BusinessMirror July 18, 2015

Iran nuclear talks

Jan. 17, 2005: Iran submits a proposal to the EU3, 2003: Iran issues a promising not to proposal to the U.S. pursue nuclear for negotiations on weapons and nuclear weapons proposing and energy. The cooperation on Bush administration regional security dismisses the and counterterrorism. proposal.

IRAN

2003

2004

2005

2003: France, Germany and the U.K. — the EU3 — agree to negotiate with Iran as long as the country suspends its nuclear program, but the talks fell apart as Iran continued to convert uranium.

UK

GERMANY

FRANCE

June 2006: China, Russia and the U.S. join the EU3 (P5+1) to propose negotiations on more cooperation on nuclear energy in exchange for suspension of its fuel enrichment.

Iran rejects the proposal.

RUSSIA U.S.

2006

CHINA

2007

August 2005: France, Germany and the U.K. present a counterproposal that includes the requirement of a neutral country to store nuclear fuel. Iran rejects the proposal and continues uranium conversion.

2008

June 2009: Iran requests assistance with a research reactor. In response, the U.S. proposed a fuel swap agreement, with Russia and France enriching uranium for Iran. Iran rejects the proposal and steps up uranium enrichment.

2009

2012: The P5+1 and Iran renew negotiations, discussing a step-by-step process to build trust.

2010

2011

2013: Iran proposes the Joint Plan of Action, a six-month plan of steps to be taken while a final deal is pursued. The proposal is approved and begins in 2014.

2009: President Barack Obama attempts to renew negotiations by dropping the requirement that Iran halt its fuel enrichment program.

2014: The temporary agreement is extended to November and then to June 2015. All nations involved have been complying with the requirements of the agreement.

2012 March 9, 2015: Republican members of Congress send an open letter to the leaders of Iran, warning that any deal could be overturned once Obama leaves office.

July 14, 2015: A deal is reached that cuts off Iran’s acess to bomb-making materials. Obama vows to veto any legislation that would prevent implementation of the agreement.

2013

2014

April 2, 2015: After extending the March 31 deadline, Iran and the P5+1 nations reach a framework agreement allowing three months for a final agreement to be reached.

Source: Arms Control Association, U.S. Senate, AP, White House

2015

July, 2015: Negotiators in Vienna miss mulitple deadlines while attempting to reach a deal.

Graphic: Tribune News Service

HISTORIC ACCORD President Barack Obama answers questions

about the Iran nuclear deal in Washington on Wednesday. The president vigorously defended the nuclear deal with Iran, casting the historic accord as the only possibility to avert a nuclear arms race in the Middle East and reduce the chances of war. AP/PABLO MARTINEZ MONSIVAIS

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THREETIME ROTARY CLUBB OF MANILA JOURNALISM M AWARDEE 2006, 2010, 2012

U.N. MEDIA AWARD 2008

A broader look at today’s business Saturday 18, July 201418, Vol.2015 10 No. 40 Saturday, Vol. 10 No. 282

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FUNDS TO FINANCE CONDITIONAL CASHTRANSFER PROGRAM, INFRASTRUCTURE PROJECTS

PHL seeks $1.48B in loans, grants from WB INSIDE

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HE Philippine government is seeking some $1.48 billion in loans and grants from the World Bank to bankroll its social programs and infrastructure projects.

SPEAKING AND SINGING IN TONGUES (OUR OWN) D

Education

EAR Lord, do we all have education? It is compelling to know that formal education gives a degree, a certificate, a sense of accomplishment that can prove that we are all worthy individuals on earth.

Education is the foundation that holds and shows our attitudes, actions, language, behavior and personality toward others. May our education have the model teacher in the person of Jesus Christ. Amen.

YETTA L. CRUZ AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

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HOW TO RECOGNIZE THE SIGNS OF LOVE ADDICTION »D4

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SPEAKING AND SINGING IN TONGUES (OUR OWN)

‘LINGGO NG MUSIKANG PILIPINO’ SET AT MONTH’S END B J N

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DD another week to the heightened sense of nationalism brought about by August’s celebration of “Buwan ng Wika” with “Linggo ng Musikang Pilipino,” scheduled on the last week of July.

As mandated by Proclamation 933, signed by President Aquino last December 19, the final week of July of every year from hereon will be “Linggo ng Musikang Pilipino,” championing all forms of local music and its rich history through a weeklong celebration marked by various festivities. The inaugural observance is set this year from July 25 to 31.

The festival is spearheaded by the Organisasyon ng Pilipinong Mang-aawit (OPM) and the National Commission for Culture and the Arts (NCCA), together with Bactidol. According to Festival

Director Noel Cabangon, the festival is born out of the impetus to “instill to the consciousness of every Filipino that we should be able to appreciate and embrace what is ours, what is Filipino music.” ““Kahit na rap, rock, jazz pa ’yan, as long as it’s a song written by a Filipino, we should embrace it,” he said at the festival’s recent news conference at My Brother’s Mustache at Quezon City, adding the usage of the English language on songs doesn’t make an artist’s work any less Pinoy. “Once it’s written by a Filipino, the sensibilities of that composer as a Filipino translates to his composition—kahit na English ang ginamit na lingwahe, because even the way we construct our English, it’s not English-American, it’s still EnglishFilipino. It’s cultural.”

Meanwhile, OPM President Ogie Alcasid said that no matter how many times our people disagree on various issues, the good quality of our music is undeniable. “We can disagree on

many things, many issues and a lot of ideas, but we can all agree that our music is beautiful.”

Characterized in the proclamation as being “critical in the achievement of the long-term goal of reviving original Pilipino music that the Filipino audience has awareness and appreciation of homegrown music,” the Linggo ng Musikang Pilipino encompasses a slew of activities that will not only commemorate the legacy of Filipino music but also highlight today’s local music scene.

But before the official start of the celebrations on July 25, OPM will head Mission: EO 255, a campaign run at the University of the Philippines (UP) Diliman Academic Oval on July 19 that calls for stricter implementation of Executive Order 255, issued in 1987, which requires all radio stations with musical format programs to broadcast a minimum of four original Pilipino

LIFE

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Parentlife BusinessMirror

10 things nobody told me about raising a kid B J H | The Orange County Register

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LENTY of people will give you unsolicited parenting advice (I didn’t ask whether my baby should be wearing a hat, thank you), but rarely will they tell you what you really need to know. That is, this: 1. Things take way longer. When you take a young child anywhere, you’ll pack as though you were called upon to settle a barren new world, without handy targets everywhere. The other day, I saw my harried neighbor loading four squirming kids, car seats, bags, etc., into the back of his van, while still wearing pajama bottoms. He looked up at me and said, helplessly, “I’m just going to get milk!”

2. You will say things you never thought you’d have to say. Besides the I-can’t-believe-I-justsaid-that remarks such as, “Hey! No shenanigans,” there’s a whole other category of things you never dreamed you’d need to say, because who would do such a ridiculous thing as, oh, lick the cat food. Your kid would, that’s who. I actually had to tell my child, “Don’t eat with scissors.” They were safety scissors, but still.

3. You won’t live up to your standards.

“Everything you say you won’t is what you will eventually,” Robyn Hitchcock sings in the 1989 song “The Devil’s Coachman.” Maybe you won’t do “everything” you said you wouldn’t, but you will be a hypocrite at some point, possibly many points. You will feed mac and cheese to your kid for four consecutive days even though one of your purported “core values” is healthy eating. You will say completely horrible things that you will regret. And that’s going have to be OK.

4. It’s possible to think hateful thoughts about a child. Sometimes a nasty little kid will do something horrible to your child and it will just break you. Comedian and father Louis CK says in his standup act: “There’s one kid in my daughter’s class who I hate so much. And it’s really [messed] up—because I’m 44 and I hate a 6-year-old.” Yep. 5. Kids are way grosser than you ever dreamed. Writes blogger Joslyn Gray: “Before I knew it, they were all eating stale fries off the floor of the minivan and I was like, ‘Whatever, thanks for cleaning.’”

But you’re never completely broken and occasionally your kid will do something so vile it will still manage to shock you. For me, this was child B passing the time in the Alice in Wonderland line at Disneyland by running her tongue along the metal handrails touched by countless park visitors throughout time. “Tastes salty!” she reported.

6. You will have to stifle laughter because you are a grown-up. There are certain things you just aren’t willing, able or ready to explain. Thus, you won’t be able to die laughing when, say, your 4 year old, back from lunch with Grandma and full of freshly gleaned knowledge from the restaurant’s Chinese zodiac place mat, starts telling everyone, “I’m the snake and I love the cock!”

7. It’s kinda boring. There’s nothing better than getting on the floor with a child and experiencing her take on the world. It’s just that after you do that, you don’t get to clock out and go back to thinking your thoughts. You just keep doing it. Over and over. This is truer today than ever. According to the Pew Research Center, today’s parents actually spend more time with

their children, even more than stay-at-home moms did in the 1950s. That’s a lot of pretending to eat toddlercreated plastic food feasts.

8. They won’t always share your passions.

When my kids didn’t show what I deemed a suitable enthusiasm for the glories of composting, I forced them to behold the compost bin. “Look at it!” I said, perhaps too forcefully, holding a handful of perfectly crumbly dark earth aloft. Deep lessons on the circle of life or in-home eco-terrorism? Still not sure about that one.

When my youngest said, “The jacarandas are almost out,” I gloated, “You do like nature!” However, she noted: “I learned it – doesn’t mean I like it.”

9. But you will develop arcane knowledge in their passions. This is not so great in the beginning.

I know way more about the TV show Zack and Cody than I wish I did, and my husband was crowned, more than once, the Pretty Pretty Princess during board game tournaments with the girls. (He is pretty competitive.)

It’s all paying off now, though. Through my kids, I’ve learned to appreciate Broadway musicals, discovered John Green’s oeuvre and been schooled on how to make a proper salsa verde. I bought tomatillos for the first time at age 49! This has to be good.

10. Each kid is actually 100 different kids.

“Every time my daughters get noticeably older, I feel like the smaller version has disappeared,” my friend Bill says.

“I love the new kid just as much, sometimes more; but I look back at photos of the smaller kid and get very sad that she’s no longer around.” This will break your heart a little. ■

Saturday, July 18, 2015

B T L C The Charlotte Observer

Because I would love to take tennis, go for a swim, see a movie and spend the night with a friend. On a Monday. But I’d be hardpressed to find a bored girlfriend. If I called a friend and said, “I’m bored, let’s spend the day indulging ourselves and then have a sleepover at a house where the mom gets us pizza,” she’d think I was insane.

Who started this anyway? What we adults call vacation, our kids call just another day of summer. Are we not going to accomplish anything for 11 weeks? Seems like a total waste of their time—and my energy.

But I have an idea. The next time one of my kids says he’s bored, I’m going to give him something to do.

And I mean something I’m going to have to do if somebody else doesn’t do it. I’ve cut 20 little pieces of paper, and on each one, I wrote a task sure to turn that frown even more upside down.

Things such as clean

Have a ‘Luvley’ day at Hamleys ON July 25, Hamleys, the finest toy shop in the world, will have a Luvley event as a treat to their prized friends and clients. A day of glittertastic fun, the event will feature products from the Hamleys Luvley collection.

For a minimum purchase of P1,500 in a single receipt from July 1 to 25 at Hamleys (goo.gl/Dp2M45) goo.gl/Dp2M45) in Central goo.gl/Dp2M45 Square in Bonifacio High Street, a customer and one child will have access to the event, which will include a kiddie

makeover workshop, among others.

Parents and their little girls can join the Luvley girls for a kiddie makeover workshop in-store and learn how to use products from the Luvley boutique, including Nailtastic, Cutesy Colours Makeup and Glitter Tattoo. The event will be held from 2 to 6 pm.

In the Philippines Hamleys is exclusively distributed by Stores Specialists Inc. (SSI), a member of SSI Group Inc.

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United States Pacific Fleet Commander Adm. Scott Swift talks during an interview with journalists on Friday in Manila. Swift talked about the US’s role in the current row between the Philippines and China in the disputed islands in the West Philippine Sea. AP/BULLIT MARQUEZ

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‘Good morning, sunshine’ EACH morning marks new beginnings, especially for babies. It leads to new accomplishments, milestones and discoveries. But aside from proper guidance and nutrition, baby’s wonderful journey of firsts starts with a significant factor—a night of complete sleep.

“Sleep for babies is about the overall development of their health—from their nervous system and immune system,” says pediatrician Dr. Apple Alfonso, a partner of disposable diaper brand Pampers. “However, due to many factors, such as discomfort, environmental stimulation or temperature alteration, it may be hard to ensure our babies a night of complete sleep,” she adds.

To help moms and babies greet each morning with a smile, the leading diaper brand recently launched a product touted as the best and driest Pampers diaper in 10 years— the all-new Pampers Baby Dry. This new diaper provides up to 12 hours of superior overnight dryness with its Soft Touch-Dry Layer and Super Gel that help absorb large amounts of liquid faster than ever before. Uninterrupted sleep baby’s brain and body to complete developmental tasks that cannot be as efficiently accomplished when he’s awake.

“During his waking hours, your baby has endless experiences, many of them new. His brain stores multiple different impressions of what he hears, feels, does or sees, and they need to be further organized during sleep,” Alfonso shares. For baby’s ultimate comfort and guaranteed rashfree skin, the new disposable diaper also has a breathable backsheet with micro holes that prevent stuffiness, plus all-around breathability and soft cottony cover.

Aside from this innovation, Pampers also helps mommies share and celebrate baby’s first milestones through its newly launched Facebook app FirstBook. Simply post his photos and videos via www.firstbook.ph and keep those precious moments online.

the garage. Bag old clothes, and find the remote. I’ve got organize your closet, wash sporting equipment, rub mommy’s feet and find the smell in the fridge. Then I’ve got find the remote again, because it’s always missing.

Vacuum the playroom, wash the car, wash your hair and download mommy’s favorite songs on her iPhone.

And I put the pieces of paper in a fish bowl on the kitchen counter. And I cannot wait for morning when somebody says they’re bored. I mean I’m just giddy, because the second I hear them utter the “B” word, I’m going to say, “Go fish.” And finally get what I deserve—some dang help around here. My life is about to change. They won’t be up 10 minutes before they start whining. And I’m just going to sit in a lawn chair and watch them work, while Seals & Crofts’s “Summer Breeze” blasts through my iPhone.

Oh shoot...they’re back in school.

PARENTLIFE

gram Support for Social Production Project, which aims to support the country’s Conditional Cash-Transfer (CCT) Program.

The project also aims to provide training and skills development for poor and vulnerable households, as well as programs that will help young Filipinos complete their

GREECE GETS SPOONFUL OF FINANCIAL RELIEF TO STAVE OFF COLLAPSE ‘Asean should dismantle nontariff barriers’ W

Kids’ boredom makes no sense THE first time one of my kids said “I’m bored” during the summer break, I thought how funny it would be if I said that.

If I woke up one morning, wandered into the den, plopped down on the sofa and announced to the kids, “I’m so bored, there’s nothing to do.”

How good that would feel. And how shocked everyone would be. But in this life, I’ll never be able to do it. Because when I wake up, I walk past unmade beds, baskets of laundry, strewn video games, a sink full of dishes and a notepad that screams “Column Due!” I’ll never be bored again.

I don’t get it. I’m driving my kids to camps, movies, tennis, play dates and pool parties, and in between, I’m washing clothes, packing pool bags, planning sleepovers and they’re the ones who are bored? Can we trade?

Data obtained from the National Economic and Development Authority (Neda) showed that these loans and grants are currently under consideration by the global lender for fiscal year 2016, which began on July 1.

The lion’s share of the loans and grants will be used to finance the $450-million-worth National Pro-

U.S. ROLE IN WEST PHILIPPINE SEA ROW

10 THINGS NOBODY TOLD ME ABOUT RAISING A KID www.businessmirror.com.ph

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ITH Greece edging close to economic collapse, European authorities took small steps toward giving the country some immediate financial relief on Thursday, after Athens bowed to their demands, and approved a stinging package of austerity cuts and economic reforms.

The European Central Bank said it would pump more emergency funds into Greece’s teetering banks to keep them from

PESO EXCHANGE RATES ■ US 45.2000

running out of cash. Although the nearly $1-billion infusion will not be enough for the banks—closed since June 29—to resume normal business, the extra money should allow customers to continue withdrawing the governmentimposed limit of €60 (about $65) a day from automated teller machines (ATM), and some commercial transactions could start up again on Monday.

S e p a r a t e l y, e u r o - z o n e C  A

B C N. P

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USINESSES in the European Union (EU) are pushing for the elimination of nontariff barriers (NTBs) in Southeast Asian countries to boost market access, and increase trade and investment between Europe and the Association of Southeast Asian Nations (Asean).

In a position paper, the EU-Asean Business Council identified four barriers that prevent wider-market

access in the region: ■ Cumbersome customs procedures with little harmonization across Asean; ■ Unpredictable application of regulations and procedures, impacting the ability of businesses to make informed long-term investment decisions; ■ Restrictions on foreign ownership and foreign competition; and ■ Lack of harmonized standards or the lack of mutual recognition of such standards across the region.

“These four broad themes limit the ability of businesses—from Asean or elsewhere—to trade effectively with partners across Southeast Asia. They also limit the ability of businesses to make longterm investment decisions,” the council said in a statement.

The release of the position paper coincides with the publication of EUAsean trade and investment statistics, which showed that the EU is the S “A,” A

■ JAPAN 0.3652 ■ UK 70.6973 ■ HK 5.8322 ■ CHINA 7.2795 ■ SINGAPORE 33.1038 ■ AUSTRALIA 33.3481 ■ EU 49.4850 ■ SAUDI ARABIA 12.0524 Source: BSP (16 July 2015)

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News

BusinessMirror

Saturday, July 18, 2015

Oil set for longest run of weekly losses since January on glut

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rent oil headed for the longest run of weekly declines since January, as ample inventories and an accord to tease sanctions on Iran suggested global markets will remain oversupplied.

Brent for September settlement was at $56.97 a barrel on the Londonbased ICE Futures Europe exchange, up 5 cents, at 11:05 a.m., London time on Friday. The August contract expired on Thursday after gaining 46 cents to $57.51. The European benchmark traded at a premium of $5.86 to West Texas Intermediate (WTI) for September.

Futures were little changed in London, leaving their third weekly drop at 3.4 percent. US crude stockpiles remain almost 100 million barrels above the five-year average for this time of the year, Energy Information Administration (EIA) data show. The prospect of increasing Iranian output may still weigh on prices even if the gain is gradual, according to Barclays Plc and Australia & New Zealand Banking Group Ltd. Oil’s recovery from a six-year low has faltered amid speculation the sur-

WTI for August delivery was little changed at $50.79 a barrel in electronic trading on the New York Mercantile Exchange. The volume of all futures traded was about 29 percent below the 100-day average. Prices are 3.7 percent lower for the week.

Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI futures and the biggest oilstorage hub in the US, rose for a third week to 57.1 million barrels through July 10, the EIA said Wednesday.

Nationwide supplies dropped for the

plus will be prolonged as US drillers return rigs to fields and Iran seeks to regain market share. The full impact of higher Iranian exports won’t be felt until 2016 as the nuclear deal is implemented, banks, including Goldman Sachs Group Inc. predict.

“Although Iran will not be able to contribute in earnest to global supplies before 2016, it has nevertheless brought the focus squarely back on supply,” Ole Sloth Hansen, an analyst at Saxo Bank A/S in Copenhagen, said by e-mail. “US production has been robust at or above $60.”

US supplies

first time in three weeks to 461.4 million barrels.

Iran, the fourth-biggest member of the Organization of the Petroleum Exporting Countries (Opec), won’t achieve a crude-export boost of more than 500,000 barrels a day, or about 50 percent, until next year as the Islamic Republic’s compliance with curbs on its nuclear program is verified, according to banks including Goldman, Citigroup Inc. and Commerzbank AG. Iran is unlikely to flood the market with oil, Mudher Saleh, economic adviser to Iraq Prime Minister Haider Al Abadi, said on Wednesday. That would only cause prices to fall, which is not in anybody’s interest, he said. “Opec could run into a few problems next year if global demand growth does not materialize,” said Saxo’s Hansen. “Who is prepared to make way for Iran’s 1 million extra barrels at a time where everyone is fighting for market share?” Bloomberg News

China injects $48 billion into its biggest policy lender

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hina injected $48 billion into China Development Bank Corp. (CDB), according to people familiar with the matter, strengthening the lending power of a bank that’s channeled funding to low-income housing.

The People’s Bank of China

(PBOC) provided the money from its foreign-exchange reserves, according to one of the people, who asked not to be identified because the move has not been formally announced. Asked at a briefing on Thursday about a possible capital injection, CDB chief economist Liu

Yong had said the PBOC might announce details sometime later.

As China’s economy slows, the government led by Premier Li Keqiang is accelerating investment in infrastructure and shanty-town development. CDB, which has no deposit-taking business and relies

on bond issuance for funding, has been key in achieving that. Urbandevelopment loans from the bank amounted to 419.8 billion yuan ($67.6 billion) in the first half, more than for all of 2014, out of a total of more than 1.3 trillion yuan in loans.

Bloomberg News

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Greece gets spoonful of financial relief to stave off collapse. . .

Continued from A1

finance ministers were homing in on a way to rush $8 billion in loans to the Greek government to ensure that it pays some urgent debts next week and does not tumble into a messy default. The ministers also announced that they had agreed in principle to launch talks with Greek officials on a third international bailout, lasting three years and worth up to $94 billion.

The various moves came just hours after the passage early Thursday of an omnibus reform bill in the Greek Parliament that will raise taxes, cut pensions and impose yet more austerity on the beleaguered Mediterranean nation.

European leaders had refused to lend any more money to Athens unless it complied with their demands to further reduce public spending and streamline its economy.

Faced with little choice, Greek Prime Minister Alexis Tsipras agreed to the deal to prevent his country’s ejection from the group of 19 nations that use the euro.

Such an exit would likely have propelled Greece toward a financial meltdown. But the deal has come at

BSP. . .

a steep political price. Tsipras lost the backing of nearly a third of his left-wing Syriza party’s members of Parliament, who refused to endorse measures that they said humiliated Greece and went against everything they stood for. On Thursday Tsipras mulled his options for shoring up his six-month-old government, including a reshuffle of his Cabinet or possibly a new coalition drawing on all the mainstream parties.

Interior Minister Nikos Voutsis told Greek radio that new elections were “very likely” by September or October, auguring a period of instability that would raise fresh doubts among Greece’s creditors about its ability to implement unpopular reforms in exchange for rescue loans.

Athens has already been the recipient of two international bailouts totaling about $261 billion at today’s exchange rate. Many of the provisions of those bailouts, such as the liberalization of various sectors of the economy, were never fulfilled, even as the country sank into depression and joblessness soared as a result of multiple rounds of austerity cuts. TNS

Continued from A8

The BSP earlier introduced reform measures, essentially a set of guidelines on capitalization and on leverage ratios, as part of the broader effort to elevate local supervision to the level enjoyed by more advanced jurisdictions.

The central bank earlier said all banks in the country are expected

to comply with the rules.

Also recently, Moody’s Investor Service noted that banks in the Philippines are well equipped to handle more stringent rules implemented by the BSP. Still, the Philippines is the only remaining country in the Asean 5 without updated rules on bank liquidity ratios.

The Nation BusinessMirror

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Editor: Dionisio L. Pelayo • Saturday, July 18, 2015 A3

Tarlac execs ask Senate to investigate dumping of Canadian waste in landfill

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By Ashley Manabat | Correspondent

LARK FREE PORT—Tarlac officials, led by Gov. Vic A. Yap, are seeking a wider investigation into the dumping of waste illegally shipped from Canada in the sanitary landfill operated by the Metro Clark Waste Management Corp. (MCWMC) in Barangay Kalangitan, Capas, Tarlac.

Their call was supported by Sen. Ferdinand R. Marcos Jr., who is seeking a Senate investigation, after a meeting at midweek at the Tarlac provincial capitol.

Other officials at the meeting were Vice Gov. Enrique Cojuangco, Liberal Party Rep. Susan Yap of Tarlac and Gerona Mayor Dennis Go, president of the League of Municipalities of the PhilippinesTarlac chapter.

Cojuangco said the provincial government would formalize the complaint and request for a wider investigation through a provincial

board resolution that they will send to Marcos.

“We object to any kind of illegal dumping of waste, be it local or foreign. But this seems to be one of the worst cases that we have heard about na parang lumalabas na nagii-smuggle tayo ng basura papasok sa Pilipinas.

Saan ka naman nakarinig ng ganoon?”

Marcos said.

Following reports that 26 out of the 50 container vans of waste shipped from Canada in 2013 had already been dumped in the Capas landfill, the provincial government ordered a stop to any further

disposal of the imported waste.

Another batch of 48 container vans of trash shipped by the same exporter was discovered in the Subic port in Zambales.

Marcos stressed the need to ensure the welfare of Tarlac residents and also to prevent the Philippines from earning the dubious reputation as garbage importer.

He said, as chairman of the Senate Committee on Local Government, he can ask for a Senate investigation into the dumping of Canadian garbage based on the provincial board’s resolution.

“We also heard reports the dumping is being done in secret, during the night. We don’t even know the content of the trucks hauling the waste, whether it is ordinary household garbage, medical waste or toxic waste. That’s something we have to look into,” Marcos said.

He is alarmed that with more stringent regulations on waste disposal in other countries, particularly in Europe, similar shipments could find their way into Philippine ports in the future.

“Waste disposal in Europe has become very expensive that it would be cheaper to ship the garbage anywhere where it would be accepted. But why should we accept garbage, and who is making

money here, notwithstanding the health risks this may pose to our people?” Marcos asked.

“Before t he situation gets worse, we should investigate this issue. If necessary, we must amend our laws and impose more stringent regulations so that we won’t be known all over the world as a garbage importer,” he added.

The Philippines and Canada are signatories to the 1992 Basel Convention on the Control of Transboundary Movements of Hazardous Wastes that prohibits the export of toxic or hazardous waste. As of January 2015, 182 states and the European Union are parties to the convention.

Aside from the dumping of Canadian waste, Marcos said the Senate investigation will also tackle the growing problem of waste disposal in the country.

“I think this will serve to highlight the problem that we have around the country on waste disposal. We have to address this issue now, because it’s not only the big cities having this problem but even the small towns,” Marcos added.

The senator said there is a need to strictly enforce Republic Act 9003, or The Ecological Solid Waste Management Act of 2000, and formulate a cohesive national

strategy on waste disposal, one which would require the participation of every local government.

Sen. JV Ejercito, meanwhile, slammed the Aquino administration’s indecision on the Canadian waste issue, causing the shipment to rot and stink at the Port of Manila since 2013.

At the same time, Ejercito sought the Senate to investigate why the Bureau of Customs (BOC) and the Department of Foreign Affairs (DFA), respectively, both failed to thoroughly inspect imported shipments and to file a diplomatic protest against Canada for its illegal off-loading of waste in the country.

“I just find it hard to believe that the BOC was hoodwinked by Chronic Inc. [the Canadian waste disposal company] in its declaration that all 50 shipments simply contained materials for recycling.

I am sure Chronic Inc. has a ‘backer’ behind all these transactions given its audacity on this issue,” the lawmaker said.

“Surely, the DFA also didn’t just heedlessly decide to neglect its duty by treating this transaction as purely ‘commercial.’ I am convinced that someone intervened for Canada’s case, and this is what we will probe in the Senate hearings.” With Recto Mercene

SolGen seeks delay in submission SC asked to stop Comelec of position paper on Torre de Manila from awarding contract

By Joel R. San Juan

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HE Solicitor General on Thursday asked the Supreme Court (SC) to give it another 30 days from July 15, or until August 4, 2015, to submit its position paper on the petition seeking to permanently ban the construction of the 46-story Torre de Manila condominium as it blocks the iconic sight line of the popular monument of national hero Jose Rizal at the Luneta Park in Manila.

In a four-page motion, Solicitor General Florin Hilbay also asked the SC to move the date of the oral arguments on the petition to at least 30 days from July 21.

The SC earlier granted the Office of the Solicitor General’s (OSG) plea to reset the oral arguments, which was originally scheduled on June 30.

Hilbay cited anew the ongoing arbitration case at the Permanent Court of Arbitration in The Hague, the Netherlands, on the case filed by the Philippine government against China over disputed islets, shoals and reefs in the West Philippine Sea. Hilbay told the SC that he was scheduled to arrive in the country on July 16, after a post-hearing meeting with counsel and other members of his team involved in the case.

He added that the arbitral tribunal has given the Philippine government until July 20 to review and submit corrections to the trancripts of the hearings on jurisdiction and admissibility, and until July 23 to submit writ-

ten responses to the additional questions posed by the arbitral tribunal during the hearing.

“As agent of the republic in the arbitration, the Solicitor General has the authority to make binding decisions for the republic.

“The importance of this arbitration and the nature of the issues involved require the Solicitor General to collaborate with the counsel of record in the review of the transcripts of the hearing and in the preparation of the republic’s written responses to the questions posed by the arbitral tribunal,” Hilbay explained.

“It is indispensable that he and his team be allowed all the time before the said July 20 and July 23 deadline to make the necessary preparations for the required submissions to protect the national

interest,” he added.

Hilbay, however, acknowledged the “complexity, novelty, historical and cultural implications of the controversy involving the Torre de Manila, thus, it is necessary that the OSG be given sufficient time to personally coordinate with the respondent government agencies, which will assist him in the preparations of the required position paper.

Earlier, the Court issued a temporary restraing order (TRO) enjoining further construction of the building being developed by DMCI Homes Inc. The TRO was effective immediately and valid until further orders from the High Court.

The Knights of Rizal, in its petition, said that by defacing the visual corridors of the monument, DMCI violated several laws mandating the protection and preservation of the Rizal Monument.

These laws include Republic Act (R A) 4846 (Cultural Properties Preservation and Protection Act), R A 7356 (law creating the National Commission on Culture and the Arts) and R A 10066 (National Cultural Heritage Act of 2009, or an “Act Providing for the Protection and Conservation of the National Cultural Heritage”).

Petitioners also argued that the project could be considered as an act of nuisance as defined under the Civil Code of the Philippines.

T hey also argued that the project also violated the zoning ordinance of the Manila City government.

for OMR machines

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FORMER elections commissioner and two other advocates of transparent and credible voting have asked the Supreme Court to stop the Commission on Elections (Comelec) from awarding the contract for the lease with option to purchase 23,000 Optical Mark Reader (OMR) machines to be used in the May 2016 national and local elections.

In a 52-page petition, former Comelec Commissioner Augusto C. Lagman, former Philippine Computer Society President Leo Querubin and election advocate Maria Corazon Ako asked the Court to issue a temporary restraining order and a writ of preliminary injunction enjoining the Comelec from implementing its decision, issued on June 29, 2015, granting the protest, as well as declaring that the joint venture of Smartmatic-Total Information Management (TIM) and Jarltech International Corp. as having the lowest calculated responsive bid in connection with the public bidding for the 23,000 OMR machines.

The petitioners argued that the Comelec committed grave abuse of discretion in granting Smartmatic’s protest considering that the latter is ineligible to engage in the country’s electoral process anymore.

They noted that the project for which Smartmatic was created was the automation of the 2010 national and local elections.

“While it is true that the AOI [Articles of Incorporation] was subsequently amended and that such amendment was approved by the

Securities and Exchange Commission, there is no dispute that at the time of its submission to the BAC [Bids and Awards Committee] on December 4, 2014, during the opening of the eligibility requirements and initial technical proposals, it carried the aforequoted statement of purpose—that the project, which activities the bidder is supposed to engage in, pertains to the 2010 national and local elections,” the petition said.

The petitioners said among the laws violated by the respondents are Batas Pambansa 68, or the Corporation Code; and Republic Act 9184, or the Government Procurement Reform Act. On Monday the Comelec-Special Bids and Awards Committee (SBAC) 1 issued a resolution recommending the issuance of the Notice of Award in favor of Smartmatic-TIM Corp. for the provision of 23,000 OMR. Smartmatic-TIM was earlier declared as having the lowest calculated responsive bid for the lease with option to purchase of the OMR. The SBAC 1’s recommendation was made after Smartmatic-TIM passed the postqualification evaluation, where all the documents and statements submitted were verified and validated.

Smartmatic-TIM offered P1.72 billion, or P780 million lower than the approved budget of P2.5 billion for the project.

A s soon a s t he Not ice of Award is issued, the Comelec and Sma r t mat ic-T IM ca n a lready proceed to the discussions of the contract details.

Arbiter junks illegal-dismissal case against broadcast network

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A BOR A rbiter Pablo A .

Gajardo Jr. took the side of GMA Network Inc. (GMA) in an illegal-dismissal complaint filed against the broadcast company.

In his decision dated May 29, 2015, the arbiter held that Cynthia A. Malabunga, a former associate producer of the TV program

Magpakailanman, was validly dismissed by the network following procedural due process.

Malabunga was found guilty of negligence, falsification of documents and misappropriation of funds.

“An examination of the documentary evidence readily elicits

with unmistakable clarity that complainant Malabunga committed the charges against her,” ruled the labor arbiter.

He added that the complainant failed to account for company funds, justify her delay in the processing of reimbursements and claims, as well as liquidate her cash

advances with supporting documents on time, all of which violate existing rules and procedures of the company.

T he l abor a rbiter f u r t her noted that GMA complied with the twin requirements of due process by issuing notices informing Malabunga of her mis-

conduct and the subsequent decision to dismiss her.

Malabunga was, likewise, given “full opportunity to explain her position, to testify, present witnesses and other documentary evidence” after an investigation was conducted. Thus, the complaint was dismissed for lack of merit.

5 die, 5 missing as landslide buries DMCI mine site anew

By Rey P. Alcalde

Philippines News Agency

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AN JOSE, Antique—Five persons were confirmed dead and five others remain missing after a landslide occurred anew at the Panian Pit of Semirara Coal Mine operated by the DM Consunji Inc. (DMCI) on Semirara Island, Caluya, Antique.

Ricky Lavega, a representative of the provincial government of Antique to the Tripartite Monitoring Team of the coal-mine operation, said the landslide happened at around 4 a.m. on Friday.

Confirmed dead were Ricardo Panes, Arnold Umac and a certain Nodo, all heavy-equipment operators.

The two others have yet to be identified by their relatives as of press time.

Confirmed missing as of 10 a.m. on Friday are Danilo Bayhon, Generoso Palaro, Jeg Daupan, a certain Capulay (first name not available yet) and a certain Jack (surname not available yet), all heavy-equipment operators.

Lavega said the weather was fine and there was no rain since the other day in the island.

“The landslide was in the same area of the Panian Pit that collapsed on February 13, 2013, where several persons died and scores of others were buried alive,” Lavega said, adding that a number of heavy equipment, including three bulldozers, one giant backhoe and dump trucks were buried by that landslide.

“The victims were brought to the Semirara hospital on plastic bags and family members of the victims were called to identify them,” Lavega said, adding that the management of the coal mine has barred civilians from getting near the mine site.

There is no report of survivors yet, but it is estimated that around 50 people were working in the coal mine for the night shift when the incident happened.

Upon receipt of a report of the incident, the Department of Energy (DOE) ordered the immediate suspension of coal-mining operations done by Semirara Mining Corp.

(SMC), a DMCI subsidiary.

Zenaida Monsada, officer in charge of the Office of the Secretary of Energy, ordered the suspension of the operations of Coal Operating Contract 5, which covers the Semirara coal mine. The DOE also formed an investigation committee to look into the incident.

“Our prayers are with the families of the victims and we have directed SMC to focus on search and rescue operations,” Monsada said, adding that the DOE will continue to monitor the developments.

SMC, meanwhile, said management has condoled with the families of the victims and is giving them full support.

Further, SMC said it is in close coordination with national and local authorities to keep them updated on the search and rescue efforts and other necessary measures, including ensuring the adequate supply of coal for power generation, since it has stopped operations in the affected area in compliance with the suspension order from the DOE. “The company is investigating the cause of the accident in coordination with authorities. Advisories will be issued regularly to keep the public informed,” SMC added.

Antique Gov. Rhodora Cadiao said she ordered SMC to stop work at the open Panian Pit on Semirara Island until the missing workers have been found. “They promised me they’ll stop their mining operations in that area until they have recovered all the missing,” Cadiao said, adding that she deployed a Semirara town emergency-response team to the accident site to get more details.

Investigators have not yet determined what caused the collapse.

A similar accident in 2013 in Semirara in Antique, about 350 kilometers south of Manila, killed at least five workers. Coal makes up for about a third of energy supply in the country. With Lenie Lectura and AP

Economy BusinessMirror

A4 Saturday, July 18, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Palace says 2016 budget spikes for favored depts not yet final

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By Butch Fernandez

alacañang on Friday refused to be drawn into a debate with public finance expert Prof. Leonor Magtolis-Briones over what she saw as suspiciously sharp spikes in proposed outlays allotted to favored agencies for the 2016 election-year budget.

Sought for comment on the former national treasurer’s revelation that at least seven national government agencies, led by the Department of the Interior and Local Government (DILG), are seeing multibillion-peso increases in 2016, Communications Secretary Herminio B. Coloma Jr. sidestepped the issue, saying that they would rather wait for the final budget proposal.

“Best to wait for actual submission of proposed national expenditure program for 2016, which will be done after Sona [State of the Nation

Address],” Coloma told the BusinessMirror, referring to the Sona President Aquino is set to deliver before a joint session of Congress on July 27.

Coloma added that the reported huge increases cited by Briones that were proposed to be allocated in the 2016 budget for the various departments were not yet final.

“The budget figures referred to may still change,” Coloma said.

The Palace official gave the brief explanation, after Briones bared suspicious increases in the 2016 budgets for

at least seven agencies, including the DILG, under presumptive administration presidential bet Interior Secretary Manuel A. Roxas II, and the Department of Social Welfare and Development (DSWD), headed by Secretary Corazon Juliano-Soliman.

In contrast, Briones pointed to the miniscule hike for the Department of Environment and Natural Resources (DENR), led by Secretary Ramon J.P. Paje, which is in the forefront of climatechange strategies.

Briones, lead convener of Social Watch Philippines, which among others leads several non-governmental organizations keeping track of annual budgets, earlier expressed concern about the capacity of the departments to spend the money efficiently. The issues of implementation, completion, or delivery of key projects involved some of these agencies that are benefiting from the multibillion-peso increases she is questioning.

In a published report, Briones noted that the DILG will get over a P15-billion increase, noting that, because its head, Roxas, is known to have presidential ambitions, it could evoke suspicion. In contrast, she said the DENR, which is in the forefront of the country’s pro-

grams to deal with climate change, will only get a total P23 billion for 2016, or just a P1-billion increase from the 2015 budget.

Briones listed among the agencies getting the biggest increments in the proposed 2016 budget are as follows: n the Department of Education, P436.5 billion (2016), from P367 billion (2015); n Department of Public Works and Highways, P401 billion (2016), from P303 billion (2015); n DILG, P156 billion (2016), from P141 billion (2015); n Department of National Defense, P172 billion (2016), from P144 billion (2015); n Department of Health, P128 billion (2016), from P108 billion (2015); n DSWD, P107 billion (2016), from P104 billion (2015) and P83 billion (2014); and n the Autonomous Region in Muslim Mindanao, P28 billion (2016), from P24 billion (2015).

After a special Cabinet meeting last week, the President approved submission to Congress of a P3.002-trillion national expenditure program, or a 15.2-percent increase over the 2015 national budget of P2.603 trillion.

BCDA invites foreign investors to build retirement community in Clark Green City

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he National Grid Corp. of the Philippines (NGCP) is seeking approval from the Energy Regulatory Commission (ERC) to recover P208.37 million worth of force majeure event (FME) capital expenditure (capex) for the repair, restoration and rehabilitation of its transmission assets damaged by Typhoon Glenda last year.

In a nine-page application, NGCP proposed to collect an FME pass-through amount to the Visayas and Luzon customers starting from October 2015 to December 2020 billing ,or until such time that the amount is fully recovered.

It asked that the ERC issue a provisional authority for NGCP to implement and bill the following FME pass-through amount for Luzon customers: P0.0056 per kilowatt-hour (kWh) in 2015; P0.0005 per kWh from 2016 to 2018; and P0.0004 per kWh in 2019 and 2020. For the Visayas, it proposed to bill P0.0020 per kWh this year and P0.0001 per kWh every year, from 2016 all the way to 2020.

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By Lorenz S. Marasigan

LIMITED public trial for Manila’s overhead railway lines’ tapand-go fare-collection system will start on Monday, marking another important phase to the end-to-end testing of the new transport-payment scheme.

Peter Maher, AF Payments Inc. CEO, said on Friday that the trial of the highly anticipated contactless beep card will pilot in Light Rail Transit (LRT) Line 2’s Legarda Station in Manila, where train riders can purchase the beep stored-value card (SVC), as well as the new contactless single-journey ticket (SJT).

“Our team has conducted rigorous technical testing to assess all operational aspects of the new system,” he said.

While the new tap-and-go SVCs and SJTs can only be purchased initially at the Legarda Station, the card will be accepted at any of the new exit gates in LRT 2. The beep cards can be reloaded in any of the train’s stations.

“We now enter a crucial phase, which is to generate more volume to test the equipment and to assess the public’s ability to use the new system. We want to observe the user experience, and see whether any improvement is necessary. We hope that, as we roll out the limited public trial, we are able to address any concern that may come up to ensure a smooth transition to the new payment system,” Maher said.

The new fare-collection scheme—similar to those of Hong Kong, Japan and Singapore—will run simultaneously with the old magneticstripe ticketing system.

The beep card will be sold for only P20. The card can be loaded and reloaded with a minimum of P12 to a maximum of P10,000.

AF Payments is a joint venture led by Metro Pacific Investments Corp. and Ayala Corp. It won the bidding for the implementation of the new system under the government’s Public-Private Partnership Program.

The firm, under its concession agreement, will supply and install a total of 731 gates, 138 ticket-vending machines, 221 point-of-sale devices and 44 station computers across the three rail lines: the LRT Lines 1 and 2, and the Metro Rail Transit Line 3.

Upon its completion, commuters can expect faster payment processes and reduced queuing time for buying tickets, as well as seamless transfers from one rail to another.

All three railway lines will fully transition to the new system

by September.

NGCP, D.O.E. program seeks to raise public awareness on delivery of good-quality electricity Power-grid operator and transmission-service provider National Grid Corp. of the Philippines (NGCP) has partnered with the Department of Energy (DOE) to widen public understanding of the process behind the delivery of good-quality electricity to homes and industries.

In an activity facilitated by NGCP, the group, composed of Northern Samar municipal information officers and Philippine Information Agency officials, visited NGCP’s Visayas System Operations office, where they witnessed grid shift dispatchers monitoring the real-time status of the entire Visayas power grid shown from giant screens, and ensuring that the supply and demand for electricity remains balanced in accordance with the Philippine Grid Code.

NGCP reiterated its strict adherence to the standards set by existing rules and regulations, emphasizing that, while it is a privately owned corporation, it is highly regulated and its operations must stand the scrutiny of the Energy Regulatory Commission. Lenie Lectura

PRDP road-repair project beneficial to Tigbauan, Iloilo residents, mayor alquisada says

not so healthy option

A pork-rind (chicharon) vendor packs her newly fried products into small plastic-bag packs to be sold to customers who hunger for a dose of the fatty, cholesterol-rich food preferred by most by Filipinos as a snack, viand or finger food. Stephanie Tumampos

NGCP seeks recovery of P208.37-M FME capex from customers a year after Glenda

By Lenie Lectura

New light-railway fare collection system goes on trial run on Monday

briefs

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he state-owned Bases Conversion and Development Authority (BCDA) is inviting investors to put up a retirement village for foreign retirees in Clark Green City in Central Luzon.

BCDA President and CEO Arnel Paciano D. Casanova, speaking before the members of American Chamber of Commerce of the Philippines (AmCham), said the Clark Green City is conducive for foreign retirees with its eco-friendly environment through the project’s smart urban planning.

Clark Green City, a 9,450-hecatare development of the BCDA, is targeted to be the country’s first smart, green and disaster-resilient metropolis.

Despite being eyed to be a new metropolis in the country, Clark Green City is in proximity to the Mount Pinatubo range and is surrounded by valleys and hills of Tarlac province, which provides a climate favorable to retirees.

“Our huge appeal for foreign retirees is the country’s cost of living, which is readily affordable,” Casanova said.

“The country’s picturesque destinations, our Englishspeaking and friendly people are also major factors that make the Philippines a much more welcoming place for Western retirees,” he added.

Since the Clark Green City is run by a governmentowned and -controlled corporation, any wholly owned foreign company that is interested to invest may directly negotiate with the BCDA. “Since it is a special economic zone, the Foreign Investment Lease Act allows the BCDA to undertake direct negotiations for foreign direct investments,” Casanova said. PNA

news@businessmirror.com.ph

“The cost NGCP incurred as additional FME cap damaged by the FME Typhoon Glenda, including the recoverable values of the assets destroyed, is P208,369,97.56,” NGCP said.

Of the amount, the FME capex stood at P194,844,662.28, while the next fixed asset value was calculated at P13,525,355.28.

“NGCP needs to immediately recover the actual expenses incurred for the repair, restoration and rehabilitation of the damaged transmission assets and other related facilities.

“It must be emphasized that the occurrence of the aforementioned FME Typhoon Glenda required massive capital infusion, thus, the recovery of which should be allowed immediately in order to avoid any financial strain in the operation of NGCP and to allow the continuous provision of transmission service to the grid customers,” the grid operator said in its application.

NGCP added that it has not recovered any amount from its Industrial All-Risk Insurance Policy procured from the Government Service Insurance System for 2014.

ILOILO CITY—The road-repair project of the Philippine Rural Development Project (PRDP) will be beneficial to almost 10,000 people in Tigbauan, Iloilo. According to Suzette Alquisada, Tigbauan mayor, the project will be beneficial to 20 barangays in their municipality.

“Almost one-third of the total population of Tigbauan will benefit from the project, which is almost 10,000 people coming from the 20 barangays,” Alquisada said.

On June 29 an implementation management agreement was signed between the Department of Agriculture (DA), represented by Director Roy M. Abaya, and the provincial government of Iloilo, represented by Gov. Arthur Defensor Sr., to repair roads from Parara-Jamog farm-to-market road in the province of Iloilo. Alquisada is hoping that the construction of the project will start before the year ends, since the letter for no objection of the DA has already been released.

The road to be repaired measures 7.8 kilometers up to the junction of the Leon-Tubungan Road. “We are all glad that all is going well and all are already in process,” Alquisada added.

The subproject cost for civil works under the infrastructure development component is P77.075 million. The province of Iloilo’s counterpart for the subproject is 10 percent, or P7.1 million, to be used for civil works. PNA

Taguig hires 14 deaf, mute individuals for TCISS

PCSO donates amubulance units to Cavite

Philippine Charity Sweepstakes Office (PCSO) Chairman Ayong Maliksi (second from left), Vice Chairman and General Manager lawyer Jose Ferdinand Rojas II, and Directors Betty Nantes and lawyer Francisco Joaquin III, together with Tzu Chi Foundation CEO Alfredo Li, pose with the symbolic key of a brand-new ambulance turned over to Cavite Rep. Abraham Tolentino (left) in a ceremony held at the Imus Sports Complex on Friday. Top photo shows some of the 26 brand-new ambulances from the PCSO’s Ambulance Donation Program that were handed over to cities, municipalities, government hospitals and a state university in the province. JOSEPH MUEGO

TO demonstrate equal employment opportunity for all Taguigeños, the city government of Taguig hired 14 deaf-mute individuals as office personnel for its citywide survey system.

According to Mayor Lani Cayetano, the deaf-mute Taguigeños are assigned in the Taguig City Integrated Survey System (TCISS), a department that conducts house-to-house surveys regarding the basic social services needed by its constituents. Through the TCISS, the city government is able to properly allocate its resources, such as maintenance medicines for asthma, diabetes and high-blood pressure, among others.

The 14 new survey encoders are tasked to input to the computer the data gathered by the field survey personnel. Cayetano said the city’s effort to provide equal work opportunity roots in its belief that all people should be treated similarly, unhampered by any hindrance.

“We are not leaving anyone behind. As the city of Taguig progresses, we want to give equal employment opportunities for all our constituents who are looking for a job and are willing to be trained, even if they are physically challenged,” Cayetano said. Claudeth Mocon-Ciriaco

China Southern Airlines Co., Ltd General Conditions of International Carriage for Passenger & Baggage Edited by Edition Group of General Conditions of International Carriage for Passenger & Baggage February 1, 2011 Version No. 4 Granted by General Manager of China Southern Airlines Co., Ltd: Tan Wangeng Date of Granting: April 19, 2011 China Southern Airlines Co., Ltd General Conditions of International Carriage for Passenger & Baggage Article 0 General Rules 0.0.1 Contents

In order to insure efficient running of tickets sales and ground handling in stations for the international passengers and baggage, General Conditions of Carriage of Passenger & Baggage (hereinafter referred to as the Conditions) is made by China Southern Airlines as part of the passenger carriage contract. The contents of the Conditions include: 0.0.1.1 Definitions 0.0.1.2 Applicability 0.0.1.3 Tickets 0.0.1.4 Fares, Taxes, Fees and Charges 0.0.1.5 Reservations 0.0.1.6 Ticketing 0.0.1.7 Check-in and Boarding 0.0.1.8 Baggage 0.0.1.9 Schedules, Cancellations, Alterations of Flights 0.0.1.10 Changes to Passenger tickets 0.0.1.11 Refunds 0.0.1.12 Conduct Aboard Aircraft 0.0.1.13 Refusal and Limitation of Carriage 0.0.1.14 Arrangements for Additional Services 0.0.1.15 Administrative Formalities 0.0.1.16 Passenger Services 0.0.1.17 Liability for Damage 0.0.1.18 Effectiveness and Modification 0.0.2 Basis of Formulation 0.0.2.1 These Conditions are formulated on the basis of Civil Aviation Law of the People’s Republic of China, the Rules of China on the International Civil Air Transport of Passengers and Luggage, Large-scale Public Air Transport Carrier Certification Rules of Operation (the CCAR-121- R2), Operation of Civil Aircraft Airworthiness Regulations (the CCAR121AA),etc.

0.0.3 Implementation 0.0.3.1 These Conditions are formulated as the principle for the performance in station by staff of CSN as follows: domestic ticket sales, ground handling and ground handling agents, etc. Any department or staff in relation with domestic passenger and baggage delivery, including sales branch, department, office and ground handling agents shall fully abide these Conditions.

0.0.3.2 The issuance and implementation of the Conditions help to standardize the international ticket sales, check-in and baggage delivery, which leads to safety priority, flight normality and excellent service quality.

Article 1 Definitions

1.1 The following terms used in the General Conditions of International Carriage for Passenger and Baggage (hereinafter referred to as Òthe ConditionsÓ) are defined as follows unless otherwise specified: 1.1.1 CSN means China Southern Airlines Company Limited.

1.1.2 Convention means whichever of the following instruments that is applicable: The Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw, 12 October 1929 (hereinafter referred to as the Warsaw Convention); The Warsaw Convention as amended at The Hague on 28 September 1955 (hereinafter referred to as the Hague Protocol); The Convention for the Unification of Certain Rules for International Carriage by Air, done at Montreal on 28 May 1999 (hereinafter referred to as the Montreal Convention).

1.1.3 CSN’s regulations means rules, other than the Conditions, published by CSN and in effect on date of publication, governing carriage of passengers and/or baggage and shall include any applicable tariffs in force.

1.1.4 International carriage means air carriage in accordance with air carriage contract between CSN and the passenger, whether there is a break or transfer in the transportation or not, of which the origin, appointed stopover or destination is not located in the People's Republic of China.

1.1.5 Carrier means all public air carriage company which including issues air tickets, carries or undertakes to carry the passengers and baggage listed in air tickets.

Ticketing carrier means the carrier whose numeric code is indicated in coupons of electronic ticket sales. Ticketing carrier shall be the controller and authorizer of electronic ticket sales.

Marketing carrier means the carrier whose two letters airline designator code is recorded in coupons as the carrier that operates.

Operating Carrier means the carrier that performs the actual air carriage and additional services. When there are certain bilateral agreements, such as code sharing agreement, operating carrier may not be marketing carrier.

1.1.6 CSN authorized agent or authorized agent means a passenger sales agent who has been authorized by CSN to represent CSN in the sales of air passenger transportation and its relevant services.

1.1.7 Passenger means any person, except members of the crew, carried or to be carried in an aircraft with the consent of CSN. 1.1.8 Child means any person 2 to 11 years old on the date of commencement of travel.

1.1.9 Unaccompanied child means any person 5 to 11 years old on the date of commencement of travel who travels without accompany of parents or any other passenger with full capacity for civil conduct and over 18 years old.

1.1.10 Infant means any person who is under the age of 2 on the date of commencement of travel.

1.1.11 Reservation means the reservation of seat and service class, or the weight and size of baggage appointed by passenger.

1.1.12 Flight means the flying of aircraft according to scheduled route, date and time.

1.1.13 Ticket means either the document entitled ‘Passenger Ticket and Baggage Check’, or the Electronic Ticket, in each case issued by or on behalf of CSN, and includes the conditions of contract and notices and the flight and passenger coupons contained therein.

1.1.14 Conjunction ticket means a ticket issued to a Passenger in conjunction with another ticket which together constitute a single contract of carriage.

1.1.15 Fixed ticket means a ticket whose flight number, date of flight are fixed and the seat is reserved.

1.1.16 Open ticket means a ticket whose flight number, date of flight are not fixed and the seat is not reserved.

1.1.17 Flight coupon means that portion of the ticket that bears the notation “good for passage”, or in the case of an electronic ticket, the electronic coupon, and indicates the particular places between which you are entitled to be carried.

1.1.18 Passenger coupon means the portion of ticket issued by or on behalf of CSN and which is so marked and ultimately to be retained by passenger .

1.1.19 Itinerary for air carriage electronic ticket (hereinafter referred to as Itinerary) means the payment proof for passengers provided by public air carriage company or its sales agency during ticket purchasing. One itinerary is provided for each electronic ticket, and can be printed at latest one month after the flight departure. Passenger shall preserve it well in case of refunds.

1.1.20 Day means calendar days, including all seven days of the week. Provided that, for the purpose of notification, the day upon which notice is dispatched shall not be counted; and provided further that for the purposes of determining duration of validity, the day upon which the ticket is issued, or the day upon which flight commenced, shall not be counted.

1.1.21 Tariffs means the fares, charges and relevant rules published by carriers. When necessary, tariffs must be approved by relevant departments.

1.1.22 Normal fare means the highest fare established for a first / business / premium economy class / economy class of valid adult fare. Children's fare and infants' fare that are established as a percentage of a normal fare are also considered to be normal fares.

1.1.23 Special fare means any fare other than a normal fare.

1.1.24 Agreed transition point means the point of stay, other than the origin and destination, stipulated in the flight schedule of ticket of carrier.

1.1.25 Stopover means a scheduled stop at a certain point between origin and destination arranged by passenger and with the consent of carrier.

1.1.26 Overbooking means that the seats have been sold exceed the biggest allowance of the flight.

1.1.27 Spillage means the spillage of passengers on a flight because of the aircraft type change or flight emergence caused by machinery or aircraft readjustment and etc.

1.1.28 Code share flight means a carrier or several carriers use their own airline designator code respectively on another carrier’s operating flight in accordance with their agreement.

1.1.29 Deadline time for check-in means the latest time stipulated for passenger by operating carrier to finish the check-in formalities.

1.1.30 Actual Departure time means the time of aircrews remove the last block with permission by air control center after boarding. Planned Departure Time means the departure time publish and listed on the tickets that approved by flight time management department.

1.1.31 No-show means passenger's failure to board the aircraft because they fail to finish check-in formalities before stipulated check-in deadline or because their travel documents don’t meet the requirements.

1.1.32 Mis-catch means passenger's failure to board the aircraft after finishing check-in formalities at the origin airport or transit airport.

1.1.33 Wrong Boarding means passenger's boarding a flight different from the one listed in the ticket.

1.1.34 Baggage means such articles, effects and other personal property of the Passenger as are necessary or appropriate for wear, use, comfort or convenience in connection with the trip. Unless otherwise specified, it includes both checked and unchecked baggage of the Passenger.

1.1.35 Checked baggage means baggage of which CSN takes sole custody and for which CSN has issued a baggage tag.

1.1.36 Unchecked Baggage means any baggage of the Passenger other than checked baggage.

1.1.37 Self-care baggage means any baggage which, with the consent of the carrier, is weighed or calculated its pieces by the carrier and taken care of by the passenger themselves during the journey including stay in transit points.

1.1.38 Free hand-carry item means any small item which, with the consent of the carrier, is taken by passenger on board or during the stay at transit points, within the sorts and quantity limitation of the carrier.

1.1.39 Baggage check means those portions of the ticket, which relate to the carriage of the passenger’s checked baggage.

1.1.40 Baggage tag means a document issued by CSN solely for identification of checked baggage.

1.1.42 Force majeure means an unusual and unforeseeable circumstance beyond control, the consequences of which could not have been avoided even if all due care had been exercised.

1.1.41 Damage includes death, injury, delay, loss, partial loss or other damage of whatsoever nature arising out of or in connection with carriage or other services incidental thereto performed by CSN. 1.1.43 Change fee means the charge for passenger’s voluntary request of changing their original flight reservation, including flights, date, cabin and validity, etc.

1.1.44 Endorsement means change of marketing carrier.

Article 2 Applicability

2.1 Applicability 2.1.1 General Rules 2.1.1.1 Except as provided in 2.1.2, 2.1.3 and 2.1.4 of this chapter, these conditions apply to all international carriage by air of passengers and baggage, performed by CSN for reward and code share flight or segment which is operating by CSN. 2.1.1.2 These conditions also apply to gratuitous and reduced fare carriage except to the extent that CSN has provided otherwise in its Regulations or in the relevant contracts, passes or tickets.

2.1.1.3 These conditions apply to the flight services between mainland and Hong Kong and Macao, except that government has provided applicable regulations, or that CSN has provided otherwise in the relevant contracts, passes or tickets.

2.1.2 If carriage is performed pursuant to a charter agreement, the Conditions apply only to the extent they are incorporated by reference by the terms of the charter agreement and the charter ticket into the contract of carriage.

2.1.3 To the extent that any provision contained or referred to herein is contrary to anything contained in the Convention, where applicable and any applicable laws, government regulations, orders or requirements that cannot be waived by agreement of the parties, such provision shall not apply. The invalidity of any such provision shall not affect the validity of any other provision contained or referred to herein.

2.1.4 Except for special agreements as provided in specific contract, in the event of inconsistency between these Conditions and Carrier’s regulations, the Conditions shall prevail.

Article 3 Tickets

3.1 General Rules 3.1.1 The ticket constitutes prima facie evidence of the contract of carriage between carrier and the passenger named on the ticket. CSN will provide carriage only to the passenger holding such ticket, or holding, as proof of payment or part payment, any other carrier document issued by CSN or its authorized agent. CSN ticket is and remains at all times the property of CSN. The conditions of contract contained in the ticket are a summary of some of the provisions of these conditions of CSN. 3.1.2 A ticket is not transferable. If a ticket is presented by someone other than the person entitled to be carried there under or to a refund in connection therewith, CSN shall not be liable to the person so entitled if in good faith it provides carriage or makes a refund to the person presenting the ticket.

3.1.3 Some tickets are sold at special fares may apply to special refund and reissue policy. Passengers should choose the fare that best suits to your needs.

3.1.4 Requirements for Ticket Using 3.1.4.1 In the event of using a paper ticket, a person shall not be entitled to be carried on a flight unless that person presents a ticket valid and duly issued in accordance with CSN’s Regulations and containing the flight coupon for the flight and all other unused flight coupons and the passenger coupon. A passenger shall furthermore not be entitled to be carried if the ticket presented is mutilated or if it has been altered otherwise than by CSN or its authorized agents.

3.1.4.2 Passenger’s name on the ticket must be the same with the identity information provided by the passenger; otherwise CSN has the right to refuse carrying the passenger.

3.1.4.3 For electronic tickets, if the coupon of the sector which passenger requests to check in is not unused and valid, CSN has the right to refuse carrying the passenger.

3.1.4.4 CSN will honor flight coupons only in sequence from the place of commencement of travel as shown on the ticket.

3.1.4.5 Each flight coupon will be accepted for carriage in the class of service specified therein on the date and flight for which accommodation has been reserved. When flight coupons are issued without a reservation being specified thereon, space will be reserved on application subject to the conditions of the relevant fare and the availability of space on the flight applied for.

3.2 Period of Validity 3.2.1 General Rules 3.2.1.1 Unless otherwise specifically provided in the fares rule, a ticket is valid for carriage for one year from the date of commencement of travel, or if no portion of the ticket is used or the ticket is an open ticket, from the date of issuance thereof. Where one or more portions of a ticket involves an excursion or other special fare having a shorter period of ticket validity than indicated above, such shorter period of validity shall apply only in respect to such excursion or special fare transportation. If ticket partially used, ticket is valid for carriage for one year from the date of commencement of travel. Regardless of further reissue or exchange ticket, the original validity will not change. This rule will apply for the whole tickets or series tickets. For totally unused tickets, the new validity is one year from the date of commencement of travel after ticket exchanged. If the first segment is not used after exchanged, the validity is one year from the date of exchanged.

3.2.1.2 The validity of a ticket is counted from the midnight on the date of commencement, or if no portion of the ticket is used, from the midnight on the date of issuance, till the midnight on the date of expiration.

3.2.1.3 Some special fare have strictly limitations for the shortest and longest staying time, passenger must finish all the sectors listed in the ticket within the period of validity.

3.2.1.4 Period of validity of tickets with more than one sector shall be calculated from the date of commencement of the first travel under the ticket.

3.3 Extension of Validity 3.3.1 General Rules 3.3.1.1 If a passenger is prevented from traveling within the period of validity of the ticket because of one of the following reason

by CSN, the validity of such passenger’ ticket will be extended until CSN’s first flight on which space is available in the class of service for which the fare has been paid under consensus.

1. CSN cancels the flight on which the passenger holds a reservation; 2. CSN omits a scheduled stop, being the passenger’s place of departure, place of destination or a stopover; 3. CSN fails to operate a flight reasonably according to schedule; 4. CSN causes the passenger to miss a connection of booked flight; 5. CSN changes the class of service; 6. CSN is unable to provide previous confirmed space.

3.3.1.2When a passenger is prevented from traveling within the period of validity of the ticket by reason of illness, CSN will decide whether to extend the period of validity of such passenger's tickets in accordance with CSN's regulations applicable to the fare paid and the medical certificate. If CSN accept the illness application, fare paid will remit the change fee but not the balance in the new flight coupons. CSN will extend similarly the period of validity of tickets of other members of the passenger's immediate family accompanying an incapacitated passenger.

3.3.1.3 In case of death of passengers or their immediate family of a passenger who has commenced travel or en route, CSN will provide reissue (change fees exemption) or refunded in accordance with involuntary refunds regulations. Any

such modification and refund shall be made upon receipt of a proper death and immediate family certificate.

3.4 Loss of Paper Ticket 3.4.1 General Rules Passenger shall be liable for the loss of unused tickets, flight coupons, miscellaneous charges orders or exchange coupons of MCO, or any other documents for transportation. CSN will not be responsible for any effect on such passenge’s itinerary. CSN will decide whether or not to refund, replace such documents in accordance with its concerned regulations and certain condition. Passenger has no right to claim that CSN must refund or replace such tickets or documents.

3.4.2 Report of Loss of Ticket 3.4.2.1 In case of loss or mutilation of a ticket, or part thereof, or non-presentation of a ticket containing the passenger coupon and all unused flight coupons, the passenger must report in writing to CSN or its authorized agents. Such passenger shall complete the form of ÒApplication and Indemnity Agreement for Lost TicketÓ. Formalities of reporting the loss of group tickets must be done before the deadline time of check-in. Report of loss cannot be done on tickets of charter flights.

3.4.2.2 When reporting for loss of a ticket, the passenger must advise the date and place of issuance and the agent coupon or its copy of the original ticket and present proof of loss satisfactory to CSN. If the reporter is not the passenger, valid identity documents of the reporter and the passenger must be produced.

3.4.2.3 If someone other than the person entitled to be carried or to be refunded has traveled with or refunded the ticket, CSN shall not be liable to the person so entitled.

3.4.3 CSN will not re-issuance of lost ticket in principle.

3.4.4 Deadline for Refunding Lost Tickets The deadline for refunding tickets purely operated by CSN is 60 days after 13 months from the date of commencement of travel, or the date of issuance if no portion has been used; if any sector is operated by another carrier than CSN, the deadline for refunding is 60 days after 18 months from the date of commencement of travel, or the date of issuance if no portion has been used; Within this period, if someone other than the person entitled to be carried or to be refunded has traveled with or refunded the ticket, CSN shall not be liable to refund to the person so entitled.

3.5 Loss of Itinerary

If printed itinerary of e-ticket is lost because of reasons of passengers, according to Temporary Regulations on Itineraries of E-tickets of Air Carriage, it cannot be re- printed.

3.6 Sequence and Usage of Coupons 3.6.1 Ticket purchased by passenger is only applicable for the transportation from the origin to destination via the any agreed transition point as listed on the ticket. The fare paid by passenger is based on CSN's tariff rules and the transportation listed on the ticket. Fare is the basic content of the transportation contract between CSN and passenger.

3.6.2 Flight coupons must be used in sequence from the place of departure as shown on the passenger coupon, and the first segment must use otherwise CSN will not accept for carriage. The first segment means one coupons or more than one conjunction ticket in the same contract. Unless otherwise specified provided in the fares rule, no portion of the flight coupons is used will accept refunded within thirteen months after the date of commencement. Coupons that have been used counts from the date of issuance. Refunded in accordance with involuntary refunds regulations and charge refund fee and no show fee. The balance and the tariff of unused will refund to passenger.

3.6.3 If passenger wishes to change any aspect of transportation, he must contact CSN in advance. The fare for passenger’s new transportation will be re-calculated under the flight coupons restriction and passenger will be given the option of accepting the new price or maintaining his original transportation as ticketed. If passenger is required to change any aspect of transportation due to Force Majeure, passenger must contact CSN as soon as practicable and CSN will use reasonable efforts to transport passenger to the next stopover or final destination, without recalculation of the fare.

3.6.4 If passenger changes his transportation without CSN’s agreement, CSN will assess the correct price for passenger’s actual travel. Passenger will have to pay any difference between the price paid and the total price applicable for the revised transportation.

3.6.5 Some changes on the content of transportation in the flight coupons such as changing the place of departure or reversing the direction of travel, can result in an increase of price. Many fares are valid only on the dates and for the flights shown on the ticket and may not be changed at all, or only upon payment of an additional fee.

3.6.6 Fixed Ticket is only applicable for the date and flight which is listed on the flight coupons.

3.6.7 Open ticket means the booking status is ‘open’ in accordance of passenger’s requirement and fare regulations. A ticket whose operated carrier, flight number, date of flight are not reserved and must confirm with CSN before ticket issuance.

3.6.8 Each flight coupon contained in a ticket will be accepted for transportation in the class of service on the date and flight for which space has been reserved, as shown in the flight coupon.

3.6.9 Open Ticket holders can reserve their seats in accordance of the fare regulation and seat available. Passenger confirm their ticket without change fee for the first time issuance and subsequent collect the balance between the new fare and original open ticket fare. Any further confirmation may cause change fee and fare balance in accordance of fare regulation.

3.6.10 If passenger does not show up for any flight, for which he is holding a reservation, without advising CSN in advance, CSN may cancel passenger’s return or onward reservations as shown in the ticket.

3.7 On a ticket, CSN’s name is abbreviated as CZ, the airline designator code of China Southern Airlines.

3.8 Over-booking

According to the common practice of international civil aviation industry, CSN may make suitable over-booking on some flights. Under particular circumstances, it may result in some passengers’ failure to travel on flights as arranged.

When there is not enough space, CSN will seek for passengers voluntary to disembark and will help them check in on priority. For passengers who cannot travel due to over-booking, CSN will do its best to arrange them on the soonest available flight or free refunded, and will give a certain amount of compensation.

Article 4 Fares, Taxes, Fees and Charges

4.1 Application of Fares 4.1.1 Fares apply only for carriage from the airport at the point of origin to the airport at the point of destination. Fares do not include fees for ground transport service and additional services between airports and between airport and downtown.

4.1.2 The applicable fare is the fare for the flights in effect on their purchased, applicable for the date of flight and routing which is listed on the flight coupons. Once the ticket is issued and the payment is made, the fare will not change despite any readjustment.

4.1.3 A special fare ticket is subject to the conditions specified thereof.

4.2 Routing Fares apply only to routings published in connection therewith. If there is more than one routing at the same fare, the passenger may specify the routing prior to issue of the ticket. If no routing is specified, CSN may determine the routing.

4.3 Taxes, fees and Charges Any tax, fee or charge imposed by government or other authority, or by the operator of an airport, in respect of a passenger or the use by a passenger of any services or facilities will be in addition to the published fares and charges and shall be paid by the passenger and collected by airlines at the time of ticket issuance. On purchasing a ticket, passenger will be advised of taxes, fees and charges not included in the fare, most of which will normally be shown separately on the ticket. The taxes, fees and charges imposed on air travel are constantly changing and can be imposed after the date of ticket issuance. If there is an increase in the applicable tax, fee or charge shown on the ticket, passenger will be obliged to pay it. Likewise, if a new tax, fee or charge is imposed after ticket issuance, passenger will be obliged to pay it. In the event any taxes, fees or charges which passenger has paid to CSN at the time of ticket issuance are eliminated or reduced, such that they no longer apply, or a lesser amount is due, passenger may be entitled to a refund of any such taxes, fees or charges as have been eliminated or reduced. The airlines will refund according to the rule by government.

4.4 Fuel surcharge and air insurance surcharge are published and charged by the carrier according to relevant regulations of the State. Unless otherwise specifically, infants not occupying a seat are exempt from fuel surcharge; children are charged the same amount of fuel surcharge as adults.

4.5 Payment Fares and charges are payable in any currency acceptable to CSN. Unless otherwise agreed by CSN and passenger, fares and charges are all paid in cash.

Article 5 Reservations

5.1 Reservation Requirements 5.1.1 Reservations are not confirmed until recorded as accepted by CSN or its authorized agents. Reservations shall be tentative unless and until CSN has issued a validated ticket for the carriage for such space is reserved, and the passenger makes payment by the time fixed by CSN. 5.1.2 According to CSN’s regulations, certain fares may have conditions that will limit or exclude the passenger's right to change or cancel reservations.

5.1.3 CSN keeps the right to suspend reservations for a certain flight when it is necessary.

5.1.4 Infants and children must be booked in the same compartment as that of the accompanying adult.

5.1.5 Application for change or cancellation of reservation must be raised within the valid period stipulated by CSN. When fares have correspondent restrictions, passenger’s change or cancellation of reservation shall be subject to such restrictions.

5.1.6 CSN keeps the right to cancel the space reserved for the passenger who failed to use the reserved accommodation with no previous notice to any relevant department of CSN. 5.2 Special Passengers A special passenger is someone, during the flight, to be accorded courteous reception; or needing special care on account of his or her physical or mental conditions; or acceptable for carriage in certain conditions.

The reservation may be accepted after all the carriers' concerned consent to the carriage of such special passengers.

5.3 Ticketing Time Limits If a passenger has not paid for the ticket prior to the specified ticketing time limit, CSN may cancel the reservation.

5.4 Personal Data 5.4.1 The passenger recognizes that personal data has been given to CSN for the purpose of making a reservation for carriage, obtaining ancillary services, facilitating immigration and entry requirements and making available such data to government agencies. For these purposes the passenger authorizes CSN to retain such data and to transmit it to its own offices, other carriers or the providers of such services.

5.4.2 Passenger shall be liable for the authenticity of such data. CSN will not be responsible for verification.

5.4.3 If passenger refuses to provide such data, CSN may refuse for carriage.

5.5 Arrangement of Seats 5.5.1 CSN will endeavor to honor advance seating requests, however, CSN cannot guarantee any particular seat. CSN reserve the right to assign or reassign seats at any time, even after boarding of the aircraft. This may be necessary for operational, safety or security reasons.

5.5.2 Seats near the aircraft's emergency exits shall be specifically arranged by CSN.

Article 6 Ticketing

6.1 General Rules 6.1.1 Passenger can purchase tickets at the sales office of CSN or CSN's authorized agencies, or at CSN's websites http://www.csair.com, http://www.flychinasouthern.com. Passenger can inquire or purchase ticket at CSN's hotlines: CSN's hotlines: 95539 (within Mainland China), 8620-86682000 (outside Mainland China); hotlines for direct sales or CSN's websites: 4006695539 (within Mainland China), 8620- 22395539 (outside Mainland China).

6.1.2 Passenger should fill up the Reservation Form for Passengers, providing valid identity document information of his own or other valid identity documents produced by public security departments and a corrected contact information; meanwhile passenger must ensure such information is the consistent with that of the documents during check-in.

6.1.3 When ticketing, CSN has the right to request passenger produce his or her valid passport or other traveling documents and contact information, but will not bear responsibility for the authenticity and the validity of such documents.

6.1.4 When purchasing a ticket for child or infant, a valid birth certificate must be presented.

6.1.5 When purchasing a ticket for a passenger seriously sick or over 32 weeks pregnant, passenger shall provide a valid medical certificate issued by a medical department at or above county level for such carriage that is accepted by CSN. 6.1.6 Each passenger shall respectively hold his own ticket.

6.1.7 Infants and passengers less than 5 years old must be accompanied by a passenger over 18 years old and with full capacity for civil conduct.

6.2 CSN or CSN's authorized agencies shall sell one-way, consecutive, or round-trip tickets according to the request of passengers.

6.3 On booking and purchasing, CSN and CSN's authorized agencies should notify the type of flight, marketing carrier and operated carrier when passenger purchase the codeshare flight.

8.1.4.5 The carriage of passenger or his baggage may endanger or affect the safety, health, convenience, comfort of other passengers or crew members.

8.2 Checked Baggage 8.2.1 Checked baggage must meet the following requirements: 8.2.1.1 Passenger must check baggage with a valid ticket. CSN should correctly enter the pieces and/or weight of checked baggage into departure system. Each passenger's baggage must be recorded on his own record. If passenger holds a paper ticket, baggage content should be written on the correspondent spot of ticket.

8.2.1.2 CSN generally accepts baggage during check-in on the date of flight departure. If passenger requests CSN to accept checked baggage in advance, he could make an appointment in advance.

8.2.1.3 CSN shall attach a baggage tag to each piece of passenger's checked baggage, and give a baggage identification tag to passenger. Self-care baggage after weighed together with checked baggage and entered into ticket respectively and attached a self-care baggage tag, is taken care of by passenger in the passenger cabin.

8.2.1.4 The weight and size of checked baggage shall not exceed CSN's restrictions; those exceeding such restrictions shall be carried as cargo.

8.2.1.5 Passenger should attach name or other personal mark to the checked baggage before checking it in.

8.2.1.6 Checked baggage must be well packed, locked and bound, and must be able endure a certain amount of pressure, and can be safely loaded, unloaded and carried under normal operation conditions, and should meet the following requirements:

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Article 8 Baggage

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7.1 General Rules 7.1.1 The passenger shall arrive at the designated check-in location sufficiently in advance of flight departure to permit completion of any Government formalities and departure procedures and in any event not later than the time that my be indicated by CSN. 7.1.2 If the passenger fails to arrive in time at the designated check-in location or boarding gate or appears improperly documented or fails to provide an acceptable ticket and not ready to travel, CSN may cancel the space reserved for the passenger and will not delay the flight. CSN is not liable to the passenger for loss or expense due to the passenger's failure to comply with the provisions of this Article. If the passenger wishes a refund, the amount of such refund shall be processed in accordance with the voluntary refund regulations.

7.1.3 Check-in deadlines are different at every airport; CSN or CSN's authorized agencies should inform the passenger of the check-in deadlines and codeshare flight check-in will offer in the counter of operated carrier. Passengers should reserve enough time for check-in formalities. If passenger fails to check in before check-in deadlines, CSN has the right to cancel passenger's reservation.

7.1.4 CSN and CSN's ground handling agencies should open check-in counters in time, accept valid tickets produced by passengers, and process check-in formalities quickly and correctly.

7.1.5 Before boarding, passengers and their baggage and hand- carry items must go through security check.

7.2 Mis-catch 7.2.1 If mis-catch happens due to reasons of passengers, ticket shall be dealt according the rules of voluntary refund.

7.2.2 If mis-catch happens due to reasons of CSN, CSN shall arrange passenger to travel on the soonest flight; if passenger requests for refund, it shall be dealt according to rules of involuntary refund.

7.3 Wrong Boarding 7.3.1 If passenger boards a wrong flight and the passenger requests to stop traveling at the destination of the flight boarded, no extra fee shall be charged and no fee shall be refunded.

7.3.2 If wrong boarding happens due to reasons of CSN, CSN shall arrange passenger to travel on the soonest flight to the destination listed on passenger's ticket; no extra fee shall be charged and no fee shall be refunded. If passenger requests for refund, it shall be dealt according to rules of involuntary refund.

8.1.3 Limitation on carriage The carriage of following articles is limited. They may be accepted only in accordance with the CSN's regulations as checked baggage.

8.1.3.1 Precision instrument and electric appliances shall be carried as cargo. They may be accepted only in accordance with the CSN's regulations as checked baggage. Free baggage allowance does not apply to such items.

8.1.3.2 Sporting equipment, including firearms and ammunition for hunting and sporting purposes.

8.1.3.3 Dry ice, alcoholic beverage, medicinal or toilet articles and personal smoking materials intended for use by an individual shall not exceed the set quota.

8.1.3.4 Diplomatic envelopes, confidential files; 8.1.3.5 Weapons such as swords, knives, antique firearms, and similar items may be accepted as checked baggage, in accordance with CSN's Regulations, but will not be permitted in the cabin.

8.1.3.6 Pet or guide-dog which is specified in Provision 8.7.

8.1.3.7 The wheelchair and/or other assistant devices for incapacitated or the aged passengers.

8.1.3.8 Liquid hand-carried by passenger.

8.1.3.9 Items not suitable to be carried in cargo cabin such as delicate musical instrument and not meeting the requirements of weight and size by Provision 8.4, shall be carried in passenger cabin as seat-taking baggage. Extra fees shall be charged for such items, and such items shall be taken care of by the passenger.

8.1.4 Right to refuse carriage In the exercise of CSN's discretion, CSN may refuse to carry passenger or his baggage after informing the passenger. In this circumstance passenger will be entitled to a refund. CSN may also refuse to carry passenger or his baggage for any of the following reasons: 8.1.4.1 CSN may refuse carriage as baggage of such items described in 8.1.1 and 8.1.2 as are prohibited from carriage as baggage and may refuse further carriage of any such articles on discovery thereof.

8.1.4.2 Unless advance arrangements for its carriage have been made with CSN, CSN may carry on later flight baggage that is in excess of the applicable free allowance.

8.1.4.3 CSN may refuse to accept baggage as checked baggage unless it is properly packed in suitcases or other suitable containers to ensure safe carriage with ordinary care in handling.

8.1.4.4 Such action is necessary to prevent a violation of any applicable laws, regulations, or orders of any State to be flown from, to or over.

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Article 7 Check-In and Boarding

8.1 General Rules Baggage carried by CSN, is divided into checked baggage and un-checked baggage (self-care baggage and free hand- carry items).

8.1.1 Items Unacceptable as Baggage Passenger shall not include in his or her baggage (both checked baggage and unchecked baggage) or carry on to the cabin.

8.1.1.1 Items that do not constitute baggage as defined in Provision 1.1.34 of the Conditions.

8.1.1.2 Other than those permitted by Dangerous Goods Transportation Regulations of China Civil Aviation and CSN regulations, dangerous goods including the following items are not permitted to be carried and checked or un- checked baggage: 1) Explosives; 2) Gas, including flammable gas, inflammable and nontoxic gas, and toxic gas; 3) Flammable liquid; 4) Flammable solid, spontaneous combustible substance; substance that would release flammable gas in contact with water; 5) Oxidizer and organic peroxide; 6) Toxic substance and infectious substance; 7) Radioactive substance; 8) Corrosive substance; 9) Miscellaneous dangerous goods such as magnetic substance.

8.1.1.3 Items the carriage of which is prohibited by the applicable laws, regulations or orders of any country to be flown from, to or over.

8.1.1.4 Articles those in the opinion of CSN are unsuitable for carriage by reason of their weight, shape, size or character.

8.1.1.5 Live animals, except as pets and guide dogs provided for in Provision 8.7.

8.1.1.6 Firearms and ammunition other than for hunting and sporting purposes are prohibited from carriage as baggage.

8.1.2 Items unacceptable as checked baggage Passenger shall not include in checked baggage the following items. If such items included in checked baggage is lost or damaged, CSN is liable for it only as common checked baggage.

1) Fragile items; 2) Perishable items; 3) Money or valuable securities; 4) Jewelry; 5) Precious metal and articles thereof; 6) Antiques and valuable paintings; 7) Computer and personal digital device; 8) Samples and valuables; 9) Lithium battery; 10) Important files and documents; 11) Traveling documents, medical certificates, X-ray films; 12) Prescribed drug that needs to be taken regularly.

13) Portable power source

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8.2.1.7 Checked baggage will, whenever possible, be carried on the same aircraft as you, unless we decide for safety, security or operational reasons to carry it on alternative flight. If passenger's checked baggage is carried on a subsequent flight CSN will deliver it to passenger, unless applicable law requires passenger to be present for customs clearance.

8.3 Free baggage allowance 8.3.1 The free baggage allowance for baggage (include checked and unchecked) is determined by CSN's official updates.

8.3.1.1 Piece concept Unless otherwise specifically, the piece concept which applies to carriage on all CSN's international flight and regional route.

8.3.1.2 The piece concept which applies to carriage to/from the United States or Canada are specified as following: the sum of the three dimensions must not exceed 158cm (62 inches) for each piece, and the weight of each piece must not exceed 45 kg (90 pounds). The piece concept which applies to carriage is not involve of the three dimensions must not exceed 158cm (62 inches) for each piece, and the weight of each piece must not exceed 32 kg (70 pounds).

8.3.1.3 Free baggage allowance for passengers who purchase the mixed travel class will be the applicable to respective class.

8.3.1.4 When two or more passengers, traveling as one party to a common destination or point of stopover by the same flight, present themselves and their baggage for travel at the same time and place, they will be permitted a total free baggage allowance equal to the combination of their individual free baggage allowance.

8.3.1.5 Free allowance for passengers who travel domestic flight which is a part of the international flight will be the applicable to the according international flight.

8.3.1.6 Free allowance for passengers who voluntarily change the travel class will be the applicable to new class. Free allowance for passengers who involuntarily change the travel class will be the applicable to original class.

8.3.1.7 For infant not occupying a seat, the free baggage allowance is one 10 Kg checked bag (piece), the sum of the three dimensions not to exceed 115cm (65 inches), plus one checked or carry on fully collapsible stroller/push-chair or infants carrying basket or infants car seat. Nonretractable stroller is not only for checked baggage. If there is not enough space for fully collapsible stroller in the cabin, it must carry as checked baggage.

8.4 Free Hand-carry baggage 8.4.1 Weight and size Each passenger who is entitled to travel in first class can bring two pieces of hand-carry baggage, each of which must not exceed 5kg in weight. Each passenger who is entitled to travel in business or economy class can bring one piece of hand-carry baggage, each of which must not exceed 5kg in weight. The sum of the three dimensions of each piece must not exceed 115cm. Such baggage can be placed in the baggage cabin or under the seat in the passenger cabin.

8.4.2 Bulky baggage Objects not suitable for transport in the cargo compartment (such as delicate musical instrument and the like) will only be accepted for transportation in the passenger cabin as seat-taking baggage and be taken care of by passenger, if due notice has been given in advance and permission granted by CSN. The transport of such objects may be charged separately.

8.4.3 Checked baggage and self-care baggage of un-checked baggage shall be weighed or piece-calculated together at the time of check-in. Checked baggage is under custody of CSN during the journey, while the self-care baggage shall be taken care of by passenger in the journey including stay in transit points.

8.5 Excess baggage 8.5.1 The excess baggage means total weight or/and pieces of (checked and unchecked) baggage excess the free allowance.

8.5.2 Baggage carried in excess of the free baggage allowance will be charged as CSN's regulations, and will be carried after CSN or CSN's authorized agencies issue an excess baggage ticket.

8.6 Declaration and charge 8.6.1 General Rules 8.6.1.1 A passenger may declare a value for checked baggage in excess of USD30 or its equivalent per kilogram, and shall pay an applicable charge.

8.6.1.2 No declaration value for pet will be accepted.

8.6.1.3 CSN will charge an fee of 5ä of extra declared value exceeding the limitation of 8.6.1.1.

8.6.2 CSN will refuse to accept an excess value declaration on checked baggage when a portion of the carriage is to be provided by another Carrier who does not offer the facility.

8.6.3 The declaration for checked baggage must not exceed the real value of the baggage. The maximum declared value of each passenger is USD5,000 or its equivalent value in other currencies. If CSN disagrees with a value declaration and the passenger refuses to be checked, CSN has the right to refuse carriage.

8.7 Pets and Guide Dogs 8.7.1 Pets mean such little animals as domestic dogs, cats, birds and other household pets. If the animal is too small in size (such as murines or spectacular fish), or too large in size (the size of whose cage exceeds the maximum size restriction), and may therefore cause hazard to the safety of carriage, it will not be accepted for transportation. Any wild and aggressive animal such as snakes will not be accepted for transportation. The carrier has the right to determine whether an animal can be carried and the way of transportation, and has the right to restrict the number of pets on a plane.

8.7.2 Pet may be accepted for carriage subject to CSN's Regulations only when: 8.7.2.1 Properly crated and accompanied by valid vaccination certificates, entry permits and other documents required by The People's Republic of China and countries of entry or transit.

8.7.2.2 With the advance agreement of CSN and other Carriers concerned.

8.7.3 Guide dog means a dog trained to lead the blind or assist the deaf (Such passenger shall provide an evidenced by a medical certificate.) when if accompanies passenger with impaired vision or hearing dependent upon such dog.

8.7.4 The carriage of guide dogs shall be dealt in accordance with Provision 8.7.2. Guide dogs, if they meet the requirements of the CSN, may accompany in passenger cabin the disabled eligible to travel. The disabled eligible to travel shall provide the identity and quarantine proofs for guide dogs. Guide dogs, together with its cage and food can be carried for free, without taking up the free baggage allowance.

8.7.5 Acceptance for carriage of animals (include guide dogs) is subject to the conditions that the passenger assumes full responsibility for such animal unless due to CSN's faults. CSN shall not be liable for injury to or loss, delay, sickness or death of such animal in the event that it is refused entry into or passage through any country, state or territory 8.7.6 The passenger is fully liable for all damages or injuries which a pet might cause to other passengers or crew members.

8.7.7 CSN will have no liability in respect of any such animal not having all the necessary exit, entry, health and other documents with respect to the animal’s entry into or passage through any country, state or territory.

8.7.8 CSN may refuse to accept the carriage of pet and guide dog on non-stop long-haul flight or some specific type of aircraft due to the unsuitability .

8.8 Delivery of checked baggage 8.8.1 Passenger shall collect his baggage as soon as it is available for collection at places of destination or stopover. At the time of collection, passenger shall show his or her identification tag, or baggage check if CSN requires.

8.8.2 With CSN's consent, passenger can collect his baggage at stopover under the agreement of CSN, the unsued payment of the excess baggage will not be refunded.

8.8.3 If the passenger does not collect his baggage in time, CSN will charge the passenger baggage keeping fee. CSN has the right to deal with the perishable items in passenger's baggage 24 hours after the arrival of the baggage.

8.8.4 CSN is under no obligation to ascertain that the bearer of the baggage identification tag is entitled to delivery of the baggage and CSN is not liable for any loss, damage, or expense arising out of or in connection with such delivery.

8.8.5 If a person claiming the baggage is unable to identify the baggage by the baggage identification tag, CSN will deliver the baggage to such person only on condition that he or she establishes to CSN's satisfaction his or her right thereto. And if required by CSN, such person shall furnish adequate security to indemnify CSN for any loss, damage or expense which may be incurred by CSN as a result of such delivery.

8.8.6 Acceptance of baggage by the bearer of the baggage check, without complaint at the time of delivery, is prima facie evidence that the baggage has been delivered in good condition and in accordance with the contract of carriage.

8.9 Un-delivered Baggage If baagage is not collected after 90 days from the next day of baggage's arrival, CSN has the right to process it according to the regulations on un-delivered baggage.

8.10 Processing of Abnormal Carriage of Baggage 8.10.1 In the event of delay, loss or damage in the carriage of baggage, CSN and CSN's authorized ground handling agency, together with passenger, should fill up a Record Form of Accidents of Baggage Carriage, check out the situation and reasons, and report the results of investigation to passenger and departments concerned. If compensation for baggage happens, it can be processed at t m m m m W m m m W m m m m M m m m m m

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A6 Saturday, July 18, 2015

Opinion BusinessMirror

editorial

Are the Americans coming?

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panish explorer Juan de Salcedo sailed into Subic Bay in 1542 and, given a choice, that area would have become the main Spanish naval facility and, perhaps, eventually the capital of the Philippines.

But the “Pearl of the Pacific,” instead, rested on the shores of Manila Bay.

For about 100 years, Subic Bay was host to the US Navy as one of its major bases in Asia. On November 24, 1992, the American flag was lowered in Subic for the last time. Less than 25 years later, the “Stars and Stripes” could be raised again in Subic, although under different terms and conditions than before.

There must be some irony in the fact that President Corazon Aquino was formally against the removal of the US bases from the Philippines, and now, under the presidency of her son, US forces may be given a semipermanent status in the country.

The Philippine government has announced that it is reopening the base at Subic, as territorial tensions with China continue to escalate. The government’s plan is for the base to host new fighter jets and two frigates at the naval facility beginning in 2016, with the possibility of the US military returning to the base.

The Enhanced Defense Cooperation Agreement (Edca) with the US would allow for longer periods of US military deployment in the Philippines and to build facilities for “logistical purposes.” While the agreement is still subject to legal challenges before the Supreme Court, the assumption should be made that the Edca will be upheld even with some changes.

While not wanting to discuss the merits of the Edca, the reality is that the world has changed since 1992, as situations always change. A year earlier than the base closure at Subic, the Soviet Union was dissolved, North Korea was decades from having nuclear weapons, and Japan was content to sell cars to the US and live under Uncle Sam’s military protection. China was just beginning to reform its economy to more market orientation, and no one really listened or cared.

Removal of the US bases was critical for our country to take necessary steps to—in the words of Jamaican reggae icon Bob Marley—“Emancipate yourselves from mental slavery.”

Proponents of the Edca say that this time US forces will be here under terms set by Filipinos. That is not totally correct. Opponents say that this is sacrificing Philippine sovereignty to the US. That is not totally correct either.

What is true is that geopolitical and military conditions have changed and will always change, and government policies and actions must adapt to those variables. The question, then, is how do we most successfully do that?

The “devil,” as they say, is always in the details, which are yet to be hammered out.

Why the Internet is dangerous John Mangun

OUTSIDE THE BOX

F

rom timesnews.net, the online version of the Kingsport Times newspaper in Ohio, USA: “A Kingsport woman told police she was counterfeiting money because she read online that President Barack Obama made a new law allowing her to print her own money, according to a police report.”

The story goes on to report that the woman was found with around $40,000 of counterfeit dollars that she printed from her home computer and pasted together. She began making her own money after reading a story from a 2009 Internet satire web site that President Obama had made a new law that permitted her to print her own money because she is on a fixed income.

It is easy to dismiss this incident by saying that 45-year-old Pamela Downs is just plain dumb and not smart enough to be allowed near a computer with Internet access.

However, Downs may not be the exception but the rule, for too many people believe what they see on their computer screens.

It used to be that a con artist had to have good looks and a smooth style to be able to take someone else’s money without using a gun. It is still true, to a certain extent, with the num-

ber of incidents of budol-budol. But, if you want to get really rich with a scam, you first need to set up a goodlooking web site.

The recent episodes of large-scale pyramid schemes and the like occurred many times in the provinces, and were based on word of mouth.

There is an advantage to this sort of scam, as the perpetrators are rarely investigated until the thing starts to collapse and people begin to report it to authorities. By then, it is usually too late to recover the money and put the bad people in prison. But it is the intent-based schemes that attract the big money and are so visible that people think they are legitimate mainly because of that visibility. Most people think that, because something is on The Net, it has to be true. The idea is that if there was any hanky-panky involved, so many people would have seen it, and some would have done something to stop it.

But look at the history of the cellphone text scams. The vast majority of people just ignored the nonsense and did not respond to the message about being billed for data usage or whatever. Some did respond and lost money. Truthfully, though, changes by the telecoms company to help people avoid being scammed only came after people got fed up and complained about all the text messages coming in.

The investment scams, from buying gold to investing in foreign-exchange trading, that the Philippine Securities and Exchange Commission has been constantly warning the public about are usually found on the Internet. The wise ignore this kind of nonsense and never get involved.

The foolish ones that are thinking of putting P100,000 or more into these investments are smart enough to know that they must do some homework, and that is exactly what the con artists are counting on.

There is always a good background on the company touting their many investment accomplishments. A section of “testimonials” supports the investment scheme.

By the time the potential investor has read all the slick pages, they are convinced they have all the information they need to invest. They are hooked and ready to be caught.

However, the more insidious and dangerous scams are found in online investment forums and now on Facebook. Social media have become

If China isn’t a global risk, what is?

William Pesek

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BLOOMBERG VIEW

he international ratings agency Fitch was downplaying concerns on Thursday that Chinese stocks are a systemic risk to global markets. Many investors, however, are far less sanguine.

Take hedge-fund billionaire Paul Singer, who worries Beijing’s debt-fueled stock mania could do even more damage than the US subprime crisis. Or Bill Ackman, who runs Pershing Square Capital Management. Asked about Greece on Wednesday, he said: “China is a bigger global threat by far. The Chinese stock market is a fairly remarkable phenomenon, and I think kind of a frightening one.”

Who’s right—Fitch or market players? The deciding factor could be whether deflation rears its head in China—falling prices, and the prospect of a slowing national economy, would suggest the hedge funds are right.

Let’s consider the data. A common takeaway from China’s better-thanexpected data this week is that de-

flation’s grip is easing. The claimed 7-percent gross domestic product (GDP) growth rate, rising middleclass incomes and a pickup in credit would seem to augur well for a stable price outlook in the world’s secondbiggest economy.

But those numbers are deceiving.

For starters, China’s second-quarter performance was pumped up by a stock bubble that’s now losing air.

Financial-sector growth combined with government stimulus (and some creative accounting, of course) to boost GDP. Financial services alone surged 17.4 percent in the first six months of 2015, a dynamic that helped offset a weak real-estate market. But, given the recent stock rout that wiped out almost $4 trillion in market value, it should be obvious this isn’t a durable source of growth.

Meanwhile, China’s housing slowdown is a major deflationary event.

Real estate has been China’s biggest growth engine since the 2008 global crisis. Now, it’s in negativegrowth territory. And that’s having knock-on effects for local-government finances and vital sectors, like manufacturing.

But there’s another deflationary force confronting President Xi Jinping: the fading of China’s credit supercycle, in which people and businesses tried to borrow their way out of debt problems. “The world-beating growth in debt of recent years is unlikely to be repeated, as worries about financial stability grow,” says Andrew Batson, China research director at consulting firm Gavekal Dragonomics. “This creates another barrier to China’s return to rude inflationary health.”

Let’s say, China actually did grow 7 percent between April and June.

That’s still markedly slower than the 12-percent jump in corporate and household borrowing last month. All that borrowing limits the ability of companies to increase employment and consumers to spend. Outstanding loans for companies and households are now a record 207 percent of GDP (and growing fast), compared with 125 percent in 2008.

While the government is sure to

a replacement for personal relationships. Traditional crooks, like Bernie Madoff, who stole billions, have to spend countless hours wining and dining their victims. But a few hours every day on Facebook gives the 21st-century Internet crook the opportunity to “befriend” hundreds of potential “investors.” Because people are “Friends” and talk directly with the con artist, a personal relationship is quickly established. And we usually trust and do business with people that we like.

The primary tool of both the in person and Internet con artist is the personal relationship. These people work very hard at making their potential victim feel special, anticipating that any intellectual misgiving will be reduced by the trust of the relationship. And that is the key to avoid becoming a casualty.

If you cannot clearly explain the investment to an 8-year old child, run away. If the potential profits are more than you have seen before, run away. If it’s on The Net and you cannot validate it from other web sites or forums, run away. Always assume that any investment idea on The Net is a scam to take away your money.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

do more to stabilize growth, “we are far from certain that China is about to exit the deflationary dynamic of recent years,” Batson says. While China’s consumer prices rose 1.4 percent in June, producer prices plunged 4.8 percent.

That dynamic explains why commodity-currency nations Australia and New Zealand are under pressure to slash interest rates.

Both the Aussie dollar and the kiwi tumbled to multiyear lows on Thursday, after fellow commodity exporter Canada eased monetary policy. Meanwhile, waning Chinese demand has resulted in falling global prices for everything, from oil to metals to milk. Those problems will be amplified if China begins exporting deflation to the region. Japan, which still has yet to beat its own multidecade bout with falling prices, is particularly vulnerable, as is South Korea.

The People’s Bank of China can always cut interest rates. (Its oneyear benchmark rate is still 4.85 percent.) But amid cratering growth, rate cuts might just exacerbate the debt troubles of Asia’s only engine of economic growth. In other words, it seems safe to say the hedge-fund managers have it right: If China doesn’t count as a systemic economic risk, what does?

Opinion BusinessMirror

opinion@businessmirror.com.ph

Saturday, July 18, 2015

A7

Why the country remains Caritas YSLEP forms society of servant leaders an economic laggard Rev. Fr. Antonio Cecilio T. Pascual Cecilio T. Arillo

database

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HERE was a time when the Philippines was an economic giant in Asia and Japan’s close rival in economic and infrastructure development. That’s why many are wondering what happened? Why the Philippine economy continuously retrogressed since 1953, the last year of President Elpidio Quirino’s term?

The answer to this question can be found in a book titled Economic Re-examination of the Philippines, a Review of the (free) Economic Policies Dictated by Washington, published in 2000 by Sahara Heritage Foundation and written by Filipino industrialist Salvador Araneta.

The book is a good read not only for students of economics, but also for those seeking higher office in the government. It should be made a textbook or coursebook for undergraduate and postgraduate students in social and behavioral sciences, including economics.

Araneta, one of the founders of the National Economic Protectionism Association (Nepa), was acknowledged by the Chamber of Filipino Retailers as the Father of the Filipinization of the Retail Trade, while his wife, Victoria Lopez Araneta, spearheaded the women’s chapter.

Protectionism, another term for mercantilism, the economic model that made US, Britain and France the world’s unrivaled economic miracles in the pre- and post-world war periods, was Araneta’s lifelong crusade.

As Secretary of Economic Coordination during the Quirino administration, he sponsored the import control policy and the total ban of imported elementary textbooks and supplementary readers.

Protectionism contributed significantly not only to the development, growth and economic advancement of the country, but also to the modernization of the educational publishing in the Philippines.

Araneta also forced oil companies to refine crude oil, instead of just importing gasoline. If they did not, he declared that the government would put up the refineries. Caltex was the first company to comply.

“He seemed to have an uncanny sense of foreboding. The abuse that he had so feared came to pass 36 years later,” said Athle Wijangco Estacio in his article published by The Sunday Times Magazine on July 6, 1986.

The Bayanikasan constitution

Araneta was just as consistent when he became a delegate to the Constitutional Convention of 19711972. He was the only delegate who showed up equipped with his own draft of the Constitution. He named it the Bayanikasan Constitution, which was based on studies made by the Philippine Constitution Association (Philconsa). Araneta was one of the founders of Philconsa in 1961 and was elected its first president.

The Bayanikasan Constitution was a constitution for the future.

Araneta was looking at a time frame of 10 to 20 years for its implementation. It was a constitution that stressed the democratization of wealth with savings and democratization of power.

“It stressed the importance of property ownership and capitalism for all, since Pope Pius XII himself had declared that a just social order could not exist without giving every individual the means to own property,” Araneta said, adding that “the need for a bold housing program could serve as a main pillar for our prosperity, emphasizing that “a family owning a home is a great stabilizing factor. It provides the family a sense of security and respect.”

He saw the need for greater participation of private individuals in nation-building. Today, we have the participation of non-governmental organizations, the formation of grassroots leadership, as well as

Protectionism, another term for mercantilism, the economic model that made US, Britain and France the world’s unrivaled economic miracles in the pre- and post-world war periods, was Araneta’s life-long crusade.

As Secretary of Economic Coordination during the Quirino administration, he sponsored the import control policy and the total ban of imported elementary textbooks. local autonomy. Araneta favored a federal form of government, with a well-balanced collective leadership, pointing out as well the need to limit the powers of those in authority. He saw the necessity of opening up public offices to citizens.

Araneta had always stressed the conservation of our natural resources and preservation of the environment. He had various proposals on electoral and judicial reforms, the complete text of which can be found in his books, Bayanikasan Constitution and Effective Democracy.

Among the innovations he introduced include the idea that the law be classified under private law and public law. Private law would be under the jurisdiction of the Judiciary as an active operating power, with the Supreme Court as the highest tribunal. Public law would be under the Jurisdiction of the Constitutional Tribunal as the highest moderating power.

Other known Nepa founders were L.R. Aguinaldo, Toribio Teodoro, Ciriaco Tuason, Primo Arambulo, Benito Razon, Isaac Ampil, Aurelio Periquet, Gonzalo Puyat, Florencio Reyes, Vicente Villanueca, Arsenio N. Luz, Joaquin M. Elizalde, and Ramon J. Fernandez. Its prominent corporate member-founder was San Miguel Brewery.

In the women’s chapter organized

by Mrs. Araneta, Rosa Sevilla Alvero assumed the presidency throughout the prewar years. There was also a Young Women’s Chapter.

Among the countless enthusiastic members were Geronima Pecson, Rosario Ocampo, Alice Feria, Tina Araneta, Mila Nieva, Elenita Onrubia, Candida Bautista, Cora Roxas, Pacita Lerma, Telly Albert, Lily Soriano, Angelita Singian, Maria Urquico, Amy Ramos, Josefina Bautista, Naty Perez, Delia Rodriduez, Titang Teotica, Leonor Rodrigues, Helena Benitez, Lilia de Jesus and Meny Sevilla.

Other members were Lita Kapu, Lulu Reyes, Benita Ledesma, Ester Lerma, Paz Policarpio Mendez, Guia Balmori, Betty Magalona, Pacita de los Reyes, Amparito Natividad, Virtudes Guinto, Minerva Inocencio, Inday Lacson, Leonor Carmelo, Naty Osorio, Nena Vagas, Gini Mata, Hortensia Laguda, Maxine Carmelo, Ruby Roxas, Chona Recto, Conchita Sunico, Yay Marking, Atang de la Rama, Gloria Perfecto, Dely Magpayo, Lilian Velez, Rosia Manalac, Celia Bocobo, Fely Espirito Santo and Elvira B. Castro.

Florentino T. Collantes, Hari ng Balagtasan at Makata ng Bayan (King of the Balagtasan and Poet of the Nation) was an active promoter of Nepa.

To reach the writer, e-mail cecilio. arillo@gmail.com

SERVANT LEADER

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aritas Manila holds today (July 18) its first General Assembly for graduate beneficiaries of its more than sixdecade education program. Formerly dubbed as Educational Assistance Program (EAP), Caritas Manila’s flagship program— Youth Servant Leadership and Education Program (YSLEP)—has so far assisted over 10,000 graduates.

The event, with the theme “And God called them Servant Leaders,” will be held at the gymnasium of Saint Joseph School in Pandacan, Manila. It will begin with a thanksgiving Mass to be presided by Rev. Fr. Roberto de la Cruz, Restorative Justice Minister of Caritas Manila. The graduates will then be “welcomed home” and inducted to the governing body of Caritas Society of Servant

Leaders to be led by Manny Tan, Caritas Manila scholar, batch 1984.

Distinguished lawyer Lorna Kapunan will give the keynote address on the topic celebrating human rights and dignity through education. YSLEP is not just scholarship, but also about leadership.

Caritas Manila scholars are formed to become servant leaders with self-discipline, moral integrity and

social responsibility.

“Balik Handog,” a pay-forward project of the Society, will also be launched as the YSLEP graduate’s way of giving back for the generosity and kindness they received through Caritas Manila. This project aims to support more youth to benefit from Caritas YSLEP. YSLEP is the flagship program of Caritas Manila, which extends financial assistance to poor but deserving youth, and trains and hones the youth not only for academic excellence, but also to become servant leaders and good members of the community Caritas Manila’s integrated formation program requires our scholars and their parents to go through the following modules: values formation, sacramental appreciation, health and nutrition, livelihood and skills training, 3R (reading, writing, arithmetic) tutorials, and national family planning and responsible parenting.

There are currently more than 5,000 youth nationwide under

Caritas YSLEP. With over 4 million out-of-school children and youth in the Philippines, YSLEP aims to reach out to this vulnerable sector, especially in the poorest areas of the Visayas and Mindanao.

Caritas Manila is the Archdiocese of Manila’s lead social services and development ministry. Apart from YSLEP, Caritas Manila runs diverse projects that help the poor fulfil their human potential, such as the All is Well Health Program, Restorative Justice Ministry, Caritas Damayan and social entrepreneurship programs Caritas Margins and Segunda Mana.

To know more about the programs of Caritas Manila, visit www.caritas. org.ph. For donations, call 563-9311.

For inquiries, call 563-9308 or 5639298. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph.

For comments, e-mail veritas846pr@ gmail.com.

It’s OK for Japan to fudge its constitution Noah Feldman

BLOOMBERG

J

apan’s Diet has begun the process of passing legislation that would authorize the country’s self-defense forces to fight in foreign conflicts, in apparent violation of the country’s pacifist constitution. And that’s a good thing, despite the apparent danger it poses to the rule of law. Behold the power—and the danger—of a living constitution.

The provision in question is Article 9 of the Japanese constitution, which says, “the Japanese people forever renounce war as a sovereign right of the nation” and promises that “land, sea, and air forces, as well as other war potential, will never be maintained.”

No other country has such a remarkable pacifist guarantee in its constitution. It was imposed by the US occupation after World War II. Even if a whole people wanted to be at peace with the world, there would ordinarily be no good reason to renounce the right to fight. But General Douglas MacArthur wanted a definitive and clear message sent to the Japanese that their imperial ambitions were being permanently shut down. Forcing them to renounce war as a legitimate tool of foreign policy was akin to forcing the emperor of Japan to renounce his divine character.

Remarkably, Japan’s constitution has been a resounding success, notwithstanding the fact that it was written by Americans in English, translated hastily to Japanese (with some errors),

and promulgated under conditions of occupation.

In this sense, the Japanese constitution poses a fascinating puzzle for constitutional theorists who think such a document can only be legitimate and effective if it reflects the will of the people. At the time it was adopted, the Japanese charter very clearly did not reflect the will of the nation—only its acknowledgment of its defeat. Yet over time, it has achieved the respect we associate with popularly adopted constitutions.

Now, under the prime-ministership of conservative nationalist Shinzo Abe, the majority of the legislature’s lower house is acting in apparent violation of the venerated constitution—and there’s reason to think the legislation will pass.

Abe has spoken of Japanese hostages captured and killed by the Islamic State, but that’s just window dressing. Everyone understands that the real reason for Japan to develop offensive military capabilities is the rise of China.

Since World War II, Japan has relied on the US to defend it from the much

larger China. What’s changed is that China’s military is getting bigger, its regional posture is increasingly aggressive, and the US seems increasingly uncertain about its commitment and capacity to defend its Asian allies if push comes to shove. Geopolitically, increasing military capacity makes all the sense in the world for Japan. Any country in its situation, with its economic capacity, would be taking steps to grow its military.

The catch is Article 9 of the constitution. It would seem to leave no room for such increased military capacity.

What’s to be done when a constitutional provision conflicts with a country’s pressing self-interest? Two plausible options present themselves.

One, preferred by legal logic, is to amend the constitution to fit the new circumstances. The trouble is that once a constitutional provision has achieved the respect that comes with time, it can become very hard to change. And because a constitution can come to be seen as a coherent whole, changing one provision can lead to unsettled expectations about whether other provisions might be changed. Finally there’s the problem of whether a supermajority can actually be persuaded to take national interest into account.

To strict constructionists everywhere, these difficulties in amending a constitution are part of the whole point of the document. Written constitutions tend toward conservatism of the smallc, Burkean variety. Because they’re hard to change, they promote the status quo.

But as US Supreme Court Justice Robert Jackson once put it, the Constitution is not a suicide pact. Jackson was an inveterate pragmatist who knew something about geopolitics after

serving as chief prosecutor at Nuremberg. His point was that a constitution must be interpreted pragmatically, to serve the nation’s interests and help it avoid existential threats. It applies equally to Japan as to the US. That leaves the second option: interpreting the constitutional provision flexibly so as to accommodate the change that the nation acknowledges to be necessary. In the case of Article 9, the argument should be that Japan’s existing self-defense forces already count as “land, sea, and air forces.” Thus, the literal meaning of the provision has already been abandoned in favor of its spirit.

And that spirit remains the spirit of self-defense. After all, Japan isn’t planning to invade China or anybody else. It just needs expanded military capacity to recognize the growing threat of China.

In military affairs, sometimes the best defense is a good offense.

If Article 9 can’t be amended, then Japan’s legal authorities can—and should—move in the direction of interpreting it to allow expanded military forces in the spirit of self-defense.

There’s nothing magical about using troops abroad—it can be defensive as well as offensive. In this way, the spirit of Article 9 can be preserved, even as its letter is limited.

This approach of the living constitution bears risks. Thus, flexibly interpreted, a constitution can be interpreted out of existence. The only protection lies with the nation’s legal-constitutional actors, whose influence inevitably grows under a living constitution.

But the risk is worth the benefits.

In the end, there’s only one alternative to a living constitution—and that’s a dead one.

Obama makes unconvincing case for Iran deal

By Trudy Rubin

P

resident Barack Obama needs to do a much better job of explaining why the Iran nuclear deal makes good sense.

The case can be made, barely, but the president didn’t make it on Tuesday.

For one thing, the administration has yet to clarify the still murky details about how Iran will be prevented from cheating.

For another, Obama didn’t allay the fears of Israel and Sunni Arab states that the deal signifies his acceptance of Iran’s ambitions to dominate the region— efforts that are fueling the Islamic State’s (IS) expansion. The president denies any such intent, but no one in the region believes him, including Tehran.

US policies in Syria and Iran feed the belief that we have consigned the region to Iranian dominance. Unless Obama can convince Mideast leaders that they misunderstand his position, the nuclear deal will create more security problems than it resolves.

The flaw in the president’s case revolves around the fact that he has sought to separate the nuclear issue from Iran’s behavior in the region.

At one level it is understandable: Before these negotiations began, Iran was well on its way to becoming a threshold nuclear weapons power (although it denied any such intention). Tehran had

19,000 centrifuges spinning, more advanced ones on the way, and 10,000 kilograms of low-enriched uranium, with additional stocks enriched to a capacity closer to bomb-making level.

The president sought to stop the program before it produces enough fissile material for a bomb and triggers a nuclear arms race in the region.

So Obama’s strong point is that the deal stops Iran’s nuclear progress for the next 10 to 15 years—by sharply curbing the number of Iran’s centrifuges and limiting Iran’s fissile material to 300 kg of low-enriched uranium. It also heads off a potential plutonium route to an Iranian bomb.

If this deal now collapses, Iran can spin its centrifuges unhindered toward a “breakout” capacity. The international sanctions regime would likely collapse, as Russia and China blame Washington for the failure. Those who opposed Tehran’s nuclear program would have to decide whether it is worth bombing Iran’s facilities and starting another unpredictable war.

To solidify this case, the administration will have to spell out the details of the program to verify Iranian compliance. Congress should push the White House to clarify several worrying details.

First, contrary to the president’s earlier claims, Iran will not have to come clean to International Atomic Energy

Agency (IAEA) inspectors before a deal is closed about past military aspects of its program. The new deadline is December 15, but it isn’t clear whether Iran will grant the inspectors access to key nuclear scientists and military sites. Sanctions relief depends on the IAEA confirming that Iran has met its basic obligations.

It should not occur before Tehran clears up its suspect past.

Second, the mechanism to “snap back” sanctions if Iran stonewalls or cheats is clumsy and bureaucratic. Any complaints would be referred to a “Joint Commission” composed of Russia, China, Iran, Britain, France, Germany, and the European Union that would hear complaints.

The good news: The committee will operate by majority rule, which means neither Iran, Russia, nor China can prevent snapback. Still, it’s easy to imagine how Tehran could maneuver over and over to drag the process out and wear the inspectors down.

So, administration officials must do a lot of explaining about how Iran can be kept on the straight and narrow.

But—even assuming they make a convincing case—Obama must spell out how he intends to prevent a sanctionsfree Tehran from further destabilizing the Middle East.

In his Tuesday remarks, the president said, “We must be willing to test whether this region is willing to move in a

different direction.” He said the deal offered Iran an opportunity “to move in a new direction” away from a “policy based on threats to attack your neighbors and annihilate Israel.”

Yet, Iran’s leaders have repeatedly made clear they have no intention of changing their hostility toward America or Israel. By holding out false hopes, Obama convinces the region that he is naive or a secret backer of Tehran.

Meantime, Iran is the main supporter of Syrian President Bashar al-Assad, and is backing Shiite militias in Iraq who are driving Sunnis into the arms of the IS. Far from providing a partner in future US efforts to degrade the IS, Iran’s Shiite-centric policies ensure the current US strategy will fail.

The president must explain why he caved in accepting a provision to lift an arms embargo on Iran in five years and an embargo on sales of ballistic missiles in eight years. He must also explain how he means to convince Iran that he isn’t its patsy.

Unless Obama can take off his blinders, this deal will encourage Iran to become even more aggressive in the region.

It may also encourage Sunni Arab states to develop nuclear programs in an effort to match Iran.

Obama can’t make a convincing case for an Iran deal until he brings his Mideast policy in line with facts on the ground. TNS

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www.businessmirror.com.ph

BSP not rushing stronger liquidity guidelines

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By Bianca Cuaresma

lthough the Philippines is the only jurisdiction among the five original members of the Association of Southeast Asian Nations (Asean) still without Basel 3-compliant liquidity guidelines for the banks, regulators on Friday said such may be put off for now without exposing the financial system to unwarranted risks.

The Bangko Sentral ng Pilipinas (BSP) told reporters there is no need, for now, to rush the drafting of the guidelines as the various lenders enjoy more than adequate

levels of liquidity.

The proposed guidelines were to ensure that the various lenders have the financial wherewithal to service the cash requirements of

their depositors and investors for a minimum number of days without running into a blank wall, particularly in times of crisis.

At the sidelines of a recent banking event, BSP Deputy Governor for the Supervision and Examination Sector Nestor A. Espenilla Jr. said the Basel 3-compliant guidelines for banks in the country is under deliberation.

“Actually, we have exposed it already. We got feedback for evaluation of the comments. So we will see how it goes,” Espenilla confirmed.

However, Espenilla acknowledged the banks find no urgency in adopting more stringent liquidity guidelines, given the state of the banking system at the moment.

“Right now the banks are really quite liquid, so it is not an issue for them at the moment,” Espenilla said.

See “BSP,” A2

PHL seeks $1.48B in loans, grants from WB Continued from A1

education and land jobs.

Another loan will finance the Philippines Cross-Sectoral Health Enhancement Program. The Neda estimated that the project will need more than $300 million.

The project aims to design and implement a nationwide multisector program for enhancing population health through disease prevention, health promotion and better access to quality primary health-care services.

Other projects to be processed in FY 2016 of the World Bank are the $300-million Greater Metro Manila Area Flood Management ProgramPhase 1 and the $300-million Devel-

opment Policy Loan (DPL) 4.

Phase 1 of the Greater Metro Mani la A rea Flood Management Program aims to improve the living conditions of informal settler-families in the Greater Metro Manila Area waterways/drainage channels.

The project will also introduce community-based solid-waste management and support the P50billion ISF Housing Program implemented by the national government.

DPL 4, on the other hand, is targeting to help the national government increase public infrastructure investment to 5 percent of gross domestic product annually and improve spending on public investments.

The Neda data also showed that the government proposed the Program on Economic Growth through Agribusiness Cooperation and Entrepreneurship for funding by the World Bank.

While the data did provide the exact amount for the loan for the project, the Neda said a possible $100 million to $125 million worth of grants may be obtained from the global lender for the project.

The proposed project aims to establish a financing facility for small, medium and large agribusiness enterprises in Bangsamoro areas that are faced with various challenges such as inadequate infrastructure, as well as peace and order problems.

Yellen, Draghi upbeat despite tumult in Greece, China W ASHINGTON—The Chinese stock market is experiencing a terrifying freefall, and Greece is teetering on the brink of financial collapse.

But the top central bankers in the United States and Europe see no reason for panic.

European Central Bank (ECB) chief Mario Draghi told reporters on Thursday that the European economy is showing modest signs of improvement.

And in congressional testimony this week, Federal Reserve (the Fed) Chairman Janet Yellen said that the US economy has proven resilient so far in the face of tumultuous world events. The Fed, she said, is still likely to raise short-term interest rates later this year.

Yellen said low oil prices and an improving job market are likely to boost the US economy, and easy money policies by the world’s central banks will help the global economy.

In a report on Thursday, chief economist Nariman Behravesh and senior research director Sara Johnson of IHS predicted the world economy will grow 2.6 percent this year and 3.3 percent in 2016. “The recent political turmoil in Europe and financial convulsions in China will not do serious damage to

global growth unless they get a lot worse,” they wrote.

After peaking on June 12, Chinese stocks have plunged around 30 percent, raising more doubts about China’s decelerating economy. And Greece is locked in contentious negotiations with its creditors that have put its future in the euro zone in jeopardy.

Yellen said this week that the Fed might reconsider a 2015 rate hike if the tumult in China or Greece threatened to spread. But, for now, the Fed is on track this year to raise the short-term rate it controls from near zero, where it’s been since December 2008.

The American economy has been improving since getting off to a terrible start this year.

After shrinking at an annual rate of 0.2 percent from January through April—a dip blamed largely on bad winter weather and other temporary factors—the US economy is picking up momentum. It is expected to register a modest 2-percent to 2.5-percent growth for the year. In the labor market, employers have added more than 2.9 million jobs the past year. Unemployment tumbled last month to a seven-year low 5.3 percent.

Still, some are cautious about the US economic outlook.

Inter national Monetar y Fund chief Christine Lagarde has urged the Fed to delay a rate increase until 2016, arguing that the risk that a premature hike will damage growth outweighs the risk that a tardy hike will unleash inflation or swell a dangerous bubble in the price of stocks, real estate and other assets. Yellen herself remains worried that American wage growth is subpar.

Europe continues an agonizing economic recovery. The collective economy of the 19 countries that use the euro currency grew modestly from January through March. Prices across the euro zone rose in June for the third straight month, easing fears that the region was at risk of sinking into a destructive deflationary spiral.

Draghi took part of the credit, noting that the ECB’s €60 billion in monthly bond purchases have supported eurozone growth. Draghi repeated his pledge to do everything within his power to prevent fallout from the Greek crisis from damaging the broader European economy. And he did his part for Greece, too: The ECB on Thursday agreed to increase financial support for Greece’s banks, which have been closed since June 29 and were in danger of collapsing entirely. AP

Japan commits to help PHL develop manufacturing sector

By Catherine N. Pillas

T

okyo and Manila have approved an action plan for cooperation on developing the Philippines’s manufacturing sector.

The Department of Trade and Industry (DTI) signed an Action Plan on Industrial Cooperation on Thursday with its Japanese counterpart, following the two governments’ pledge for industrial partnership during the recent state visit of President Aquino to Japan.

The Action Plan for Industrial Cooperation, signed by Trade Undersecretary Adrian S. Cristobal Jr. and Japan Deputy Director General for Trade Policy Toshiyuki Sakamoto, builds on a broader agreement signed last year between the heads of the trade offices.

“The government’s role is to pave the way toward industrial competitiveness by creating a business environment conducive for business to flourish,” Trade Secretary Gregory L. Domingo said in a statement.

The earlier agreement sees the greater involvement of Japan in the Philippines’s crafting of an industri-

Asean. . .

al development road map, with the aim of making the country Asean’s “manufacturing and human resources development hub.” The deal was signed by Domingo and thenMinister of Economy, Trade and Industry Toshimitsu Motegi during the first Industrial Cooperation Dialogue of Japan and the Philippines.

The Action Plan itself, according to the DTI, outlines broad initiatives in key areas of interest and cooperation, particularly in automobile, manufacturing, micro, small and medium enterprises, services and human resource development.

The initiatives in the action plan aims to identify the supply-chain gaps between the Philippines and

Japan by providing technical and institutional capacity building to domestic industry players.

“Japan contributes to our efforts in sustaining our socioeconomic growth, as it continues to be a rich source of knowledge and experience in industry development and SMEcentered policies and initiatives,” Cristobal said.

“These will help initiatives in identifying gaps and designing measures that are in line with our Apec Boracay Action Agenda to Globalize MSMEs,” he added.

The Industrial Cooperation Dialogue is among the mechanisms agreed to by the Philippines and Japan to further bilateral economic relations, along with discussions of the Philippine-Japan Economic Partnership Agreement subcommittee on improvement of business environment.

The private sector, business support organizations, Japan External Trade Organization and the Japan International Cooperation Agency were included in the stakeholder consultation meeting, which preceded the signing of the action plan.

largest share of FDI inflow from the EU. It is also the largest source of investments among Asean nations for the EU, accounting for 76 percent of all Asean FDI. Singapore also accounts for 25.1 percent of merchandise trade between Asean and the EU, followed

by Malaysia with 18.8 percent and Thailand with a share of 17.3 percent.

Chris Humphrey, executive di-

rector of the EU-Asean Business Council, said in a statement that the position paper is “timely,” given the impending economic integration of Asean.

“The policy positions outlined in the paper are intended to help shape the post-2015 agenda, and will be discussed further [during] the Asean-EU Business Summit in August,” Humphrey said.

DOMINGO: “The government’s role is to pave the way toward industrial competitiveness by creating a business environment conducive for business to flourish.”

Continued from A1

is the largest investor of Asean, and the second-largest trading partner, next to China. Data showed that in 2013, the EU was Asean’s largest investor with €156 billion in FDI, and accounted for 22 percent of investment inflows into Asean, followed by Japan, which accounted for 18.7 percent.

Singapore, in particular, is leading the way in terms of capturing the