National security and economic gains
At least some government officials sounded the alarm. Several security officials have expressed concern over reports that the government intends to grant Chinese investors the right to develop three Philippine islands ostensibly for tourism.
There is a presidential decree prohibiting the sale of the country’s islands particularly to foreigners, but this is not the principal concern of the security officials. What they are worried about is that the three islands have strategic importance to national security.
Fuga is part of the Babuyan archipelago, the second northernmost group of islands in the Philippines after Batanes. The island hosts telecommunications cables and served as a jump-off point for troops during World War II. Part of Cagayan province, Fuga, with a population of over 2,000 and land area of about 70 square kilometers, is close to Taiwan, which Beijing considers as a renegade province. Xiamen-based Fong Zhi Enterprise Corp. reportedly plans to set up a $2-billion “smart city” on Fuga.
Grande and Chiquita islands, meanwhile, are located off Zambales, at the mouth of Subic Bay where the former US naval base is located. Sanya CEDF-Sino Philippine Investment Corp. reportedly wants to build $298-million mixed-use facilities on the islands, including 80 high-rise buildings.
The deals involving the islands were among those signed during President Duterte’s visit to China in April for the Belt and Road Initiative Forum. The Cagayan Economic Zone Authority, which would have had jurisdiction over Fuga, and Subic Bay Metropolitan Authority have since clarified that the deals have not yet been finalized.
Even if the islands are to be developed supposedly for nonmilitary purposes, Defense Secretary Delfin Lorenzana has cautioned the government about the possible security implications of such deals, in the light of the country’s maritime dispute with Beijing over the South China Sea. The Philippine Navy spokesman also stressed the need to strike a balance between national security and economic gains. It’s a comment worth heeding by the national leadership.