Cruz said the immediate impact of the tariff cut would be felt later this year when the country’s canned tuna exports to the US would be raised by 10 percent, or from 2.7 million to 2.8 million cases as higher demand for the product is expected due to the EU expansion.

GENERAL SANTOS CITY - Fishing industry stakeholders here expect to consolidate their fish landing and marketing operations when the $26.171-million (P1.526-billion) Gen. Santos Fish Port Complex (GSFPC) expansion and improvement project is completed.

In a luncheon-briefing for President Gloria Macapagal-Arroyo during her working stay here Wednesday, agriculture officials said expanding the 32-hectare fish port facility -- located along the shores of Sarangani Bay in Barangay Tambler, this city -- would also promote maximum capacity use of canneries in the area.

The officials said the expansion would improve the quality handling of frozen fish products, thereby increasing competitiveness in the global market.

The project will also open new jobs in the industry.

The fish port expansion involves the construction of two wharves with a total length of 500 meters, a 1,500-metric ton capacity cold storage facility, a wastewater treatment plant, and a power substation; and the installation of port handling equipment.

Officials told the President that when the GSFPC was completed in 1998 to the tune of $34 million bankrolled by the Japanese Overseas Economic Cooperation Fund, General Santos City developed into Southcentral Mindanao’s principal fish trading center.

Southcentral Mindanao (Cotabato Region or Region XII) is composed of the provinces of Cotabato, South Cotabato, Sultan Kudarat and Sarangani, and the cities of Cotabato, General Santos, Kidapawan, Tacurong and Koronadal.

At the same time, the so-called SOCSARGEN (South Cotabato-Sarangani-General Santos City) economic growth area was developing into a profitable business enclave.

These positive developments and the surging demand in fishing and processing in the growth cluster spurred the private sector to make full use of the Makar commercial wharf while putting up their own private jetties and cold storage facilities.

But this only resulted in the scattering of private fishing facilities along the 10-kilometer coastline, rendering operations costly and affecting export competitiveness. Thus the need for an expanded GSFPC, officials said.

ZAMBOANGA CITY -- Venezuelan Ambassador Milena Santana Ramirez said yesterday the Filipinos, through their intelligence and hard work, have earned for themselves an unparalleled reputation among nations.

"Filipinos have a reputation the world over for their professional skills and willingness to work anywhere, and undertake any tasks however demanding, in the service of their fellow human being," Ramirez said during the Vin D’ Honneur attended by around 63 members of the diplomatic corps aboard the BRP Ang Pangulo here.

She said President Gloria Macapagal-Arroyo has led the Philippines through a very difficult constitutional transition "and has done it full well with the same qualities that made the Filipinos appreciated the world over -- skill, hard work, dedication, belief in the future of the country, and faith in God."

She added that Mrs. Macapagal-Arroyo’s achievement as President of the Philippines is particularly enhanced by the path she has taken on the challenge of terrorism.

"You have also, in a manner, blended willingness to negotiate with the resolve not to give an inch to those who deal violence to destroy the integrity and the stability of the Philippines," she said.

She said the President also merits recognition for her resolve to fight corruption.

"The Philippine economy is today more prosperous," she said, adding that this due to the President’s effort to stimulate economic reforms.

Ramirez said the presence here of the diplomatic corps is significant, being the first time since the President’s father, the late President Diosdado Macapagal, restored the 12th of June as the day of the proclamation of the independence of the Filipinos. She said it is also the first time ever that the celebration has taken place in Zamboanga in Mindanao. "It is really a very meaningful decision," she said.

Ramirez said Zamboanga City is symbolic for its mix of cultures, influences, languages, and the people.

She added that the presence of the diplomatic corps here is like an encounter with the past, the present, and the future of the Philippines.

"Our being here is also a tribute to the Constitutional stability, the rule of law, and the fight against violence that are the hallmark of the administration of President Gloria Macapagal-Arroyo," she said.

The White House today formally announced that US President George W. Bush will visit the Philippines during the third week of October this year.

In a press statement, White House Press Secretary Ari Fleischer said that President Bush will attend the Leaders’ Meeting of the Asia Pacific Economic Cooperation (APEC) in Bangkok, Thailand on October 20-21.

Fleischer said that President Bush has also accepted an invitation from his Majesty, King Bhumibol Adulyadej of Thailand for a state visit to Thailand as part of his travel to the APEC meeting.

"President Bush will also visit the Philippines as part of his trip to Southeast Asia to attend the Leaders’ Meeting," Fleischer said.

President Bush himself announced his upcoming visit to the Philippines at a joint press conference with President Gloria Macapagal-Arroyo at the White House during the latter’s state visit to Washington, D.C.

In that press conference, held at the East Room of the White House on May 20, 2003, Bush said that he was honored to accept the President’s generous invitation for him to visit the Philippines this fall when he travels to Southeast Asia for the APEC leader’s meeting.

Foreign Affairs Secretary Blas F. Ople later noted that the acceptance by President Bush of the invitation extended by President Macapagal-Arroyo was an indication of the immediate rapport between the two leaders.

Re Ceasefire

Re Plunder Case

Re Fitch Rating

COTABATO CITY – In ``one of the fastest turnarounds in World Bank history,’’ the Philippines went from worst to second best in East Asia in utilizing portfolio assistance from the bank.

This was disclosed by World Bank country manager Robert Vance Pulley in a briefing with President Gloria Macapagal-Arroyo at the 6^th Infantry Division headquarters at the Awang Airport here.

The President was on the fourth stop of an eight-day swing of Mindanao to highlight the Mindanao National Initiative (Mindanao Natin).

Pulley noted that in 2001, when President Macapagal-Arroyo was swept into power by EDSA 2, the Philippines was the ``slowest user of WB assistance in the East Asia region.’’

He underscored that when Mrs. Macapagal-Arroyo came into power, ``the disbursement ratio was only 10 percent’’ which meant that the previous government ``would have taken 10 years to utilize all the (WB) aid in the pipeline.’’

``(President Macapagal-Arroyo) inherited one of the worst performing portfolios in East Asia,’’ Pulley said.

Citing it as ``one of the fastest turnarounds in the World Bank,’’ Pulley said that, under the Macapagal-Arroyo administration, the utilization of aid made available by the WB jumped from 10 percent to 22 percent.

Pulley explained that the increase in percentage of utilization meant that projects undertaken with WB aid could now be completed in five or less years compared to the previous administration when projects would have taken 10 years to complete.

Pulley further emphasized that the Philippine performance was only a shade lower than that of China’s 23 percent, considered ``the benchmark in East Asia.’’

The WB executive credited the government’s line agencies led by the Departments of Agrarian Reform, Agriculture, Education, Public Works and Highways and Social Welfare and Development for ``fixing problems quickly and clearing away bottlenecks.’’

``(The 22-percent disbursement ratio) is a testimony to the efforts of all these line agencies and a testimony to the leadership of the President,’’ Pulley said.

In the Autonomous Region in Muslim Mindanao alone, Pulley said the WB has a total of $33 million earmarked in various projects that include farm-to-market roads, post-harvest facilities and irrigation.

According to Pulley, the WB is ready to approve the first 10 community subprojects for five municipalities in ARMM, including a post-harvest facility for Bgy. Dunggu-an in Pagagawan, Maguindanao.

ILIGAN CITY -- Coming to this city of varied culture and breath-taking waterfalls is like a homecoming for President Gloria Macapagal-Arroyo.

The President, who spent his childhood years with his grandmother here, will be motoring to this northeastern part of Mindanao tomorrow (June 14) all too excited to meet her childhood friends.

In fact, she will be having dinner with them tomorrow evening to highlight the fifth day of her eight-day Mindanao sortie to check on the status of her Mindanao Natin program.

Apart from that dinner, it will still be a full working day for the President as she meets with a consortium of Bangsa Moro Civil Society members where she is expected to discuss ways on how to further enhance government ties with the Muslim leaders and discuss how best to attain further economic development for the region.

Earlier in the morning, the Chief Executive will meet with some 5,000 school teachers at the Mindanao State University in Marawi City before being briefed on the status of the Rugnan Irrigation Project in lanao del Sur.

She will then proceed to the Gawad Kalinga Missionville Housing Project in Barangay Saray this city where she will inspect two of the 121 housing units already completed and occupied, including 20 which will be turned over to the fire victims of Sept. 28, 2000.

The units are under the auspices of Zurich, Switzerland.

Before her dinner with her childhood friends, the President will receive Ms. Noella Mae Evangelista, newly-crowned Queen of Tourism International and Queen of Continental Asia.

Sunday is a relatively free day for the Chief Executive with only a mass in her itinerary.

COTABATO CITY – President Gloria Macapagal-Arroyo has announced the activation today of the Autonomous Region in Muslim Mindanao (ARMM) United Command under the Southern Command of the Armed Forces of the Philippines (AFP).

The President said she issued Executive Order (EO) 212 last May 28 creating the united command in compliance with a provision of the 1976 Tripoli Agreement (TA).

Philippine government and Moro National Liberation Front officials signed the agreement in Tripoli, Libya in December, 1976 and the implementation of the pact was closely monitored by the influential Organization of Islamic Conference (OIC).

Speaking before ambassadors from five member-nations of the OIC and ARMM officials and employees led by Regional Governor Parouk Hussin at the ARMM Sharif Kabunsuan Cultural Center, the President said the move showed that "we are not afraid to trust the regional government."

The ambassadors included Libyan Ambassador Salem Adam, Indonesian Charge d’ Affaires Alexander Laturiw, Malaysian Ambassador Mohd Taufiq Mohd Noor, Bangladesh Ambassador Munir-Uz-Zaman and Brunei Ambassador Datu Maimunah Dato Paduka Haji Elias.

She said the organization of the ARMM Unified Command was within the purview of Section 21, Article X of the 1987 Constitution which provided that the national government is responsible for the ARMM’s defense and security.

The same provision was cited in Republic Act (RA) 6734 or the Organic Act creating the ARMM, as amended by RA 9054, she added.

The President stressed that the deployment of a united command "as may be necessary in the area of the ARMM" would ensure the well-being and security of the people of Muslim Mindanao.

Under EO 212, the ARMM regional governor may request the President to call upon the AFP:

• To prevent or suppress lawless violence, invasion, or rebellion in the ARMM, where the public safety so requires and in accordance with the provisions of the Constitution;

• To suppress the danger to or breach of peace in the ARMM, where the Regional Police Force is not able to do so; or

• To avert any imminent danger to public order and security in the ARMM.

The President may on his/her accord send the AFP to the ARMM "if the Regional Governor does not act within 15 days after the occurrence of the threats," the EO added.

"The President shares part of the work of the Regional Governor," the Chief Executive pointed out.

She said that in times of emergency, all elements of the Regional Police Force, Bureau of Fire Protection and the Bureau of Jail Management and Penology – on direction of the President or Regional Governor -- would assist the AFP in meeting the crisis.

Earlier, the President led officials of the ARMM, Maguindanao province and Cotabato City in inaugurating the newly completed P1.1-million warehouse and solar dryer in Barangay Tamontaka, Datu Odin Sinsuat town, Maguindanao.

She cut the ribbon to formally signal the operation of the post-harvest facility that would benefit erstwhile some 60 former Moro National Liberation Front combatants turned productive citizens.

DATU ODIN SINSUAT, Maguindanao -- President Gloria Macapagal-Arroyo today stressed that she desired a permanent ceasefire with the Moro Islamic Liberation Front (MILF), but not one without preconditions.

In a press briefing at the headquarters of the 6^th Infantry Division in Awang here, the President said that before any ceasefire is carried out, the separatist MILF should first show their "sincerity, remorsefulness and genuine goodwill."

She said that as the country’s Chief Executive, she has the "duty to serve the welfare of every citizen and to keep our communities away from harm. I shall not place lives at unnecessary risk."

She stressed that the government is not against peace, reiterating her earlier pronouncements that the government doors to negotiations for the permanent peaceful and principled resolution of the Mindanao Problem are wide open.

"We are just simply acting to save lives," she added.

Presidential Adviser on Strategic Concerns Renato de Villa said any ceasefire agreement without preconditions could be used by the MILF to regroup its forces and strengthen its already sapped energies.

This has happened before and it should not be allowed to happen again, he hinted.

He added that the government would not drop warrants of arrest made by the courts against top MILF leaders implicated in the series of bombings and attacks on civilians in Siocon, Zamboanga del Norte; Maigo, Lanao del Norte and Koronadal City, South Cotabato; Tacurong, Sultan Kudarat; and Davao City.

"The warrants of arrest will remain because this is an action of the judicial branch of our government, over which the executive has no authority or power," de Villa said.

"Unless the court says otherwise, those warrants will stay," he said.

He dared the separatist MILF leaders and members to categorically renounce terrorism and their reported links with the international terror groups Al Qaeda and Jemmaah Islamiyah.

De Villa further challenged the wanted MILF leaders to discipline their ranks and assure that acts of terrorism emanating from the rebel organization would no longer happen.

"There have been many back channeling talks that had been opened. And most of this is unknown to the public," he said.

President Macapagal-Arroyo, in talks with the media in Davao City early this week, said she had been waiting for the MILF leadership’s response to her conditions for a ceasefire.

COTABATO CITY – President Gloria Macapagal-Arroyo today gave the Autonomous Region in Muslim Mindanao (ARMM) another boost when she accorded full recognition of the Shariah (Islamic law) and pushed the establishment of more Shariah courts in Mindanao.

The President designated Justice Secretary Simeon Datumanong and Autonomous Region in Muslim Mindanao (ARMM) Regional Governor Parouk Hussin to head a search committee that would look for capable Shariah judges and lawyers to man the courts.

In a speech before ARMM officials and employees at the Sharif Kabunsuan Cultural Center here, the President said this would fulfill a provision of the 1976 Tripoli Agreement entered into by the government and the Moro National Liberation Front (MNLF) in Tripoli, Libya.

She announced an executive order that would give ARMM Regional Governor Hussin the opportunity to sit in all Cabinet meetings.

This would give the ARMM the chance to be able to present to the government its concerns.

Earlier, the President announced the activation of the ARMM’s Unified Command under the Southern Command of the Armed Forces.

PAGALUNGAN, Maguindanao – President Gloria Macapagal-Arroyo today sought more active and productive partnerships between non-government organizations (NGO) and the government, as she launched the "Sanctuaries for Peace" program in Barangay Inug-ug here.

The President cited NGO Tabang Mindanaw (Help Mindanao) and its honorary chairperson, former President Corazon C. Aquino, for initiating the peace program that intended to hasten the safe return of war-displaced people to their homes and farms and assure them lives free from harassments, attacks and senseless violence.

The citation came after an earlier presidential call for the people to help and support the government’s bid to bring about a principled and lasting resolution of the Mindanao problem.

The President also lauded the people of Inug-ug for declaring their community as one that is for peace and growth, stressing that only through a collective effort can security and stability be attained in war-torn areas in Mindanao.

She said peace and development of Mindanao should be simultaneously and vigorously pursued, adding that she desired a "permanent ceasefire and final peace agreement" with the Moro Islamic Liberation Front (MILF) to resolve the decades-old Mindanao conflict.

But the ceasefire and the peace pact should be within the framework of the Philippine Constitution, she stressed.

She also batted for the recognition that the country is a multi-ethnic society and that individual cultures and traditions should be given due respect.

In her short message, the President ordered the conduct of distance-learning programs in the Pagalungan-Pagagawan-Pikit cluster.

She said she would have a technovan from the Technological and Livelihood Resource Center dispatched to Pagalungan so that the "Eskuwela sa Barangay" could be implemented for children of internally displaced persons, particularly children.

She also handed a P100,000 check from the Philippine Charity Sweepstakes Office for socio-economic programs in the towns of Pagalungan and Pagagawan, both in Maguindanao.

In a message, former President Aquino said Tabang Mindanaw was happy over recent developments, particularly the return of evacuees to their homes and farms and their declaration of a "sanctuary of peace" here.

Mrs. Aquino, however, said that a lot more is needed to be done to pursue peace.

Having made the first step, the people of Barangay Inug-ug should serve as an inspiration for all those who desire peace and growth, she said. They gave hope to war-affected people, she added.

She thanked President Macapagal-Arroyo for her peace initiatives in southern Philippines.

Earlier in the launch, the President unveiled the marker that declared Inug-ug as a peace sanctuary.

Inug-ug barangay captain Ibrahim Malabana read the community’s peace declaration, stressing, among other things, that armed confrontation should be avoided at all times and that peaceful approaches should be used in problem or conflict resolution; plans for peace and development should be designed by the local community and members; and security measures should be clearly defined and determined by the local leaders.

In response to the community declaration, former Datu Paglas Mayor Ibrahim Paglas read the assurance of MILF rebels to stay out of declared sanctuaries.

Paglas read a letter from MILF chairman Hashim Salamat who directly ordered "all guerilla units to stay away" from the vicinity of Barangay Inug-ug and its neighboring areas.

Earlier, MILF chief of staff Muhammad Nur vowed "to keep our armed presence away from these sanctuaries of peace."

On the other hand, Marine commander Alexander Balutan said the military supports the peace process as he read the government’s response.

Balutan said the military was committed to work for a "just, durable and comprehensive solution" to the problem, adding further support to the people’s desire to safely return to their homes and peaceably work in

their farms.

A policy on "zones of peace" approved earlier by the Cabinet Oversight Committee on Internal Security called for the redeployment of military units to let evacuees return to their places of origin, the operationalization of the zones through rules set by the people in declared sanctuaries, setting up of local monitoring teams and the speedy implementation of rehabilitation projects.

In the Joint Cabinet-National Economic and Development Authority (NEDA) meeting at the Marco Polo Hotel in Davao City Tuesday, National Anti-Poverty Commission (NAPC) Secretary Teresita Quintos-Deles explained that under "sanctuaries," displaced families who sought refuge in evacuation centers in Pikit, Cotabato could start returning to their places of origin in the Pikit-Pagalungan-Pagagawan cluster.

Tabang Mindanaw has committed to provide core shelters, health services, technical aid in sustainable agriculture, and continuing peace education to the returning evacuees, Deles said.

This is on top of the rehabilitation and development efforts that the government has carried out in the area.

She said the "Santuaries for Peace" program also called for sustained peacebuilding and development – unhampered by armed combat -- in concerned areas.

The "sanctuaries" would be established village by village, she added.

Initial program targets included three villages here, namely Inug-og, Kudal and Bago-inged.

Throughout the simple but fitting rites, the President was joined by former President Aquino, World Bank country manager Robert Vance Pulley, Libyan Ambassador Salem Adam, Indonesian charge de affaires Alexander Laturiw, Malaysian Ambassador Mohd Taufiq Mohd Noor, Bangladesh Ambassador Munir-Uz-Zaman, Brunei Ambassador Maimunah Dato Paduka Elias, national and local officials, and representatives from the various key sectors of society.

The President arrived here at about 9 a.m. from Zamboanga City on the fourth leg of her eight-day working stay in Mindanao. After the program, she proceeded to S.K. Pendatun town, also in Maguindanao, to inaugurate a solar-powered irrigation project.

DATU ODIN SINSUAT, Maguindanao -- President Gloria Macapagal-Arroyo today cited the support of the United States on the government’s peace and development initiatives in Mindanao, as she led regional and local officials in inaugurating the newly completed P1.1-million warehouse and solar dryer in Barangay Tamontaka here.

The attendance of US Ambassador to the Philippines Francis Ricciardone in the inauguration best exemplified this support, the President said following a ribbon-cutting rite that signaled the operation of the post-harvest facilities.

The United States "is not only contributing but expanding" its support to the Philippine government in terms of socio-economic and military assistance, she said.

She added that under the United States Agency for International Development (USAID) grants, at least 30 more of the same facilities would be built to benefit the people of Mindanao.

US support also came in a $96-million grant for family and child survival programs. The President said the bulk of the funds would go to programs to be undertaken in Mindanao.

A just, lasting and principled final peace agreement with the separatist Moro Islamic Liberation Front (MILF) would also bring to Mindanao another $50 million as US support for rehabilitation and socio-economic development projects, she added.

The money could initially implement a mini-Marshall Plan in Mindanao to the benefit of Muslim Filipinos, she said.

During the inauguration, she also thanked the ambassadors from Libya, Malaysia, Brunei Darussalam, Bangladesh and Indonesia – all members of the influential Organization of Islamic Conference – for supporting the peace and development efforts in Southern Philippines.

She said she invited the five ambassadors – after the traditional vin d’ honneur on Freedom Day Thursday with the diplomatic corps in Zamboanga City -- to see for themselves the gains of government efforts to uplift the welfare of Muslim Filipinos.

She cited the contributions made by OIC countries to the Philippines, particularly the funds from the Organization of Petroleum Exporting Countries that built roads, bridges and other public infrastructures in Mindanao.

She also enjoined the leaders and the people here and in nearby Cotabato City to support the P5.5-billion Mindanao National Initiatives (Mindanao Natin) that would ensure security and stability in the area.

"Let us continue peace and development in Mindanao," she said.

Meanwhile, US Ambassador Ricciardone reiterated his government’s support to President Macapagal-Arroyo’s moves to focus her priority programs in Mindanao.

Ricciardone graced the inauguration of the warehouse and solar dryer that would benefit some 60 erstwhile Moro National Liberation Front combatants who have turned into productive farmers and responsible Filipino citizens.

He said he was happy to see former MNLF fighters forming themselves into the Samahang Kabuhayan ng Kutawato Traders, Inc., a farming cooperative.

"Congratulations to the former MNLF combatants," he added as he announced that more solar dryers would be built under the USAID-assisted Livelihood Enhancement and Peace (LEAP) program.

The President earlier inspected and turned over a P1-million, two-horsepower solar-powered irrigation project in Barangay Sumagubay, S.K. Pendatun town, Maguindanao.

The irrigation project would provide water to some six hectares of farmland.