President Gloria Macapagal-Arroyo has said that her visit to South Korea and Japan, to start Monday, would give her the opportunity to discuss with the leaders of both countries the issue of North Korea, which is a threat to the security of the region.

In a roundtable interview Thursday with Japanese journalists in Malacanang, the President said that South Korea and Japan are the two countries that are "most directly interested" in finding a solution to the North Korean issue.

"I would certainly want to work with them and for us to come together for a common policy approach to the North Korean issue," the President said.

The President would make a state visit to Seoul June 2-4, after which, she would make a three-day working visit to Japan from June 4 to 6.

She will meet with her counterpart in South Korea, President Roh Moo-Hyun and other top Korean officials. In Tokyo, the President will hold talks with Japanese Prime Minister Junichiro Koizumi and with the top executives of Japanese business conglomerates.

The President said that North Korea is a very important issue to the Philippines and other countries in the region.

"We realize that the prospect of the global instability spreading to North Korea offers a challenge to the region together with the continuing threat of terrorism," the President said.

President Gloria Macapagal-Arroyo has pointed out what she termed as the "holistic approach" that the United States has adopted in helping the Philippines fight terrorism and in restoring peace and stability in Mindanao.

In a roundtable interview with Japanese journalists Thursday in Malacanang, the President said that the first component of this approach is enhancing the capability of the Armed Forces of the Philippines in fighting local terrorists.

The second component, the President said, is the US assistance in addressing the socio-economic grievances of Muslim Filipinos in Mindanao, especially in eradicating poverty, which is the breeding ground for the recruitment of terrorism.

"That’s why they have both security assistance and a very extensive assistance for economic and social development, especially in southern Philippines," the President said.

The interview was granted in preparation for the President’s state visit to South Korea June 2-4 and her subsequent working visit to Japan from June 4 to 6.

The President, who has just arrived from a highly-fruitful state visit to Washington, D.C., said that the US has provided a total of $50 million--$30 million for this year and another $20 million for 2004—that would help support the peace process in Mindanao.

"This amount would specifically go to the socio-economic development of conflict areas for their rehabilitation because they have been devastated by war," the President said.

The President said that the main role of the US is to be able to help by diplomatic and financial means to make the peace process in Mindanao attractive and successful.

Re MILF

Re Japanese Envoy’s Remarks

Re Economic Growth

United States officials said today they find the business climate in the Philippines very good, with American business people and enterprises showing extremely keen interest in doing business in the country.

US Ambassador Francis Ricciardone, in an interview with newsmen after a courtesy call on President Gloria Macapagal-Arroyo in Malacaņang, said he met yesterday with members of the American Chamber of Commerce in the Philippines and discussed the group’s roadmap to promote foreign investments in the Philippines.

"We all remarked at the end, security concerns simply didn’t come up…in an hour and a half of discussion together," the US ambassador said.

Ricciardone also told newsmen "this very high interest in the United States is higher than ever, I would say, in doing business" here.

"There is tremendous interest," US Sen. Chuck Hagel (Republican, Nebraska) agreed. "It has always been there for American companies." Senator Hagel is chairman of the Senate Subcommittee on International Economic Policy, Export, and Trade Promotion and of the Senate Subcommittee on International Trade and Finance 

Ambassador Ricciardone, who accompanied Senators Hagel and Jack Reed (Democrat, Rhode Island) during a call on the President, said American companies that are already in the country are "as eager as ever to expand their business and encourage others to come."

"We in the American embassy support that and encourage it," the US envoy said.

The ambassador said that during her state visit to the US from May 17 to 25, President Macapagal-Arroyo had meetings in Washington with "many, many business people," adding that he was present in some of them.

Ricciardone also revealed that he had luncheon with the American Chamber of Commerce in the Philippines just the other day and "gave them a readout of the talks in Washington."

Senator Hagel also told newsmen that the tremendous interest in the Philippines that has always been there is "a very clear recognition that our two countries are closely linked, and have been for over a hundred years."

"That translates into economic issues, strong economic connections," said Hagel.

Ricciardone also said American companies have been in the Philippines for a hundred years, citing in particular Citibank, which he said can trace its roots back a century.

He said these American firms have a steady interest and commitment to doing business in the Philippines.

President Gloria Macapagal-Arroyo today expressed the hope that Japanese Ambassador to Manila Kojiro Takano should be able to sleep well as she explained that the government has achieved considerable gains in its fight against lawless elements and terrorists.

In an interview after a briefing for the government and private sector on her recent state visit to the US held at the Dusit Hotel Nikko, the President said that the views expressed by the Japanese envoy are exaggerated and unfair.

"It is regrettable that the gains we have achieved so far have not been acknowledged," the President said.

She also said the Japanese envoy should not be blamed for stating an opinion, adding: "We hope he will be able to catch up on his sleep."

In his remarks at the Foreign Correspondents Club of the Philippines (FOCAP) Thursday, Takano said that many Japanese get the impression that the peace and order situation in the Philippines is very bad.

The envoy said that during the one year that he had been assigned in the Philippines, he "did not have even one night I could sleep well."

The President said that police authorities have chalked up consistent accomplishments in arresting terrorists and criminals.

According to the President, a more balanced view would take into consideration the important steps that the government has taken to improve the peace and order situation, and even more, the economic environment, which has shown steady growth.

President Gloria Macapagal-Arroyo today branded the Moro Islamic Liberation Front’s (MILF) declaration of a 10-day unilateral ceasefire as a mere ploy and a tactical ruse, following the secessionist rebels’ attack in Carmen, Cotabato where soldiers and innocent civilians were killed.

"We will not stand for double talk," the President told the country’s business leaders during their joint meeting at the Dusit Hotel Nikko in Makati City.

Unless the MILF shows proof of sincerity, the ongoing punitive military actions against them will continue, the President said, until the government is assured that far-flung communities are safe from rebel harassments.

"We welcome peace under conditions of sincerity and justice. We will not accept peace with deception. And we will not move our ground amidst the constant threat to the people," the President added.

She said the attackers in the Thursday incident in Carmen would be pursued and punished just like the terrorists that are the subject of sustained punitive operations.

"We have to see something more convincing than empty peace overtures on the part of the MILF," she said.

The President also said the United States is willing to give diplomatic and financial support to the peace process in southern Philippines provided the MILF renounces terror.

She said these diplomatic and financial supports for the peace process have been seen in the successful programs for the Moro National Liberation Front (MNLF) returnees.

"And for this and next year, from USAID, there will be about $33 million again to continue the successful MNLF programs to demonstrate that there is life after a conflict, there is life after peace agreement," she said.

She said that a mini-Marshall Plan addressing the issue of economic exclusion in the conflict areas can be implemented if ever the MILF signs a final peace agreement with the government.

With regards to the Abu Sayyaf, the President said that peace and order has been restored in Basilan and the kidnap-for-ransom group has been largely driven away from the province due to the successful holding of the Balikatan-02 last year.

Even before President Gloria Macapagal-Arroyo embarks for a working visit to Japan, she has found a bevy of Japanese businessmen and investors on her side and supportive of what she looks forward to achieving during her "economic mission."

In a letter dated May 28, 2003, Japanese Chamber of Commerce and Industry of the Philippines, Inc. (JCCIPI) president Ryukichi Kawaguchi voiced the unanimous support of the chamber to the President and her forthcoming visit to Tokyo.

Kawaguchi said the chamber welcomed the visit, saying it would "relate to closer ties that will further enhance partnership and cooperation between our two nations (Japan and the Philippines)."

The JCCIPI also expressed gratitude over government action on major issues that faced the Japanese business community in the Philippines, he said.

"We are grateful to your Excellency for making sure that these concerns were addressed properly and promptly by the concerned authorities," he added.

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.

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

The issues included the early rehabilitation and reinforcement of the Alabang Fly-over along the South Luzon Expressway (SLE); the extension of the SLE from Calamba, Laguna to Sto. Tomas, Batangas and extension of the Southern Tagalog Arterial Road (STAR) for the Lipa-Batangas City segment; the development of a road system linking the economic zones of Laguna and Cavite; and road improvements around economic zones.

While the chamber lauded government action on the projects, it also recommended the connection of the STAR and the Batangas Port and the strict implementation of traffic rules in major transport routes.

On labor, the JCCIPI cited President Macapagal-Arroyo 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 JCCIPI 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."

The JCCIPI 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."

President Gloria Macapagal-Arroyo today said that the Philippines has emerged from the stagnation, cynicism, cronyism and disengagement from the world that characterized the end of the last century and has forged a "new and modern alliance" with the United States.

In her report about her state visit to the US to the country’s business leaders at the Grand Ballroom of Dusit Hotel Nikko at the Ayala Center in Makati City, the President said that this new partnership between the Philippines and the US is essential for the well-being of the nation on a range of issues such as security, regional stability, trade and investments, economic reforms and good governance measures.

The President, who was the first Asian head of state to be welcomed for a state visit in the Bush presidency, said she and US President George W. Bush had developed a modern framework to guide the relations between the Philippines and the United States in the decades to come.

"These relations that had drifted are now back on track or stronger and more mature than ever," the President said.

The President said she joined many people in noting with pleasure that most commentators welcomed the generosity and kindness of America in that visit.

"There seemed to be an overwhelming acceptance that what happened during my state visit constituted genuine good news for our country in an otherwise dismal season in the global scene, marked by war, disease outbreak, and economic slowdown in the world," the President said.

The President made a weeklong trip to the US from May 17 to 25, three days of which were the state visit to Washington, D.C. highlighted by her talks with President Bush at the White House.

She said that it is important to better understand the intended meanings and underlying purposes of key changes in the Philippines’ current relationship with America, not just for the benefit of her administration but also for the guidance even of future generations of this century.

According to the President, published accounts have already reported on different upcoming investments and job contracts worth over a billion dollars, on various programs and projects of the World Bank and International Financing Corporation, also worth more than a billion dollars, and credit lines from OPIC and Eximbank worth $500 million.

The President expressed the belief that the world was indeed fundamentally altered by the September 11, 2001 terrorist attacks on the US.