DFA: US stand on telecom row unsatisfactory

Foreign Affairs Secretary Delia Albert said yesterday she is not satisfied with the response of the United States on concerns raised by the Department of Foreign Affairs (DFA) regarding the investigation being conducted by the US Department of Justice on the anti-trust suit filed against Philippine telecom carriers by American firms.

Albert said that though she has finally received a response from the US government, she could not accept Washington’s statement that it cannot make any specific comments about the case since the grand jury is currently carrying out its investigation.

"We have stated our concerns in a forthright and clear manner to the US government," Albert said but the Philippines will continue to insist that the US address "why a criminal investigation was initiated when negotiations were going so well."

"This is something that the US government must address and we intend to continue to pursue this matter with the utmost vigor," the foreign affairs chief stressed.

The DFA has also reiterated its position before the Senate in the inquiry conducted by the committees on infrastructure, public services and foreign affairs last Wednesday.

Foreign Affairs assistant secretary for American affairs Ariel Abadilla told the Senate committees that the government continues to be gravely concerned over the investigation of the US DOJ "over a matter that was clearly headed towards a negotiated solution."

"Government and telecommunications companies from both sides had been working to reach a resolution that would be acceptable to all. We had come to the point that our telecommunications companies were already signing agreements that would have set aside their differences," Abadilla said during the hearing.

Albert explained that the "grave concern" of the government stemmed from indications that the US DOJ was preparing to initiate a criminal investigation against the Philippine firms even as the companies were negotiating with their US counterparts in good faith.

She emphasized that the investigation should not have started in the first place.

The investigation resulted in the issuance of subpoenas to 30 Philippine telecoms executives while they were attending a conference in Honolulu, Hawaii.

The executives said they were embarrassed by the action of the US justice department because of the manner by which summons were issued.

Albert said that the US government has replied by saying that the action was not meant to embarrass the Philippine government.

"They have assured us that the executives would be treated well, that all their rights would be respected and that all expenses related to their appearance before the grand jury will be shouldered by the US government," Albert said.

Most of the 30 executives are already back in the Philippines after appearing before the hearings.

However, the DFA noted that there is a possibility that they could be called back to the US to testify if needed.

If this happens the courts would have to initiate a government-to-government process under the Mutual Assistance Treaty.