ML20247Q622

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Forwards Results of Review of Proposed Export of Components to Philippines
ML20247Q622
Person / Time
Issue date: 09/27/1979
From: Russell W
Office of Nuclear Reactor Regulation
To: Peterson M
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
Shared Package
ML20247Q547 List:
References
FOIA-89-99 TAC-52648, NUDOCS 8904070172
Download: ML20247Q622 (17)
v • d • e


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.- 1 MEMORANDUM FOR: Marvin R. Peterson i

Export / Import and International Safeguards, IP j FROM: William T. Russell, Acting Chief l Technical Support Branch, NRR t

SUBJECT:

NRR REVIEW 0F PROPOSED EXPORT OF COMPONENTS TO THE PHILIPPINES A '.E (XCOM-0013) l In response to your neco of August 31 (Peterson to Crutchfield) NRR has re-viewed the components proposed by Westinghouse for export to the Philippines.

In detennining whether each component is " specially designed or prepared fj for use in a nuclear reactor", we considered both the 10 CFR Part 110 and the llU. Tri.;j
r List definition of a "auclear reactor". The results of r*'? our review are included in the attached table.

If you require further clarification in this regard, contact Peter F. Riehm, d

(X28037).

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s.  ; .

Original sfened by

{. William T. Russell, Acting Chief

1 Technical Support Branch, NRR l

Attachment:

As Stated 4

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EXEMPT FROM NRC LICEh51NG COMPONENT AUTHORITY REASON Pressurizer Relief Tank Yes Not part of " nuclear reactor" by either 10 CFR 110 or IAEA.

Waste Gas Decay Tanks Yes Not part of " nuclear reactor" by M .h: 1C CF~ '? :- 10.

2 SIS Accumulators Yes Not part of " nuclear reactor" by either 10 reR 110 or IAEA.

(NOTE: It is our understanding that the IP has historically considered components like SIS Accumulators as non-exempt. However, NRR has no basis for reaching a "non-exempt" conclusion based on either 10 CFR 110 orIAEAdefinitions.)

Recycle /Weste Evaporator Yes Not part of " nuclear reactor" by Reagent Tanks either 10 CFR 110 or I AEA.

Filters No These filters 1) process primary coolant or 2) are part of the CVCS*.

f ositive Displacement Pump No This pump car affect the primary coolant or reactor by pumping borated water into the primary system or by using primary coolant in the seal water system.

Recycle Hold-Up Tank Vent Yes Not part of " nuclear reactor" by Ejector either 10 CFR 110 or IAEA.

Catalytic Hydrogen Recombiner Yes Not part of " nuclear reactor" by either 10 CFR 110 or IAEA.

Neutron Detector Positioning Yes Not part of " nuclear reactor" by Device either 10 CFR 110 or IAEA.

Valves No losufficient information is supplied to determine exactly which valves are in-volved. However, infornial discussions with Ed Staffel of Westinghouse in-dicate that these are NSS valves scattered throughout the f acility. Insofar as these valves may be used to control primary :

coolant, in either the primary system or the CVCS*, these valves are not exempt.

  • The CVCS removes primary coolant water from the primary system and processes it, potentially for return to primary system. As such the CVCS is included in the IAEA definition of a " nuclear reactor."

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Philipp'nes  ;

United States Department of State September 1983 Bureau ofPublic Affairs I

Administrative subdivisions: 18 regions, s;up Q % PROFILE 73 provinces,60 chartered cities.

447 - h /hilippiee Su p,,py ,

Central goversument budget (1982): $7.2 bulion.

Noun: Filipino (s). Adjective: Philippine. Defense (1983): 2.1% of estunated 1983

)

c u,,4] Population (1982 est.) 61.6 million. Annual CNP.

Flag: Two horizontal bands-the top

  1. "'A growth rate (1982): 2.4%. Ethnic groups:

PNturetsts

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.. blue, the bottom red-joined at the staff side I thin , Malay, Chinese. Religions: Catholic 83%,

with a white triangle. Centered on the Sn Protestant 9%. Muslim 5%. other 3%.

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Languagee: Pilipino (based on Tagalog), na. tnangle is a yellow, eight. rayed sun. In each corner of the triangle is a yellow star.

tional language: English, language of govern.

snum ..

  • ment and instruction in higher education.

mu ,

Education: Years compulsory-6. Auend.

,J~~ J. g ence-above 95% in elementary grades; 57%

Economy

% y GNP (1982): $39.2 billion. Annual growth q,r.I

' i ' 'lg.S n .a- . in secondary grades. Literacy-about 88%.

4* ' *t OA O Health:1Vant modality rate (1932)- rate: 10.4% (nommal); 2.6% (real). Per capita 69/1,000. Life arpectancy (1931)-64 yrs. Income (1982): $772. Annual inDation rate:

Work force (17.8 million,1982 est.): 18.8 %, 1978 80; 12 %, 1981; 10 %, 1982.

Natural re.coree.: Timber, copper, OffIclal Name: Agriciatar,-47%. fa.,try ca com.

nickel, imn. cobalt, sacer, gold, petrolmun, m're'-20%. smices-13.5%. oom Republic of the Philippines ment-10%. Other-9.5%. Agriculture (26% of GDP): Sugar, coconut products, rice, corn, pineapples, and bananas.

Geography Industries (36% of GDP): Textiles, phar.

maceuticals, chemicals, wood products, food Area: 300,000 sq. km. (115,830 sq. mi.).

Cities: Capital-Manila (pop. 6 million in processing, electronics maanmbly, metropolitan area) remains the de facto Trade (1982); Erports. 86 billion. Eqfor capital, although Quezon City, locsted within markets US, Japan EC.1mporte-87.7 the metro Manila area, was designated the bulion. Major suppliers-US, Japan, EC.

I Exchange rate (August 1983): 11.01 capital by law in 1948. Other cities-Davao (600,000), Cebu (450,000). Terrain: 65% peso 8= US$1.

mountainous, with narrow custallowlands.

Climate: Tropical, astride typhoon belt. Membership in International Organizations

^

Government UN and its Wized ages, 'M%

World Bank Group (IERD, IFC, IDA), Inter.

Type: Republic. Independence: 1946. Con.

stitution: January 1973. Branches: Ex. national Monetary Fund (IMF), General l I

ecutive president. Legislative National Agreement on Tariffs and Trade (G ATT), and /

International Atomic Energy Agency (IAEA); j Assembly (Batasang Pambansa). j Judicial-Supreme Court. Association of Southeast Asian Nations Political parties: New Society Movement (ASEAN); Asian Development Bank (ADB); {

l INTELSAT. '

(KBL). United Nationalist Democratic Organization (UNIDO), other small parties.

Suffrage: Universal and compulsory.

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' PEOPLE academics, and government workers. long warm and humid climate, with only Spanish is spoken by few Filipinos, and slight variations in the average meaa The Philippine people are mostly of its use appears to be decreasing. temperature of 27'C (00*F). Rainfall is Malay stock, descended from the In- Despite this multiplicity of generally adequate but varies from place

/ languages, the Philippines has one of to place because of wind directions and x donesians and Malays who migrate ' a the islands long before the Ch#.a era. the highest literacy rates in the East the shielding effect of the mountains. On The most significant ethnic minor % Asian and Pacific area-about 88% of Luzon, rainfall ranges fram 89 to 549 group is the Chinese, whr have pi y! the population 10 years of age and centimeters (35-216 in.) per year; the an important role in commerce since the above. average at Manila is 208 centimeters (82 ninth century, when they first came to The Philippine educational system in.). The wet season in the Mani.la area, the islands to trade. As a result of inter, comprises about 39,000 public schools, caused by the southwest monsoon, lasts marriage, many Filipinos have some with an enrollment of more than 10.7 from June to November.

Chinese ancestry. Americans and million, and about 3,000 private schools The Philippines lies astride the Spaniards constitute the next largest with more than 1 million students. typhoon belt. About 15 cyclonic storms alien minorities in the country. About 13% of the national budget is affect the Philippines yearly with at The Philippine overall population allocated to education. Elementary least heavy rainfall, and 5-6 may strike density is about 164 per square school enrollment is almost universal, with destructive winds and torrential kilometer (433/sq. mi.), but it is greater with the exception of some tribal rains. Active volcanoes exist, and the in central Luzon. Manua, the capital and groups. Enrollment in schools of higher islands are subject to destructive earth-largest city, has a metropolitan popula- education is about 1.1 miUion, and the quakes.

tion of about 6 mulion. Philippines ranks high in the world in The annual populaticn growth rate, the number of college graduates.

about 3% in the 1960s, fell by the end of HISTORY the 1970s to about 2.4%. Recognizing the economic implications of the high GEOGRAPHY The history of the Philippines may be population growth rate, in 1970 Presi- broken down into four distinct phases:

dent Marcos announced an official policy The Philippine Archipelago extends the pre Spanish period, the Spanish of famuy planning. A population com. about 1,770 kilometers (1,100 mi.) north period (1521-1898), the American period mission coordinates these efforts. In the to south along the southeastern rim of (1898-1946), and the years since in-1980s, the nation will need to create Asia, forming a land chain between the dependence (1946-pre: at).

700,000 jobs each year. Pacific Ocean on the east and the South About 90% of the people are Chris. China Sea on the west. It is separated . .

from Taiwan on the rarth and Malaysia Pre-Spanish Period tian. Most ar e Hispanicized people who were converted to Christianity and were and Indonesia on the south by straits a The first people on the Philippines, the Westernized to varying degrees during few kilometers wide and from Vietnam Negritos, are believed to have come

(' nearly 400 years of Spanish and and China on the west by the 30,000 years ago from Borneo and American rule. The major non- 966. kilometer (600 mi.) breadth of the Sumatra across then-existing land Hispanicized groups include the Muslim South China Sea. bridges. Subsequently, people of Malay population, concentrated in the Sulu The archipelago consists of some stock came from the south in successive Archipelago and western Mindanao, and 7,100 islands and islets. Only 154 of waves, the earliest by land bridges and the mountain groups of northern Luzon. these islands have areas exceeding 14 later by boats caUed barungays. The Small, primitive forest tribes live in the square kilometers (5 sq. mi.). Eleven of Malays settled in scattered communities, them compose about 95% of the total also called barangays, which were ruled remoter areas of Mindanao.

About 87 native languages and land area and population. Luzon, the by chieftains known as datus. Chinese dialects are spoken. all belonging to the largest island, is about the size of Ken- merchants and traders arrived and set-Malayo-Polynesian linguistic famuy. Of tucky; Mindanao, the second largest, is tied in the ninth century A.D. In the these, eight are the first languages of about the size of Indiana Between these 14th century, Arabs arrived, introducing more than 85% of the population. The two major islands lies the regional Islam in the south and extending some grouping of smaller islands called the influence even into Luzon. The Malays, three principal indigenous languages are Cebuano, spoken in the Visayas; Visayas. The irregular coastlines, however, remained the dominant group Tagalog, in the area around Manila; and marked by bays, straits, and inland seas, until the Spanish arrived in the 16th Ilocano, in northern Luzon. Pilipino, stretch for more than 16,000 kilometers century.

English, and Spanish are the official (10,000 mi.)-twice as long as the languages. Since 1939, in an effort to ceastline of the conterminous United gP""g,3 p.' d develop national unity, the government States. Manila is lccated on Luzon.

has promoted the use of the national The larger islands are mountainous, Ferd nand Magellan claimed the Philip-language, Pilipino, which is based on and uplands make up 65% of the total pines for Spain in 1521, and for the next Tagalog. Pilipino is taught in all schools land area. Most have narrow coastal 377 years the islands were under and is gaining increasing acceptance, lowlands. but extensive lowland areas Spanish rule. This period was the era of particularly as a second language. exist on Luzon, Mindanao, Negros, and conversion to the Roman Catholic English, the most important non- Panay. The central plain on Luzon. the Church, and a Spanish colonial social native language, is used as a second most important agricultural area in the system was developed with a strong cen-language by almost half of the popula- country, is about 160 kilometers (100 tralized government and considerable tion. including nearly all professionals, mi.) long and 64 kilometers (40 mi.) clerical influence.

wide.

The archipelago lies within the

( tropics. The lowland areas have a year.

3

]

(

l dependence Day was changed from Travel Notes July 4 to June 12, commemorating the  !

date mdependence from Spain was l Climate and clothing The climate is usually trip flights are possible to some places. declared by Gen. Aguinaldo in 1898. I bot and humii. Cotton and other lightweight Shipping lines connect many coastal clothing is worn all year. cities. Passenger accommodations vary in

  1. "I

Postindependence Period )

Transportation: Taxis can be hailed from the  !

street or called by telephone; fares are Communications: Local telephone service is The efforts of the early years of in-reasonable. Bus service is neither safe nor available but not always reliable. Long. dependence were spent m rebuildm comfortable. There are no regular loading or distance service to the US is excellent. country's economy, with the United unloading points. Jeepneys, vehicles built on Manila is 13 time zones ahead of eastern States playing a major role in the pep frames, carry 6-11 persons and are standard time. i reconstruction. Complicating the preferable to buses. However, the Philippine Health: For most illnesses and medical prob. recovery efforts was the threat posed by B,ureau of Travel and Tounst, Industry pro, vides air-conditioned bus service regularly lems, facilities in the Manila area are more the communist dominated Huk rebellion between Manila and Baguio. Trains are not than adequate. The Manila water supply is in the years 1945-53. Under the leader-generally safe for drinking. Untreated or un. ship of President Ramon Magsaysay A obil'e travel is restricted by the boihd water should not be drunk outside the city. Superficial skm mfections are common (1953-57), this rebellion was suppressed, ,

limited number of roads and the relative lack and communism no longer constituted of accommodations. In some provincial areas, in the tropics; even the smallest wound an overt threat to the government, travel is not recommended because of civil should be disinfected and covered with a dressing.

The succeeding administrations of unrest.

Presidents Carlos P. Garcia (1957-61),

The national airline makes scheduled Touring-.-Tourist sights are highly diverse, Diosdado Macapagal (1961-65), and flights to cities and important towns throughout the Philippines. and 1-day round- with many opportunities for weekend and day Ferdinand E. Marcos (196bpresent) trips. Hunting and fishing are popular. have, in the context of increasing na-tionalism, sought to expand Philippine ties with its Asian neighbors, implement domestic reform programs, and develop and diversify the economy.

The FDipinos were restive under the legislature was established and was Spanish, and this long period was. largely in Philippine control after the marked by uprisings. The most impor. passage of the Jones Act in 1916. A civD tant of these began in 1896 under the GOVERNMENT service was formed and was gradually leadership of Emilio Aguinaldo, but it taken over by the Filipinos, who were in A new constitution, to replace that of was put down by Spanish authorities in effective control by the end of World 1897.

1935, was completed by a constitutional War 1. The Catholic Church was disestablished, ar.d a considerable convention in November 1972 and was proclaimed in effect in January 1973.

A"iC"" Period am unt church land was purchased President Marcos governed from 1973 to and redistributed, In 1898, following destruction of the mid 1981 under its transitory provisions.

In 1935, under the terms of the Those provisions, amended in 1976, Spanish fleet in Manila Bay by Admiral Tydings McDuffie Act, the PhDippines called for the incumbent president to ex-Dewey during the Spanish American became a self governing commonwealth. ercise full executive authority pending War, the United States occupied the Manuel Quezon was elected president of the convening of a National Assembly Philippines. Spain ceded the islands to the new government, which was de- (Batasang Pembensa) at the president's the United States under the terms of the signed to prepare the country for m- direction. Martiallaw, declared in Treaty of Paris (1898), which ended the dependence after a 10 year transition September 1972 as a temporary war. period. World War II intervened, measure to restore order, was formsily A war of insurrection against the however, and in May 1942 Corregidor, ended on January 17,1981.

United States, led by revolutionary the last American stronghold, fell. U.S- The 1973 constitution provided for a President Emilio Aguinaldo, broke out forces in the Philippines surrendered to parliamentary system, initially with ex-in 1899. The hostilities are referred to the Japanese, who occupied the islands tensive powers vested in a prime by many Filipinos as the Philippine- untD 1945. minister. Major amendments adepted in American war (1899-1902). The United As a result of the Japanese occupa- 1981 revised the system to make the States put down the insurrection, and in tion, the guerrilla warfare that followed, Y 1901 Aguinaldo was captured and swore and the battles leading to liberation, the president head of government, The president appoints the prime minister, allegiance to the United States, country suffered great damage and a who supervises the ministries and I U.S. administration of the Philip- complete organizational breakdown. day to-day parliamentary business. The !

pines was declared from the first to be Despite the shaken state of the country, president, who formulates nationc!

temporary and had as its goal the the United States and the Philippines policy and enjoys broad authority, may 2 development of institutions that would decided to move forward with plans for be elected to an unlimited nurnber of permit and encourage the eventual independence. On July 4,1946, the 6-year terms. The first election under establishment of a free and democratic Philippine Islands became the independ- the 1981 amendments was held on government. Therefore, U.S. officials ent Republic of the Philippines, in ac- June 16,1981, and was won by the concentrated on the creation of such cordance with the terms of the Tydings- incumbent, President Marcos.

practical supports of democratic govern- McDuffie Act. In 1962, the official In-The president appoins the cabinet ment as public education and a sound and may dismiss its memtsers and may legal system. Philippine participation in initiate most legislation through the legislative processes was introduced ear- prime minister and control appropria-ly in the American administration. The tions. As commander in-chief, the presi- ,

1 4

- _ 3

i dent may call out the armed forces, sus- Principal Government Officials law in 1972 to " counter an insurree-nd habeas corpus, Lnd declare martial tionary force, popularly known as the i

- Fer and E.

(w. The president is responsible for the e, , p New People's Army." During the 8 years f fride , , e, of martial law that followed, he m-Minister of Foreign Affairs-Carlos P.

( appointment armed forces, ambassadors, of general andofficers judger, of the troduced an era called the "New Society" and may also enter into treaties, con- and a New Society Movement, the l tract for domertic and foreign loans, and Amb sador to the United States- Kilusang Bagong Lipunan. The New Benjamin T. Romualdez l veto specific items of appropnations or Society improved law and order and m, - I Permanent Representative to the United troduced reforms, governing largely by tariff bills, if the Batasang Pambansa i votes "no confidence" in the prime Nations-Luis Moreno Salcedo decree and popular referenda while l minister, the president may nominate The Philippines maintains an em- restricting civil liberties. The govern- l another, dissolve the Batasang, and, bassy in the United States at 1617 ment began a process of political nor-under certain conditions, call new Massachusetts Avenue NW., Washing- malization in 1978. Elections were held elections. ton, D.C. 20036 (tel. 202-483-1414). that year for an interim National 1 As a result of the 1981 constitutional Consulates general are at New York, Assembly, in 1980 for local officials, and l amendments, the unicameral Balasang Chicago, New Orleans, Seattle, San in 1981 for president. The New Society will be made up of members elected Francisco, Los Angeles, Houston, Movement won these elections with from the geographic regions of the Honolulu, and Agana (Guam). 80%-90% of the vote, and President Philippines for 6-year terms as well as Marcos was reelected to a 6-year term.

C by cabinet members and members of President Marcos lifted martial law l

social sectors-youth, for example-of POLITICAL CONDITIONS in January 1981, and some restrictions Philippine society. The 1981 amend- on civil liberties were eased. However, ments set the date for Batasang elec- From independence to 1972, the Philip. broad presidential powers remained in tions as the second Monday in May pines practiced relatively traditional con- effect, and the Presidential Commitment 1984, giving the interim Batasang stitutional democracy. President Order was established, allowing the Pambansa, elected in April 1978, the Ferdinand E. Marcos, elected in 1965 government in effect to retain its wide same 6-year term as the prospective and reelected in 1969, declared martial regular Batasang. Of its 190 members, 165 were elected from 13 regional divi-sions nationwide. The balance includes the prime minister, some appointed members of the cabinet (others were Further Information elected), and sectoral representatives of rovided as a enera! indica. Marcos, Ferdinand E. The Democratie

( youth, Thelabor, and agriculture.

1981 amendments provide that, These titles are ' published on t$is country.Revolution in tAe Phuippines. New York:

tion of material in the event of the death or incapacity of The Department of State does not endorse Prentice Hall International,1974.

the president; the country is to be unofficial publications. Meyer, Milton W. A Diplomatic History of governed by an executive committee (Ae PAUippine Republic. Honolulu:

d Uninnh of Hawan Pnsa, M pending the election of a new president. A"g,,'h e'r 2 fA ity: litical h l.New The executive committee is chosen by Sha e A and Economic Development in the Philip-the president and includes the prime pines. Santa Monica: Rand,1970. Suinberg, David J. Th PAUippiws. a minister. There are,no specific qualifica- Canoy, Reuben R. The Counterfeit Ret lolu- Singular and Plumi Place. Boulder:

tions for membership. New elections tion-Martial Law in the Philippines. Westview Press 1932 must be held after 45-60 days unless a Manila: Philippine Editions Publishing, Stanley, Peter W. i Nation in tAe Making:

regular election is already scheduled 1980. The Phaippines and ik United States, Carlson, Sevine and Robert A. Kilmarx, eds. 1899-1921. Cambridge: Harvard Universi.

withfn 18 months.

U.S.. Philippines Economte Relations. ty Press,1974.

The 1973 constitution also provides for an expanded Supreme Court, com. Washington, D.C.: Georgetown Taylor, George E. The Philippines and the Um{erjs.

f United States: Problems ofPartnership.

posed of a chief justice t.nd 14 associate $$,",**'9g Strategic am! Intema s justices. The justices are appointed by Engel, Frances. Pearls and Coconuts. Manila, g, ,"Frederieb. a . E. Spencer.

the president to hold office, given good 1980- Th PAUippiwIsw %rk A Physical, behavior, until the age of 70. Th,e Golay, Frank H., ed. The Philippines: cultural, and Regional Geography.

Supreme Court exercises admimstrat,ve. i Problems and Prospects. New York: Asia Berkeby: University of California Press, supervision over the lower courts, the Society,1971. 1967*

judges of which are also appointed by - ed. The United States and IAe

-, Phuippines. Englewood Cliffs, NJ.: Available from the Supen,ntendent of the president. .. .. Prentice. Hall,1966. Documenta, U.S. Government Printing Of-Lower order admimstrative subdivi- fice, Washington, D.C. 20402:

, Lande Carl H. Leaders. Factions and stor.s include provincer, chartered cities, Parties: The Str4cture of Philippine American University. Area Handbookfor Polities. New Haven: Yale University the Philippines.1976.

and municipalities,s.

cial governors, vice governors, provincia Elections of provin , l Press,1965. U.S. Department of State. Phuippines Post boards, mayors, deputy mayors, and Manglapus, Raul. Phuippines: The Suenced Report. January 1981.

councilors were held on January 30, Democracy. Maryknoll, N.Y.: Orbis 1980, the first such elections since Books,1976. ,

November 197L Those elected in 1980 For information on economic trends, commercial development, production, trade regulations, are to hold office for 6 years, whereas and tariff rates, contact the International Trade Adminstration, U.S. Department of Com-merce, Washington, D.C. 20230 or any Commerce Department district office.

such officials had previously been elected for 4 years.

5

l l .

' 1960s, under the stimulus of expan-I arrest and detention powers. This order tempting to modernize fishing opera-was abolished in August 1983 but was sionary monetary and fiscal policies, the tions and to establish adequate storage, replaced with the Preventative Detention real GNP growth rate picked up again processing, and marketing facilities.

Action, which contained similar provi- and, despite extensive fluctuations in f sions. After the lifting of martial law, some years, reached 10% in 1973.

Mining

(;

controls on the press were further re- The economy has performed below laxed; in December 1982, however, the expectations in recent years, however. The Philippines has extensive proven chief opposition newspaper was closed. The GNP growth rate in 1982 was 2.6%, and potential reserves of metallic and Criticism of the government continued well below the 3.8% recorded in 1981 nonmetallic minerals. Chromite, nickel, to be published in the media, although in and less than half the country's average and copper deposits are among the a more subdued tone than before the op- annual growth rate of 5.8% during the largest in the world. Other important position newspaper arrests. 1970s. The major factor was the minerals include iron, silver, manganese, The traditional political parties, the weakened demand for primary products. coal, gypsum, sulfur, mercury, and gold.

Liberals and the Nacionalistas, had been Increases in the price of imported oil, on Among nonmetallic minerals, clay, largely inactive during the martial law which the Philippines depends, also limestone, dolomite, feldspar, marble, period and under the domination of the slowed economic activity. Particularly silica, and phosphate are prevalent.

government's New Society Movement. troublesome were the poor perform- Although the country is rich in mineral Opposition parties have become more ac- ances of several sectors that had been resources, only a small area has been tive in recent years and have contested in recent elections. The United Na-viewed as the brightest prospects, such as the garment industry, manufactured surveyed adequately and exploited.

Minerals constitute about 18% of ex-(

tionalist Democratic Organization wood products, and handicrafts. With ports. Copper accounted for more than (UNIDO) brought together several op- the upturn in the world economy, 70% of mining production and nearly position groups in a boycott of the 1981 however, prospects for traditional com- 50% of mineral exports in 1980. Most elections. modity exports have become more Philippine gold production is a byproduct In addition to more moderate, promising. of copper mining. As with other primary legitimate opposition, the, government and raw material exports, copper prices has been opposed by two insurgencies, are volatue.

Agriculture whose roots predated martial law, and by some urban terrorism. The largest in- Agriculture and forestry are the largest Industry surgency has been that led by the Moro and most important sectors of the National Liberation Front (MNLF), but Philippine economy. Arable farmlands Industrial production has expanded and in recent years unrest has subsided con- comprise an estimated 11.4 million hec- diversified steadUy since World War II.

siderably. A longstanding cultural- tares, about 38% of the total. Growth has been uneven but has ae.

religious dispute, the insurgency reflects an effort by some Filipino Muslims to achieve autonomy for the Muslim areas of the country. Government economic Philippine farming produces food crops for domestic consumption and cash crops for export. Value added from the agricultural sector expanded by celerated in recent years. Production is still centered on processing and assembly operations involving food, beverages, tobacco, and rubber prod-(

and political programs have responded about 5% per year from 1972 to 1981. ucts; textues, clothing, and footwear; to some Muslim needs and have reduced The Philippines is self sufficient in rice pharmaceuticals; paints; plywood and support for the insurgency. and began exporting a small rice surplus veneer; paper and paper products; small The other insurgent group is the in 1977. However, market prices for ma- appliances; and automob0es. Among Maoist communist New People's Army jor crops such as sugar and coconuts fell heavier industries is production of ce-(NPA). The NPA is smaller than the steeply in the early 1980s. International ment, glass, industrial chemicals, fer-Muslim group was at its peak, but it has sugar prices declined by 67% from 1980 tilizer, iron and steel, and refined maintained a slow, steady growth in the to 1982, and a severe drought beginning petroleum products. The manufacturing 1980s. The NPA is found mainly in rural in late 1982 depressed agricultural out- sector accounted for 25% of the gross areas, and some NPA presence is in put in 198 -83. The upturn in the world domestic product in 1981, reflecting a almost all provinces of the Phuippines, economy should have a favorable impact steady increase in relative and absolute Fighting between the NPA and Philip- on most prices for basic agricultural value since 1969. This trend is expected pine Government troops continues in commodities, to continue, in accordance with the some parts'of the country, particularly Sales of forest products also fell Philippine Government's development f in Mindanao. both in volume and value, but at a less plans. (

Urban terrorists, who first appeared dramatic rate. Decades of uncontrolled A considerable regment of Philippine in 1979, have been suppressed. They ap- logging and slash.and-burn agriculture industry suffers from a weak capital parently had some support in the middle in marginal upland areas have denuded base, shortage of credit and foreign ex-classes and comprised dJferent factions much of the land, with critical implica- change, and inadequate power and seeking radical but essentially noncom. tions for the ecological balance. The transportation facihties. Current govern-munist change. government has instituted conservation ment programs to strengthen industrial prog-ams, but timber will probably be in development include investment and ex.

short supply for the next 5-10 yests. port legislation, under which tax and ECONOMY Although the Philippines lies in a credit incentives are granted to selected fertile fishing belt, the fishing industry industries and firms, and removal of The Philippine economy grew rapidly is underdeveloped and cannot meet protective import duties and taxes. In daring the period of rehabuitation and domestic needs. Obsolescent methods, addition, the government has played a expansion after World War II. The pace inadequate refrigeration and marketing major role in expanding telecommunica- f slackened considerably in the 1950s and facuities, and lack of capital are major tions, roads, and electrie power and has (

early 1960s, with real gross national problems. In an effort to curtail imports contributed to private industrial growth product (GNP) rising only about 5.3% of canned fish, the government is at. through such long. term financing institu-annually from 1955 to 1965. In the late tions as the Development Bank of the [

Philippines.

6

1 tion in a structural adjustment loan pro- also extended to other Third World na-Energy tions and to most commumst govern-gram to encourage labor mtensive, i The Ph...mppmes registered sign.ficanti export-oriented industry. ments.

f successes m the implementation of its The United States traditionally has The Philippines has a mutual s energy program m 1982. The country's  :>een the Philippines' leading trade part- defense treaty (1951), a muitary bases ,

dependence,on imported oil was re- ner, although recent trade with Japan agreement (1947), and a military l duced, contmuing the trend of the last 8 occasionally has exceeded U.S. trade. In assistance agreement with the United I years, imported oil made up 68% of 1982, Philippine imports were valued at States. These documents are the founda- i pnmary energy co,nsumption m 1982, as nearly $7.7 billion, of which 22.2% came tion of the bilateral mutual security rela-compared to 72% m 1981 and more than from the United States. In recent years, tionship. In addition. the Philippines was 9,0% m 1974. The percentage should con- the United States has taken about 30% a signatory-with the United States and tmue to dechne as geothermal and of Philippine exports. The balance of six other nations-of the 1954 Southeast hydroelectncal generatmg umts come on trade favored the United States in Asia Collective Defense Treaty, some. J line and replace fuel oil and diesel . fuel1980-82. times called the Manila pact. The Philip- I generation. Significant reductions m pines is a charter member of the United l od use are expected to result when the Nations and is active in most of its i cement plants convert from fuel oil t DEFENSE specialized agencies. The Philippines coal. The Ministry of Energy estimates became a full member of the General

( that imported ou consumption will fall t less than 40% of total pnmary energy consumption by 1986.

The armed forces of the Philippines have Agreement on Tariffs and Trade (GATT) grown substantially in recent years, in late 1979, after several years in provi-from about 60,000 troops in 1972 to sional status.

Domestic ou production increased 146,000 in 1983. Much of the increase In recent years, the Philippines has from 1.4 million barrels m 1981 to 3.3 has been brought about by the need to sought vigorously to broaden its par-million barrels m 1982. The increase was control the Muslim insurgency in the ticipation and leadership in Southeast due to new production from the Matinloc southern Philippines, where most of the Asian regional affairs. It was a leader in field northwest of Palawan. Production government's ground forces are de- the formation of the Asian Development m 1983 should show an additional m- ployed, as well as the NPA insurgency. Bank (ADB), which opened its head-crease to about 5 million barrels. The Phuippine Army numbers about quarters at Manila in 1966, and of the However, despite new exploration incen- 60,000 in active duty and 90,000 in Association of Southeast Asian Nations tives granted by the,go,vernment, ex reserves; the constabulary, including (ASEAN), established in 1967. ASEAN, ploration m the Phihppmes is dechnmg combat infantry battalions and law- which also includes Indonesia, Malaysia, and little drillmg ts expected to take enforcement personnel, more than Singapore, and Thailand, is devoted place m 19 slowdown ,83. Thehas m exploration major factor mcoast been the the guard units, about 28,000; and the primarDy 42,000; the navy, including marine and to economic, social, and cultural goals, but in the late 1970s it

( lack of success m locatmg large od-bearing structures.

air force,16,000, in addition, there are some 46,000 police under constabulary command (the chief of the constabulary also became a vehicle for the coordina-tion of the five nations' foreign policies.

Under the ASEAN practice of assigning Foreign Trade is also directar general of the Integrated to individual member nations the National Police) and the partially armed primary responsibility for the orgamza.

Foreign trade .ts of great importance t Civilian Home Defense Force of about tion's relations with outside powers, the the Phihppme economy. In the late 75,000. Philippines is ASEAN's " interlocutor" 1960s, trade was unbalanced, causmg Muitary spending grew rapidly in with the United States.

deficits of $300 milh,on m 1968 and $276 the mid 1970s but began to decline in In the 1970s, the Philippines milhon ,m 1969. These difficulties led in relative and real terms at the end of the established diplomatic relations with 1970 to the negotiation of an Interna- decade because of budgetary stringency Romania, Yugoslavia, Bufgaria, tional Monetary Fund (I!dF) standby and double digit inflation. Spending for Czechoslovakia, the German Democratic agreement for the Philippines, which has defense and for public order and smri- Republic, Hungary, Poland, and continued to the present. The govern- ty in 1982 was projected at $937.2 Mongolia. Relations were established ment also asked the World Bank t million, representing about 13% of the with China in 1974, with Cuba in 1975, sponsor formation of a consultative government budget or 2.1% of estimated and with the U.S.S.R. and Vietnam in

( group of interested nations and interna-tional agencies to coordinate external assistance for Philippine economic.

1983 GNP at current prices. 1976. In 1979 the Philippines was granted observer status in the Non-aligned Movement.

development. The group first met m FOREIGN RELATIONS 1971, and foreign assistance programs-Philippine foreign policy, at one time , U.S. FHILIPPINE RELATIONS lly t ough t Since 9 0, th a ce of trade has fluctuated, with a substan. ed e on a s h v i U.S. policy promotes a continued close tial surplus m 1973 and deficits there- over the past decade. Although the association in many areas accompanied after. Costs of petroleum and of m- Philippine Government still gives priori. by a growing sense of equality and dustrial products neede or economic mutual recognition of each nation's in-ty to its relations with the United development are likely t cause con- States, it also emphasizes widening and dependent interests. Emphasizing the tmued deficits. strengthening ties with other nations. continuity of the relationship, the United In the past, government policy con- This effort has focused on neighboring States has supported economic countries in Southeast Asia, but it has ass nee p ms in th Philippines

( su s t on in tne he f began to shift in 1970 with the passage of the  ;,y,g3_,fthough U.S. bilateral Export Incentives Act and was rem- assistance is less than 10% of what the l forced in 1980 by World Bank participa- Philippines receives from all multilateral

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