    [Public Papers of the Presidents of the United States: George W. Bush (2001, Book II)]
    [November 20, 2001]
    [Pages 1434-1436]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Joint Statement Between the United States of America and the Republic of
    the Philippines
    November 20, 2001

        President George W. Bush and President Gloria Macapagal-
    Arroyo today reaffirmed the strength
    and warmth of bilateral relations and commemorated the 50th anniversary
    of the signing of the U.S.-Philippine Mutual Defense Treaty. While
    celebrating the achievements of half a century of defense cooperation,
    the two Presidents agreed that the alliance remains vital to both
    nations, particularly in the wake of the September 11 attacks.
        President Bush conveyed his deep appreciation for President
    Macapagal-Arroyo's leadership in the
    fight against terror, both within the southern Philippines and against
    international terrorist networks. He specifically noted with
    appreciation Philippine offers of logistical and other support to the
    coalition, as well as President Arroyo's efforts to forge a regional
    ASEAN approach to combating terror. President Bush also welcomed passage
    of new anti-money laundering legislation as a concrete step in the
    global effort against terrorism, and offered to provide technical
    assistance to help the Philippines effectively implement the new law.
    Emphasizing U.S. support for a strong, united ASEAN, President Bush
    further offered all appropriate assistance to help ASEAN improve its
    capacity to combat transnational threats, including terrorism and the
    illegal narcotics trade.
        The two Presidents agreed that
    the war against terrorism should be fought in parallel with the war
    against poverty, and that the most effective and least-costly anti-
    poverty bilateral cooperation measure would be to work together to open
    markets worldwide. The two Presidents, therefore, resolved to work
    closely to expand trade bilaterally, regionally and globally,
    particularly in the context of the Doha Development Agenda. President
    Bush agreed to work with the United States Congress to provide the
    Philippines over $1 billion in Generalized System of Preferences (GSP)
    benefits. He also noted that the growth rate of quotas of U.S. imports
    of textiles and apparel from the Philippines would increase by 27
    percent beginning in January 2002, in accordance with U.S. commitments
    to the WTO. The two leaders directed their Trade Ministers to
    reinvigorate and convene the U.S.-Philippine Trade and Investment
    Council within the first half of 2002.
        Some long-standing issues are being resolved even before these
    missions, including approval of Philippine mangos for export to the
    United States. USDA and the Philippine Department of Agriculture further
    signed a Memorandum of Agreement on November 19 to renew and expand
    activities involving wide-ranging scientific, technological, and
    agribusiness cooperation. USDA will make available guarantee programs of
    $150 million for U.S. agricultural exports and equipment to the
    Philippines that support the modernization of Philippine agriculture and
    fisheries. Arrangements are also being made to provide up to $40 million
    in PL-480 food aid for fiscal year 2002, subject to budget allocations.
        President Macapagal-Arroyo
    emphasized her government's commitment to fight poverty, accelerate
    economic reform, enhance

    [[Page 1435]]

    transparency and promote good governance. In support of these
    objectives, President Bush announced that in addition to assistance for
    Mindanao, he is seeking $29 million from Congress in fiscal year 2002
    monies to support poverty alleviation, economic growth, and anti-
    corruption efforts throughout the Philippines. As an expression of
    confidence in President Macapagal-Arroyo's strong leadership on economic
    reform, President Bush further announced that the Overseas Private
    Investment Corporation (OPIC) will extend a special line of credit of
    $200 million, building on its current substantial portfolio commitments
    for private sector investment in the Philippines, including in the
    housing sector. The two Presidents agreed to work to increase American
    investment in the Philippines, considering the close partnership between
    their countries.
        The two Presidents affirmed
    their shared commitment to protecting the environment, pledging to
    continue the environmental activities, including technical cooperation,
    under the July 2000 Joint Statement of Cooperation on Environment and
    Public Health. President Bush also informed President Macapagal-Arroyo
    that the Philippines has been declared eligible to participate in debt
    treatment programs under the U.S. Tropical Forest Conservation Act
    (TFCA) of 1998. TFCA provides for the cancellation of a portion of
    concessional debt owed to the United States (which, in the case of the
    Philippines, currently totals approximately $430 million) in exchange
    for a commitment to make local currency payments to support domestic
    forest conservation activities.
        The two Presidents discussed the situation in the southern
    Philippines, where separatist conflict and armed insurgency have raged
    for decades. President Bush and President Macapagal-Arroyo expressed deep concern for the safety of
    Philippine and American hostages held by the Abu Sayyaf Group (ASG) in
    the southern Philippines and called for their immediate and
    unconditional release. The two leaders reaffirmed their commitment to
    secure the safe return of all hostages and to put an end to the
    terrorist acts committed by the ASG.
        They discussed the recent trip
    to the Philippines by a U.S. counterterrorism assistance team, which
    assessed the capabilities and needs of the Armed Forces of the
    Philippines (AFP) in their campaign against the ASG. The two leaders
    affirmed that they would continue to work on a vigorous, integrated plan
    to strengthen the Philippine security forces' capacity to combat terror
    and protect Philippine sovereignty. Such an integrated plan would
    include a robust training package, equipment needed for increased
    mobility, a maintenance program to enhance overall capabilities,
    specific targeted law enforcement and counterterrorism cooperation, and
    a new bilateral defense consultative mechanism. As a preliminary step to
    enhance Philippine military modernization, President Bush pledged to
    work with the Congress for at least a ten-fold increase in Foreign
    Military Financing (FMF), from $1.9 million to $19 million for fiscal
    year 2002, and to sustain heightened assistance levels in fiscal year
    2003. He further announced his intent to provide an additional $10
    million in Department of Defense goods and/or services to assist the
    Armed Forces of the Philippines and another $10 million to support
    counterterrorism and law enforcement assistance. In total, security
    assistance from the Bush Administration to the Macapagal-Arroyo
    Administration, offered and/or delivered, is expected to be worth nearly
    $100 million for fiscal years 2001-2002.
        While pledging military cooperation to end the terrorist activities
    of the ASG, both leaders agreed that sustainable peace in Mindanao in
    the southern Philippines requires addressing Mindanao's root economic
    and social problems. President Bush praised President Macapagal-
    Arroyo's decision to pursue a
    political path to peace with the Moro Islamic Liberation Front (MILF)
    and welcomed the recent cease-

    [[Page 1436]]

    fire signed between the MILF and the Government of the Philippines. To
    help consolidate the peace and to promote economic and social
    development in Muslim communities, President Bush announced that he is
    working with the United States Congress to more than double U.S.
    assistance to Mindanao with a fiscal year 2002 package worth over $38
    million. Combined with fiscal year 2001 assistance, the United States
    will provide over $55 million to Mindanao.
        This Mindanao Assistance Package will provide direct support for the
    nascent peace process by integrating the ex-combatants and their
    communities into the peacetime economy; creating an environment in
    Mindanao that is attractive for investment, job creation and economic
    progress; and providing improved public services in Mindanao, especially
    in the Autonomous Region of Muslim Mindanao. This package will also
    include $825,000 in new educational and cultural exchanges, including a
    number of Fulbright scholarship grants, specifically targeted at
    Mindanao's Muslim community. This represents an almost 90 percent
    increase in educational exchange programming for Mindanao. The President
    further committed to work with Congress and other donors to secure
    additional resources for Mindanao, as the peace process moves forward in
    the years ahead.
        To complement this assistance, the U.S. Trade and Development Agency
    (TDA) is taking a pro-active approach to encourage the U.S. private
    sector's involvement in Mindanao's infrastructure development. Both
    Presidents welcome TDA's signing of
    a $302,500 grant agreement to plan the development of a commercially
    sustainable solar-powered irrigation system for rural farming
    communities and look forward to future TDA projects that will further
    promote sustainable development for the people of Mindanao. President
    Bush expressed condolences for the victims of the severe typhoon that
    hit the Mindanao region earlier this month and noted that the United
    States contributed $100,000 in disaster relief assistance to help
    affected families. To help better prepare for, and respond to, future
    disasters, the two leaders welcomed the signing of a U.S.-Philippine
    protocol of intentions on cooperation on disaster prevention and
    management.
        The meeting between President Bush and President Macapagal-
    Arroyo was characterized by unusual
    warmth and candor and heralded a new era of comprehensive cooperation
    and friendship between the United States and the Philippines.

    Note: An original was not available for verification of the content of
    this joint statement.