I leave to the opposition the task of threshing out its problems.

Meanwhile, I shall forge ahead with reform and reconciliation in all aspects of our national life.

I had a very productive meeting with Prime Minister Koizumi yesterday, I am meeting with Prime Minister Badawi of Malaysia today and I shall be meeting our OFWs in Japan to thank them for the sacrifices they are making for our country.

These are the people and events that are carving forward the path of stability and progress for our nation and I am determined to push forward in this path through the campaign and elections of 2004.

We want and we shall pursue justice for the Sipadan hostages just like in any kidnapping case.

Secretary Camacho served well as Finance Secretary and we shall continue to listen to his views from outside the government.

He is contributing meaningfully to the debate on good governance and economic stability.

The administration is listening to this debate very closely as we pave the way for firm political and economic security.

TOKYO (via PLDT)—President Gloria Macapagal-Arroyo has cited the role that Japan played in helping some member countries of the Association of Southeast Asian Nations (ASEAN) recover from the l997 financial crisis.

In her statement at the two-day ASEAN-Japan Commemorative Summit that ends today, the President said that the l997 financial crisis tested and reaffirmed Japan’s commitment to ASEAN as it declared millions of dollars of financial aid to help ASEAN countries recover.

She said that more of this kind of Japanese assistance followed in l999 when people-to-people exchanges started with the establishment of the ASEAN solidarity fund under the ASEAN Foundation.

"Through all these events, agreements and declarations, the Philippines has immensely benefited," the President said.

According to the President, the Filipino and Japanese people now enjoy the benefits of freer exchanges of ideas, of learning from one another, and understanding that "despite our apparent disparities, we are, in the end, far more similar than we are different."

"With perseverance, determination and brotherhood we have shown in the past 30 years, we know that no obstacle is too difficult to hurdle and no goal is too far to reach when we dream and work together as neighbors and brothers," the President said.

The President said that the Philippines and the other ASEAN member countries view Japan "as a valuable and strategic partner in our collective march toward regional integration and progress."

She said that the Philippines looks forward to contributing meaningfully to the promotion of exchanges, enhanced mutual understanding and reinforced friendly relations between ASEAN and Japan.

The ASEAN-Japan summit highlights the three decades of fruitful dialogue relations between ASEAN and Japan.

Japan, along with Australia and China, is a major dialogue partner of the regional grouping.

Yesterday, during a bilateral meeting between the President and Japanese Prime Minister Junichiro Koizumi, the two countries reaffirmed their "unwavering commitment" to strengthening peace and security in the region and to cooperating in the fight against global terrorism.

The two leaders also agreed to speed up the discussions that would lead to the conclusion of Japan-Philippines Economic Partnership Agreement "within a reasonable time."

TOKYO (via PLDT)—Japanese Prime Minister Junichiro Koizumi today said that Japan would strengthen cooperation with the ASEAN member countries in the fight against terrorism and other transnational crimes.

Koizumi, who co-chaired the ASEAN-Japan Commemorative Summit with Indonesian President Megawati Sukarnoputri, also said that Japan is vigorously working for the realization of a comprehensive economic partnership with ASEAN member countries.

The two-day summit, that ends today, would build up cooperation and partnership between Japan and ASEAN in security, political and economic fields.

The ASEAN leaders, that include President Gloria Macapagal-Arroyo, welcomed Japan’s decision to sign the Treaty of Amity and Cooperation in Southeast Asia, a non-aggression pact signed in l976.

Koizumi was expected to sign a document here today to express Japan’s intention to join the treaty. A formal signing ceremony would take place at a later date, officials here said.

On Thursday, Koizumi and the President agreed to speed up the conclusion of a Japan-Philippines Economic Partnership Agreement that would not only liberalize trade and investments but would also promote technical cooperation and capacity-building measures that would provide greater trans-border flow of resources and manpower.

Japan is the Philippines’ second largest trading partner and the biggest source of official development assistance (ODA).

ASEAN is Japan’s biggest trading partner after the United States, which accounts for 23.4 percent of its total trade.

TOKYO (via PLDT)—President Gloria Macapagal-Arroyo today called on the countries in the region to collaborate in the fight against terrorism, saying that the stability of the region can never be ensured with terrorists still on the loose.

"Only by aggressively going after terrorists can the world feel safe from the heartache and tragedy they leave in their wake," the President said in a statement that she read at the concluding session of the two-day ASEAN-Japan Commemorative Summit.

The President said that the Philippines has waged an all-out war against terrorism and has regulated the terrorist network in the ASEAN countries by continuing to work with its regional allies to find terrorists and to bring them to justice.

At the same time, the President said, economic cooperation within ASEAN and through the free trade agreement with Japan should give peoples in the region more economic opportunities so that they would resist terrorist recruitment.

The President said that there are new threats of international terrorism and trading in weapons of mass destruction as well as non-traditional security issues of human trafficking, money laundering and other trans-border threats.

"These can be effectively repelled only through greater collaboration among states, particularly neighbors like us," the President said.

She said that increased ASEAN-Japan cooperation in the security field is "indeed crucial."

TOKYO (via PLDT) – President Gloria Macapagal-Arroyo today sought the assistance of Japan in developing the Brunei, Indonesia, Malaysia, Philippines—East ASEAN Growth Area (BIMP-EAGA) to address the socio-economic problems of some of the poorest communities of the region.

In her statement at the closing session of the two-day ASEAN-Japan Commemorative Summit here, the President noted that Japan has extended financial support for the development of the Mekong sub-region.

"We urge Japan to provide similar support to the other sub-regional growth areas, like the BIMP-EAGA to maintain a secure, united and prosperous ASEAN community," the President said.

The President said that the BIMP-EAGA would greatly benefit from Japanese assistance, specifically through human resource development (HRD) projects, physical infrastructure, and trade and investment inflows.

TOKYO (via PLDT) - Philippine Ambassador to Japan Domingo Siazon, Jr. today said that Japan is willing to assist in the full development of Mindanao if a lasting peace can be forged with the Moro Islamic Liberation Front (MILF).

In a press briefing here, Siazon particularly cited the loan agreement that he signed Thursday with the Japan Bank for International Cooperation (JBIC) providing the amount of $19.8 million for a social fund for the Autonomous Region in Muslim Mindanao (ARMM).

Siazon said that the JBIC loan is on top of the World Bank financial package amounting to some $40 million, also for the ARMM.

"This is a clear message that it is better to be in as one Filipino nation and grow together instead of fighting against each other. That is the important message here," Siazon said.

He said that the people of Mindanao can reap the fruits of a peaceful settlement of the conflict in concrete terms like financing small scale industries and social infrastructures.

TOKYO (via PLDT) – Malaysian Prime Minister Abdullah Badawi today assured President Gloria Macapagal-Arroyo of Malaysia’s continued support for the government’s peace efforts in Mindanao.

Badawi, who succeeded former Malaysian leader Mahathir Mohamad, gave the assurance during the two leaders’ bilateral meeting held this morning on the sidelines of the two-day ASEAN-Japan Commemorative Summit that ends today.

In an interview, Presidential Spokesman Ignacio Bunye said the President thanked Badawi for Malaysia’s role in facilitating the resumption of the formal talks between the government and the Moro Islamic Liberation Front (MILF).

Exploratory talks that could lead to the formal resumption of the peace talks between the two sides would start next month in Kuala Lumpur.

Bunye said Malaysia would send a ceasefire monitoring team that is expected to arrive in Mindanao on Monday.

He said Malaysia has promised to exert all efforts to make sure that the peace talks move forward.

Malaysia, a founding member of the Organization of Islamic Conference (OIC), is well respected by the MILF.

The President, Bunye said, also thanked the Malaysian official for the development projects in Mindanao, particularly the palm oil plantation, a joint venture of Filipino and Malaysian businessmen.

He said the President asked Badawi to allow the Philippines to import palm oil seeds from Malaysia.

If this will push through, it will speed up progress of palm oil development, he added.

According to Bunye, Badawi has also expressed interest in the development of the Brunei Indonesia, Malaysia, Philippines—East ASEAN Growth Area (BIMP-EAGA), which the President has been pushing.

In its formal peace talks with the Moro Islamic Liberation Front (MILF) starting January next year, the government will demand a written commitment from the secessionist group indicating that it renounces terrorism and will help the government identify and even arrest members of the dreaded Jemaah Islamiyah (JI).

Presidential Deputy Spokesman Ricardo Saludo said in a radio interview that this will be the government position in the talks in the light of reports that the some MILF members are supporting or even coddling JI terrorists in their midst.

"Verbally, the MILF has already said that they are against terrorism. Now the government wants them to show it through a written commitment," Saludo said.

He said the MILF should also turn in JI members who operate in their area and help the government identify and even arrest them.

The Presidential Deputy Spokesman said he believes in the sincerity of the MILF in pushing through with the peace talks but that they should also avoid any links with the terrorist group lest they be declared an international terrorist organization too and consequently face the wrath of the international coalition against terrorism.

Meanwhile, Saludo said, the government will make sure that Kumander Robot, recently captured leader of the Abu Sayyaf, will be able to face and answer queries from representatives of various countries who want to make him answer for all his crimes.

The government has succeeded in maintaining the country’s deficit target this year and expects to wrestle down the deficit even more in the coming years.

This was the assurance given by Presidential Deputy Spokesman Ricardo Saludo today as he took exception to comments made by former Finance Secretary Isidro Camacho that the financial debt is beyond manageable level owing to a political system that could not bring it down.

"While we appreciate and listen to the comments of former Secretary Camacho on these issues, may we also note that in fact, the credit rating agencies have themselves expressed a review that our situation is stable and they have also taken note of our efforts to address the debt and deficit problem," Saludo said, referring to Standard and Poor’s pitch on the issue.

He said the government has been working on the problem even under Camacho when he was still handling the finance portfolio and has shown that it can hit targets in revenue.

"In fact," Saludo said, "it looks like both the Bureau of Internal Revenue and the Bureau of Customs would be able to exceed their targets this year and we hope we will continue this progress towards bringing down the deficit. We have also succeeded, through this deficit reduction, in maintaining interest rates at a low level which greatly helps our debt situation."

The Deputy Presidential Spokesman said there are also bills being pushed in Congress that are expected to address the debt and deficit situation.

One of these, the tax on automobiles, has been passed, he said.

Two others, one intended to index the excise taxes to inflation and the revenue administration bill which hopes to improve tax collections by reorganizing the BIR, are already nearing passage, he said.

"There certainly is no shortage of legislation that we have pushed to address the deficit and debt problem," Saludo said.

He said President Gloria Macapagal-Arroyo is also pushing for bureaucratic reforms "like those in our institutions for law and order to help instill greater adherence to the duties and responsibilities of people in government."

Then there’s also, he said, the enforcement of the law on all citizens including the law on taxation as well as laws relating to procurement of government contracts, goods and services which should also help address the debt and deficit situation in the country.

Saludo said the government would continue to push for the passage of the indexation of taxes on sin products which was shelved by Congress recently.

"We just have to wait for Congress to do its job on this so that the revenue benefits from the legislation will accrue to the government as soon as possible."

He defended the fresh P435 million loan the President got from the Japan Bank for International Cooperation in her ongoing Tokyo visit as something that will redound to the benefit of the country.