Upon the recommendation of the secretaries of Foreign Affairs and National Defense, the President today approved the holding of Balikatan 03-1 in Sulu.

As in the Balikatan exercise in Basilan, the exercise will form part of the country’s overall and ongoing defense and security cooperation activities with the United States, which continue to focus on increasing our ability to protect ourselves against terrorist threats.

The specific number of American soldiers and support troops, as well as the duration of the exercise, will still be determined by the Philippine government in consultation with the United States.

Details will be discussed between our officials and Maj. Gen. Joseph F. Weber, who will becoming to the Philippines within the next few days.

As in Balikatan 02-1, the Balikatan in Sulu will be conducted in accordance with the Constitution and laws of the Philippines. Both Foreign Affairs Secretary Blas F. Ople and Defense Secretary Angelo T. Reyes will brief leaders of Congress on this matter shortly.

Malacanang today appealed to Congress to work for amendments to the Anti-Money Laundering Act (AMLA) as it refused to be drawn to a battle of words with some senators who blamed the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DoF) for their alleged failure to defend the AMLA amendments before the Paris-based Financial Action Task Force (FATF).

"I don’t think we should add fuel to what is already a complicated situation," Presidential Spokesman Ignacio R. Bunye said in his regular press briefing in Malacanang.

Bunye said what everybody should do now is to work together to find a way so that the Philippines would be able to satisfy the requirements of the FATF.

He said that the government will not be distracted anymore by making side comments on the issue. "I think we have more than enough to work on during the next few days," Bunye said.

The FATF has given the Philippines until March 15 to pass amendments to the AMLA that would conform to their requirements after which it will impose sanctions on the country.

Finance Secretary Jose Isidro Camacho has said that the one-month extension given to the Philippines would give Congress enough time to work on the amendments on the AMLA sought by the FATF.

Bunye said that there will be a mini-meeting of the joint Legislative- Executive Development Advisory Council (LEDAC) sometime this week to work on the matter.

President Gloria Macapagal-Arroyo today acknowledged the role of the Congressional Spouses Foundation Incorporated (CSFI) in promoting unity in the House of Representatives and improving legislation by enhancing understanding even with the minority.

The President made the recognition as she inaugurated the Haven for Children in Alabang, Muntinlupa, a project established by the CSFI.

She also donated P1 million to the Haven through its Wishing Wall, a venue for those who would like to donate to the institution.

The President noted that under the leadership of CSFI president Gina de Venecia, the foundation has worked hard for the vulnerable sector in society – women and children.

She noted that the fellowship of CSFI members has resulted in an atmosphere of understanding even with the minority, bringing the biggest majority ever for Speaker Jose de Venecia.

"This continuing bonding of the congressional spouses also provides a bridge of understanding even with the minority. It helps bring about an atmosphere where the minority is in a constructive democratic institution that improves legislation rather than obstructs and sabotages the republic," the President said.

She said that with Mrs. De Venecia as his secret weapon, the Speaker has been able to consolidate leadership in Congress "in such a way that the work of House of Representatives is speedy and results in House-approved bills that truly reflect the national interest."

"It truly shows that when it comes to legislation, the congressmen and congresswomen as a whole can resist the dictates of vested interest. Joe and the congressmen and congresswomen have passed house bill after house bill that required great political will to rise above the formidable lobby of vested interest," the President said.

The President noted the Speaker’s high sense of national interest and fortitude "with which he pursues it even at risk of great political cost."

She also noted Mrs. De Venecia’s support for enabling her husband to demonstrate political will in Congress, "a great contribution that you are making in the building of a strong republic."

Built on land owned by the Department of Social Welfare and Development, the Haven is a complex of eight two-story buildings housing the children’s residences, a therapy center, a guidance center for parents, a livelihood center and a covered multi-purpose basketball court.

Its utilities include a drainage system, street lighting, perimeter fence, landscaping and a deep well and water tank.

According to the Mrs. Gina de Venecia, the Haven would create an atmosphere of home, complete with surrogate parents and grandparents, whenever possible, to give the children a sense of family.

Professional psychologists, doctors and social workers and spiritual directors would also attend to the children’s needs. Vocational and livelihood training programs would be made available to the minors.

A total of 300 street children will be initially accommodated in the institution.

President Gloria Macapagal-Arroyo today witnessed in Malacanang the turn over of one million renminbe (RMB) or P6.6 million by Hui Wing Mau, chairman of the Shi Mau Holding Company Limited of the People’s Republic of China, to John Ng, president of the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII), for the government’s School for Every Barangay Program.

The President thanked Hui for the support he gave to her administration, saying it would greatly help the government’s program to make education more accessible and less costly for school children.

Hui is one of China’s leading real estate magnates. He went to Hong Kong during the 70s to work as a laborer. With his modest earnings, he made his fortune in the stock market. He also invested in real estate in Fujian and Australia and later in Beijing. In August 2000, he started investing in Shanghai.

Hui thanked the President for giving him the opportunity to see her personally, adding that it was his honor to help the Macapagal-Arroyo administration through the FFCCCII, particularly in building schools for the barrio.

FFCCCII officials led by its secretary general Joaquin Sy said the P6.6-million donation is "enough to build 22 units of barrio schools."

Earlier, the President directed Education Secretary Edilberto de Jesus to have classroom worth only P250,000 designed. Today, each classroom costs some P750,000.

This would give the government the capability to build more classrooms throughout the country, especially in remote barangays, she said.

The President said that to reduce the time and money spent by school children to actually travel to and from school, every barangay must have a school building by 2004.

She reported that in 2001, a total of 1,612 barangays had no school buildings. In 2002, the government built school buildings for 1,290 barangays.

The remaining 322 villages would have their school buildings within the next 17 months of her administration, the President said.

President Gloria Macapagal-Arroyo today urged small and medium enterprises (SMEs) to take advantage of the government infusion of P10 billion as new funds to promising enterprises.

The President, who issued the call during the SMEs Forum on the National SME Agenda at the Metropolis Mall in Alabang, Muntinlupa City, said the amount would be made available for the next six months.

The event, the President said, was held in Muntinlupa City because the city is considered the most SME-friendly city in the Philippines.

"There’s P10 billion available. Use it and create jobs for our people," the President exhorted the small entrepreneurs.

Another P10 billion would be made available for the following six months, the President added.

The President said a lot of the loan would be made available to deserving SMEs in the National Capital Region (NCR) and Regions 3 (Central Luzon) and 4 (Southern Tagalog) to offset the unemployment rate in the regions.

But she noted that her minimum requirement is to have P1-million loan to every town around the nation.

In explaining the interest rates for SMEs, the President assured that short-terms loans would be given single-digit rate of 9 percent while medium-term will be at 11.25 percent and three-year-term borrowings would have 12.75 percent as maximum interest rate.

The President also stressed that the government would have to "standardize" its requirements for loans, citing the unnecessary requirement of banks for SMEs to submit income tax returns.

"The main job of the bank lending money is to make sure that it lends money to a credit-worthy enterprise. Let us not mix up the SMEs after all the tax evaders are really not the SMEs," she said.

Aside from real estate, among the collaterals allowed for borrowers would be post-dated checks, assignment of life-insurance and guarantee cover, (in case of franchise) the corporate guarantee or assignment of lease rights to the bank or (if for export), the assignment of letters of credit, purchase orders or sales invoices, the President said.

The President said that with the new agenda on SMEs, jewelry manufacturers in Bulacan could be better organized and, "therefore, would get better prices for their products."

"For the producers in Negros, you can have a wider market reach. For the furniture industry in Cebu, you can even be more competitive and in areas where there are many SMEs, such as the NCR, Regions 3 and 4, we hope to have an expansion of common service facilities," she said.

The President has given SME development the much-needed support as she prioritized SMEs among the main beneficiaries of a national program known as her Eight-Point Reform Agenda.

The President has called on the nation to take an active part in stimulating the domestic demand, rather than rely on the export market.

To stir up domestic consumption, she asked that more capital to be infused in SMEs.

The President has ordered state financial agencies to step up efforts to provide loanable funds for SMEs, while calling on commercial banks to expand lending programs for SMEs.

The Philippines is sticking to its position that the mandate of United Nations Resolution 1441 must be complied with immediately and verifiably by the Iraqi leadership so that war could be averted in the Middle East.

"This is the main burden of that resolution," Foreign Affairs Secretary Blas Ople said in a press briefing in Malacanang after the meeting of the Cabinet Oversight Committee on Internal Security (COCIS) chaired by Executive Secretary Alberto Romulo.

Ople said that based on signs coming from the UN Security Council, war in the Middle East "is not yet imminent."

"The developments in the Security Council itself are not yet very clear. Is the United States pursuing a second resolution in the Security Council? They have said it before, that they don’t need a second resolution. But it may be desirable to have one," Ople said.

Ople said the government position on the Iraqi crisis has been consistent from the beginning.

He said that the government has noted the widespread demonstrations throughout the world against the US move to attack Iraq.

"I am impressed with that. But the demand for peace worldwide does not mean a demand for appeasement," Ople said.

Ople said that the world is looking for a "principled basis" for a lasting peace.

"That would include conditions under which terrorism can be controlled and finally eliminated, for a world that will be free of weapons of mass destruction," Ople said.