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02 JUNE 2003

bulet-arow.gif (856 bytes) Statement of the President on Economy
bulet-arow.gif (856 bytes) Statement of the President on Korea State Visit
bulet-arow.gif (856 bytes) Statement of the President on Military Bases
bulet-arow.gif (856 bytes) Statement of the President on MILF
bulet-arow.gif (856 bytes) GMA orders improved maritime safety, minimum risks to sea transport
bulet-arow.gif (856 bytes) GMA inducts Santiago as Corrections Chief
bulet-arow.gif (856 bytes) GMA leaves for Seoul on State Visit
bulet-arow.gif (856 bytes) GMA witnesses turnover of PNOC cash dividend of P280 million to National Treasury
bulet-arow.gif (856 bytes) Statement of Presidential Spokesperson Ignacio R. Bunye
bulet-arow.gif (856 bytes) GMA leads in awarding of cash assistance to families of slain or wounded soldier
bulet-arow.gif (856 bytes) Japanese traders thank GMA for bringing about better business environment
bulet-arow.gif (856 bytes) GMA to take Nokor issue with South Korean President Roh

Statement of the President on Economy

Structural reforms in the economy and in governance have been our concern since day one and we have moved forward decisively on both fronts. We have worked hand in hand with Congress and the business sector to build a better climate of investment and business activity. Our current growth figures bear this out but we know very well that much more has to be done. Building strong and modern economic institutions take time because it also involves an overhaul of political, social and cultural factors. We are on the right path and our people are cooperating with the Government on this score.

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Statement of the President on Korea State Visit

We share deep historical ties and democratic values with Seoul Korea. It is home to more than 30,000 Filipinos and a source of substantial investment, trade and development assistance. Last year our exports to Korea grew by about 30 percent and continues to grow. We also have a strong security partnership based on a common desire for peace and stability in the region. The Philippines is the closest geographical neighbor of Korea, among the ASEAN nations and there are more Koreans in the Philippines than Filipinos in Korea. About 10,000 Koreans visit the Philippines every month and this tourist arrivals from there increased by more than 20 percent in the first quarter of this year. This is an opportunity to renew our bonds of friendship and cooperation with the Korean people.

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Statement of the President on Military Bases

Our Constitution prohibits foreign military bases in our territory. This is known to all nations.

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Statement of the President on MILF

The MILF will have to convince the people of its sincerity. The declaration of a temporary truce does not necessarily signal a sincere desire for peace. It may be a ploy to allow a reconsolidation of troops and resources, to strengthen links with terrorists, to beef up plans of attack upon civilians. To allow these would only place our people in graver peril. It is not enough for the MILF to simply silence its guns for a while. It must reveal where its forces are located, tell us the intentions of these forces, and show that they are not mixed with criminals or terrorists. The Armed Forces will not fire upon MILF groups that come out in the open and peaceably return to the fold. But groups that remain underground and which have committed acts of terrorism will be interdicted and subjected to punitive actions because these remain a threat to the safety of civilian communities. The people will rather see this problem decisively resolved than live in an atmosphere characterized by a fragile and uncertain peace.

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GMA orders improved maritime safety, minimum risks to sea transport

President Gloria Macapagal-Arroyo today ordered Transportation and Communications Secretary Leandro Mendoza to carry out at least six measures that would improve maritime safety and assure that risks to sea transport are not repeated.

The President also ordered the Professional Regulation Commission (PRC) "to review the standards and implementation of training and licensing rules and regulations governing seamen and maritime professionals manning domestic ships."

She stressed that sea safety "is an issue important to the welfare of our poorer citizens" since inter-island travel by ship is a transport mode favored by poor Filipinos.

In a speech before flying off to Seoul, South Korea for a state visit, she said that even pending the results of the marine investigation on the recent sinking of M/V San Nicolas, she had asked Secretary Mendoza to:

  • Prepare a policy recommendation governing the continued use of wooden-hulled vessels as passenger ships, including rules and regulations on classification implementation for passenger ships, particularly wooden-hulled ships.
  • Organize a performance and capability assessment of the Philippine Coast Guard (PCG) relative to its functions of enforcing maritime safety standards and overloading rules, and undertaking rescue operations in sea accidents.
  • Draft measures to improve safety in narrow inter-island passages and areas with heavy sea traffic, with consideration given to delineating sea lanes and implementing better monitoring and communications systems in concerned areas.
  • Recommend structural, functional and personnel changes to improve coordination between and effectiveness of the Maritime Industry Authority (Marina) and the PCG in assuring access to safe, affordable and convenient sea trips.
  • Formulate a program of random drug and alcohol testing of shipping crews and officers, particularly those manning passenger vessels.
  • Convene a task force for maritime safety represented by the government and shipping sectors, maritime schools and other stakeholders. The task force shall formulate sea safety measures to be included in the President’s legislative and executive priorities.

"I’d like to see a non-negotiable level of provisions and standards that assure safety at sea," the President said, as she stressed that the government would require private shippers to comply with standards and would provide the needed help for the latter to comply with standards.

She said that she would regularly update the people on the progress of her instructions to Secretary Mendoza and the PRC.

"I am determined to make my administration the point to end the long chain of deadly sea accidents that have marked inter-island shipping in our country," she pointed out.

The President had earlier given a 15-day deadline for the completion of the investigation on the M/V San Nicolas tragedy.

She expected to get the findings on June 9 upon her return from South Korea and Japan.

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GMA inducts Santiago as Corrections Chief

President Gloria Macapagal-Arroyo today swore in former Armed Forces Chief of Staff General Dionisio Santiago as the new Director of the Bureau of Corrections.

The President inducted Santiago in simple rites this morning at the Heroes Hall in Malacanang, before she left for a state visit to South Korea.

Santiago replaced Ret. Col. Rolando Macala, who was earlier meted a 90-day suspension due to pending graft cases filed before the Presidential Anti-Graft Commission.

Santiago is a graduate of the Philippine Military Academy, class 1970 and an International Fellowship Program awardee in the US Army War College from 1993-1994.

He also received a Certificate of Honor from the International Fellows Hall of Fame at the US Army War College in Carlisle Barracks, Pennsylvania last October 18, 2002.

Born in Navotas, Metro Manila on April 19, 1946, Santiago is married to Hermogena Santiago. He is blessed with a daughter and two sons.

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GMA leaves for Seoul on State Visit

President Gloria Macapagal-Arroyo left today for Seoul on the first leg of a five-day swing through South Korea and Japan to further firm up ties with those Asian neighbors, discuss bilateral and security issues with the leaders of the two countries and meet with thousands of overseas Filipino workers there.

The President arrived at Villamor Airbase shortly before noon and was met by Japanese Ambassador Kojiro Takano and South Korea’s Deputy Chief of Mission and Consul General Cho Hee-Yong.

After a brief send-off ceremony, the President boarded an 18-seater Learjet for the five-hour flight to Korea. Labor Secretary Patricia Sto.Tomas accompanied the President on her flight to Seoul.

Among those who saw the President off at the airport were Executive Secretary Alberto Romulo, National Security Adviser Roilo Golez, Armed Forces Chief of Staff Gen. Narciso Abaya and Philippine National Police Chief Director General Hermogenes Ebdane, Jr.

In a statement issued earlier, the President noted the deep historical ties between the Philippines and South Korea, which is home to some 30,000 Filipinos.

She said her state visit is "an opportunity to renew our bonds of friendship and cooperation with the Korean people."

She also said South Korea is a source of substantial investment, trade and development assistance.

The President will hold summit talks tomorrow with South Korean President Roh Moo-hyun to discuss ways of promoting cooperation and exchanges between the Manila and Seoul governments.

The President’s arrival in Seoul coincides with the 100th day in office of the South Korean leader.

She leaves South Korea for Tokyo on June 4 for a three-day working visit.

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GMA witnesses turnover of PNOC cash dividend of P280 million to National Treasury

President Gloria Macapagal-Arroyo today congratulated the Philippine National Oil Company (PNOC) for declaring millions in cash dividends as she witnessed the turnover of the check amounting to P280,271,640 as part of its remittance to the national government.

In ceremonies held this morning at Malacanang’s Heroes Hall, PNOC President Thelmo Cunanan turned over the check to Deputy National Treasurer Nina Figueroa.

The PNOC has declared a total cash dividend of P560,543,280 to the national government and half of it--amounting to P280,271,640—was turned over to the Bureau of Treasury this morning.

The other half would be remitted to the Bureau of Treasury in July.

Of the total remittance of P560,543,280 the amount of P279, 293,280 represents 50 percent of income from PNOC operations while the P281,250,000 is the national government’s 50 percent share from Petron’s cash dividend to PNOC.

Cunanan said that being a government-owned and controlled corporation they are mandated by R.A. 7656 to declare cash dividends to the national government representing half of their net income.

He said that the company is strengthening its investments and is actively pursuing joint ventures such as the naptha cracker project as he assured the government and PNOC shareholders that higher incomes could be realized by the firm in the long term.

"However, we are also focusing on strengthening our thrust on renewable energy projects such as natural gas vehicles and solar power projects. Though these renewable energy projects may not earn immediate profits, their impact on the environment is immeasurable, " Cunanan said.

PNOC subsidiaries include the PNOC Energy Development Corporation, PNOC Exploration Corp., PNOC Petrochemical Development Corp., PNOC Shipping and Transport Corp., and the PNOC Development and Management Corp.

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Statement of Presidential Spokesperson Ignacio R. Bunye

Re Declaration of MILF as a Terrorist Organization

For the meantime, the issue has taken a back seat. The higher issue which the government would like to resolve at this time is whether the MILF would be interested to sign a Final Peace Agreement which would put an end to the decades-old conflict.

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GMA leads in awarding of cash assistance to families of slain or wounded soldier

President Gloria Macapagal-Arroyo today led the awarding of cash assistance to the families of soldiers who were killed or wounded while in combat actions against rebels in Mindanao.

In a simple rites held this morning at the Heroes Hall in Malacanang, the Alay Sa Kawal Foundation, Inc (ASK) extended P20,000 cash assistance each to the families of 36 soldiers killed in action and three wounded soldiers while in combat operations in Mindanao.

Recipients of the cash assistance include the widows and parents of the soldiers killed in action and three wounded soldiers.

ASK President Ramon A. Pedrosa said their aim is to provide various forms of assistance to those in the military service who, in the performance of their duty, are not only risking their lives but also sacrificing a lot.

During the simple rites, the President hailed wounded Army soldier Banny S. Tatua for his dedication to the military service.

Tatua was wounded when he stepped in a land mine during a combat patrol on Feb. 12, 2003 at Sitio Bombaran, Barangay Tugaig, Barira, Maguindanao.

He was discharged from the service due to left knee amputation and is still confined at the AFP Medical Center when he was extended cash assistance by the Chief Executive.

Tatua, who is a Muslim, has a rank of Private First Class at the Philippine Army of the 73rd Infantry Brigade. He has four children.

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Japanese traders thank GMA for bringing about better business environment

Japanese businessmen and investors in the country have expressed their heartfelt gratitude to President Gloria Macapagal-Arroyo for her involvement and intervention in helping bring about a better business environment both for Filipinos and foreigners.

In a letter to the President dated May 28, 2003, Ryukichi Kawaguchi, president of the Japanese Chamber of Commerce and Industry in the Philippines, expressed the unanimous support of the chamber to the President and welcomed her forthcoming visit to Japan on June 4 to 6.

Kawaguchi said the President’s visit would "relate to closer ties that will further enhance partnership and cooperation between our two nations (Japan and the Philippines)."

The President is now in South Korea for a state visit and, from there, will fly to Japan for a working visit.

In the letter, copies of which were also sent to Trade and Industry Secretary Manuel A. Roxas II and Japanese Ambassador Kojiro Takano, the chamber president said they were grateful to the President for making sure that the concerns they brought up earlier were "addressed properly and promptly by the authorities."

Kawaguchi said "we are seeing positive developments" aimed at solving the issues the chamber raised, adding that they "would deeply appreciate it if we would continue receiving (the President’s) kind assistance."

Kawaguchi stressed that the chamber "sees positive developments" at solving at least five key issues to help Japanese businessmen in the Philippines maintain their competitiveness in the global market.

The five issues the chamber raised involved infrastructure, labor, peace and order, the environment and VAT refund.

On infrastructure, the JCCIPI sought improvements in four road projects in Laguna, Batangas and Cavite where export-oriented manufacturing industries are heavily concentrated.

Said the chamber: "Regarding the early completion of the reinforcement works of the Alabang Flyover and the extension of both South Luzon Expressway and the Southern Tagalog Arterial Road (STAR) segment, it has been announced that Your Excellency has given specific instructions that these projects be completed within your term of office. Madam President, we thank you for that."

On labor, the chamber cited President Macapagal-Arroyo for being concerned with employment issues and supporting the expanded role of Quick Reaction Teams (QRT) "to resolve quickly labor disputes and reduce the possibility of illegal strikes."

Kawaguchi said the chamber has been closely in touch with the Department of Trade and Industry’s (DTI) Board of Investments (BOI) and the Department of Labor and Employment for advice and suggestions on labor differences.

On peace and order, the chamber noted government action to stop the hijacking and the pilferage of truck cargoes, particularly in the Southern Tagalog region.

Kawaguchi lauded Interior and Local Government Secretary Jose Lina Jr., and officials of the Philippine National Police in addressing the problem.

He likewise cited the benefits Japanese businessmen reap on government moves to protect the environment.

While urging government to "take a more aggressive and proactive stance" for an early construction of a hazardous industrial waste treatment facility, the chamber noted the planned construction of such a plant in Batangas by 2005.

The chamber believed that "utilizing Japanese ODA (Official Development Assistance) scheme is a possible option to be considered."

Kawaguchi likewise took note of government moves to pay back Value Added Tax (VAT) refunds, but sought faster repayments for claims that dated back to pre-2000.

The chamber also asked the Bureau of Internal Revenue’s management committee to act on their request to use foreign currency in the preparation and presentation of financial statements as what is being done in China, Vietnam, Indonesia and Singapore.

Further, the JCCIPI asked the government to entitle companies registered with the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority and Clark Development Corporation and engaged in preferred pioneer areas of investment "to the same tax incentives being enjoyed by BOI-registered companies."

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GMA to take Nokor issue with South Korean President Roh

SEOUL (via PLDT) -- President Gloria Macapagal-Arroyo is set to manifest her desire for the Philippines to play a strategic role in maintaining peace and stability and promoting prosperity in Asia when she starts her three-day state visit here today (June 2).

The President, who left Manila on board a Lear jet before noon today, will also reaffirm the long-standing partnership of the Philippines and South Korea during her state visit, the first by any head of state under the administration of South Korean President Roh Moo-Hyun.

Presidential Management Staff Head SiIvestre Afable said "security and development in Asia are uppermost in the President’s mind."

In a press conference at the Sofitel Hotel, Afable said the President had expressed deep concern over the possible spillover effects of the North Korean crisis in Asia.

The spillover has repercussions on the Philippines, which is the nearest Asean country to the Korean peninsula.

"The President has found it necessary to sustain the momentum of diplomatic initiative to resolve the North Korean issue through peaceful means," he said.

"She said the conflict could have spillover effects both politically and economically to other countries in the region," he added.

The North Korean issue will be among the top items in the forthcoming bilateral meeting between President Macapagal-Arroyo and South Korean President Roh.

The bilateral meeting will also take up, among other things, defense and economic cooperation as well as the welfare of Filipino workers here.

As of the end of last year, Filipino expatriates in South Korea totaled some 33,000, of whom 18,000 are undocumented.

One of the highlights of President Macapagal-Arroyo’s trip here is the visit to the war memorial on Wednesday (June 4) in memory of Filipino soldiers who died during the Korean War in the 1950s.

The Philippines, which started its bilateral relations with South Korea in 1949, sent a 1,500-strong Philippine Expeditionary Force to Korea the year after.

The contingent formed part of the US-led coalition to defend South Korea against the communist invasion from the north.

Some 100 Filipinos died and 50 others were wounded in defense of democracy and freedom in Korea.

During her visit, President Macapagal-Arroyo will also take up trade issues to improve the balance of trade between the Philippines and South Korea.

Trade and Industry Undersecretary Mike Jaresco said that despite the growth of Philippine exports by more than 20 percent a year in the last five years, the government is taking a more aggressive push to improve its export position.

The President is scheduled to meet the four biggest associations in South Korea to persuade them to avail themselves of the Philippines as the hub of their regional operations.

She is also expected to take advantage of South Korea as a rich source of development assistance.

In the pipeline are the Laguindingan airport project involving three airports in Mindanao, the South Manila commuter rail project and the LRT II east extension, Afable said.

Also forthcoming is military assistance in the form of air and naval assets that would help the Philippines in fighting insurgency in the south, he said.

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