PRESIDENT ARROYO'S U.S. VISIT

During her recent working visit to the United States, Philippine President Gloria Macapagal Arroyo used the occasion of the 50th anniversary of the two countries’ mutual defense treaty to announce a number of economic and military measures. In the words of President Arroyo, “this treaty just demonstrates how long we've been allies. Allies in the second world war, allies in the Cold War, allies in the Korean War, allies in the Vietnam War, and now allies in the war against terrorism. We're allies, too, in the economic front. The U.S. is our number one trading partner; cumulatively, our number one source of investment.”

As U.S. President George W. Bush confirmed, “the Philippines have been great allies and friends for a long period of time, and it is in our national interests that we maintain a very close and strong relationship.”
President Bush announced a package of military and development assistance for the Philippines, a country he considers his staunchest ally in Southeast Asia. The military assistance consists of aircraft, patrol boats, army vehicles and other surplus defense equipment for the Armed Forces of the Philippines. The development aid includes an outright grant of at least $90 million, mainly for the reconstruction of conflict-stricken areas in Mindanao.

Aside from the granting of military and development aid, the concrete results of the Arroyo visit are also reflected in a number of bilateral and business agreements that have been forged.
To be signed by representatives of the Philippine and U.S. governments are a loan agreement on urban water and sanitation, a grant agreement for the special zone of peace and development in the southern Philippines, and memoranda of understanding related to the United States Agency for International Development and agricultural matters.
At least four business agreements, worth $1.8 billion, were also inked by executives of Filipino and American corporations.
What’s more, top-level discussions were also held on several areas of cooperation and concerns, ranging from agriculture and trade to veteran affairs and environmental protection.