[Weekly Compilation of Presidential Documents Volume 37, Number 47 (Monday, November 26, 2001)]
[Pages 1697-1700]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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

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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 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

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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-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.

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    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.