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  • Standoff spurs curfew, arrests
    BUSINESS DEPLORES HOTEL SIEGE WITH LIM, TRILLANES; BUT MARKET SHRUGS IT OFF
    By Paul Atienza
    Reporter

    IN scenes reminiscent of the 1989 takeover by putschists of Makati’s central business district and the 2003 Oakwood Mutiny, a soldier-senator and a general held court Thursday with rebel soldiers for six hours at the Manila Peninsula Hotel, demanding the resignation of President Arroyo and reforms in the government.

    The six-hour Makati City standoff was peacefully resolved late afternoon when Sen. Antonio Trillanes IV and former Army Scout Ranger commander Brig. Gen. Danilo Lim surrendered, saying they wanted to avoid shedding the blood of civilians who were holed up with them in the hotel, along with hundreds of mediamen.

    Trillanes, Lim and their companions had marched under steady rain from the Makati City courts hearing their cases in connection with the Oakwood case to the Peninsula at half past 11 a.m.

    Despite their surrender later, the government imposed a midnight-to-5 a.m. curfew in Metro Manila, Central and Southern Luzon until security forces are convinced no further destabilization is being planned.

    Police also hauled off in buses, along with the protagonists, hundreds of journalists and technical crew, for “questioning.” Interior Secretary Ronaldo Puno explained that authorities just wanted to ensure the mediamen did not “wittingly want to obstruct justice” by standing in the way of a military operation. The mediamen had refused to leave the hotel, Puno said, despite a plea by police authorities since 3 p.m. until the tear-gas canisters were lobbed into the hotel at 4:30 p.m.

    The civilians holed up with Trillanes and Lim at the Peninsula included former Vice President Teofisto Guingona Jr., former University of the Philippines president Francisco Nemenzo, Catholic bishops Julio Labayen and Antonio Tobias, and lawyers Argee Guevarra and Jose Virgilio Bautista.

    Local and foreign business leaders said the standoff would surely dent the positive economic outlook and criticized the protagonists for choosing to use a potentially violent means for airing their grievances.

    Alberto Lim, executive director of the Makati Business Club, said rampant allegations on corruption, injustice and cheating will breed political instability “so this incident is not surprising.”

    “However, we do not support military adventurism as a means to address misgovernance by this administration. The government would do well to address the issues raised by General Lim and Senator Trillanes and not to forget them after the crisis has passed,” Lim said.

    Samie Lim, president of the Philippine Chamber of Commerce and Industry (PCCI), said it was an unfortunate incident “at a time when the economy is starting to pick up.”

    He added: “I am sure they have grievances that have not been attended to properly. The government is doing its job. They want to talk to them but they did not send the right negotiator.”

    Michael Wootton, chairman of the British Business Council, said it is good the crisis was resolved quickly. “But it would have been better if it hadn’t happened at all. Prevention is better than the cure. These things cause a lot of disruption and the peso exchange rate was all over the place,” Wootton said.

    The country’s strong economic fundamentals cushioned the markets from jitters caused by the standoff, economic managers said.

    Finance Secretary Margarito Teves said in a news briefing in Malacañang the government’s swift response to the incident would be enough assurance to local and international investors.

    He said the country’s good economic fundamentals—low interest and inflation rates, strong fiscal and monetary situation, and the strong peso—“will enable us to handle this kind of temporary disturbance in our economy.”

    Trade Secretary Peter Favila, who along with Teves went to the Philippine Stock Exchange Thursday, said, “We’re pleased to report that while there was a knee-jerk reaction to the incident, it recovered toward the closing of the market. And we’re also in touch with [Bangko Sentral] Gov. [Amando] Tetangco [Jr.], [who told us] the same thing. He said the market has recovered and remained calm.”

    The surrender of Lim and Trillanes was announced at about 5:30 p.m. by Guingona and Infanta, Quezon, bishop emeritus Julio Labayen several minutes after an armored personnel carrier followed by government troops entered the hotel past 5 p.m.

    Trillanes said the presence of civilians, including members of the media, forced them to yield because they could not, in conscience, bear the thought that these people would be hurt or killed.

    He said, like soldiers, “we are going to face this” and the government could do whatever it wants with him.

    In going to the hotel, he said he only did what he is obliged to do as a former member of the military, and that is to “fight for the rights of oppressed people.”  

    Inside the hotel, Lim read a prepared statement saying that they have been forced to take the action as constitutional processes and all other legal alternatives have faded away.

    Local and foreign businessmen agreed that the takeover of The Peninsula Manila in Makati Thursday will definitely impact negatively on the image of the Philippines anew as a viable investment and tourism destination.

    “Of course, this will have a negative impact. This can delay or even stop some investments. Now, even tourism in the country will suffer. The reputation of our country will suffer,” said Sergio Ortiz-Luis, president of the Philippine Exporters Confederation and Employers Confederation of the Philippines.

    Henry Schumacher, executive vice president of the European Chamber of Commerce of the Philippines, said for businesses that are already here, the incident may no longer have any impact. “But those outside, this does not help the Philippines’ image.” Still he added, “I don’t see long-term effects.”

    The standoff between the rebels and government troops began to unravel shortly after the government’s demand for the group of Trillanes to surrender ended at 3 p.m.

    Government troops fired tear gas into the hotel before an armored personnel carrier rammed through the door of the hotel, followed by policemen and soldiers.

    Warning shots were fired by the attacking troops but were never answered by the rebels.

    Lim said that they only did their constitutional duty as protectors of the people when they went to the hotel, and added that their surrender does not mean the end of their fight.

    “This is a continuing business… apparently, the business is not finished here,” he said. 

    The National Police chief, Director General Avelino Razon Jr., immediately put the 125,000-strong force on heightened alert, while the Armed Forces went on red alert.

    When red alert is declared, all personnel are required to be in their posts and all leaves and fuloughs are cancelled.  (With M.V. de Leon, C. Mocon, R. Acosta, M. Gonzalez, R. Mercene)

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