SANGLEY POINT, Cavite -- President Gloria Macapagal-Arroyo today said that she and United States President George W. Bush have reaffirmed their commitment to destroy the terrorist Abu Sayyaf Group (ASG) once and for all.

The President said the commitment, made during her state visit to Washington, was solidified when the American government pledged to give the Philippines a minimum of $356 million in defense and security assistance.

Speaking at the 105th anniversary of the Philippine Navy here, the President said she and President Bush also agreed to conduct the joint RP-US Balikatan (shoulder-to-shoulder) 03-1 military and socio-civic exercises in the Philippines.

The US government has initially approved $47 million for the conduct of the Balikatan 03-1 for the first 45 days, she announced.

Further, she welcomed the appropriation of $30 million as additional counter-terrorism security assistance for the Philippines.

"This $30 million will be allocated for the training and equipping of more light reaction companies, light infantry battalion and navy seals," she said.

A supplemental budget would be provided on top of the $20 million allocated for the sustenance of mobility assets of the Armed Forces of the Philippines (AFP). The mobility assets included Huey helicopters, C-130 planes, M-35 trucks and 78-foot patrol vessels.

For the year 2004, an initial $17 million had been proposed for the US supplemental budget, but this could be increased, she said. "Thus, our total assistance is $67 million, compared to $1.9 million during the year 2000," she added.

The President said President Bush stressed that the US would continue to provide significant security, training, equipment, and law enforcement assistance to support the Philippines in the war against terror.

She said training programs would amount to $10 million. This would consist of $5 million for anti-terrorist training and education with $4 million coming from the US Pacific Command and the rest from the State Department. Over $4 million would be allocated for international military education and training, and less than $1 million for special logistics education and training program.

More significant benefits are anticipated as provided under the Mutual Logistics Support Agreement (MLSA), she said.

The equipment sent to the Philippines included 500 armored vests and 15,000 M-16 rifles that arrived last April, she said. Another 15,000 M-16 rifles are expected to arrive as soon as the first 15,000 are distributed in the field. The vests and rifles cost some $10 million, she noted.

She said a law enforcement assistance totaling $3 million would come from the International Narcotics Control and Law Enforcement Fund.

The President said that she and President Bush likewise agreed on the need to alleviate poverty and other socio-economic grievances that spawn breeding grounds for terrorism.

To advance the anti-poverty agenda, she said President Bush agreed to send people to train and equip the Philippine engineering units so that the latter would be capable of performing civic action and humanitarian projects in conflict zones.

"The training and equipping of these engineering companies will amount to $25 million," she said.

The Bush administration would also provide $20 million for continuing assistance for the Moro Islamic Liberation Front (MILF) rebel returnees program, and $4 million for civic action projects in Basilan and $2 million for the Sulu rehabilitation, she added.

The President said she appreciated initiatives of the US Congress to allot $30 million to support peace in Mindanao.

The US, she said, has stood ready to provide diplomatic and financial support to a renewed peace process with the MILF, provided that the rebel group renounce terrorism and stop committing atrocities.

She said another $20 million would go to the peace process in next year’s budget for a total of $50 million, enough to finance a mini-Marshall plan in war-torn areas.

President Bush likewise agreed to launch a comprehensive review of Philippine security needs, and how the US could support President Macapagal-Arroyo’s plan to modernize and reform the AFP.

She said President Bush committed to help address the AFP’s most pressing needs, particularly on mobility by providing 30 helicopters, in addition to three that would arrive on July 15, and spare parts.

"The 33 helicopters are worth $31 million and the spare parts worth $10 million. And they were financed by President Bush using 50 percent of his entire Presidential drawdown fund for all countries," she noted.

The spare parts would be used for the five cyclone patrol vessels that the President obtained for the Philippine Navy during her 2001 visit to Washington, and scheduled to arrive this year.

However, the $30-million cyclone vessels could be exchanged for two or three smaller patrol boats that would be more needed for the war on terror, she said.

Further, President Bush also submitted to Congress, for the first time, an administration measure to extend new benefits to commonwealth army veterans and guerrillas worth $76 million.

"He also announced continuing efforts, began during the President’s 2001 visit to Washington, to improve medical care for veterans in the Philippines by providing medical equipment to the Veterans Memorial Medical Center in Quezon City in the amount of $500,000 a year," she added.

Veterans’ benefits would amount to $77 million, as discussed between the two leaders during President Macapagal-Arroyo’s state visit to the US.

In summary, the Philippines would get "$356 million without US bases, simply because of the respect of the United States for our long and proud partnership, our fight against terror and the greatness of the Filipino worker, including the Filipino soldiers, the Filipino sailors, the Filipino pilots, the Filipino marines," the President announced.

But more than this, President Bush designated the Philippines as a major non-NATO (North Atlantic Treaty Organization) ally.

"This will allow the Philippines to work together on military research and get the Philippines greater access to American defense equipment and supply," she said.

SANGLEY POINT, Cavite – President Gloria Macapagal-Arroyo today congratulated the Philippine Navy for braving the seas while speedily responding to Sunday’s collision between two passenger ferries in Manila Bay.

But while saluting the Navy and all others who responded quickly to the call for assistance, the President deplored what she called as "another sea accident" that claimed 25 lives.

"We will strictly enforce the law but we will also confront the long-term strategic issues," the President said in a speech during the 105^th anniversary of the Philippine Navy here.

The President said she is certifying as urgent three bills filed by Senator Rodolfo Biazon, an ex-Marine.

One of the bills sought to create an independent national transportation and safety board to investigate all major accidents on land, air, and sea.

Another bill provided for the integration of state instrumentalities to provide coherent direction for marine development while a third bill called for the upgrading of the maritime law into a national maritime code.

"The strategic development, viability and safety of maritime transport is the key component of the country’s national security and economic development," the President said.

She reiterated her deepest sympathies to the families of all the victims of the collision.

She also extended her condolences to the families of the victims in the sea accident in Miami, assuring them that all possible assistance from the government would be forthcoming.

She said Filipino seamen constituted a great bulk in the global maritime fleet and are heroes on their own right.