JOINT STATEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC OF THE PHILIPPINES

By THE WHITE HOUSE
May 19, 2003

     President George W. Bush today welcomed President Gloria Macapagal-Arroyo
to the White House on the occasion of her State visit to Washington.  The two
leaders discussed the full range of global and bilateral issues and reaffirmed
the depth and breadth of ties between the United States and the Republic of the
Philippines.  The Presidents agreed that relations are deeper and warmer today
than at any time in recent history and noted that those ties are rooted in
shared history, shared values, and a common interest in global peace and
prosperity.  President Bush and President Macapagal-Arroyo paid tribute to a
revitalized and maturing bilateral alliance and pledged to strengthen the
partnership further in the years ahead.

     The two leaders noted with satisfaction that the U.S.-Philippine alliance
continues to play a vital role in ensuring mutual security, as it has since the
signing of the U.S.-Philippine Mutual Defense Treaty over 50 years ago.  In
recognition of this proud history and continued partnership, the President
announced his intention to designate the Philippines as a Major Non NATO Ally
(MNNA).  This step will allow the two countries to work together on military
research and development and give the Philippines greater access to American
defense equipment and supplies.  President Bush thanked President
Macapagal-Arroyo for her strong and unequivocal support in the Iraq campaign and
expressed appreciation for the Philippine government's plans to deploy
peacekeeping and medical personnel to assist in Iraq's reconstruction.  The two
Presidents reaffirmed their shared commitment to a free Iraq at peace with its
neighbors.  The two leaders also agreed that North Korea's nuclear weapons
program is unacceptable and stressed that North Korea's relations with the
Asia-Pacific region hinge on the verifiable and irreversible elimination of
nuclear weapons capability.

     President Macapagal-Arroyo expressed the view that the world had changed on
September 11, 2001 and that conflict in Iraq had been another milestone in the
war on terror.  She noted that across Asia, there is a growing capability and
readiness to cooperate on maintaining peace and stability in this new
environment, and emphasized that the United States' leadership and strategic
presence in the region are essential for the continuation of this positive
trend.  President Bush welcomed this perspective and reiterated that Asia
remains a major focus of U.S. foreign policy.

     Recalling last year's highly successful deployment of U.S. troops to the
southern Philippines, the two leaders noted with satisfaction that the terrorist
Abu Sayyaf Group (ASG) had been driven substantially from the island of Basilan,
enabling the restoration of peace and order.  The two Presidents reaffirmed
their commitment to destroy the ASG once and for all.  Toward that end,
President Bush and President Macapagal-Arroyo agreed to hold another joint
military activity in the near term, in which the United States will provide
support to ongoing Armed Forces of the Philippines-led operations against the
ASG.

     The two leaders agreed on the need for a comprehensive approach to
defeating terrorism in Southeast Asia, recognizing that terrorism knows no
borders.  The Presidents agreed on the need for efforts to alleviate poverty and
other socio-economic grievances which can create conditions that can be
exploited by terrorists.  President Arroyo expressed appreciation for increased
U.S. economic and development assistance to the southern Philippines, which
reinforces the Philippine Government's own efforts to heal divisions in
Philippine society.  To advance this agenda, President Bush informed President
Macapagal-Arroyo that the United States will train and equip a Philippine
engineering unit capable of performing civic action and humanitarian projects in
conflict zones.

     The two Presidents agreed that the U.S.-Philippine security partnership has
never been healthier and emphasized the importance of U.S. support for
continuing efforts to improve the capabilities of the Armed Forces of the
Philippines (AFP).  Toward that end, the two Presidents agreed to launch a
comprehensive review of Philippine security needs and how best the United States
can support President Macapagal-Arroyo's plans to modernize and reform the AFP.
President Bush committed to help address the AFP's most pressing needs,
particularly in the area of mobility, by providing helicopters and spare parts.
President Macapagal-Arroyo thanked President Bush for his promise of assistance
and pledged her government's full support for, and participation in, the more
comprehensive review.     
 
     The two Presidents highlighted the remarkable contributions of Filipinos
and Filipino-Americans to American economic life.  Recognizing the important
role that the over 7 million overseas Filipino workers play in the Philippine
and global economies, President Bush announced that the United States is
launching a project to facilitate the flow of remittances from Filipino workers
around the world back to the Philippines.  The two leaders agreed that this
project would improve the lives of millions of Filipinos by lowering the costs
of remittance transactions and making it easier for funds to flow to the
Philippines from the United States and around the world.

     President Bush was pleased to accept President Macapagal-Arroyo's
invitation to pay a reciprocal visit to the Philippines when he travels to
Southeast Asia for APEC in 2003.  The two leaders agreed that to maintain
momentum in the bilateral relationship, other senior U.S. officials will travel
to Manila in the coming months, beginning soon with Secretary of Energy Abraham
and continuing thereafter with senior officials from the Department of Treasury
and the Agency for International Development (AID).