WASHINGTON D.C. — President George W. Bush has slashed American economic and military assistance to the Philippines from $87.8 million in 2006 to $83 million in fiscal year 2007, or a slash of $6 million.
In his budget proposal submitted to Congress this month, the US President reduced funding for the various assistance programs to the Arroyo government by six percent.

 

The bulk of the cut will be made on the Foreign Military Financing (FMF) from $20 million this year to $17.6 million next year, or a reduction of more than $2 million.
In contrast, military and economic aid to Indonesia and other Asian countries have been increased instead of reduced.
Another big slice was made on Development Assistance, from $21.5 this year to $19.6 million next year, or a reduction of nearly $2 million.
Observers attributed the reduction to the continuing political turmoil in the Philippines, including the Hello Garci tapes, graft and corruption in the administration of President Gloria Macapagal Arroyo.
These issues were detailed by the US embassy and the Federal Bureau of Investigation in their confidential reports to the US State Department. Some of these reports were contained in documents allegedly filched by Leandro Aragoncillo, a Filipino American working for the FBI. Another Filipino, Aragoncillo and Michael Ray Aquino, a Filipino illegally in the US, have been charged in a New Jersey court for espionage.
Some of the documents reportedly taken by Aragoncillo were published in the Manila media last year.
In 2005, a year after the withdrawal of the small Philippine contingent from Iraq by President Arroyo, US aid to the Philippines was reduced by 30 percent, from $125.6 million to $87.6 million, or a reduction of $37.8 million.
In the current budget of Mr. Bush, the Economic Support Funds (ESF) and International Military Education and Training (IMET) remained the same as that of last year of $20 million and $2.9 million, respectively.
Slight reductions were made in the Child Survival & Health Funds, from $21.4 million to $21 million.
Observers said another possible reason why the US President made further cuts on assistance to the Philippines is the decline in US confidence over the leadership of President Arroyo.
This includes the continuing political turmoil,the perception that she cheated in the 2004 election, the alleged involvement of her family in the jueteng scandal, her fight with the Senate which was exposing graft and corruption in her administration and her heavy-handed attacks on the political opposition.
There is also a perception by Vice President Richard Cheney, Defense Secretary Donald Rumsfled and Secretary of State Condoleeza Rice that the Philippines is an unreliable ally because of the withdrawal of the Philippine troops from Iraq  and, lately, the growing closeness of Manila to Communist China.
It was noted that during the confirmation hearing of Ambassador Kristie Anne Kenney in the Senate, never was the name of President Arroyo ever mentioned by her or the Senators who grilled her. In fact, the ambassador pledged to strengthen democracy when a senator asked her about the political crisis in the Philippines.
“It seems the White House is giving the GMA the cold shoulder treatment especially by declining her request for a meeting with President Bush during her aborted trip to Washington D.C. to speak at the National Press Club Feb. 21," these observers said.