[Philippines] State Visit to Japan

[Teikoku]

The Foreign Minister giggled at the Presidents lack of basic supply and demand economics, he attempted to keep it behind a smile but his reaction was apparent. He leaned into the Prime Minister as they began a whispered conversation.
FM:"We need these agreements to be a fixed quantity for them to be truly beneficial to Japan".
PM:"hmm. It'll be the deal breaker in that case. I mean, worst case scenario, we make more beneficial trade agreements"
The brief exchange of words was too quiet for others to hear word-for-word, although it wouldn't be hard to guess their concerns.

The Prime Minister spoke up, this time talking to the President across the table. "I must say that we do insist on this having fixed quantities; we're fine with the shipment regularity, the only issue is quantity. Also it appears we need to set a contract time period, I propose that this should be 8 years, or 96 months, from now."

 

[Apingdaldal]

President Duterte would reply:

"No problem. We can always fine tune these deals. Let's start with For the Nickel/Copper - Automobile Trade

The average price per metric ton of Nickel is $18,000 per metric ton while the average copper Price is $7,000 per metric ton . for the purpose of estimation, the average price per metric ton of our proposed consignment for copper and nickel will be $12,500 per metric tons.

On the other hand, automobile sales in the Philippines is averaging 120,000 units every year ; 10,000 units per month. Average prices of automobiles are: $25,000 for sedans, $40,000 for pick-up trucks, $50,000 for SUV's, and $10,000 for motorcycles.

With these said, we can set the quantity like this:

a.) Philippines will export a fixed quantity of 15,000 metric tons worth of metal ores (combination of copper and nickel) to Japan per month.

b.) Japan will export 2,000 sedans, 1,000 pick-up trucks, 1,000 SUV's, and 2,000 motorcycles (total 6,000 vehicles) to Philippines per month.

The average demand for automobiles in the Philippines is around 10,000 units but I think the influx of 6,000 units from Japan would be OK to the Filipino automobile market.


For the Agricultural product - Medical Equipment Trade, we can even make it simpler;

a.) Philippines will export 20,000 metric tons of agricultural products to Japan per month

b.) Japan will export a combined 3,000 metric tons worth of medical equipment to the Philippines per month. The medical equipment shall compose of the basic home and hospital medical equipment such as sphygmomanometers, blood sugar testers, x-ray machines with accessories, CT scanners, defibrillators, colonoscopy probes, basic electroencephalograph (ECG) analyzer, incubators, continuous positive air pressure (CPAP) machines, uterine aspiration sets, and precision weighing scales for newborn babies.


The 8-year renewable agreement is also acceptable. "


@Teikoku

 

[Teikoku]

As the President gave his second proposal, the Foreign Minister would write down the figures and performing calculations, ensuring the deal proved a financial benefit to Japan. By the time the President had finished speaking, the Foreign Minister had just about completed his calculations, and shown his results to the Prime Minister. Both Ministers were surprised to see what significant surplus the agreement had left for the Japanese, massively improving the Current Account of the Balance of Payments.

"Ahh there we are, this is much better for us Mr President," the Prime Minister said with a smile, "Is there a document of the draft we can sign now? Once we've concluded our meeting, I will inform the Ministry of Trade and shipments can begin straight away."

 

[Apingdaldal]

President Duterte would energetically reply: "Ah yes, we do have the prepared draft for this as we have anticipated this already."

He will again instruct his PSG bodyguard to bring out the Import-Export Draft document. He will then show it to his Japanese hosts for them to review and scrutinize.

Import-Export Agreement between Philippines and Japan

Import-Export Agreement between
the Federal Republic of the Philippines
and the
State of Japan

1. The Federal Republic of the Philippines and the State of Japan has both agreed to Trade export products. The following arrangement has been agreed upon:

1.1 Metal Ores (Philippines) for Automobiles (Japan)

1.2 Agricultural Products (Philippines) for Medical Equipment (Japan)

2. The following are the agreement for Item 1.1:

2.1. The Federal Republic of Philippines will export a fixed quantity of 15,000 metric tons worth of metal ores (combination of copper and nickel) to Japan on a monthly basis.

2.2 Japan will export 2,000 sedans, 1,000 pick-up trucks, 1,000 SUV's, and 2,000 motorcycles (total 6,000 vehicles) to Philippines per month.

3. The following are the agreement for Item 1.2:

3.1 . The Federal Republic of Philippines will export a fixed quantity of 20,000 metric tons of agricultural products to Japan on a monthly basis.

3.2 . Japan will export a combined 3,000 metric tons worth of medical equipment to the Philippines per month. The medical equipment shall compose of the basic home and hospital medical equipment such as sphygmomanometers, blood sugar testers, x-ray machines with accessories, CT scanners, defibrillators, colonoscopy probes, basic electroencephalograph (ECG) analyzer, incubators, continuous positive air pressure (CPAP) machines, uterine aspiration sets, and precision weighing scales for newborn babies.

4. The aforementioned commercial exchange shall be carried out through the use of commercial, cargo vessels of the Philippine Merchant Marines and the Japanese Ministry of Trade.

5. The Federal Republic of the Philippines and the State of Japan both agree to take responsibility of providing the adequate and necessary security of the trade routes between the two countries, as well as ensuring the safety and well-being of their merchant sailors/tripolantes, and the preservation of the integrity of their traded products/consignments.

6. This Import-Export Agreement shall be carried out in full compliance with the Global Assembly Law of the Sea, the International Maritime Traffic Organization (IMTO), and the International Convention for the Safety of Life at Sea (SOLAS).

7. This Import-Export Agreement shall take effect immediately after signing and shall remain effective for eight (8) years.

8. Prior to the expiration of this agreement, The Federal Republic of the Philippines and the State of Japan shall re-negotiation the terms of this agreement and decide whether to renew this agreement.

9. This commercial exchange can be cancelled by any of the two Parties at any given moment, being the only requisite to inform the other party.

Done in Osaka, Japan on July 2012 with duplicate copies written in English and Japanese language.


For the Federal Republic of the Philippines : Rodrigo Roa Duterte

For the State of Japan:

 

[Teikoku]

The Prime Minister took the draft and scanned through it.

"Perfect. I'm glad we've been able to reach an agreement"

He took his pen and signed the document.

Import-Export Agreement between Philippines and Japan

Import-Export Agreement between
the Federal Republic of the Philippines
and the
State of Japan

1. The Federal Republic of the Philippines and the State of Japan has both agreed to Trade export products. The following arrangement has been agreed upon:

1.1 Metal Ores (Philippines) for Automobiles (Japan)

1.2 Agricultural Products (Philippines) for Medical Equipment (Japan)

2. The following are the agreement for Item 1.1:

2.1. The Federal Republic of Philippines will export a fixed quantity of 15,000 metric tons worth of metal ores (combination of copper and nickel) to Japan on a monthly basis.

2.2 Japan will export 2,000 sedans, 1,000 pick-up trucks, 1,000 SUV's, and 2,000 motorcycles (total 6,000 vehicles) to Philippines per month.

3. The following are the agreement for Item 1.2:

3.1 . The Federal Republic of Philippines will export a fixed quantity of 20,000 metric tons of agricultural products to Japan on a monthly basis.

3.2 . Japan will export a combined 3,000 metric tons worth of medical equipment to the Philippines per month. The medical equipment shall compose of the basic home and hospital medical equipment such as sphygmomanometers, blood sugar testers, x-ray machines with accessories, CT scanners, defibrillators, colonoscopy probes, basic electroencephalograph (ECG) analyzer, incubators, continuous positive air pressure (CPAP) machines, uterine aspiration sets, and precision weighing scales for newborn babies.

4. The aforementioned commercial exchange shall be carried out through the use of commercial, cargo vessels of the Philippine Merchant Marines and the Japanese Ministry of Trade.

5. The Federal Republic of the Philippines and the State of Japan both agree to take responsibility of providing the adequate and necessary security of the trade routes between the two countries, as well as ensuring the safety and well-being of their merchant sailors/tripolantes, and the preservation of the integrity of their traded products/consignments.

6. This Import-Export Agreement shall be carried out in full compliance with the Global Assembly Law of the Sea, the International Maritime Traffic Organization (IMTO), and the International Convention for the Safety of Life at Sea (SOLAS).

7. This Import-Export Agreement shall take effect immediately after signing and shall remain effective for eight (8) years.

8. Prior to the expiration of this agreement, The Federal Republic of the Philippines and the State of Japan shall re-negotiation the terms of this agreement and decide whether to renew this agreement.

9. This commercial exchange can be cancelled by any of the two Parties at any given moment, being the only requisite to inform the other party.

Done in Osaka, Japan on July 2012 with duplicate copies written in English and Japanese language.


For the Federal Republic of the Philippines : Rodrigo Roa Duterte

For the State of Japan: Shinzo Abe

 

[Apingdaldal]

President Duterte would receive the duly signed Import-Export Agreement document. He will then continue with the discussion:

"Yes we indeed are having a productive meeting so far. Now for the next topic I wish to discuss: Military. The Armed Forces of the Philippines is currently in a gradual process of modernization, wherein some Japanese military products were strongly considered.

Furthermore, to become a reliable mutual defense ally, my country must have a credible military capability and with capability to develop it's own assets. I'd like to know if Japan can help us with this."

@Teikoku

 

[Teikoku]

"Well Japanese military equipment is of the highest quality and some of the most advanced in the world, and your interest is satisfying to hear. Our defence company Nippon Defense Industries is charged with military export purchases, though if you wish to purchase a product not listed on their website, it may be worth contacting the Ministry of Defence.

You wish to engage in military research and development? We are certainly interested in such idea, in fact we have a projects on the table. What sort of development programs to you wish to engage in?"

 

[Apingdaldal]

"We will definitely place some orders in your Nippon Defense Industries.

As for military R&D, well we're planning to develop our own aircraft and naval assets. These planned R&D involves integration of subsystem such as weapon systems and electronics warfare system. And we see several systems of Japanese origin are good choices as we recognize the credibility and excellent reputation of Japanese products. As per my top military brass; they are interested specifically just the subsystems from these companies:

1. Kawasaki Heavy Industries

2. Mistubishi Heavy Industries / Electric

3. Furuno

We'd like to know whether Japan can help us by granting us access to the products of the above mentioned companies particularly only the subsystems (not the entire vehicle, ship, aircrafts itself) for the purpose of R&D."

@Teikoku

 

[Teikoku]

"Ah, when you mentioned military research and development, I assumed you wanted to embark on a shared project. I did not expect, however, you wanting to acquire Japanese technology to use in your own projects.

What your saying about our 'subsystems' is true, they do have good credibility and excellent reputation. But we will not give your military access to our technology. Don't think that we're against your research, this applies to all foreign countries, allies or not. You see, giving away this sort of thing is against our national interests."

 

[Apingdaldal]

President Duterte would bring out a piece of paper given to him by the Philippine Navy and Philippine Air Force.

"We don't expect Japan to give it for free. We are willing to pay for it. And by the way; here's the specific items we are looking to integrate with our R&D:

= = = = = = = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = =

1. Weapon system from Mitsubishi HHI:

1.1. Mitsubishi AAM-5 SRAAM

1.2. Mitsubishi AAM-4B BVRAAM

1.3 Mitsubishi Type 93 ASM

1.4 Mitsubishi Type 90 SSM


2. Electronic Warfare System from Mitsubishi Electric

2.1 Mitsubishi J/APG-2 AESA radar


3. Commercial Marine Navigation System from Furuno:

3.1 Furuno FAR-21x7 / 28x7 Tandem X-band/S-band Radar system

3.2 Furuno FAR-3000 Chart Radar

3.3 Furuno Voyager Bridge System

= = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = = == = = =


"These are what we need for our planned R&D. I'd like to know how can we possible get access with this items? We are willing to pay for the access to these products."

@Teikoku

 

[Teikoku]

The Prime Minister gave a long pause, he knew that he had to maintain the principles and expectations of the government regarding technology, but he also considered flexing the rules for his Filipino friends.

Unsure, the Prime Minster wanted to know more about the Philippines project and its intentions of use.

"Before a give an answer to your request, are you able to tell us more details of this project which Japanese technology plays a key part.

Also, what is your military's current status; what plans, if any, do you wish to see the Filipino military being used?".

 

[Apingdaldal]

President Duterte would lean forward and respond eagerly at Prime Minister Abe's query:

"The current status of the majority of our Armed Forces of the Philippines is that it's still in fledging stage. Our Philippine Army still lacks armored assets. Our Philippine Air Force still lacks fighter jets. And our Philippine Navy still the naval assets essential to any bluewater capable navy of most countries. Even my Philippine Navy Flag-Officer-in-Charge (FOIC) nags at me most of the time; telling me that the civilian maritime organization such as the Philippine Coast Guard and the Philippine Merchant Marines actually has way more ships than the Philippine Navy. I guess I have neglected my military needs for quite some time and over-prioritized on things that generate income and maritime law security.

Moving forward, despite our not-so-big defense budget allocations, we do have now a modest and achievable modernization plan wherein we gradually and steadily upgrade our military capability, especially in aspects of cost-effective military asset acquisition, military logistics management, doctrines formulation, and self-reliance program (in a form of R&D). Speaking of our planned R&D or capability upgrades which will potential involve Japanese products, here are a few things our DND/AFP disclosed to me:

1. While our Philippine Air Force still does not the necesary fighter jets for their mission requirements, they are already thinking ahead of potentially upgrading future fighter aircrafts to be compatible with indigenous Japanese ordnances. This is because they are planning to diversify their sources especially the weapon systems and ordnances. That is the main reason why I mentioned your Mitsubishi HHI missiles.

2. The Philippine Air Force also plan to develop an indigenous, cost-effective multi-role fighter with 4.5th generation capability. And several officers from the PAF technical working group (TWG) are recommending your Mitsubishi Electric J/APG-2 radar and your Mitsubishi AAM-5, AAM-4B, and Type 93 ASM.

3. The Philippine Navy plans to develop at low-cost multirole corvettes or offshore patrol vessel. That is where we are planning to integrate your Type 90 SSM and use Furuno commercial-grade marine navigation systems.

Those 3 are what I know so far. All to be used for Philippine national defense and, heaven please forbid, in the event when both our country implores the Mutual Defense Treaty to fight a common enemy."

@Teikoku

 

[Apingdaldal]

bumping @Teikoku

 

[Apingdaldal]

As the Japanese hosts just vanished in thin air; President Duterte and his PSG bodyguards will all quickly leave Osaka and return back to the Philippines, as if nothing happened.