Presidential spokesperson Salvador Panelo says the Philippines will never default in its obligations to China. But supposing the work of the Chinese engineers on the China-funded projects is highly defective so that the Philippines refuses to pay the loan? There will then be arbitration in China. Will the Chinese arbitrators side with the Philippines? They will, of course, declare the Philippines in default.
The Philippines needs good lawyers to go over the loan agreements. The first thing they should do is to disapprove arbitration proceedings in China and insist on arbitration in a neutral country, perhaps Singapore.
RENE TORRES, rentorres@yahoo.com
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