 2015 (after the Netherlands). Total trade between the countries was around $15.9 billion, about half that of the shipments between the Philippines and China. Bonji Ohara, the director of policy research at the Tokyo Foundation think tank, said a tug-ofwar between Tokyo and Beijing over business with the Philippines wouldn’t be meaningful. “I don’t think the Philippines has any intention of picking one side over the other,” said Ohara, who also served as a naval attaché at Japan’s embassy in Beijing. “President Duterte seems to have a favorable view of Japan, which Continued on A2

Japanese Prime Minister Shinzo Abe shakes hands with President Duterte following their joint statement at Malacañang on Thursday. Abe arrived on Thursday for a two-day official visit that includes a visit to Duterte’s hometown of Davao City. AP/Bullit Marquez

Beijing sends clearer signal on South China Sea, Aspac security

C

By Recto Mercene

hina on Thursday said it is ready to cooperate with Asia-Pacific countries for the promotion of common development, building of partnerships, improvement of existing multilateral frameworks, rule-setting, military exchanges and settlement of differences. “China is a staunch force in Asia-Pacific security, and its policies are particularly relevant, as Asia Pacific is the only enviable, tranquil place in the world—if you take into account Brexit, refugees, populism, terrorist attacks, Syria and uncertain US domestic politics,” Liu Qing of the China Institute of International Studies said. Liu’s statement was contained in a white paper outlining China’s policies on Asia-Pacific security cooperation, issued by the State Council Information Office and released to the local media by the Chinese Embassy in Manila. The white paper, which seeks

to clarify China’s stance on issues of regional concern, appeared on the same day Foreign Secretary Perfecto R. Yasay Jr. said the framework for the Code of Conduct (COC) in the South China Sea may be finally completed by the middle of this year.

Discreet cooperation

At a news briefing, Yasay said the Philippines, as chairman of this year’s Asean, will intensify efforts to fast-track the discussions on the Declaration on the Conduct of Parties in the South China Sea and eventually complete the COC. Asked whether the Philippines

PESO exchange rates n US 49.5300

Yasay: “The arbitral ruling of the PCA is something that is there; it’s a final and binding decision to the parties. Whatever is said outside of the case will not change the decision. ” AP/Bullit Marquez

TILLERSON: “We’re going to have to send China a clear signal that, first, the island-building stops and, second, your access to those islands also is not going to be allowed.” AP/Steve Helber

will push China to accept the arbitral ruling of the Permanent Court of Arbitration (PCA) in The Hague, which ruled that Beijing’s expansive claims in the South China Sea are illegal, Yasay replied: “The arbitral ruling of the PCA is something that is there; it’s a final and binding decision to the parties. Whatever is said outside of the case will not change the decision. It is a firm legal basis for us to pursue

time, because to discuss it with the others will be counterproductive for our purposes.” Yasay said China has been discretely cooperating in the discussion of the COC, along with other Asean member-countries. “The formulation of the COC is precisely being discussed right now. I don’t want to preempt anything by revealing further information, but I hope that it will be

our claims when we engage China when negotiating for that ruling.” He added that the Philippines is not going to raise the issue during the crafting of the COC, because “we will not benefit from it”. “If any country will continue to pursue it, they can do so, and [they] can use the tribunal decision,” the country’s top diplomat said. “For us, we feel no special purpose or benefit, but we will in some future

achieved by mid-2017,” Yasay said. “There is now a convergence of national interest to come up with the COC, and we are fortunate to have gotten to this level.” In the works since 2002, the COC has been delayed and has not moved forward. Yasay said the COC might “open the door to speed up bilateral engagement” with China to eventually Continued on A2

n japan 0.4323 n UK 60.3028 n HK 6.3876 n CHINA 7.1886 n singapore 34.7189 n australia 37.1079 n EU 52.6207 n SAUDI arabia 13.2104

Source: BSP (13 January 2017 )


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