BusinessMirror October 24, 2015

In its most recent research note, HSBC economist James Pomeroy said the lender brushed aside con-cerns centering on the ill effects of particular global developments.

The Philippines is one of the few emerging-market countries relatively unexposed to a slowdown in Chinese growth and lower com-modity prices. Trade in goods [and especially commodities] plays a small part in exports and so the

same risks to growth do not exist, Pomeroy said. This, he said, has been reflected in the performance of the local cur-rency the peso, as the Philippines has avoided much of the turmoil in financial markets. The run-ups in asset prices that we had seen have cooled, and so our concerns have abated. HSBC has lumped the Philippines alongside Japan

B M G P R A

THE volume of crops damaged by Typhoon Lando (interna-tional code name Koppu) has reached 510,438 metric tons (MT), valued at P8.62 billion as of October 23, according to the latest report from the Department of Agricul-ture (DA).

Based on the DAs damage report on Lando, a total of 356,598 hect-ares of farmlands in Regions 1, 2, 3,

4A and the Cordillera Administra-tive Region (CAR) were affected by the typhoon, with 93.48 percent, or 333,357 hectares, having a chance of recovery.

The rice sector suffered the most damage, registering a to-tal production loss of 463,692 MT pegged at P7.09 billion. Rice farms in Region 3 were severely devastated, losing 393,440 MT of crops valued at almost P6 billion in terms of production loss.

S PHL, A

S L, A

S PCCI, A

PESO EXCHANGE RATES n US 46.5280 n JAPAN 0.3855 n UK 71.6392 n HK 6.0036 n CHINA 7.3187 n SINGAPORE 33.3821 n AUSTRALIA 33.5555 n EU 51.7066 n SAUDI ARABIA 12.4111 Source: BSP (23 October 2015)

www.businessmirror.com.ph n Saturday 18, 2014 Vol. 10 No. 40 P. | | 7 DAYS A WEEKn Saturday, October 24, 2015 Vol. 11 No. 16

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INSIDE

TAMARAWS EYE FINAL 4SEAT AGAINST WARRIORS

ATENEO TANKERS AHEAD

SportsSportsSportsBusinessMirror A8 | SATURDAY, OCTOBER 24, [email protected]@businessmirror.com.phEditor: Jun LomibaoFAR Eastern University (FEU) tries to formalize its entry into the Final Four round as it faces University of the East (UE) in the main game of the Season 78 University Athletic Association of the Philippines (UAAP) mens basketball tournament on Saturday at the Smart Araneta Coliseum. The Tamaraws, alone at the top with an 8-1 win-loss record following the loss of University of Santo Tomas to Ateneo de Manila on Wednesday, battle the Red Warriors at 4 p.m., with UE trying to stay alive in the race for a spot in the next round. De La Salle (5-4) battles Adamson University (1-9) with the Green Archers hoping to tie the Blue Eagles (6-4) at third spot. FEU could take a one game lead over the Growling Tigers if they beat the Red Warriors and cement their spot in the Final Four. But they will be facing a dangerous UE side which is in a must-win situation to stay in the Final Four race. The Tamaraws are coming off a 68-57 triumph over season host University of the Philippines for their seventh straight win, and Head Coach Nash Racela said he has been impressed with how they played in the last three gamesparticularly on

defense and his second unit. Racela knows they are now closer to their target, but wants his players to focus on the task at hand and keep on improving. We are not thinking about it, Racela said of their current streak as they move closer for a Final Four slot and a twice-to-beat advantage in the next round. We are still looking for improvements in our game. What we talk about is how we can improve day to day. UE can still snatch a Final Four berth, but at 3-6, they could not afford to lose on Saturday. The Green Archers, on the other hand, eye a crucial win to keep them in pace with Ateneo, but they will be playing a team that is already out of contention for a spot in the next round, and is expected to play loose with nothing more to gain in their succeeding games except for pride. De La Salle was supposed to meet FEU on Sunday but games were called off due to Typhoon Lando, giving the Taft-based team more time to prepare against the Tamaraws. Standings: FEU 8-1, UST 8-2, Ateneo 6-4, La Salle 5-4, NU 4-6, UE 3-6, UP 3-6, Adamson 1-9.

Joel Orellana

TAMARAWS EYE FINAL 4SEAT AGAINST WARRIORS

ATENEO pulled away in the mens and womens divisions after Day One of the University Athletic Association of the Philippines Season 78 swimming championships at the Rizal Memorial Swimming Pool on Thursday. With reigning Most Valuable Player Jessie Khing Lacuna leading the charge, the defending champion Blue Eagles tallied 122 points, 55 ahead of De La Salle (67). Lacuna won the gold medal in the 100-meter freestyle in record fashion. The London Olympian shattered University of the Philippines (UP) standout Ken Uys 2008 record of of 52.3 seconds with 51.66 seconds, beating his teammate Axel Ngui, who finished with 52.14 seconds for the silver medal. In the 200-meter individual medley, Lacuna won in 2:06.50 for his second gold, defeating

fellow Atenean Aldo Batungbacal (2:09.47) in the process. TheBlue Eagles also swept the relay events, topping the 4x200-meter medley (1:49.66) and 4x800-meter freestyle (8:14.58). The Fighting Maroons ran third with 40 points, while debuting National University had 25 points in fourth spot. Powered by last seasons MVP Hannah Dato, Ateneo is also lording it over in the womens division with 121 points, with UP in far second with 66 points. A three-time Asean University Games gold medalist, Dato reset the three-year-old 200-meter freestyle record by former Lady Eagle Jasmine Ong (59.12) by recording 58.48 seconds to outlast Lady Maroon Winona Tee Ten, who settled for silver with 1:01.66.

SEESAW CONTEST

KNIGHTS IN GAME 1

Lady Maroons vs Lady Sailors in V-League

Valdez, Reyes, Bancheroendorse White Lighting

The league, presented by PLDT Home Ultera, holds another weekend volley festival where matches are shown live on GMA News TV Channel 11 beginning at 12:45 p.m. Air Force, meanwhile, tries to make it three in row as it clashes with Navy in a duel of unbeaten teams as action in the Spikers Turf Season 1 Reinforced Conference also resumes on Saturday at The Arena in San Juan City. Game time is 3 p.m. with the Airmen seeking at least a playoff for the last semifinal berth in the season-ending tournament of the countrys premier mens volley league backed by Mikasa. PLDT Home Ultera, on the other hand, sets out to check an early skid as it tangles with Instituto Estetico Manilaat 5 p.m., hoping to get back into the groove after back-to-back setbacks to Cignal and Sta. Elena. Another loss would send them to the brink in the single round eliminations among six teams.

IN celebration of its 50thyear anniversary, Gatorade launched its latest White Lighting flavor with its newest line-up of brand ambassadors on Thursday at the Gatorade Hoops Center on Shaw Boulevard in Pasig City. Buoyed by its golden anniversary, Gatorade flaunted its winning tradition by propelling hardworking athletes with its latest addition of energy drink. Honestly, the only thing that I really can say in Gatorades 50 years is were just getting started,Pepsico Philippines Marketing Manager for Hydration Tony Atayde said. Weve been fueling athletes all over the world for the past 50 years, and well continue to fuel them

for the next 50 years. Were proud of what we have achieved being the No. 1 sports drink in the world, and were going to continue not to just fuel athletes all over the world but also here in the Philippines, Atayde added. The countrys finest volleyball players Alyssa Valdez of Ateneo and Mika Reyes of De La Salle, along with theAlaska Aces guard Chris Banchero were introduced as brand ambassadors. Jeron Teng is also part of the powerhouse ambassadors but did not attend the event. What weve seen in the 50 years of campaign is the historic moments. The Be Like Mike campaign at the start of the year that was about

the greatest basketball who has ever lived. But now, transitioning to the White Lightning, we picked this four ambassadors as they represent the future of Philippines sports, Atayde said. The light orange-grapefruit flavored drink is composed of non-carbonated water and 6-percent carbohydrates which promotes absorption and provides energy to working muscles. It also has electrolytes for rapid rehydration and minerals to prevent cramps. Its a little bit lighter and a lot more refreshing, and Gatorade will always be the number one sports drink in the world and it will continue rehydrating the athletes all over the world, Atayde added. Lance Agcaoili

PEPSICO Philippines Marketing Manager for Hydration Tony Atayde (third from left) with brand ambassadors (from left) Mika Reyes of De La Salle, Chris Banchero of Alaska and Alyssa Valdez of Ateneo.

LANCE AGCAOILI

SEESAW CONTEST

KNIGHTS IN GAME 1

DANICA BOLOS and Jennifer Cayetano of Team Victor-Pcome/Philippine Air Force in action against Meralco on Friday. NONIE REYES

JOINT third-ranked Peter Magnaye and Jessie Francisco fought back strong from an opening setback, and turned back Joper Escueta and Indonesian Keshya Hanadia, 13-21, 21-19, 21-18, to barge into the semifinal round of the Open mixed doubles of the Bingo Bonanza National Open Badminton Tournament at Glorietta 5 Atrium in Makati City on Friday. Magnaye and Francisco proved steadier in a seesaw second set duel then weathered Escueta and Hanadias rally in the decider with clutch smashes and drop shots to pound out the 45-minute victory for a Final Four clash with No. 2 and fellow Philippine Badminton Association (PBA)-Smash Pilipinas bets Alvin Morada and Alyssa Leonardo. Morada and Leonardo combined well from start to finish, and dominated Carlos Cayanan and Alyssa Geverjuan to complete a 21-12, 21-14 victory in just 25 minutes in the event, sponsored by Bingo Bonanza and backed by official equipment Victor PCOME and official sports drink Gatorade.

Ronel Estanislao and

Indonesian partner Marissa Vita posted the events biggest reversal late Thursday when they stunned top seed Paul Pantig and Thea Pomar, 21-12, 21-14, to clinch the first semifinal berth. The Estanislao-Vita pair, however, will face defending champion Paul Vivas and Eleanor Inlayo for a crack at the championship. Vivas and Inlayo primed up for their defense of the crown by subduing the other third-seeded pair of Christian Bernardo and Joella de Vera, 21-11, 21-11. The Estanislao-Vita pair and Vivas-Inlayo tandem dispute the first finals berth on Saturday starting at 11 a.m., also at Glorietta, while the Magnaye-Francisco team slugs it out with Morada and Leonardo for the other championship slot. Victor-Pcomes Danica Bolos and Jennifer Cayetano of Air Force also pulled off a 12-21, 21-16, 21-18 reversal over No. 4 Descka Calimlim and Fatima Cruz of Meralco to book the first semis berth in the Open womens doubles. Meanwhile, second seed Mark Alcala of

Allied-NVBA trounced Alvin Morada, 21-12, 21-11, also late Thursday to set up a semis duel with No. 4 R-Jay Ormilla, who bundled out fifth seed Jason Obaob, 21-14, 21-19, in the Open mens singles of the event, organized by EventKing Corp. and sanctioned by the PBA, headed by Vice President Jejomar C. Binay and Secretary-General Rep. Albee Benitez of Negros Occidental. Also on tap are the Open womens singles semis pitting the surging Mariya Sevilla against No. 4 Airah Albo and defending champion Gelita Castilo battling it out with second seed Sarah Barredo. Alcala, on the other hand, tries to reassert his mastery over Ormilla, whom he beat to cop the crown last year, in their 1:20 p.m. showdown while top seed Kevin Cudiamat and No. 8 Frell Gabuela dispute the other finals berth in the Open mens singles. All finals matches in the event are backed by Glorietta, Smash Pilipinas and the Philippine Olympic Committee on Sunday.

T OPNOTCH action resumes on Saturday as University of the Philippines (UP) takes a rare crack at the solo lead against Philippine Coast Guard in the Shakeys V-League Season 12-Reinforced Conference at The Arena in San Juan City. The Lady Maroons drew strength and inspiration from the comebacking Katherine Bersola as they turned back the Navy Lady Sailors, 19-25, 25-23, 25-23, 25-23, in the opener of the season-ending conference of

the league where it started. Bersola came back strong from an anterior cruciate ligament injury lastUniversity Athletic Association of the Philippinesseason, accounting for four of UPs 13 blocks and finishing with eight hits to power the Diliman-based squad past Navy on October 10. Shes one of the pillars of this team and we will need her for this team to succeed, UP Coach Jerry Yee said of his prized ward.

SAN BEDAS Ola Adeogun and Letrans Kevin Racal battle

for the rebound during GameOne of the finals on Friday.

KEVIN DE LA CRUZ

LETRAN showed grit under pressure to snatch Game One,

94-90, of the championship

series that turned out as a classic showdown

between two fabled schools in Season 91 National Collegiate Athletic Association

Season 91 seniors basketball tournament on

Friday at the Mall of Asia Arena. Neither team refused to budge in the first three quarters, but the floodgates opened early in the fourth quarter when the Knights put up a quick five-point burst to take a 66-62 lead in the first minute. Both teams combined for 23 three-pointers, but none bigger than the five made by the Knights in the final frame that gave them enough cushion to overcome the five-time defending champions. Pro-bound forward Kevin Racal scored a personal playoffs-best 28 points built around five three-pointers with five rebounds and five assists to lead Letran. Junior guard Rey Nambatac added 18 points with four steals, while Mark Cruz finished with 17.

We know that it will be a dogfight. We just had to be tough and we had to grab this opportunity because not all players and coaches are given this kind of opportunity, said Aldin Ayo, the former Knight on his rookie season as the teams head coach.

Ola Adeogun surged with his best game of the

tournament for

the Red Lions, finishing with 23 points and 16 rebounds, while guards Ryusei Koga and Roldan Sara tallied 10 apiece. Graduating seniors Baser Amer and Arthur de la Cruz racked up sub-par totals of eight and seven points, respectively, which contributed much to San Bedas scoring woes in the crucial moments of Game One.

It was the first time in four Finals meetings that the Knights took

Game Onetheir 2007 and 2013 meetings ended in a sweep by the

Red Lions, while Letran took Game Two of their 2012 matchup.

The Knights try to wrap up their first title in a decade in Game Two at 4 p.m. on Tuesday at the Mall of Asia Arena.

Six-time defending champion San Beda-Taytay, meanwhile, beat

Arellano University, 76-68, to move within a game of completing a season

sweep en route to the juniors crown for the second time in their record-

setting run. Diego de la Paz

The WorldBusinessMirror [email protected], October 24, 2015B2-4

BAGHDAD e Islamic State (IS) rakes in up to $50 mil-lion a month from selling crude from oilfi elds under its con-trol in Iraq and Syria, part of a well-run industry that US diplomacy and air strikes have so far failed to shut down, according to Iraqi intel-ligence and US offi cials.

Oil salesthe extremists largest single source of continual incomeare a key reason they have been able to maintain their rule over their self-declared caliphate stretching across large parts of Syria and Iraq. With the funds to rebuild infra-structure and provide the largesse that shore up its ghters loyalty, it has been able to withstand ground ghting against its opponents and more than a year of bombardment in the US-led air campaign.

e group has even been able to bring in equipment and technical experts from abroad to keep the industry running, and the US has recently stepped up e orts to close o this support.

Washington has been talking to regional governments, including Turkey, about its concerns over the importing of energy infrastructure into IS-run territory in Syria, in-cluding equipment for extraction, re nement, transport and energy production, according to a senior US o cial with rsthand knowledge of the IS oil sector.

Speaking to the Associated Press (AP) in Washington, he said international actors in the region

were intentionally or unintention-ally aiding this e ort and called ISs management of its oil elds increasingly sophisticated, some-thing that has helped the group slow down the degradation of its infra-structure from US bombing raids. He spoke on condition of anonym-ity because he was not authorized to talk to the media.

IS sells the crude to smugglers for discounted prices, sometimes $35 per barrel but as low as $10 a barrel in some cases, compared to just under $50 a barrel on inter-national markets, four Iraqi intelli-gence o cials told the AP in sepa-rate interviews.

e smugglers, in turn, sell to middlemen in Turkey, they said. e oil used to be smuggled in eets of giant tankers but, fearing air strikes by the US-led coalition, smaller tankers are being used now. e Iraqi o cials spoke on condition of anonymity because they were not authorized to brief the media.

e IS group is believed to be ex-tracting about 30,000 barrels per day from Syria, smuggled to middle-men in neighboring Turkey.

In Iraq, they produce around

10,000 to 20,000 barrels per day, mostly from two oil elds outside Mosul, Ibrahim Bahr al-Oloum, a member of Iraqs parliamentary energy committee and a former oil minister, told the AP. But he said much of the Iraqi production is not sold and, instead sent to Syria to makeshift re neries the group has set up to produce fuel products.

In total, the group is believed to make $40 million to $50 million a month from sales, the Iraqi o cials said. A report by the ISs Diwan al-Rakaaezits version of a Finance Ministryseen by the AP in Bagh-dad shows that revenues from oil sales from Syria alone in April to-taled $46.7 million.

e IS nance ministry report put at 253 the number of oil wells under IS control in Syria, saying 161 of them were operational. Running the wells were 275 engineers and 1,107 workers, it said.

Turkeys prime ministers o ce said in a statement to the AP that it has taken steps to tighten border se-curity and has e ectively stopped oil smuggling across the border.

It said that as of the end of Sep-tember it had prevented 3,319 acts of smuggling from Syria and that since 2011 it seized more than 5.5 million liters of oil in antismuggling operations. It did not comment on US e orts to stop oil equipment and experts from entering Syria from Turkey.

Daniel Glaser, a US Treasury of- cial, estimated IS oil revenues at around $500 million a year, based on evidence they made around $40 million in one month in early 2015. e group is also believed to rake in hundreds of millions of dollars a year from taxes on commercial activities in the areas it rules, said Glaser, who is assistant Treasury sec-retary for Terrorist Financing in the O ce of Terrorism and Financial

Intelligence. at income is on top of the mon-

ey that the militants rst looted from the Iraqi central bank branch in the city of Mosul when they seized it in the summer of 2014 and other bank branches, which at the time was thought to be anywhere between $500 million dollars to up to $1 billion, Glaser told the AP.

e Iraqi o cials said some oil was also smuggled into Iraqs self-ruled Kurdish region. But Ali Hama Salih, a member of the Iraqi Kurdish parliament who follows trade out of IS-run areas, denied the group was smuggling oil into Iraqi Kurdish areas, saying there are no documents to prove Daesh is selling oil through here, using an Arabic acronym for the group. It is easier, he said, for IS to move the smaller amounts it produces in Iraq into Syria.

Still, there is other trade into Kurdish regions. Salih said authori-ties in the regional government in Iraqi Kurdistan have recently arrest-ed 15 people, including military o -cials and businessmen, on suspicion of doing business with IS.

So far, the campaign of Russian air strikes in Syria that began last month has not hit IS oil infrastruc-ture. In Iraq, air strikes and ground o ensives have had a greater e ect in grinding down the oil industry.

In March the militants were driv-en out of a major oil eld outside the northern Iraqi city of Kirkuk. Fear of air strikes is preventing IS admin-istrators from exploiting another large oil eld near Sinjar in northern Iraq, though, production teams are sent there occasionally to quickly pump out oil and leave, the Iraqi in-telligence o cials said.

Still, little has hurt the sophisti-cated industry that the IS group has built up around oil production. AP

Despite US-led campaign, IS rakes in oil earningsDespite US-led campaign, IS rakes in oil earningsDespite US-led campaign,

NEW YORKA former president of the United Nations General As-sembly, another diplomat and a Chinese billionaire were among ve defen-dants who pleaded not guilty on Thurs-day in a bribery case that has invited scru-tiny of the world bodys operations.

The pleas in Manhattan federal court came as each defendant stood in a jury box, their hands handcu ed in front of them. Afterward, a judge refused the governments attempt to revoke $50-mil-lion bail for Ng Lap Seng, the wealthy man whose money is at the center of the bribery scandal.

Prosecutors say Ng funneled over $1 million in bribes to John Ashe, 61, a for-mer UN ambassador from Antigua and Barbuda who served as president of the General Assembly for one year until a year ago. They say Ng was seeking to in- uence Ashe, who faces tax charges, to pressure other diplomats into support-ing a major UN conference center in Ma-cau, where Ng lives.

Bribery and money laundering charges have been lodged against Ng and Francis Lorenzo, a suspended am-bassador to the UN from the Domini-can Republic. Lawyers for the men have promised a vigorous defense.

After the pleas were entered on Thursday, US District Judge Vernon S. Broderick rejected Assistant US Attorney Daniel Richenthals request to revoke bail for Ng that had been set by a magistrate judge last week.

Broderick did, however, toughen conditions under which Ng can remain in a Manhattan apartment under guard. Hes limiting who Ng sees, how he com-municates by phone and computer and is requiring him to provide information to the US government about his eet of private aircraft.

Richenthal had argued that Ng has every reason to ee and the money and connections to do so, despite an arrange-ment that will keep two guards at his midtown Manhattan apartment around-the-clock.

The risk of ight is severe, the pros-ecutor said, calling Ng wildly wealthy.

Benjamin Brafman, Ngs attorney, countered that Richenthals arguments were o ensive and absurd.

Right now, all theyve got is hes rich and the rest is speculation, Brafman said.

The lawyer said his client was pre-pared to post $20 million in cash and a $4-million apartment to secure his bail. AP

5 NOT-GUILTY PLEAS, BAIL FOR BILLIONAIRE IN U.N. CASE

COPENHAGEN, Denmark e COPENHAGEN, Denmark e Cattacker who stabbed two peo-Cattacker who stabbed two peo-Cple to death at a school in Swe-Cple to death at a school in Swe-Cden before being shot and killed by the police had a racist motive, the police said on Friday.

e police labeled the stabbing in the industrial town of Trollhat-tan a so-called hate crime based on discoveries they made when searching the perpetrators home, the way he dressed, his behavior at the scene and the way he selected his victims.

All together, this gives a pic-ture that the perpetrator had a rac-ist motive when he committed the

crimes at Kronan school, the police said in a statement.

A 21-year-old masked man, who has not been identi ed by police, en-tered the school in southern Sweden on ursday and stabbed four people, two of whom died, before he was shot by police. He later died of his wounds.

According to Swedish media, the assailant posed for photos with stu-dents before beginning his deadly ram-page in the halls of the Kronan school in the town that has a large immi-grant community. A majority of the students at Kronan are foreign-born.

Many students thought the attacker was playing a Halloween

prank. News outlets posted a photo of a black-clad man they identi ed as the attacker wearing a military-style helmet and a black mask with a sword in his hand.

Panicked students ed the school, as police and ambulances rushed in. ey found a dead male teacher and three people seriously woundedtwo boys, aged 11 and 15, and another male teacher. One of the students later died of his wounds. None of the victims have been identi ed.

O cers red two shots, hitting the attacker with a bullet in the lower chest, and he later died at a hospital. AP

Racist motive behind Swedish school attackPEOPLE light candles and lay ower tributes outside the school on Thursday afternoon where a masked man stabbed four people on Thursday in Trollhattan, Sweden. A knife-wielding masked man stabbed four people on Thursday at a school in southern Sweden, killing one teacher and a student before being shot by police, authorities said. ADAM IHSE/TT VIA AP

TUCSON, ArizonaArizona tried to illegally import a lethal injection drug thats not approved in the US but never obtained it after federal agents stopped the shipment at the Phoenix air-port, according to documents obtained by the Associated Press (AP).

Arizona paid nearly $27,000 for sodium thiopental, an anesthetic that has been used to carry out executions but is no longer manufactured by Food and Drug Administration (FDA)-approved compa-nies, the documents said. When the drugs arrived via British Airways at the Phoenix International Airport, they were seized by federal o cials and have not been re-leased, according to the documents.

The department is contesting FDAs legal authority to continue to withhold the states execution chemicals, state Depart-ment of Corrections spokesman Andrew Wilder said on Thursday. The documents obtained by the AP were released as part of a lawsuit against the department over transparency in executions. The AP is a party in the lawsuit.

Arizona and other death-penalty states have been struggling to obtain legal ex-ecution drugs for several years after Euro-pean companies refused to sell the drugs, including sodium thiopental, that are needed to carry out executions.

States have had to change drug com-binations or, in some cases, put execu-tions on hold temporarily as they look for other options.

Arizona is not the only state that has tried to purchase drugs overseas. Earlier this year, Nebraska was told by the FDA that it could not legally import the drug it needed to carry out lethal injection after the governor said the state had obtained sodium thiopental from India.

Ohio, which has halted executions un-til at least 2017 because of a lack of drugs, sent a letter earlier this month to the FDA asserting that the state believes it can ob-tain a lethal-injection drug from overseas without violating any laws.

And Texas on Thursday said it had ob-tained a license from the US Drug Enforce-ment Administration to import sodium thiopental. AP

ARIZONA TRIED TO ILLEGALLY IMPORT EXECUTION DRUG

ISLAMIC State militants at a convoy in Tel Abyad, northeast Syria. ISLAMIC STATE WEB SITE VIA AP IRBIL, IraqActing on word of an im-minent mass execution by Islamic State (IS) militants, dozens of US special-operations troops and Iraqi forces raided a northern Iraqi compound on Thursday, freeing approximately 70 Iraqi prisoners in an operation that saw the rst American killed in combat in the country since the US campaign against IS began in 2014, o cials said.

The raiders killed and captured a num-ber of militants and recovered what the Pentagon called a trove of valuable intel-ligence about the terrorist organization.

The US service member who died was not publicly identi ed pending noti ca-tion of relatives.

Pentagon Press Secretary Peter Cook said the target of the raid was a prison near the town of Hawija and that the raid was undertaken at the request of the Kurdish Regional Government, the semi-autonomous body that governs the Kurdish region of northern Iraq. He said US special operations forces sup-ported what he called an Iraqi peshmerga rescue operation.

The peshmerga are the Kurdish regions organized militia. The US has worked closely with them in training and advising roles, but this was the rst known instance of US ground forces operating alongside Iraqi forces in combat since launching Operation Inherent Resolve last year.

This operation was deliberately planned and launched after receiving information that the hostages faced imminent mass execution, Cook said, adding later that it appeared the hostages faced death perhaps within hours and that freed hostages told authorities some had been killed at the prison recently, prior to the rescue.

Cook said Defense Secretary Ash Carter approved the US participation in the mission. Cook called it consistent with our counter-ISIL [Islamic State in Iraq and the Levant] e ort to train, advise and assist Iraqi forces.

US combat troops have rarely, if ever, participated directly in combat against IS ghters on the ground since the US mis-sion began in 2014. AP

American killed in raid to free Iraqis held by IS

VISITORS take their souvenir photo at the Gyeongbok Palace, one of South Koreas well-known landmarks, in Seoul, South Korea, on Friday. AP/LEE JIN-MAN

WorldBusinessMirror

The

B2-1 | Saturday, October 24, 2015 Editor: Lyn Resurreccion

SEOUL, South KoreaSouth Koreas economy expanded 2.6 percent in the July-to-Septem-ber quarter from a year earlier, the fastest annual clip in three quar-fastest annual clip in three quar-fastest annual clip in three quarters, the Bank of Korea (BOK) said on Friday, showing a recovery from the Middle East Respiratory Syn-drome (MERS) crisis that gripped the country in the summer.

e result was better than expect-ed. Asias fourth-largest economy took a hit after a deadly outbreak of MERS in the country, prompting tourists to cancel trips and keeping local residents away from shopping malls and concert halls.

Consumer spending and con-struction drove growth, the data showed, overcoming the negative

impact of a decline in exports, due partly to weaker demand from China.

Compared to the previous quar-ter, the economy gained 1.2 per-cent, the rst time in 18 months that growth exceeded 1 percent on a quarterly basis. It was also the fast-est quarter-to-quarter growth rate in ve years.

With consumption and exports slowing earlier this year, the cen-tral bank lowered its key policy rate to a record low of 1.5 percent. e government also introduced a tax cut and added an additional pub-lic holiday in hopes that would boost spending.

Consumer spending and the ser-vice sector that had contracted in the second quarter showed a recovery, said Jeon Seung-cheol, director gen-eral of the BOKs economic statistics department. Private consumption improved thanks to the govern-ments stimulus policies.

South Korean exporters, a key driver of growth, have been hurt by sluggish global demand, a slowing economic growth in China, as well as the weak Japanese currency that helped Japanese rivals.

Oil renery companies, which also account for a signicant portion in South Koreas exports, saw their bottom line eroded as the price of crude oil fell.

Earlier this month, BOK trimmed its forecast for South Koreas econo-my this year to 2.7 percent from 2.8 percent, citing a weaker global eco-nomic outlook. AP

S. Koreas econ grows fastest in 3 quarters S. Koreas econ grows fastest in 3 quarters S. Koreas econ grows PEARL HARBOR, Hawaiie US Navys top commander in the Pacic says its up to policy-

makers in Washington whether his sailors patrol within 12 nautical miles of newly constructed islands claimed by China in the South China Sea.

Pacic Fleet Comdr. Adm. Scott Swift spoke during an interview on ursday, amid tensions over Bei-jings territorial claims in the South China Sea and reports the US will sail near the disputed islands to challenge those claims.

Swift told the Associated Press his sailors have the capacity and capability to enter the waters, but he emphasized that the patrols would reinforce inter-national laws and wouldnt be directed at a specic country.

Were ready, Swift said at his Pearl Harbor oce. We have the resources to support whatever those policy deci-sions are and whatever policy-makers may ask us to do to demonstrate the US resolve with respect to the op-erations that we conduct in the South China Sea.

China and ve other governments, including the Philippines, lay claim to part or all of the South China Sea, a busy passageway for commercial and military vessels.

Washington has a policy of not

taking sides in the territorial disputes, but says its in its national interest to ensure freedom of navigation and overight and the peaceful resolution of the conicts.

Since 2013, China has accelerated the construction of new islands atop reefs and atolls in the South China Sea and is adding buildings and airstrips in apparent attempts to boost its sov-ereignty claims to the territory.

Swift said under international law, building on an island thats only ex-posed at low tide but not at higher tide doesnt bolster a territorial claim to the place.

He reiterated the US doesnt sup-port land reclamation eorts, regard-less of their scale.

Defense Secretary Ash Carter said during a news conference in Boston last week the US will y, sail and op-erate wherever international law per-mits, including in the South China Sea.

e US newspaper Navy Times re-ported earlier this month the Navy may soon receive approval for a mis-sion to sail close to a Chinese-built is-land in the Spratly Islands.

Swift said Chinas construction of the islands hasnt changed the way the Pacic Fleet operates in the area and wont change the way it does go-ing forward.

We continue to operate in that space, just as if they hadnt been built, he said.

e US last patrolled within 12 nautical miles of the disputed islands in 2012, according to testimony As-sistant Defense Secretary David Shear gave to the Senate Armed Services Committee last month.

Meanwhile, Vietnams defense minister says his country wants good and friendly relations with both the US and China, and will not favor one over the other. Vietnam is among the claimants to some islands in South China Sea.

e Friday edition of TuoI Trenewspaper quoted Gen. Phung Quang anh telling a group of lawmakers that Vietnam wants to have peace and stability so the country can develop.

anh also told the National Assem-bly members on ursday that Vietnam wants to resolve disputes in the South China Sea through peaceful means.

Relations between Vietnam and China plunged to their lowest point in years following the parking of a Chi-nese oil rig in disputed waters in the South China Sea last year.

e US has been deepening ties with Vietnam and others in a bid to counter Chinas growing inuence in the region. AP

U.S. POLICYMAKERS TO DECIDE ON SOUTH CHINA SEA

WASHINGTONThe United WASHINGTONThe United WStates wont consider North WStates wont consider North WKoreas call for a peace treaty WKoreas call for a peace treaty Wunless it abandons its pursuit of nuclear weapons and improves human rights, a senior US diplomat said on Thursday.

Sung Kim, US special representa-tive for North Korea policy, described Pyongyangs proposal for negotia-tions on a treaty as disingenuous.

The North reiterated that demand last week and warned it would oth-erwise strengthen its nuclear deter-rent. That was in response to President Barack Obama and South Korean Presi-dent Park Geun-hye saying they were open to talks on easing sanctions if the North would negotiate on ending its nuclear program.

Frankly Im skeptical about their call for a peace treaty because I think they understand that we have some fundamental requirements, Kim told a House foreign aairs panel.

They would need to denuclearize, they would need to abandon their pur-they would need to abandon their pur-they would need to abandon their pursuit of dangerous delivery means, mis-sile capabilities, and they would need to improve their human-rights situation. I

mean I cannot imagine any circumstanc-mean I cannot imagine any circumstanc-mean I cannot imagine any circumstances in which we would enter a peace treaty with a North Korea that continues to re-ject international obligations and com-mitments. They know that, he said.

The Korean Peninsula is still in a tech-nical state of war because the 1950-1953 Korean War ended with an armistice, not a peace treaty. The US retains 28,500 troops in South Korea.

Lawmakers at the hearing called for the North to be designated as a state sponsor of terrorism. The designation was lifted in 2008 during negotiations on its nuclear program that stalled soon after.

The [North Korean] government is doing everything it can to be a bad actor in the world, Republican Rep. Ted Poe said.

Among the allegations leveled by Poe was that North Korean-supplied rockets had been used by ghters of the mili-tant group Hamas against Israel, and that the North had provided material support to Hezbollah.

State Department ocials said a des-ignation requires a determination that a government repeatedly provided sup-port for acts of international terrorism, and it continues review available intelli-gence on North Korea. AP

US: No peace treaty with North Korea unless it abandons nukesUS: No peace treaty with North Korea unless it abandons nukesUS: No peace treaty with North

STATUES of Kim Il Sung and Kim Jong Il stand above soldiers during a military parade in Pyongyang, North Korea, on October 10. AP/WONG MAYE-MAYE-MA E

VIENNAUS Secretary of State John F. Kerry opened talks in Vienna on Friday with his Russian, Saudi and Turkish counterparts aimed at reviving a moribund eort to end Syrias civil war.

Kerry began a daylong series of meet-ings in the Austrian capital in consultations with Saudi Arabian Foreign Minister Adel al-Jubeir and Turkish Foreign Minister Fer-al-Jubeir and Turkish Foreign Minister Fer-al-Jubeir and Turkish Foreign Minister Feridun Sinirlioglu, both of whom share the US view that Syrian President al-Bashar Assad must go for the conict is to be re-solved. None of the three spoke to report-ers as they opened their discussions at a luxury hotel. They will be joined later by Russian Foreign Minister Sergey Lavrov, whose country is Assads prime backer.

On Thursday in Berlin, Kerry said one focus of the talks would be to consider a broader participation of very necessary countries, all of whom need to be at the table to discuss the way forward in Syria. Russia is keen to bring Assads other main supporter, Iran, into the talks, but Saudi Arabia is opposed to it.

Kerry said all the countries with an in-terest in Syria, including Iran and Russia,

agree on what the result should be: a unied, secular and pluralistic Syria gov-erned with the consent of its people. He said that Assads continued presence is the only thing preventing that goal from being realized.

One thing stands in the way of being able to rapidly move to implement that, and its a person called AssadBashar al-Assad, he said. So the issue is, can we get to a political process during which time the future devolution and allocation of power in Syria is properly allocated by the people of Syria? And thats what were working toward. So my hope is that these talks can begin a process that could open up a greater discussion.

Syria is now in its fth year of a civil war that has killed hundreds of thousands, con-tributed to a massive refugee crisis in Eu-rope and been complicated by the emer-rope and been complicated by the emer-rope and been complicated by the emergence of the Islamic State (IS) group and Russias direct military intervention.

Fridays meeting in Viennathe site of the worlds last major international dip-lomatic success, the Iran nuclear deal in Julyfollows a surprise visit by Assad on

Tuesday to Moscow where he and Russian President Vladimir Putin discussed Russias military operations in Syria that the US and others say are bolstering Assad and not tar-others say are bolstering Assad and not tar-others say are bolstering Assad and not targeting IS militants, as Russia claims.

Putin said on Thursday that Assad had told him that he is ready for a dialogue with his political foes. Putin also defended Rus-sias bombing campaign, which he said would set the stage for peace talks.

A military victory over the militants will not solve all problems, but it will cre-ate conditions for the main thing: a begin-ning of a political process to encompass all healthy, patriotic forces of the Syrian soci-ety, Putin said. His words echoed those of Syrian government ocials who have expressed readiness to negotiate with the patriotic oppositiona term generally used to describe unarmed, mostly Damas-cus-based government critics who are tol-erated by Assad.

The Kremlin said Putin also talked by phone with the leaders of Turkey, Saudi Arabia, Egypt and Jordan about Syria. Ker-Arabia, Egypt and Jordan about Syria. Ker-Arabia, Egypt and Jordan about Syria. Kerry plans to travel to Jordan late on Friday and then Saudi Arabia. AP

KERRY SEEKS DIPLOMATIC S DIPLOMATIC S SOLUTION TO SYRIAN WAR IN VIENNA

SOUTH KOREAS ECON GROWS FASTEST IN 3 QUARTERS

SEESAWCONTEST

DESPITE U.S.-LED CAMPAIGN, I.S. RAKES IN OIL EARNINGS

WORLD B21

SPORTS A8

WORLD B24

AQUINO ADMINISTRATION APPROVEDP903B WORTH OF PROJECTS SINCE 2010

Value of crops damaged by Lando now at 8.62B

BusinessMirrorMEDIA PARTNER

PCCI: We want trade facilitation, not pre-shipment inspection

COMMUTERS, who are unable to use the highway due to raging floodwaters, ride a boat to get to their destinations in La Paz, Tarlac, on October 20. Slow-moving Typhoon Lando blew ashore with fierce winds in the northeastern Philippines early Sunday, toppling trees and knocking out power lines and communications, and forcing the evacuation of thousands of villagers. AP/BULLIT MARQUEZ

IN this file photo, President Aquino views the Caticlan Airport scale model during the inauguration of the newly renovated airport in Malay, Aklan, on June 25, 2011. The Caticlan Airport Development Project is an example of a public-private partnership. The development is spearheaded by TransAire Development Holdings Corp., a subsidiary of San Miguel Corp. (SMC). In photo are SMC President Ramon Ang (third from left), Aklan Gov. Carlito Marquez (fifth from left) and Municipality of Malay Mayor John Yap. JAY MORALES / MALACAANG PHOTO BUREAU

HSBC SAYS PHL RELATIVELY UNEXPOSED TO SLOWDOWN IN CHINESE GROWTH, LOWER COMMODITY PRICES

B B C

WORRIES about the countrys ability to weather declines in commodities exports have diminished, in the wake of the adoption of more convincing structural reforms, according to the British-owned finan-cial services giant HSBC.

B C U. O

THE Aquino administration has approved a total of P903.32 billion worth of proj-ectsmost of them meant to upgrade the countrys infrastructurefrom June 2010 to September 21, 2015. These projects were approved by the inter-agency Investment Coordination Committee (ICC) and the National Economic and Develop-ment Authority (Neda). Approved public-private partnership (PPP) proj-ects were estimated at P788.41 billion. The remain-ing P114.91 billion are locally funded projects, or projects to be undertaken by various implementing agencies. The largest PPPs approved by the Aquino administration were the P170.7-billion North-South Railway Project-South Line and the P122.81-billion Laguna Lakeshore Expressway Dike Project. The majority of the PPP projects, worth P435.45 billion, were under the Department of Transporta-tion and Communications (DOTC). Another agency that accounted for a significant portion of the PPP projects approved under the cur-rent administration is the Department of Public Works and Highways (DPWH).

In terms of the locally funded projects, those un-der the DOTC accounted for P61.15 billion. The DPWH also accounted for a large part of the approved locally funded projects at P12.53 billion. Earlier, Neda Director General and Economic Planning Secretary Arsenio M. Balisacan said infrastructure projects, like those that will be implemented by the DOTC and the DPWH, will help address the long-term constraints of the Philippine economy. Balisacan said the government aims to increase public infrastructure spending to 5 percent of GDP by 2016, from 2 percent in 2012. As you can imagine, this is quite a challenging task, as it is equivalent to raising the value of in-frastructure spending more than three times over a span of five yearsfrom P216 billion in 2012 to P766.5 billion in 2016, Balisacan said. Balisacan added that PPP projects are also gaining traction. He said as of September 21, 2015, a total of 12 projects worth P285 billion (or around 2 percent of GDP) were already under implementation. He added that another 41 projects are in the pipeline, including 13 projects worth P514 billion (or around 4 percent of the GDP) that are already undergoing various stages of procurement.

FILIPINO businessmen want the government to concen-trate on trade-facilitation measures and ways to curb smug-gling, instead of reviving the pre-shipment inspection (PSI) scheme.

A proposal to legislate pre-ship-ment inspection inspection of im-ports by a third-party inspector prior to export to the Philippineswould be a step backward from strategic trade-facilitation measures under international trade protocols, said the Philippine Chamber of Com-merce and Industry (PCCI), citing the Revised Kyoto Convention, the

Asean Economic Community and the Philippines-US Trade Facilita-tion Protocol. This was relayed by the countrys business groupto the Senate through a letter sent to the Ways and Means Committee. The PCCI, thus, joined exporters and lawmakers in contesting the PSI scheme. The Philippine Exporters Confederation Inc. (Philexport) was the first to oppose the possible re-vival of the scheme, followed by the Makati Business Club and several lawmakers, including the chairmen of the House and the Senate Ways

and Means Committee. While we understand the intent and purpose of putting a PSI system in place, such should not run counter to the ultimate objective of facilitat-ing trade. Absent a fully modernized and clearly streamlined customs procedures, the PSI may just be an-other hurdle for the ease of doing business, said Peter V. Perfecto, MBC executive director. Rep. Romero S. Quimbo of the Second District of Marikina City and Sen. Juan Edgardo M. Angara, chair-men of the Ways and Means commit-tees of the House of Representatives

and the Senate, respectively, agreed that the scheme should be a mat-ter of choice. The Ways and Means committees of both chambers are in charge of moving the amendments to the Customs Modernization and Tariff Act (CMTA). The chamber of local businesses said the x-ray schemes should be kept, supported by specific measures like a risk-management system. The PCCI also wants an authorized economic-operator (AEO) system in place as part of efforts to modernize the customs administration. Some groups, according to the

Philexport, is attempting to insert the PSI scheme into the proposed CMTA. This is meant to align local policies with the countrys international trade-facilitation commitments. The PCCI said the risk-manage-ment system, for instance, would allow the Bureau of Customs to fast-track low-risk imports, including accredited companies imports.

Having an AEO system, on the other hand, would enable exporting and importing firms to be approved by Customs as compliant with the supply-chain security standards

BusinessMirror [email protected] Saturday, October 24, 2015 A2 News

Lando. . . Continued from A1Tech companies face rocky road on The way To making cars

Farmers of high-value crops lost 36,373 MT with a value of P1.35 billion due to the typhoon. This caused prices of vegetables in Metro Manila markets to spike up, according to the DAs daily price monitoring. About 10,374 MT of crops with a total value of P146.50 million were damaged in the corn sector, while the fisheries and livestock sector suffered P20.96 million and P8.74 million in revenue losses, respectively. Region 3 took the brunt of the damage, registering a total of P6.73 billion worth of crops lost. Agriculture Secretary Proceso J. Alcala said during a media briefing recently that the DA has allotted its quick-response fund for the management and recovery of the damage caused by Lando. He said 62,000 bags of certified seeds are being distributed to farm-ers with damaged crops, and an additional 30,000 bags of certified seeds are set to be procured by the DA. Farmers listed in the Philippine Statistics Authoritys Registry System on Basic Sectors in Agriculture will also be provided with crop insurance, he said. Meanwhile, the National Food Authority (NFA) said it has al-ready released 24,889 bags of rice to local government units and re-lief agencies as of October 19 for distribution to the families in the affected areas. The NFA has requested for supplemental budget so it can procure damaged palay crops from farmers. The Food and Agriculture Organization of the United Nations has also committed to assist the DA in its disaster-relief efforts, Alcala said. He added that the Philippines can also request additional rice stocks from the Asean Plus Three Emergency Rice Reserve if necessary. Counting the effects to infrastructure, the National Disaster Risk Reduction and Management Council (NDRRMC) said total damage would already exceed P9 billion. The NDRRMC expects the estimated value of damage will further increase once it completes its rapid assessment of areas hit by the typhoon in Regions 1, 2, 3, 4A and CAR. Among the public projects that were damaged were 751 schools. The NDRRMC said at least 26,124 houses were also destroyed. Lando affected a total of 295,835 families, or 1,407,805 individu-als, with 108,688 persons still housed in government-run shelters. Flooding was reported in 479 towns and municipalities in the provinces of Pangasinan, Ilocos Norte, Isabela, Nueva Ecija, Nueva Vizcaya, Tarlac, Pampanga, Bulacan, Zambales, Cagayan and Benguet. While power has been restored in most of the areas battered by the typhoon, at least five cities and 52 municipalities were still experiencing power outages. The NDRRMC said its death toll count has also increased to 46, while 82 persons were injured.

as economies that no longer raise concerns over developments in other countries. The HSBC economist also said the Philippines should not be vulnerable to heavy capital outflows like some of its neighbors are. According to the HSBC econo-mist, a weaker currency and the wid-ening spreads imply capital outflows and the potential for growth over the near horizon, especially for Bra-zil, Russia, Colombia and Malaysia. India and the Philippines, on the other hand, are in a much better shape, Pomeroy said. The economist also rated the Philippines as one of those with the most convincing structural re-forms aimed at resolving deficien-cies in the system. HSBC lumped the Philippines along with Mexico, South Africa and Romania for suc-cesses made in the name of fiscal and monetary-reform initiatives.

PHL. . . Continued from A1

PCCI. . . Continued from A1

and enjoy benefits such as simplified customs procedures and minimal customs intervention. The AEO concept is being increasingly adopted by various Cus-toms administration with the object of securing the supply chain with re-sultant benefits for the trading com-munity, the PCCI said. At a time when we are supposed to be stream-lining and reducing processes in line with our international trade commit- ments, we will only be adding more layers in the importation process with pre-shipment inspection.

NEW YORKSilicon Valley may think it can build a better car. But should it? As tech giants like Google and Apple look to automobiles as the next frontier for innovation, they face a looming real-ity: Cars are a lot harder to manufacture and sell than smartphones. Industry veterans and critics warn that the auto business is a different animal. Its fraught with massive costs to erect auto plants, complexities in de-veloping new sales and service systems, and daunting liabilities involved when human lives are at stake. Automakers recalled a record 64 mil-lion vehicles in 2014, shattering the old record of 30.8 million set in 2004. General Motors Co. (GM) has had to pay $5.3 billion to cover fines, victim compensation and the recall of millions of vehicles for faulty ignition switches. Toyota Motor Corp. paid a $1.2-billion fine for failing to report safety defects, and Volkswagen Group has set aside $7.3 billion for the potential costs of its emissions scandal. I think, like so many Silicon Val-ley techies, that they believe they are smarter than the worlds automobile business, and that they will do it bet-ter, said Bob Lutz, a retired GM vice chairman. No way. He added that tech companies would pay the same high prices for expensive components, such as elec-tric car batteries, likely pushing retail prices of their vehicles out of reach for the average driver.

It will be a huge money loser, Lutz predicted. To be sure, Google and Apple have plenty of cash to burn, with about $270 billion in the bank combined. But the challenges of the car industry may be steering them to find ways to revolutionize automotive technology without becoming actual automakers.

googleMOUN TA IN View, Ca l i for nia-based Alphabet, the new holding company for Google and its affiliated businesses, has spent six years work-ing on cars that can drive without hu-man assistance. But the company says it doesnt want the responsibility of building the robotic vehicles. Instead, it plans to make the self-driving system available to auto-makers that already have factories, dealerships and experience. We have enormous respect for the expertise of the automotive industry, and how big and complex a job it is to manufacture a vehicle, company spokesman Courtney Hohne said. Well partner with many different companies to bring this technology into the world safely. The strategy is consistent with how Google currently operates. It relies on other companies to produce the de-vices powered by its software. Most smartphones, for example, operate on its Android software. But the company

doesnt make any of the devices. If its self-driving system makes it to market, the company could license the software for a fee or, perhaps, making it free to use like Android. Thats because it makes most of its money from ads within their popular online services. If they no longer need to drive, people might spend time in their cars watching videos on Google-owned YouTube, or seeking informa-tion on Googles search engineboth of which show ads. But licensing their technology wont insulate it from safety issues. The company potentially could be held liable if one of its self-driving cars goes awry and injures or kills people in an accident.

appleAPPLE CEO Tim Cook told an audience this week that the automotive indus-try is ripe for massive change, with new software, electric motors and self-driving capability becoming much more important, in a huge way. But Cook avoided commenting on reports that Apple may be building its own car, according to a video recording of his remarks on Monday at a technol-ogy conference, sponsored by the Wall Street Journal. What we really want, hopefully in the short term, is wed like people as they enter their car to be able to have an iPhone experience in their car, he said. Apple has developed software for automakers, called CarPlay, which lets drivers use an iPhone and its voice-activated assistant Siri to operate some electronic controls and enter-tainment systems. AP

[email protected] Editor: Dionisio L. Pelayo Saturday, October 24, 2015 A3BusinessMirrorNews

Govt unprepared to handle disasterslegislator laments

By Marvyn N. Benaning Correspondent

PARTY-LIST Rep. Rodel Batocabe of Ako Bicol has described the Aquino administration as unprepared to handle disasters just as the lead agencies in combatting climate change are in disarray. Batocabe poured his heart out on Thursday when he met with protesting residents of Tacloban City and several areas in Eastern Samar battered by Typhoon Yolanda nearly two years ago.

They are only reacting, Bato-cabe told the protesters demand-ing that the Aquino administra-tion redeem its pledge to provide decent, sturdier dwellings for those victimized by Yolanda.

The protesting residents held a picket at the main office of the Department of the Interior and Local Government (DILG) in Que-

zon City and revealed the failure of the Aquino administration to provide them with dwellings.

T h e y u r g e d t h e n e w l y appointed Interior Secretary Mel Senen Sarmiento address their problems quickly.

Sa r m iento i s a n at ive of Eastern Visayas and a former Samar representative before

he was appointed to replace f o r m e r I nt e r io r S e c re t a r y Manuel Roxas II.

Later, the residents met with officials from the National Hous-ing Authority (NHA), Tacloban City and representatives of the Nongovernment Organizations for Fisheries Reform, Oxfam, Partnership of Philippine Sup-port Service Agencies, as well as the Dutch development alli-ance Icco, a 50-year-old inter-church alliance that works in 44 countries in a forum organized by the Philippine Legislators C o m m it t e e o n Po p u l at io n a nd De ve lopment ( PL C PD)

at a nearby restaurant. PLCPD Executive Director Ro-

meo C. Dongeto said that, while post-Yolanda reconstruction is a must, it must nevertheless be pursued with dispatch since the affected families have the right to adequate housing.

He added: Adequate housing is a basic human right, the gov-ernment should speed up the implement at ion of housing projects t hat meet human-rights standards before disaster strikes again.

Dongeto said only 28.3 per-cent of the P76.678 billion for the housing program has been released and they are rushing t he constr uct ion of 73,000 h o u s e s a s m o r e t y p h o o n s threaten the eastern seaboard, inc luding Bicol and Eastern Visayas.

The residents assailed the fact that, while the NHA and Vice President Jejomar C. Bi-nay had the mandate to build houses for the Yolanda victims, the task was later on transferred to Roxas, who also took over the overall task of rehabilitating and reconstructing Tacloban a nd ot he r a re a s f l at te ne d by Yolanda.

BatocaBe

EDUCATION Secretary Bro. Armin A. Luistro, FSC, on Thursday has directed all regional directors to allow evacuess to use school facilities as temporary shelters.

Initial data from the Department of Education from eight of the affect-ed regions show that 419 classrooms were severely damaged, while 445 sustained minor damage.

Luistro said that local school au-thorities are also preparing contingen-cy plans so that classes in those places can start to normalize the situation, address urgent problems and provide speedy solution as he also recommend-ed the holding of make-up classes to cope up for the lost school days.

Meawhile, the Philippine Red Cross (PRC) has distributed a total of P4 million worth of relief items, including sleeping kits (blankets, plastic mats and mosquito nets), hy-giene kits, tarpaulins and jerry cans in Aurora, Cagayan and Isabela, some of the provinces that were battered by Typhoon Lando.

During the typhoons wrath, PRC personnel and volunteers were able to rescue 728 people, mostly from flooded homes in Nueva Ecija, Pangasi-nan, Zambales and Bulacan. The PRC was also able to assist 255 people in Baguio City and Nueva Ecija, trans-ported three patients to hospitals, and gave first-aid treatment to two persons.

Our chapters in northern, central and parts of southern Luzon, as well as in Metro Manila are now operating and coordinating with the local gov-ernments to support operations on still ongoing rescue, first aid, welfare and provision of hot meals in areas that were severely affected by the typhoon,

PRC Chairman Richard Gordon said.As of October 22, a total of 3,742

food packs were distributed in Quirino and Tarlac and 4,419 breads were given to affected people in La Union, Pangasinan and Bulacan. Hot meals were given to a total of 8,871 people in evacuation centers in af-fected areas. The PRC also distributed 875 plastic mats, 474 blankets and 356 mosquito nets.

There were a total of 33 welfare desks that were established, which gave referral services to 10 people and provided psychosocial support to 3,905 individuals.

The PRC also provided hygiene pro-motion activities to 1,518 individuals, mostly in the evacuation centers, to help prevent the spread of diseases. Breast feeding education was also given to 68 mothers.

A total of 394 PRC personnel were mobilized during Lando operations: 42 staff, 273 volunteers and 79 water search and rescue teams from the na-tional headquarters, Cavite, Laguna, Subic, Olongapo, Rizal and Bulacan.

PRC operations teams are now working in Calumpit, Bulacan, where there is still flooding; in Concepcion and Camiling, Tarlac, for relief distri-bution; and in Pangasinan and Zam-bales for assessment, rescue and as-sistance to affected families.

Our work continues in Typhoon Lando-affected areas, as such we are calling for more volunteers to assist us in providing relief, as well as in our ongoing rescue operations. In disasters like this, we must all come together to help those who are most vulnerable to alleviate their suffering, Gordon said. Claudeth Mocon-Ciriaco

Luistro allows typhoon victims to use school facilities as temporary shelters

Infra, transport projects makePhilippines ripe for investment

By Recto L. Mercene

THE government is allocating increased resources to infrastructure improve- ment and expansion, opening up numerous opportunities for investment in the Philippines.

Opportunities for doing business in the transport and infrastructure sectors were one of the main topics during the second leg of thefourth Philippine Private Sector-led Investment Roadshow in Dallas, Texas, on October 21. There were at least 165 par-ticipants, including senior executives from American Airlines, Fluor Corp., Rio Grande Pacific Corp., Texas Instruments, World Af-fairs Council and heads of the Fort Worth Chamber of Commerce and Greater Dallas Asian American Chamber of Commerce. Members of the Manila business delega-tion agreed that the Philippines is serious in improving its infrastructure to meet demands of the countrys economy. This is reflected in the governments increased budget allocation for infrastructure projects in order to meet population and economic demands. Ronaldo Elepao, first vice president for international business development at DM Consunji Inc., the 2015 National

Government Budget sets aside P569.9 billion for strategic infrastructure projects. Infrastructure outlays for this year repre-sent 4 percent of the countrys GDP, a 28.95- percent increase in allocated budget from the previous year. Additionally, P287.8 billion is earmarked for transport infrastructure projects, includ-ing road, maritime, air and railway trans-port. Of this amount, 53.1 billion will go to agricultural infrastructure, which includes irrigation, farm-to-market roads and fish-ery infrastructure. The growing population is a major driving force in infrastructure expansion. Juan Olondriz Pea, president of Raji Inc., said population growth and the expansion of the metropolis demands that infrastructure development extend to places outside Metro Manila. The Philippines has a population of ap-proximately 100 million people, growing at an average rate of 1.8 percent to 2.3 percent

annually. The main population center is in the Metro Manila area and within the next six to eight years, Greater Manila will extend as far North as Angeles City in Pampanga, to Lucena City, Quezon province in the South, and to Batangas City in the West, with a ra-dius averaging 80 kilometers from the center of Manila, Pea said. He added, Looking at the potential growth of Greater Manila to include the outlaying provinces North, South and West of Greater Manila, the Philippine government needs to focus and fast-track the infrastructure proj-ects that will support the projected growth of both the population and its economy. Philippine Port Authority statistics show an overall increase in cargo throughput or theaverage quantity of cargo and passengers that can pass through Philippine ports. Pea said the increase in cargo throughput presents numerous private sector opportuni-ties for the expansion of port facilities and railroads, specifically projects at the Port of Batangas, Port of Abra de Ilog in Mindoro Occidental and Port of Calapan in Mindoro Oriental. Expansion of the three ports will benefit Metro Manila, Bulacan, Pampanga, Bataan, Zambales, Cavite, Laguna, Batangas, the Cagayan region, Southern Tagalog Islands, Quezon province and the Bicol provinces. The Philippine National Railways is also working on providing an improved, sustain-able railway system running from Manila to Legazpi City that will provide a rail service to carry cargo to and from Manila International

Container Terminal, North Harbor and Batan-gas. This will also open up even more invest-ment opportunities for the private sector. The mentioned multibillion-peso infra-structure and transport projects, along with an established Public-Private Partnership Program, make the Philippines ripe for invest-ment, he said. The conference in Dallas is the second leg in a three-city Private Sector-led Invest-ment Roadshow and was made possible with the cooperation of the Philippine Consulate General in Los Angeles and the Philippine-American Chamber of Commerce in Texas led by its executive director, Gus Mercado. The Manila delegation was well received by the audience from the Dallas Fort Worth Area. Break-out sessions during the conference were also well attended, leading to continued dialogue among participants and members of the Manila delegation. Other members of the Manila business delegation led by Bernardo Villegas, visiting professor at IESE Business School in Barcelona and professor at the University of Asia and the Pacific; includes Engelbert Camasura, partner at Ward Howell International Consulting Firm; and Jose Mari Mercado, president and CEO of the Information Technology and Business Process Association of the Philippines. The delegation was accompanied by Am-bassador Jose L. Cuisia Jr.; Consul General Leo Herrera-Lim; and Honorary Consul Ethel Mercado, outgoing president of the Philippine American Chamber of Commerce.

[email protected] Saturday, October 24, 2015A4 BusinessMirrorNews

THE Philippine Chamber of Commerce and Industry (PCCI), through its President Alfredo M. Yao and Director for Environ-ment Felipe L. Gozon, proposed to the Depart-ment of Environment and Natural Resources (DENR) means to address the problem of uncut trees causing the delay in the completion of the Marharlika Highway widening project of the De-partment of Public Works and Highways (DPWH) in Maharlika Highway. In its letter to Environment Secretary Ramon S. Paje, the PCCI suggested that the trees be earth-balled or transplanted to a protected area, if re-designing them to become island trees, such as in the case of the mahogany trees at the Epifanio de los Santos Avenue-Quezon Avenue road intersec-tion underpass complex, is not an option. In instances where cutting of trees is unavoid-able, the PCCI proposed that the project propo-nent be required to plant 100 seedlings, saplings or propagules for each tree cut in accordance with DENRs Joint Memorandum Circular 01, Series of 2014, or the Guidelines for the Implementa-tion of the DPWH-DENR-Department of Social Welfare and Development Partnership on the Tree Replacement Project. In addition, the PCCI also recommended that the trees to be planted should be native to the Philippines and that the proponent should take responsibility for the seedlings until they mature. We do understand the need to strike a bal-ance between economic development and pro-tecting our natural resources, the PCCI said. As such we support your policy requiring an in-depth review of the feasibility of the road-widening project, taking into consideration the possible options, including realignment and road improvement without compromising road safety and engineering. Jonathan L. Mayuga

Uncut trees delay Maharlika Highway widening project

[email protected] Saturday, October 24, 2015 A5BusinessMirrorNews

By Johnny C. NuezPhilippines News Agency

LEGAZPI CITYWorld-famous Mount Fuji in Yamanashi prefecture in Japan and Mayon Volcano in Albay will soon be kins. Both are active volcanoes and enticingly beautiful and attractive tourist attractions, even as they are similarly furious and destructive when they erupt. Officials of Yamanashi prefecture and Albay started discussions last week on a sisterhood agreement for their two top assets that will benefit their development programs, particularly tourism. Albay Gov. Joey S. Salceda said the planned sisterhood between two of the worlds most beautiful and stunning volcanoesMount Fuji and Mayon Vol-canois a major marketing coup for the Philippines and the Department of Tour-ism, and there is no doubt Albay and the whole Bicol region will gain a major boost from this tourism alliance. Aside from tourism, Salceda said, the sisterhood agreement also explores part-nership in disaster-risk reduction and cli-mate-change adaptation for which Albay has been a global model, as well as on edu-cation, agriculture, trade and investments. Four representatives from Yamanashis Fuefuki City, headed by Mayor Seiji Kur-ishima, met with Salceda and other Albay provincial officials on October 21 at the Dia-mond Hotel in Manila and started talks on areas of partnership that could link up their development programs. With Kureshima were Fuefuki City Secre-tary Makoto Hashimoto, Director for Inter-national Relations Koichi Kubota and Tour-ism Inbound Manager Majed Kmiyama. The group visited Albay province following the Diamond Hotel conference.

The partnership was initially proposed by Salceda earlier this year, in a letter to Gov. Shomei Yokouchi of Yamanashi prefecture, pointing out the noted resemblance of the two provinces, and the possibility of partnership and collaboration, pooling of resources and expertise. Our provinces have complementary mandates and common interest in the pursuit of our respective missions, and recognize the need to enhance collabora-tive undertaking of programs, projects and activities to foster and accelerate countryside development, Salceda said in his letter. He proposed a partnership in the fields of tourism, disaster risk re-duction and climate-change adaptation, education, agriculture, trade and invest-ments, and culture and the arts, but stressed tourism is bound to immediately benefit from it because of their parallel attractions, particularly between Mount Fuji and Mayon Volcano. Mount Fuji, Japans iconic snow-topped active volcano that is on Honshu Island, stands 12,380 feet, and is an international destination for tourism and mountain climbing, like Albays 8,000-foot-high Mayon Volcano, the Philippiness near-perfect cone volcano which is also a mag-net for tourists and mountaineers. Mount Fuji is a Unesco Heritage Site, while Mayon Volcano is still tentatively listed. Albay is likewise nominated for a Unesco Biosphere Area accreditation. Fuji-san straddles the boundaries of Yamanashi prefecture and another province. Mayon straddles eight towns and three cities of Albay. Albay is known for its traditional arts such as pottery, hand-made metalsmith, Manila hemp or abaca (Musa textilis) wo-ven cloth, and agricultural products like pili nuts (Canarium ovatum) and taro (Colocasia esculenta) leaves.

Albay, Yamanashi explore sisterhood agreement in tourism, DRR, CCA

THE Ombudsman has ordered the dismissal of 19 National Police officials for their involvement in the anomalous pro-curement of rubber boats worth P4.54 million in 2009.

Ombudsman dismisses 19 National Police officials in P4.54-M rubber-boat scam

The Ombudsman noted that the police coastal craft (PCC) were procured without public bidding and despite the glaring defects that were noted during delivery, the boats were still certified to have passed the acceptance criteria. Ordered dismissed from the service for grave misconduct were Senior Supts. Asher Dolina, Ferdi-nand Yuzon, Cornelio Salinas, Thom-as Abellar, Nepomuceno Magno Cor-pus Jr. and Rico Payonga; Chief Supts. Reynaldo Rafal and Rizaldo Tungala Jr.; Senior Supts. Alex Sarmiento and Aleto Jeremy Mirasol; Supt. Michael Amor Filart; Police Officer 3 Aven-suel Dy; Supts. Job Marasigan and

Leodegario Visaya; and Chief Insps. Juanito Estrebor and Renelfa Saculles. Supt. Henry Duque and National Police Accounting Division Chief Antonio Retrato were also dismissed for grave misconduct and gross neglect of duty, while Chief Supt. George Piano and Commission on Audit Auditor for the National Police Jaime Saares were dismissed for gross neglect of duty. The officials were also meted out perpetual dis-qualification from reemployment in the government service, forfeiture of retirement benefits and cancel-lation of civil-service eligibility. Ombudsman Conchita Carpio-Morales also ordered the filing of

charges for multiple violation of Sec-tion 3 of Republic Act 3019, or the Anti-Graft and Corrupt Practices Act, against Chief Supt. Villamor Buman-glag, along with Piano, Dolina, Yuzon, Salinas, Corpus Jr., Abellar, Payonga, Duque, Retrato, Marasigan, Visaya, Estrebor, Saculles, Dy, Rafal, Tung-ala Jr., Sarmiento, Mirasol, Saares, Filart, and Roselle Ferrer and Pacita Umali of Four Petals Trading (FPT), the supplier of the rubber boats. Additional charges for falsifica-tion of public documents were also ordered against Piano and Duque. In 2009 the National Police gen-eral headquarters issued a resolution for the procurement of watercraft, including 20 PCC, with a budget of P5 million. Bumanglag, as former director of the Maritime Group, re-quested for the increase in unit price from P250,000 to P312,000 result-ing in the reduction of the number of units to be procured to 16 PCC. At the time the rubber boats were delivered and inspected on March 22, 2010, several defects were un-covered, such as lack of water-tem-perature gauges, fuel gauges, engine

oil-pressure gauges and speedom-eters; engines were not operational; no rudderposts, one damaged outrig-ger; no ampere gauge; no canvass; no hole back portion for starboard side; no alternator; stacked-up transmis-sion; and no heater plug. Still, the PCC were accepted as conforming to end-users specifi-cation. Several procurement viola-tions were also established, such as undated and unnumbered pro-curement documents; supplier was not a technically, legally and finan-cially capable supplier, given that its address is in a residential area with no company web site; and FPT is not known in the coastal craft- building industry. In August 2010 the Natinal Police officials paid FPT a total of P4.54 million for the defective rubber boats. Morales said the significant events leading to the procurement of 16 PCC would not only reveal badges of irregularities but also of haste and preference to buy from FPT as the sole and only choice of supplier for coastal craft.

Saturday, October 24, 2015 Editor: Angel R. Calso

OpinionBusinessMirrorA6

Social media and the election

editorial

The technological advances in real-time com-munication over the last decade are truly astounding. The widespread availability and use of cell phones was only the beginning of the revolution. We have seen this progress from text messages to social-media platforms like Facebook and Twitter, among others.

Wherever there is some sort of available data connection, literally anyone on earth can be instantly connected to anyone else.

The impact on society cannot be underestimated. Natural events like an earthquake or man-made disasters like an airplane crash are now global news stories within minutes, if not seconds, of the actual occurrence. A crime can be reported in real time, even as it occurs through the use of mobile communica-tions and through the social-media platforms. The impact that social media has had on the ability of the people to express outrage against government policies and actions is startlingly strong as we have seen time after time. The world might be a different place today if this technology has been available during the Tiananmen Square protests of 1989 in China.

however, social media are only platforms which are an extension of what has happened repeatedly in the past. The Facebook and Twitter of past politi-cal revolutions in France, for example, was the pamphlet. Thousands of these, composed of a few pages of rhetoric and directions to the next protest, could be produced and distributed in a few hours, thanks to a technological revolution of that periodthe inexpensive printing press. Prior to and during the French Revolution, some 1,600 different newspapers were being published regularly.

Thenas nowgovernment tried to censor and shut down social media.Those in the social-media business are convinced that for the Philippine

2016 elections, social media will play a major role in determining who is elected. We have our doubts.

People Power from 200 years ago to our own in the Philippines and beyond is created by the noisy few. We use that term with the highest respect, because to physically move from your comfort zones to the streets requires immense courage in the face of potential physical harm and loss of freedom.

The upcoming elections will see an enormous number of different views expressed with passion and clarity on Facebook and Twitter, particularly by young people energized by their quest for both people power and change.

But pressing the Like button on a Facebook page or retweeting a message on Twitter is not the same as getting off the chair away from the computer or smartphone and actually going to the voting booth.

Of the 51 million Filipinos eligible to vote, there are 28 million youth (twenty- somethings and below), according to Commission on elections data. how-ever, unofficial estimates for the 2010 youth voter turnout ranged between 7 percent and 17 percent of those eligible.

Our Filipino youth seem to be constantly connected to social media. But when it comes to putting action to words, too many too often are Low Bat.

The amount of trading volume on the Philippine Stock exchange (PSe) and other financial and asset markets has been the topic in this column on several occasion. It is getting to the point, though, that the seriousness of the potential looming problem because of low volumes almost makes my hands shake as I approach the keyboard.

Is the PSE dying?

As I have said before, to the average person and investor for that matter, liquidity in the markets is either some abstract concept that really does not mean anything prac-tical or is simply ignored.

One textbook definition of li-quidity is, The degree to which an asset or security can be quickly bought or sold in the market without affecting the assets price. Another is: In business, economics or invest-ment, market liquidity is a markets ability to facilitate the purchase or sale of an asset without causing dras-tic change in the assets price.

Notice the difference in the two. The first uses the word quickly, which means in practical terms, Can I get rid of my stocks and back into cash whenever I want to? The other key is found in both definitions; the idea that there are enough buyers

and sellers so as to not see the asset price crash on heavy selling.

We believe that something, any-thing can be sold at a low enough price. We believe that there is always a buyer waiting if we are willing to take a price that might be way below what we want. But what if the time came that no one wanted to buy what you were selling at any price.

That is not going to happen on the PSe, but we did see a similar case during the 1997 Asian financial crisis when Philippine real-estate transactions all but stopped. Most major property developers were not willing to sell at low prices and were financially strong enough to wait it out. But individual home-owners were often stuck being un-able to find any reasonable buying offers at all.

Liquidity in the markets is like

a wide and deep flowing river, con-stantly moving as new water comes from one end and passes by to go to another place.

Illiquidity is like a lake that, when seen from a distance, looks serene, calm and even beautiful because of its size. But on closer inspection, that lake might be something entirely different than beautiful. If fresh water is not constantly flowing into the lake and then flowing out, it be-comes foul, putrid and even deadly. even water coming in does not help; it must flow through. The Dead Sea at the end of the Jordan River in the Middle east does have water flowing in but the water never leaves.

It has been called the Dead Sea for thousands of years for a good reason. Fish and aquatic flora can-not survive and no animals can live on its shores. Money must flow both into and out of a stock market for its healthy survival. If the PSe trades P8 billion daily volume and is up 20 points, that is better than a 100-point increase on P4 billion traded. That 100-point increase can be taken out in an instant if there were, for example, P8 billion worth of selling pressure the next day.

Likewise, I would rather see a 100- point drop on P10 billion traded than on P5 billion volume. Then, I know that there is P10 billion in cash wait-ing to come back in at the price bot-tom whenever that comes.

Average daily peso trading

volume for many major issues on the PSe has dropped by one-third or more in the last months and for most of 2015. But looking at peso volumes can sometimes distort the data because prices are higher than before. Share volume is running 37 percent lower in 2015 than in 2014. That tells us that no net new money has flowed into the PSe in 2015. Foreign funds have left the PSe; we knew that. But even a smaller river can still flow freely. Our stock market is smaller than a year ago, but is also flowing slower.

As I have said before, low liquid-ity causes large price movements and swings, and that can be profitable for quick traders. But if PSe trading vol-umes and liquidity continue to drop, we face two major and potentially serious problems.

Prices could fall rapidly again due to a domestic or external shock, and then take a very long time to recover as we have seen since the August drop. Further, no one wants to fish in a dead lake or invest in a dead stock market no matter how it looks or how attractive the surrounding landscape (or economy) happens to be.

E-mail me at [email protected]. Visit my web site at www.mangunon-markets.com. Follow me on Twitter @mangunonmarkets. PSE stock-mar-ket information and technical analysis tools provided by the COL Financial Group Inc.

OUTSIDE THE BOXJohn Mangun

ByMarc Champion | Bloomberg View

IF Russias leaders are concerned about their ability to succeed in Syria, they arent showing it. They may have to rethink their approach, though, if they want to bring their intervention to a quick end.

Putins endgame in Syria

From President Vladimir Putin on down, Russian officialshave reveled this week in comparing their military inter-vention to the failure of US-led air strikes to push back Islamic State (IS). Our partners did not do anything efficient and the first actions of our forces have already yielded some results, Putin told the annual Valdai conference in Sochi on Thursday. his message: Russia is back, and a more useful global player than the US.

even so, Russias Syria policy mirrors some of the inconsistencies that have bedeviled the US.

For one, Russia insists that its mili-tary operation should quickly lead to talks on a political settlementsome-thing that is unlikely to happen if it keeps treating all armed opposition to President Bashar al-Assad as terrorist. This approach is dictated by Russias goal of savingAssad, who is providing theground forcesneeded to follow up air strikes and take territory.

Assads biggest fight is with a whole assortment of rebels in the west, rather than in the east where IS is concentrated. So Russian air strikeshave largely left IS alone while attackingall other Assad opponents under the same IS label. It

isnt that Russian officialsdont know the difference; they just dont believe its meaningful. If you take up arms against the state, you are a terrorist.

This closely tracks Russias experi-ence in Chechnya, where it faced an in-dependence movement, part of which radicalized to become Islamist terror-ists. Putin came to power in Russia just months after the start of the second Chechen War in 1999 and crushed all resistance, installing a loyal warlord to govern the aftermath.

One shouldnt play with words dif-ferentiating between moderate and immoderate terrorists. What is the dif-ference? Putin said on Thursday. he went on to say that the US-led coalition in Syria was failing because it was trying to play what he called a double game, declaring war on some terrorists while working with others.

Second, Putin wont give up Assad to entice the Sunni opposition to the negotiating table. Inviting the Syrian president to Moscow this week was a big symbolic step to show he has Putins personal support and thatunlike the USRussia doesnt abandon its allies.

even if Putin did want to trade Assad away, says Vitaly Naumkin, Russias

internationally respected authority on the Middle east, the Iranians are abso-lutely opposed. And given that Putin is working with Iran in Syria (he had the chairman of the Iranian Parliament, Ali Larijani, to support him in his America-bashing on Thursdays panel), what Iran wants matters.

Third, Russia doesnt want toparti-tion Syria, a move that could shorten the war dramatically. Putin commit-ted himself to Syrias unity in a state-ment after his meeting with Assad, and described partition as a recipe for per-petual future conflicts.

Finally, Russias intervention in Syria is designed to be limited to air strikes and shortaround four months. T his contrasts shar ply withRussias maximalist goals. It ap-pears to want the campaign to end like its war in Chechnya, with the opposi-tion terrorists utterly defeated, and loyalist Sunnis co-opted to help pacify the country by brute force. Yet that would most probably require a long military campaign, especially given thatunlike ChechnyaSyrias war is sectarian and the opposition is sup-ported by external powers.

We are pretty dependent on whether they can succeed on the ground, said Fyodor Lukyanov, chairman of Russias Council on Foreign and Defense Policy. Is the Syrian army really fit enough?

So how to shorten the war?The air campaign doesnt have to

continue until a cease-fire is reached, according to Naumkin. It just has to

change the balance of forces on the ground enough that opposition repre-senta