Believe and Achieve: September 2010

Thursday, September 23, 2010

Aquino receives Elizabeth Seton Medal

NEW YORK CITY, USA – President Benigno Aquino III was conferred on Thursday the highest honor given by her late mother’s alma mater in New York.

The College of Mount Saint Vincent gave the President the Elizabeth Seton Medal in honor of his “outstanding achievements and self-sacrifice.”

Saint Elizabeth Ann Seton was the first American canonized by the Roman Catholic Church. She is credited for building the foundation of American parochial education.

The late President Corazon Aquino also received the medal in 1984.

In his acceptance speech, the President recalled his parent’s fight to restore democracy in the Philippines.

"In accepting this award, I am humbled by what this medal represents: your solidarity with my people,” he said.

“You stood with us in dark days. You stand with us now, in brighter days: the greatest period of optimism my people have seen, since the fall of Ferdinand Marcos," he added.

“I, in turn, have been called to work with my people to ensure that democracy benefits all Filipinos, and not just a few,” the President said.

“The clamor for reform came from my people, and my being here to accept this award from you, is made possible by them. It is only proper that I accept this honor in their name,” he added.

“Filipinos saved themselves from slavery to a dictator; they saved themselves from returning to the status of slaves; and they are working mightily, today, to free themselves from poverty,” Aquino said.

'Tony Boy' blasts media over jueteng row

NEW YORK CITY, USA – Businessman Antonio “Tony Boy” Cojuangco Jr. lashed out at media on Thursday over reports linking him to the jueteng row in the country.

The tycoon, who is part of the Philippine business delegation accompanying President Benigno Aquino III in his US visit, insisted that he did not ask retired Lingayen-Dagupan Archbishop Oscar Cruz to “go easy” on Interior Undersecretary Rico Puno.

Cojuangco said he talked to Cruz for just around 10 minutes and asked him if he had evidence to back his claims regarding a list of alleged jueteng operators.

Cruz reportedly told the businessman that the names on the list were provided by the prelate’s informants.

Cojuangco, Aquino’s second-degree cousin and the biggest donor in his presidential campaign, said he does not believe that Puno is involved in illegal gambling operations.

He said he approached Cruz on his own accord to help the Aquino administration.

“Help should not end with the [presidential] campaign,” he added.

Cojuangco vented his ire on media and said journalists should not have reported Cruz’s jueteng exposé because it had no basis.

He added that the media should ignore jueteng payola stories unless they have hard evidence.

He also urged journalists to just help the Aquino administration.

Gates tops list of richest Americans; Facebook co-founder 35th

WASHINGTON, September 23, 2010 (AFP) - Microsoft founder Bill Gates topped the Forbes magazine list of the 400 richest Americans on Thursday as Facebook's Mark Zuckerberg leapfrogged Apple's Steve Jobs in the rankings.

Gates, 54, who has stepped down from day-to-day activities at Microsoft to concentrate on philanthropy, has an estimated net worth of 54 billion dollars, according to Forbes.

Berkshire Hathaway's Warren Buffett, 80, was the second-richest American with a net worth of 45 billion dollars followed by Oracle's Larry Ellison, 66, with 27 billion dollars and Walmart's Christy Walton, 55, with 24 billion dollars.

Also in the top 10 were Charles Koch, 74, and his brother David Koch, 70, of Koch Industries, each with an estimated net worth of 21.5 billion dollars.

Other members of Walmart's Walton family were next: Jim Walton, 62, with a net worth of 20.1 billion dollars, Alice Walton, 61, with 20 billion dollars and S. Robson Walton, 66, with 19.7 billion dollars.

New York Mayor Michael Bloomberg, 68, founder of the Bloomberg financial news agency, rounded out the top 10 with a fortune estimated at 18 billion dollars.

Google co-founders Larry Page and Sergey Brin, both 37, were next, each with a net worth estimated at 15 billion dollars.

Technology titans occupied four more slots in the top 20: Michael Dell, 45, founder of Dell Computer, with 14 billion dollars, Microsoft chief executive Steve Ballmer, 54, with 13.1 billion dollars, Microsoft co-founder Paul Allen, 57, with 12.7 billion dollars and Amazon's Jeff Bezos, 46, with 12.6 billion dollars.

Facebook's Zuckerberg, 26, ranked number 35 on the Forbes list with a net worth of 6.9 billion dollars, up from two billion dollars last year.

Other notable figures on the list included News Corp.'s Rupert Murdoch, 79, at number 38 with a net worth of 6.2 billion dollars and Apple's Jobs at number 42 with 6.1 billion dollars.

EBay co-founder Pierre Omidyar, 43, ranked 47th with 5.5 billion dollars followed by Google chief executive Eric Schmidt, 55, with 5.45 billion dollars.

New York real estate tycoon Donald Trump, 64, ranked number 153 with a net worth estimated at 2.4 billion dollars.

The 2nd ASEAN-U.S. Summit: What’s on the Menu in Manhattan?

President Barack Obama will host 8 of the 10 leaders from the Association of Southeast Asian Nations (ASEAN)—Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam—in New York City on Friday, September 24, at the second U.S.-ASEAN Summit. The meeting underlines renewed U.S. policy energy being invested in Southeast Asia. Headlines from the discussion will likely focus on three areas:

1. Security alignment—including restatement of a common position on the South China Sea;

2. Economic growth and trade—particularly ASEAN’s leaders are seeking an update from Obama on the health of the U.S. economy and a read on whether the mid-term U.S. congressional elections might be an inflection point after which the United States can return to a proactive posture on trade; and

3. Burma—specifically exploring how the United States and ASEAN can encourage Burma’s leaders to create political space in the November elections and beyond.

The fact that the meeting is taking place in September in the United States is important in that it institutionalizes renewed U.S. engagement in ASEAN ahead of key steps forward in creating new regional security and trade architecture in Asia.

On the other hand, the fact that the summit is taking place in New York, not Washington, and without the leader of ASEAN’s largest country and economy, Indonesia, underlines the fact that while the policy intent is clearly substantive engagement, there is still much work to be done to align the United States and ASEAN.

Despite the best intentions of the principals, the meeting will certainly be viewed through the prism of perceived increased tension between China and its Asian neighbors, particularly related to disputed maritime territories.

Q1: Who is meeting and what is the agenda?

A1: President Obama will host the summit over lunch at a hotel in New York City from 12 noon to 2:30 p.m. on Friday, September 24. Eight of the 10 ASEAN leaders are confirmed to join him, except for President Susilio Bambang Yudhoyono of Indonesia and Prime Minister Thein Sein of Burma. The ASEAN secretary general, Dr. Surin Pitsuwan, will also join the meeting. The only surprise is Yudhoyono’s absence, and that is significant (see below). The Burmese were not expected to send their head of state due to poor relations with the United States and the sanctions regime currently in place. Indonesia’s President Yudhoyono will be represented by Vice President Boediono, and Burma’s Prime Minister Thein Sein will be represented by Foreign Minister U Nyan Win. The leaders will be accompanied in most cases by their ministers of foreign affairs, ambassadors to the United States and/or the United Nations, and other senior officials.

Q2: Why isn’t President Yudhoyono attending, and what are the implications of his absence?

A2: President Yudhuyono notified the White House that he could not accept President Obama’s invitation to come to New York due to domestic issues in Jakarta. Insiders confirm that Yudhoyono decided he could not come to New York because of a confluence of issues—including the fact that Obama has had to postpone planned travel to Indonesia three times since taking office and the short notice given by the White House (not quite a month in advance of the meeting). Had the summit been held in Washington, D.C., and in early October, so Yudhoyono and the other ASEAN leaders could have come on either side of their long planned visit to Brussels for the Asia-Europe Summit, the Indonesian leader would probably have come.

Yudhoyono’s absence sends a strong signal that although the U.S.-ASEAN relationship is moving in the right direction, there is work still to be done to improve alignment. Indonesia is ASEAN’s largest country and has the largest economy, both more than twice the size of the next member. It is also ASEAN’s incoming chairman for 2011. It is likely that the United States and ASEAN will get back on track next year when Indonesia hosts the third U.S.-ASEAN Summit, and after President Obama finally is able to make his long-awaited visit to Indonesia. There are quiet plans for him to visit Jakarta during his Asia trip after U.S. mid-term elections in November. That trip would include India, Indonesia, Korea for the G-20 Summit, and Japan for the APEC Leaders Summit. In sum, Yudhoyono’s absence doesn’t fully diminish the importance of the meeting in New York on Friday, but it lays down the marker that the U.S.-ASEAN relationship is trending well, but remains a work in progress. (I explore the gap between U.S. policy intentions toward ASEAN and the realities of domestic politics revealed by Yudhoyono’s absence from New York on the CSIS Southeast Asia policy blog. Click here for the article.)

Q3: What is the on the security agenda and will the South China Sea be a focus?

A3: The United States and ASEAN are working with other countries, including Australia, China, India, Japan, Korea, New Zealand, and Russia, to create new regional security architecture in Asia. To this end, the United States and Russia will be invited to join the East Asia Summit (EAS) this October during its meeting in Hanoi. Secretary of State Hillary Clinton will represent the United States at the meeting and accept the invitation. The United States will then ideally be represented by President Obama at the next EAS hosted by Indonesia in 2011 (it is likely that the U.S.-ASEAN Summit will be held in proximity). As part of its calculus in deciding to join the EAS, the United States recognized that it must strengthen its security and political ties with ASEAN and invest in supporting ASEAN’s self-defined goals to firm up its foundation through economic, political, and socioeconomic integration, as outlined in the ASEAN Charter. To this end, the United States has been moving to normalize military ties with Indonesia and to enhance military relations with Vietnam, as well as committing to join the ASEAN Defense Minister Meeting + 8 (which includes the same countries listed above who are/will be members of the EAS).

In this context, one of the existential challenges for Asia is to create structures and use diplomacy to encourage China’s peaceful rise as a major world power. The South China Sea represents a major challenge in this process. China has been very effective in its “charm offensive,” begun during the Asian financial crisis in the late 1990s, writing a script as an engaged and committed neighbor promising economic dynamism through expanded trade and investment and regional economic integration. However, China’s geopolitical interests are the other side of that coin. China’s definition of its “indisputable sovereignty” over the South China Sea, in response to Secretary of State Clinton’s reiteration of long-standing U.S. goals for maritime dispute resolution and freedom of navigation in the area based on international law and a multilateral approach, has uncovered atavistic anxieties about China’s intentions among the Southeast Asian countries. Therefore, ASEAN has welcomed a strong U.S. voice on security concerns in the South China Sea, and this has come at a time—ahead of a Chinese political cycle that will identify the country’s next generation of leaders in 2012—of heightened nationalism in China.

Neither the United States nor ASEAN wants to provoke Chinese nationalists, but both recognize the importance of being firm and sustaining a commitment to a multilateral approach to dispute resolution. Therefore, it is likely that the summit in New York will result in a joint statement that addresses the issue by reiterating the intent and direction of Secretary Clinton’s remarks at the ASEAN Regional Forum (ARF) in Hanoi with a focus on China.

Q4: How about economic growth and trade?

A4: ASEAN is concerned about the health and direction of the U.S. economy and hopes that President Obama can assure them that a recovery is underway and that he will be able to move the United States toward a more proactive posture on trade after the U.S. mid-term elections in November. These issues are fundamentally important to ASEAN because the United States is its largest overseas market (particularly when you consider the fact that many ASEAN exports go through China as part of a supply chain that ends up with products delivered to the United States), and because the United States remains one of the top and qualitatively most valuable sources of investment and technology for the region. ASEAN is collectively the most trade dependent formal grouping of nations in the world, with trade accounting for nearly 100 percent of aggregate gross domestic product. So if trade stagnates, ASEAN is the global canary in the coal mine and it suffers first and most significantly.

ASEAN will be watching the U.S.-Korea Free Trade Agreement closely as the benchmark indicator for whether Obama will use the political chits necessary to kick-start trade and make the case to Americans that long-term recovery is dependent on U.S. engagement in ASEAN, Asia, and the world. ASEAN is the United States’ fourth-largest overseas market and one that promises high-level growth for the coming years. ASEAN wants to know if the mid-term elections will be an inflection point for the U.S. stance on global trade. (Read more on the disconnect between policy and politics on trade with ASEAN in cogitASIA )

Q5: What about Burma?

A5: With Burmese elections coming up on November 7, Burma is sure to be high on the summit agenda—at least for the Unites States. While ASEAN would prefer not to have to carry the weight of Burma’s cloistered and intransigent military junta, it recognizes that having made the commitment to bring Burma into its membership it must work with the United States and others to try to encourage the creation of political space there. The Obama administration deserves credit for its courage and foresight in espousing an engagement strategy toward Burma that allowed it to reengage with ASEAN and hold meetings such as this summit. While the engagement has not produced results in Burma, the United States has changed its paradigm with ASEAN. The administration can and likely will tighten sanctions on Burma by focusing on its leaders, their families, and companies they are associated with—measures outlined in the Lantos Act. ASEAN needs to do its part and increase its normative focus on Burma to pressure the regime to create more political openness so it can truly engage in the core elements of integration defined in the ASEAN Charter. If ASEAN begins to focus on Burma, pressure may increase on China and India to refocus their current mercantilist and military policies that enable the hard-line domestic political stance of the junta and to play a role as responsible stakeholders encouraging positive change in the country.

Q6: What next?

A6: ASEAN hopes that President Obama will announce his candidate as the first U.S. ambassador to ASEAN to be resident in Jakarta. A candidate’s name is reportedly pending review and due diligence, though it is not likely that name can be announced on Friday. Additionally, the United States and ASEAN are expecting to name an Eminent Persons Group (EPG) to provide guidance and leadership for the relationship. These names have also not been announced yet.

After the New York summit, Secretary of State Hillary Clinton will be in visiting Hanoi for the EAS, and Secretary of Defense Robert Gates will visit Vietnam for the ASEAN Defense Ministers Meeting + 8. President Obama is planning to visit Indonesia in November as mentioned above.

Friday, September 17, 2010

Legalize "ukay-ukay" and collect taxes - Customs chief

MANILA, Philippines - Bureau of Customs Commissioner Angelito Alvarez is urging the government to legitimize the used clothes or "ukay-ukay" trade and tax importers of these items.

Alvarez said it is better to allow the entry of used clothes and impose proper import duties and taxes, instead of merely confiscating the items.

On Thursday, the Customs showed ABs-CBN News the newly-confiscated 5 container vans from India and Hong Kong containing used clothing and accessories.

The illegal entry of "ukay-ukay" items are expected to further rise in the run-up to the Christmas holidays, said Colonel Marlon Alameda, the district commander of the Manila International Container Port.

"Two months from now, Pasko na, kaya inaasahan namin yung ganitong pagdagsa ng ganitong klaseng shipment, considering na mabili ito sa market."

Under Republic Act 4653, or the act to safeguard the health of the people and maintain the dignity of the nation, the commercial importation of textile articles is prohibited. Shipments are only allowed when used clothes are intended to be made into rags.

Alvarez said he will ask Congress to ammend the law to finally legalize the importation of used clothes.

He said even with the prohibition, retailers flagrantly sell the used items that have spawned so many "ukay-ukay" stores nationwide, with the items sold at dirt cheap prices.

T-shirts and blazers sell for as low as P10, while Italian leather shoes cost around P100.

"They are saying it is against national dignity,that it is for health and safety reasons. It doesn't really make sense. It is prohited so nanghuhuli, but when there is a calamity, I get requests from the DSWD (Department of Social Welfare Development) to just donate the items," said Alvarez.

Customs Superintendent Joey Yuchongco of the Customs Police Division said that instead of burning "ukay-ukay" items, the agency keeps these in storages.

"Malaki po itong makokolekta natin (if these are taxed). Pag na-confiscate, hindi na nila makukuha."

Congresswoman Janet Garin however, is againt legalizing the importation of used clothes.

She said that this will adversely affect the struggling local garments industry.

'Hot money' at $926-M in Jan-Aug

MANILA, Philippines - Foreign portfolio investments, also known as "hot money", grew more than 5 times in the first 8 months of 2010 from a year ago, the central bank said.

Net portfolio inflows in January to August reached $926 million against an inflow of $182 million in the same period of 2009.

For August alone, gross foreign portfolio inflows totalled $787.90, and gross outflows were $562.84 million.

The United States, United Kingdom, Singapore, Malaysia and Luxembourg accounted for 83% of portfolio investments in the January to August, the Bangko Sentral ng Pilipinas said.

Placements in the stock market accounted for $4.1 billion, or 71% of the $5.8 billion registered investments for the 8-month period. The balance was in local currency government debt and time deposits. Registration of foreign investments with the central bank is voluntary, but is required if investors want to buy foreign currency to be sent out of the country.

Gulf Air: Support for baby George 'overwhelming'

MANILA, Philippines - Gulf Air disclosed on Friday that it has received "hundreds of messages of support" for the baby abandoned in one of its flights to Manila last Sunday.

"Support for the baby from people around the world has been overwhelming. GF has received hundreds of messages of suport for baby George via e-mail, telephone and Facebook," the airline said in statement.

The airline said it is "currently in discussions" with Philippine authorities on how it can further help the baby.

Amid reports that it has not been cooperating with Philippine authorities, Gulf Air also said it is assisting the government "to identify the mother."

On Thursday, Gulf Air provided National Bureau of Investigation (NBI) access to the aircraft.

The NBI personnel were able to "extract samples from blood specks which will now be tested for DNA."

The DNA is being conducted to confirm if indeed "Tessa" (not her real name), an overseas Filipino worker, is the mother of George Francis,

"Our main priority continues to be the welfare of the baby while the search is on to find the mother," Gulf Air said.

Gulf Air ground handlers found George Frances in a refuse bin on GF 154 upon its arrival last Sunday.

"Tessa" told social workers that she was the mother after being traced through the passenger list and blood stains on her seat, NBI chief Magtanggol Gatdula said on Thursday.

"She readily admitted when we showed her the (seat) picture," Gatdula told reporters. The woman told social workers she gave birth on the plane toilet as the jet was about to land, he added.

The authorities would not say if the woman would face criminal charges.

"We look at her more (as) a victim, maybe of trafficking. Right now our concern is her health," Gatdula said.

"Yesterday, she was in shock, but she is getting better now. Our concern is to make sure that she recovers," he added.

Aquino's US trip to cost P25-M: Palace

MANILA, Philippines (1st UPDATE) - President Benigno "Noynoy" Aquino is spending P25 million of taxpayers' money for his 7-day working visit to the United States next week, Executive Secretary Paquito Ochoa Jr. said Friday.

Ochoa said the P25 million total estimated cost of Aquino's trip from September 20-27 is a third of what his predecessor had spent for a similar overseas travel.

“The President is serious about cutting costs in this trip. He is taking a very lean delegation and flying commercial to the US and back, which is why this trip will cost much less than previous working trips. That is why, in the interest of transparency, we are releasing these figures so the Filipino people will know where their money is going and how it is being spent,” he said in a statement.

The Finance Office of the Office of the President has released P22 million to cover the expenses of Aquino's entire trip, including hotel accommodations, meals and transportation within the US. The amount does not include the estimated P3 million cost of the plane tickets to be purchased for the trip.

A Palace spokesman earlier said Aquino will be staying at the Hotel Sofitel in New York instead of the Waldorf Astoria, where his predecessor, former President Gloria Arroyo, used to stay.

The President is expected to take a commercial flight to San Francisco on Monday, and then a chartered Philippine Airlines flight from San Francisco to New York.

Official records, meanwhile, showed more than P76 million was spent for a presidential working visit to New York and Washington D.C. from July 29 to August 5, 2009. Planes fares for those who joined the working visit, which were priced lower then, cost the taxpayers P6.2 million.

Expenses for presidential working visits in 2009 are as follows: Switzerland, Italy, Bahrain and the US (January 30 to February 8), P156.9 million; Syria and Egypt (May 1 to May 6), P50.7 million; Japan, Colombia, Brazil, Dubai and Hong Kong (June 17 to June 28), P151.3 million; and Libya (September 1 to September 2), P35.6 million.

Lean delegation

Aquino is expected to lead a lean delegation when he embarks next week on the official visit—his first overseas travel as Chief Executive—to attend the United Nations General Assembly in New York. Accompanying Aquino on the trip are Foreign Secretary Alberto Romulo, Finance Secretary Cesar Purisima, Trade and Industry Secretary Gregory Domingo and Energy Secretary Rene Almendras.

Aside from limiting the members of the President’s official delegation, the number of the support staff has been pared down to the barest minimum in line with the administration’s austerity efforts. Ochoa said the presidential party will be composed of not more than 50-60 people.

As of press time the delegation's final number was still being finalized.

“We are conscious of the fact that we are in a debt hole we can only begin to climb out of if we strictly implement austerity measures and cut down on unnecessary spending. Cutting the expenses of this trip is one of many steps we’re taking to do that,” Ochoa said.

The President has pledged to limit his foreign trips to the most important and strategic ones to be able to focus on a wide array of domestic problems that he inherited upon assumption to power more than two months ago.

Aside from his attendance at the U.N. General Assembly and meeting with US President Barack Obama, Aquino is scheduled to meet top leaders of the World Bank and Citibank, and leading US businessmen to seek job-generating investments for the country and financial backup for economic development projects.

GMA will also be in New York

Meantime, President Aquino and his party won’t be the only Philippine government officials meeting world leaders in New York next week.

His predecessor, now Pampanga 2nd District Rep. Gloria Macapagal-Arroyo will also be in New York at about the same time next week.

Arroyo left Thursday night for Hong Kong. Her spokesperson, Elena Bautista-Horn confirmed Arroyo will be in New York to attend the annual meeting of the Clinton Global Initiative (CGI), and a dinner with Queen Rania of Jordan on the Millennium Development Goals and its effects on women.

The dinner with the Queen of Jordan will be on September 20 while the CGI event will be from September 21-23. Arroyo was accompanied by 1 aide and 1 security personnel.

CGI head, former US President Bill Clinton, personally signed Arroyo’s invitation, which was signed June 3. Queen Rania’s invitation was dated August 11.

Arroyo and Clinton were classmates in Georgetown University.

The CGI website says: “The CGI Annual Meeting is a premier gathering for heads of state, business leaders, and non-profit directors from around the world. The 2010 Annual Meeting will take place September 21-23 in New York City.

"During the CGI Annual Meeting, members make new connections and share insights and ideas. In interactive discussions, they learn about creative approaches taken by different organizations around the world. Participants analyze pressing global challenges, discuss the most effective solutions, and build lasting partnerships that enable them to create positive social change.”

Thursday, September 09, 2010

July exports surge 35.9%, double-digit growth in electronics

MANILA, Philippines - The country's merchandise exports in July surged by a hefty 35.9% from a year ago to $4.5 billion, driven by huge demand for electronics.

Data from the National Statistics Office showed that from January to July, the country's exports posted a double-digit growth of 37.4% from a year earlier to $28.223 billion.

Electronics shipments which accounted for 63.6% of total exports, rose by 49.4% to $2.86 billion. Of these, semiconductors which comprised 51% of total exports, and the biggest share among the major groups of electronic products totaled $2.29 billion, or an annual growth of 62.2%.

Apparel and clothing accessories were the country's second top export earner in July, climbing by 16.1% to $145.3 million.

Coconut oil shipments, including crude and refined, emerged as the third top exports, surging by 72.5% to $138.02 million.

The government expects exports to climb by 15% this year, having increased an earlier estimate of 12% growth.

Imports are forecast to increase by 20% from a previous estimate of 18%.

The electronics industry group expects its exports to climb 25 to 30% this year, despite signs demand may soften due to faltering global growth.

The government expects the economy to grow faster than an official target of 5 percent to 6% this year and accelerate to 7 to 8% in 2011, partly driven by a rbound in demand for the country's electronic and semiconductor exports.

Speaker eyes early passage of 2011 budget

MANILA, Philippines - House Speaker Feliciano "Sonny" Belmonte on Thursday said he is eyeing a November passage of the 2011 General Appropriations Bill at the Lower House.

In an interview, Belmonte said sponsorship of the proposed budget should be started before the end of September so that it can be submitted to the different departments.

"I'm very hopeful that people will be actively participating and we will be able to finish everything by October 15 on 2nd reading and when we reconvene pass upon it," he said.

Belmonte also thumbed down budget increases as proposed by the House minority for certain agencies.

Malacañang submitted to Congress last month a proposed national budget of P1.654 trillion for 2011.

Aquino reveals receiving insulting letter from HK

MANILA, Philippines – President Benigno Aquino III on Thursday said the Philippine government is very conscious of the need to repair relations with Hong Kong, which were marred by the August 23 hostage fiasco which saw 8 Hong Kong tourists killed.

“S’yempre kailangang unawain natin na kakaibang pangyayari ito lalo na sa mamamayan ng Hong Kong,” Aquino said.

During a panel interview with the media on Thursday, Aquino disclosed he had received a letter from the Hong Kong Special Administrative Region (SAR) which he found insulting.

However, he said he chose not to answer it and just let the tensions subside.

“Minabuti po natin na kapag may gustong umaway sa atin wag na muna nating awayin kaysa palakihin ang hidwaan,” he explained.

“Yung sulat na opisyal na galing sa gubyerno ng Hong Kong na sa ating tingin ay nakaka-insulto, ay hindi na rin po nating ni-respond. Idinaan na lang po natin sa kanilang People's Republic of China's government na iparating na hindi ho yata tama itong sulat na ipinadala o hindi natin nagustuhan natin yung tono,” he said.

Although the letter, which was addressed to him, was not strongly worded, Aquino said that “we were being told, in very minute detail, of what we were supposed to do”.

He, however, refused to disclose the signatory in the letter so as not to further aggravate the issue.

“Kung pwede, wag ko na lang hong palakihin yung insidente dahil na-avoid na ho natin,” he said.

The president said the government is also considering to provide assistance to the families of the victims in the hostage-taking incident.

“Sa pagre-repair po nito, may mga gusto tayong tulong doon sa mga napinsala nitong insidenteng ito. Naghihintay lang po tayo ng tamang timing para gawin po iyan,” he said.

He said he would rather call it as an "assistance" instead of "damages," which may be construed as an admission on the part of the government that it was at fault.

Aquino also reacted to criticisms published by a Chinese newspaper that stated the Philippines is the most chaotic country.

“Yung tayo po most chaotic, emotional outburst ho iyan. Sa mga karatig na bansa na lang po natin, yung suicide bombers ay nagiging pangkaraniwang eksperiyensa sa kanila. Sa atin naman po ay hindi,” he said.

“Ilalabas natin ang lahat ng corrective actions na ginawa natin para mapaganda yung maganda na at maiwasto yung mga maling dinatnan na natin para mabalik ang kumpiyansa ng ibang bansa na dito po sa Pilipinas maayos ang magnegosyo, maayos dumalaw,” said Aquino.

Noynoy reacts to ‘miscommunication’

Meanwhile, Aquino earlier said that it would not be necessary to change the protocol after Hong Kong Chief Executive Donald Tsang failed to contact him during the hostage crisis.

“Hindi naman siguro pwede na sasagutin natin lahat ng tatawag na nagsasabing sila ay ganitong tao. Pero palagay ko po i-liken natin kung meron po tayong governors ng Pilipinas na biglang magde-demand na kausapin si President Obama o kaya si Hu Jintao, hindi naman din siguro papayagan ng either the US government or the Chinese government na ganun-ganun lang po ‘yun ‘no,” he said.

Aquino clarified that the normal process for any government official who would want to get in touch with the President is to coordinate with the foreign ministry and set the arrangement for the call.

It can be recalled that Tsang was unable to contact Aquino to convey his request to prioritize the safety of the hostages at the height of the crisis last August 23.

“Yung pagtawag po ni Chief Executive Donald Tsang ay hindi po expected at hindi ho sigurado yung aking aide kung legitimate call ito. Nanigurado lang po na idaan natin ito sa protocol para sigurado,” Aquino said.

“At marami na nga ho tayong hina-handle that day—isama na rin po na ‘yung aking aide ay first time lang niya sigurong nasama sa crisis—baka dapat ang
kakulangan doon ay pinaalam sa DFA [Department of Foreign Affairs] kung ano nga ang nangyari dito sa supposed call na ‘to,” he said.

Aquino, however, said that during the crisis, the Chinese Embassy’s number 2 man was already with officials of the Philippine government. He explained that the Chinese Ambassador was on home leave at that time.

“Kung may obligasyon po tayong dapat kausapin natural po yung gubyerno nila at mula noong umpisa, kasama na po yung number 2 ng Chinese embassy,” he said.

He added, “So he was the highest ranking official and that is the normal protocol: that we deal with the embassy when it concerns their nationals”.

The president also maintained that they immediately made efforts to contact Tsang the following day.

“The next day. Don’t forget that I finished interviewing Magtibay [Chief Superintendent Rodolfo Magtibay] Santiago [Leocadio Santiago], everybody else close to midnight kasi tinapos na nga muna di ba? Kailangan bang msagot muna ‘yung tanong ko o aasikasuhin ‘yung mga nasugatan? Tanong ko muna bago ‘yung security ng mga hostage na na-rescue na nga? Marami hong dapat gawin bago ko ho nalaman kung ano talaga ang nag-transpire doon bago ko masabi sa taong bayan,” explained Aquino.