(Editor’s Note: Following is the fourth in a series of backgrounders on Philippine-United States relations that the Presidential News Desk is issuing on the run-up to the state visit here of US President George W. Bush on October 18)

Twelve days to his arrival in Manila, on October 6 to be exact, President Bush proclaimed from the White House in Washington, D.C., that the Philippines is now a major non-NATO ally of the United States.

This elevates to a higher level the traditionally friendly relations between the US and its former colony in the Asia-Pacific region.

The designation of the Philippines as a major U.S. ally outside the North Atlantic Treaty Organization (NATO) does not just bestow an honorific title. Now, the Philippines has joined the ranks of Australia, Japan, Israel and Egypt as a valued friend of the United States in time of peace or war.

By being a US major non-NATO ally, President Bush has said the Philippines will be allowed to work together with his country, the most powerful and richest nation on earth, on military research and development.

Equally important, its new status will give the Philippines greater access to American defense equipment and supplies and, thus, will broaden the foundations of their strategic partnership.

Philippine-US alliance may be traced back to the dawn of the 20^th century. The ever-growing threat of terrorism, a common danger confronting the Philippines and the United States, has forged an even stronger and closer relations between the two countries.

A new phase of partnership between the Philippines and the United States emerged in the aftermath of the savage attacks by Muslim terrorists in the heart of America’s commercial and military might on September 11, 2001. The terrorists hijacked commercial jetliners and crashed them unto the World Trade Center Twin Towers in New York City and the Pentagon in Washington, killing some 3,000 people, mostly innocent civilians.

President Gloria Macapagal-Arroyo, saddled with the problem of terrorism in Mindanao and the outlying Sulu Archipelago, immediately rallied her government behind President Bush’s call for a global coalition against terrorism.

She supported the United States on the war in Iraq and, after the ouster of the Iraqi dictator Saddam Hussein, authorized a small military contingent for humanitarian and civic mission to help the U.S.-led coalition in restoring order.

When President Macapagal-Arroyo made a state visit to Washington in May 2003, President Bush warmly welcomed her to the White House. They agreed that RP-U.S. relations, "rooted in shared history, shared values, and a common interest in global peace and prosperity, are deeper and warmer" today than at any time in recent history.

Beyond words of praise, President Bush provided the Philippines during President Macapagal-Arroyo’s watch, with military assistance quantifiable in dollars and equipment.

In a joint statement issued in Washington after President Macapagal-Arroyo’s state visit, President Bush pledged the following assistance:

• $30 million in new grant aid for equipment and training of the Armed Forces of the Philippines targeted at capabilities for countering terrorist groups within the Philippines;

• $30 million in new bilateral development assistance for Mindanao and support for the peace process with the Moro Islamic Liberation Front, as appropriate; and

• $25 million in new grant assistance to train and equip a combat engineering unit and provide military needs in the war on terror. The engineering unit will be able to do civic action and humanitarian projects in conflict zones.

The US government has also promised delivery to the Philippine Air Force 20 UH-1H helicopters, together with funding for their refurbishment. An additional 10 UH-1H helicopters are also be provided with the assurance of sufficient spare parts.

To upgrade the ground troops fighting capability, the US is set to supply the AFP with some 50,000 new rifles.

Meanwhile, the Filipino and American soldiers have participated in military exercises that employ state-of-the-art weapons and military equipment. Exercises, like Balikatan, have been invaluable in maintaining positive military relationships while improving military interoperability military units and their service members.

The Filipino and American troops have also conducted military exercises in conjunction with the armed forces of Singapore and Thailand. Called "Theme Challenge," the umbrella exercise is designed to improve interoperability among multinational forces. It also demonstrates the ability of several nations to rapidly deploy a joint task force or conduct joint/combined operation in a small-scale contingency.

As partners, the Philippines and the United States have adopted a comprehensive approach to defeating terrorism, which knows no borders. This is to alleviate poverty and other socio-economic grievances that can create conditions conducive to exploitation by terrorists.

Significantly, the U.S. Agency for International Development (USAID) has more than doubled its development assistance activities in the Philippines over the last few years. In fiscal year 2003, USAID is scheduled to provide more than $70 million in grant funding, more than half of which will be for Mindanao.

USAID has been a Philippine partner in efforts to consolidate the still fragile peace in Mindanao and to reduce the potential for it to become a source of recruits for terrorist organizations.

In 2002, for example, USAID helped 8,000 former combatants become small-scale commercial farmers and develop their ability to make a living for themselves and their families on a continuing basis. A total of 21,000 former combatants have so far been assisted out of 25,000 identified as needing assistance.

USAID has so far developed the capability of 97 rural banks to profitably provide services to micro-enterprises in Mindanao. Some 53 micro depositors opened accounts in 2002, bringing the total number of small-time depositors to 131,000.

Other forms of USAID assistance are: accelerating economic and business development of Mindanao, increasing access to micro-finance services and expanding educational opportunities for disadvantaged groups.

More assistance to the Philippines and in particular to Mindanao is in the pipeline, according to U.S. Ambassador to the Philippines Francis Ricciardone and Ambassador Wendy Chamberlin, USAID Assistant Administrator for Asia and the Near East.

(Editor’s Note: Following is the fifth in a series of backgrounders on Philippine-United States relations that the Presidential News Desk is issuing on the run-up to the state visit here of US President George W. Bush on October 18).

Moreover, as a result of their historical experience, Filipinos and Americans have very similar forms of government, civil liberty, and human rights concepts, and educational, legal and commercial systems. They also have numerous cultural affinities, not the least of which is the use of English.

The relationship between the Philippines and the United States began at the end of the 19^th century, during the Spanish-American war, in which Filipino revolutionaries and American forces fought together to liberate the Philippines from Spain's colonial domination.

After Admiral George Dewey defeated the Spanish fleet in the battle of Manila Bay in 1898, Spain agreed to cede the Philippines to the United States under the terms of the Treaty of Paris. But Filipino nationalists led by Emilio Aguinaldo, President of the First Philippine Republic, refused to acknowledge the cession and insisted on national independence. The Philippine-American war ensued, lasting from 1898 to 1902, which ended with the establishment of American sovereignty over the Philippines.

In the succeeding years, however, Filipinos and Americans overcame the wounds of war. American authorities favored political, social and economic development, which encouraged Filipinos to work for eventual independence.

The first Philippine legislative assembly under American tutelage was elected in 1907. Public education, health and other services were modernized. A civil service was created that the Filipinos gradually took over.

In 1916, The Philippine Autonomy Act, also known as the Jones Law, was passed by the U.S. Congress, which gave the Philippines considerable home rule and promised independence after the establishment of a stable government. Pursuant to the Tydings-McDuffie Act of 1934, the Philippines became a fully self-governing Commonwealth in 1935 in preparation for complete independence after ten years.

The outbreak of World War II interrupted the progress towards complete freedom for the Philippines. Despite the heroic defense of the Philippines by Filipino and American soldiers in Bataan and Corregidor, the Philippines fell to Japanese occupation. In 1945, Filipinos and Americans fighting together liberated the Philippines. On July 4, 1946, the Republic of the Philippines was finally granted independence by the United States.

During the Cold War, which followed World War II, the Philippines fought along with the United States and other United Nations members in the Korean War. The Philippines supported the forward deployment of U.S. Forces in the Pacific region - a key pillar of regional stability - by hosting U.S. military bases, mainly Clark and Subic, under the terms of the bilateral Philippines-United States 1947 Military Bases Agreements (MBA).

The Philippines and the United States did not extend the MBA, which led to the closure of American bases in the Philippines in l991. The two countries, nonetheless, remain firm allies by virtue of their bilateral 1951 Mutual Defense Treaty (MDT). The alliance was further strengthened by the 1998 Philippines-United States Visiting Forces Agreement (VFA), which allowed for the resumption of large-scale joint exercises and other defense cooperation activities.

The Philippines and the United States remain close allies in the post-Cold War era, but the relationship is now based on mutual shared values and mutual benefits and no longer characterized on patronage nor based on consideration for compensation.

The Philippine and American governments have also cooperated to promote bilateral economic relations. The Americans provided an impetus for trade, commerce and industry in the Philippines. Until the 1930s, there was free trade between the Philippines and the United States. During this period, the Philippine sugar and coconut industries flourished. The domestic mining industry was developed, which for several decades served as a linchpin of overall economic growth.

The Americans also undertook major infrastructure projects that brought roads, bridges, schools and hospitals to remote areas. Over the past thirty years, billions of dollars in development assistance have been provided to the Philippines through US Agency for International Development (USAID). Some 8, 500 Peace Corps volunteers have served in the Philippines from the start of the Peace Corps program in 1961.

Such development cooperation has helped improve local government, democratic governance, family planning, environmental conversation, agriculture and human resources training in the Philippines. In addition, thousands of Filipinos have studied in American institutions of higher and specialized learning.

However, the special economic relationship between the Philippines and the United States could not be sustained, and in its place grew a more complex and less independent relationship. The two nations have forged a new partnership anchored on the enhanced Philippine capacity to tap trade and investment opportunities in a freely competitive international environment.

Since independence, the Philippine-American relationship has been strengthened by exchanges of visits at the highest levels. Through the years, Philippine Presidents Manuel Roxas, Elpidio Quirino, Carlos Garcia, Diosdado Macapagal, Ferdinand Marcos, Corazon Aquino, Fidel Ramos and Joseph Ejercito Estrada have paid state or official visits to the United States. From May 16-19, 2003, President Gloria Macapagal-Arroyo made a state visit to Washington. US Presidents Dwight Eisenhower, Lyndon Johnson, Richard Nixon, Gerald Ford and William Clinton have also visited the Philippines. A return state visit to Manila by US President George W. Bush is scheduled on October 18 this year.

Philippine-American cooperation has not been limited to the bilateral sphere. The two countries have also worked together in the United Nations, including peacekeeping operations, in the ASEAN Regional Forum (ARF) and the Asia Pacific Economic Cooperation (APEC) context. The Philippines and the United States pursue the same goals of global and regional peace, security, economic developments and prosperity through multilateral dialogue.

Malacanang has declared Friday, October 31, 2003 as a special non-working day for government employees throughout the country.

Executive Secretary Alberto Romulo, by order of the President, issued Proclamation No. 374 to give full opportunity to the people to properly observe All Saints Day, a nationwide special day, which falls on a Saturday, November 1, with all its religious fervor.

This will invariably require people to travel to and from different regions in the country on Friday, October 31, to pay homage to their dead on All Saints Day.

There are, however, exceptions to the Proclamation No. 174 and these are the offices that take care of police, security, fire protection, custodial, rescue, emergency and medical and other similar services.

President Gloria Macapagal-Arroyo will be making history as the first Philippine head of state to be invited to attend a summit of the powerful Organization Islamic Conference (OIC) in its 34 year of existence.

Mrs. Macapagal-Arroyo, the second woman president of the Philippines, will attend the 10^th Session of the Islamic Summit Conference to be held in Kuala Lumpur on Oct. 15-16.

No other Philippine president in the past had been invited by the OIC to attend its annual summit. The President is scheduled to leave tomorrow for Kuala Lumpur.

"This is the first time in Philippine history that a President OF our country has been invited to attend the OIC summit," Defense Secretary Eduardo R. Ermita, the outgoing Presidential Adviser on the Peace Process, said.

Ermita said it is a great honor for the President, in particular, and the Philippines, in general, to receive such an invitation coming from the influential OIC.

The defense chief said that the attendance of the President in the two-day summit will be a big boost to the ongoing peace process in Mindanao, particularly on the impending resumption of the peace talks between the Philippine government and the Moro Islamic Liberation Front (MILF) in Kuala Lumpur this month.

"Definitely, it will a big help," Ermita said.

Ermita will be among the few Cabinet officials to accompany the President to Malaysia during the two-day OIC summit.

The other Cabinet men are Foreign Affairs Secretary Blas Ople and Gov. Parouk Hussin of the Autonomous Region in Muslim Mindanao (ARMM).

Ermita said the invitation extended by Malaysian Prime Minister Mahathir Mohamad, the host of the 10^th Session of the Islamic Summit Conference, is in recognition of the Philippine government’s genuine efforts to solve the long-drawn Mindanao problem hounding the country for more than 30 years.

The Philippines has already submitted an application to become an observer of the OIC.

Ermita recalled that the OIC was "very supportive" to the Moro National Liberation Front (MNLF) during the bloody guerilla war waged by the MNLF against the Philippine government in the early 1970s until 1996 when a peace accord was signed in Manila.

"But because of the efforts of President Macapagal-Arroyo and then President Ramos, the OIC has fully recognized the Philippine government’s efforts in resolving the Mindanao problem," Ermita said.

He said the Philippine government has religiously implemented the GRP-MNLF peace accord of 1996 and "the OIC has found it appropriate."

One of the provisions in the 1996 pact was the integration of former MNLF fighters to the Armed Forces of the Philippines and the Philippine National Police (PNP).

The Philippines' application for an observer status in the 57-nation Organization of Islamic Conference (OIC) may yet be hastened with the attendance of President Gloria Macapagal-Arroyo at the 10th summit slated in Kuala Lumpur on Oct. 15-16.

The President has been invited to attend the OIC summit, the first ever Philippine President to be accorded such honor in the OIC's 34-year existence. She is scheduled to leave tomorrow for Kuala Lumpur.

Defense Secretary Eduardo R. Ermita, who is one of the Cabinet officials to accompany the President to Malaysia, believes that the invitation by the OIC through Malaysian Prime Minister Dr Mahathir Mohamad, will solidify the chances of the Philippines to be admitted as an observer of the influential Islamic organization.

Ermita, however, said the Philippines will just have to wait for the final decision of the OIC on the application.

So far, there are only four countries granted observer status by the OIC. These are Bosnia-Herzegovina, Central African Republic, Cote d'Ivore and Thailand.

The OIC was founded in Rabat, Kingdom of Morroco on Sept. 25, 1969. It was formed in response to the call for Islamic solidarity made by the late Saudi Arabian King Faisal Ibn Abdulaziz.

The aim of the OIC was spelled out during the Islamic Conference of Foreign Ministers meeting in February 1972.

The OIC’s primary goal is to strengthen solidarity and cooperation among Islamic states in the political, economic, cultural, scientific and social. Despite its name, the OIC does not pursue religious affairs.

The other essential aims of the organization are: to adopt all necessary measures to promote international peace and security founded on the basis of justice, to coordinate efforts to protect the holy places of Islam, and to support the struggle of the Palestinian people to recover their rights and homeland.

Former Philippine Ambassador to Nigeria Datu HJ Abul Khayr Alonto said the leaders of Muslim Mindanao look forward to the visit of US President George W. Bush on Saturday as he called for a political ceasefire to allow the government to properly prepare for the brief state visit.

In a statement, Alonto said the friendship between the Philippines and the United States and the combined efforts of the two countries’ leaders resulted in remarkable changes in several communities in Mindanao. "We appreciate the continuous flow of aid and technical assistance to several conflict-ridden areas in Mindanao. Because of this, there is a rising tide of hope among our poorest communities," he said.

The former MNLF leader said attempts of the opposition to diminish the significance of the forthcoming visit of President Bush by linking it to the 2004 elections reveal a great disregard for the needs of the people in Mindanao.

He cited the electrification of 160 rural villages, building of ports, agricultural and other livelihood grants as well as educational programs for the poor as important gains from the RP-US partnership.

The US Agency for International Development (USAID) has focused most of its grants to the Philippines on Mindanao to help integrate former rebels and their communities into the peacetime economy, improve economic infrastructure in conflict-afflicted areas, accelerate economic and business development in the area, increase access to micro-finance services and expand educational opportunities for disadvantaged groups.

This year, more than half of USAID’s programmed grants worth $70 million will be for Mindanao, particularly in the former conflict areas.

The US Institute for Peace also pledged generous grants for the Mindanao area as soon as the government and the Moro Islamic Liberation Front reach a peace treaty.

Alonto said that the good bilateral relations between the two countries "should not be dragged through the mud by warring factions" as he cited baseless reports about exorbitant spending and abusive US security personnel as examples of constant sniping by the opposition.

The Muslim leader said a political ceasefire would enable the country to properly prepare for the visit.

"Let us endeavor to welcome with respect and appreciation the leader of the United States because he has proven to be a steadfast friend and a reliable ally during these difficult times," Alonto said, adding that major investors and members of the foreign press would be accompanying President Bush to the Philippines.

Ambassador Alonto said Muslim communities in Mindanao who have yet to see the dawn of lasting peace in their lifetime could not afford another setback in the peace negotiations because of the machinations of some misguided elements.

Convergy’s, the world’s largest customer care company in the world, paid tribute to the country’s political stability when it launched its entry into the Philippines Monday night.

President Gloria Macapagal- Arroyo, in return, welcomed its officers and employes with a very good news – that terrorist Fathur Roman Al Ghozi is indeed dead.

Fresh from a trip to General Santos City where he made sure the vicitim was the noted terrorist who escaped detention three months ago, the President dropped by the launching of Convergy’s at the Manila Peninsula hotel and told them the good news.

"The whole world is a victim of terrorism," the President said. "Terrorism can strike anywhere, anytime and it’s part of our work so that life would be better for our citizens and business would be safe for investors," she told the officials and guests that included Trade and Industry Secretary Mar Roxas.

"We want to make sure that we go after all these terrorists and today we bagged a major one," she said. "So it’s probably a good day to do it, on the day of your opening."

The President paid tribute to the 500 energetic and talented men and women comprising the work force of Convergy’s in the Philippines.

Worldwide, the company boasts of 50,000 employes, 3,000 of them Filipinos.

"You are among the best. May your tribe increase into thousands and thousands," the President said.

She related that Convergy’s investment in the Philippines was a result of a chat he had with officials of the US company sometime during her state visit to the United States last May.

The Ford Motor Company (FMC), a leading auto maker in the world, plans to turn the Philippines into a motor exporting hub in the Asia-Pacific region, President Gloria Macapagal-Arroyo was informed today by William Clary Ford, FMC Chairman and Chief Executive Officer.

President Macapagal-Arroyo received William Clay Ford, a great great grandson of FMC founder Henry Ford, at the Malacaņang Music Room this morning.

In their 10-minute meeting, Ford said that as part of the observance of FMC’s 100^th anniversary, their company intends to invest more in the Asia-Pacific region which, he said, has potential for further market development.

Ford told the President that the Philippines in particular constitutes "a great target" for developing into a car exporting center in the region.

He announced plans for doubling the export of Ford vehicles from the Philippines. In support of these plans, he said that FMC will "make a substantial investments to upgrade the facilities and add new vehicle lines to be produced here."

"I believe that there is a tremendous opportunity for growth in the Philippines and we can contribute to that growth," Ford said.

He said that the new investments will create job opportunities for the Filipinos and, in fact, will double the workforce at the Ford Sta Rosa, Laguna, plant.

Ford lauded the President for her leadership, particularly for her role in removing trade barriers and supporting sustainable business environment for automotive investors.

He said hat he is "a very big admirer and supporter" of the President, but clarified that their plans for investment has nothing to do with her recent announcement to seek another term in the May 2004 elections. "Business considerations are the foremost reasons for investing in the Philippines," he said.

Ford was accompanied in his courtesy call on the President by Trade and Industry Secretary Manuel A. Roxas II, United States Ambassador Francis Ricciardone, DTI Undersecretary Greg Domingo and FMC executive in Manila Henry Co.

The President told Ford that the Philippine government greatly values FMC’s investment in the country as well as its interest in transforming the Philippines into a motor exporting center on a long term basis.

"This is a great moment for the Philippine economy," she said.

President Macapagal-Arroyo noted that the Philippines has a viable economy with a large source skilled manpower. "Anywhere you go, (you’ll see that) our people are very competent, enthusiastic and full of energy," she added.

Philippine National Police (PNP) chief Director General Hermogenes Ebdane today said the death of self-confessed international terrorist Fathur Roman al-Ghozi in North Cotabato the other day was the result of lengthy and intense intelligence operations and executed with the use of specialized troops.

Ebdane said al-Ghozi’s death was a result of a legitimate close encounter with a group of disciplined operatives and executed with precision.

"Yung sinasabi nilang wala daw masyadong putukan, hindi na ngayon ganyan. Kasi kung displinado yung mga nag-ooperate, isa o dalawang bala na lang kung nagkakaharapan ng ganyan (It is different when you operate with disciplined troops. What is needed is only one or two shots in a close encounter such as what happened)," he said during an GMA-7 Unang Hirit interview this morning.

Ebdane said the incident happened at a checkpoint in Barangay Dapdapan, Pigkawayan town without a barricade after an intelligence report that al-Ghozi was on board a vehicle going towards the direction of General Santos City.

He said al-Ghozi at that time came from the area of Lanao del Sur near the boundary of Zamboanga.

"At yun nga. Dahil doon, gumamit lang kami ng kaunting tao. Yung PACER (Police Anti-Crime Emergency Response) Mindanao at yung tropa ng 6^th Infantry Division. Ito yung mga disiplinadong tao natin (After that report, we only used a lean team composed of members of the PACER Mindanao and the 6^th Infantry Division. These are our disciplined operatives)," he said.

Ebdane said intelligence reports reveal that Al-Ghozi was supposed to go to the Sarangani area but his group turned right upon reaching Surigao and proceeded to Cagayan de Oro where another group met them.

He said they are now investigating the identity of this group who could be long-time partners of al-Ghozi in Mindanao.

"Nagkataon kasi na si al-Ghozi ay nakatira dyan ng ilang taon na. Sa katunayan mas marami pang alam na salita yan kesa sa atin (Al-Ghozi lived there (Cagayan de Oro area) for a couple of years. In fact, he knew the native dialect more than most of us do)," he said.

He said al-Ghozi was also involved in the 1999 bombings in General Santos City before the December 2000 Rizal Day bombings in Metro Manila.

Ebdane said he also apologized on Monday to North Cotabato Governor Emmanuel Pinol for not immediately coordinating with the local government on their al-Ghozi operation.

Ebdane said they have already talked with the Indonesian officials on what to do with the remains of al-Ghozi. It is Muslim custom that a dead should be buried within 24 hours.

He said the Indonesian officials gave clearance for the remains of al-Ghozi to be embalmed.

"The Philippines must harness its economic relations with the US for it to realize its goals in the area of bilateral trade by seeking fair trade—one that opens the US markets to Philippine products and one that will enhance development," the President said.

Also, the funds raised under such a commodity loan will help finance the training in the US of Filipino agriculturists under the Fulbright-DA exchange program.

President Gloria Macapagal-Arroyo today led the awarding of Certificates of Eligibility for Lot Allocation (CELA) to 674 resident beneficiaries from barangays Signal Village and Lower Bicutan in Taguig as part of her administration’s Strong Republic Housing (SRH) program for the urban poor communities in Metro Manila.

This was the second time this week that the President distributed land title certificates to the qualified resident beneficiaries in the urban poor communities in Metro Manila. On Monday, the President awarded parcelized land titles to some 3,000 resident beneficiaries in Quezon City.

The President motored here from Camp Aguinaldo headquarters after her luncheon with enlisted personnel at the Enlisted Personnel Clubhouse of the Armed Forces of the Philippines to respond to the clamor of the informal residents living in the vicinity of the Department of Transportation and Communication (DOTC) Maritime Communication Project in Bicutan, Taguig.

Upon her arrival here, the President inaugurated the one-stop-shop Kaagapay Center located inside the Barangay Hall of Signal Village. The shop assists residents in the application and processing of the pertinent documents for house and lot allocations provided by the national and local governments.

A total of 537 qualified beneficiaries from General Headquarters, Headquarter Support Group, Pagasa and Kadamas Village, all parts of Lupang Katuparan in Barangay Signal Village, received their lot allocations under Executive Order No. 70.

A total of 137 residents from Purok 1-A and Purok 2-A, all from Barangay Lower Bicutan, got their CELA through Proclamation No. 133.

Representative Allan Cayetano and Taguig Mayor Freddie Tinga assisted the President in the distribution of the certificates to the resident beneficiaries during the awarding rites at the Signal Village Sports Center.

The President issued Executive Order No. 70 and Proclamation No. 133 on December 10, 2001 declaring the 5.4 hectares, out of the 25.2-hectare land properties of the DOTC Maritime Communication Project to be distributed to 700 households who have been living in the area for years.

Present during the awarding were Secretaries Michael Defensor of the Housing and Urban Development Coordinating Council (HUDCC); Elisea Gozun of the Department of Environment and Natural Resources (DENR); Leandro Mendoza of the Department DOTC; Presidential Adviser Marita Jimenez of the Official Development Assistance Absorption (ODAA)

Even before President George W. Bush could set foot in the country, three projects in celebration of a century of Philippine - American collaboration in education were initiated today in the presence of President Gloria Macapagal-Arroyo.

Initiated at the historic Benito Legarda Elementary School in Sampaloc, Manila were the $33-million USAID education initiative, the Ambassador’s fund for cultural preservation and the launching of the English Language Proficiency program between the Makati Business Council and the American Chamber of Commerce. USAID refers to the United States Agency for International Development.

The granting of $33 million in assistance over six years to improve access to and the quality of education, particularly in the Autonomous Region in Muslim Mindanao (ARMM), was contained in a Memorandum of Intent signed between US Ambassador Francis Ricciardone and Socio-Economic Planning Secretary Romulo Neri in rites also attended by government and embassy officials.

In his brief remarks, Ricciardone traced the RP-US collaboration in education back to 1901 when American volunteer teachers, who came to be known as Thomasites, arrived in Manila to establish the public school system in the Philippines.

"The American-Philippine partnership in education stems from our appreciation of the value of education as a springboard to opportunity and the foundation necessary for civil society and democracy to flourish," Ricciardone said. "It is no surprise that President Bush has made education both a national priority and priority in our foreign policy."

During the same rites, Ricciardone also donated $30,000 to the National Historical Institute to preserve the historic structure and improve the facilities for current needs of the Legarda Elementary School.

The Legarda Elementary School is one of the earliest schools built in Manila in 1922 and highlights one of the most cherished legacies of the American period in the Philippines – the public school system.

The Ambassador’s Fund for Cultural preservation is the only cultural preservation program in the US government that provides direct small grant to preserve cultural or educational landmarks in less-developed countries.

Highlighting the affair was the signing of a Memorandum of Agreement between the Philippine-United States Business Council and the American Chamber of Commerce of the Philippines, Inc. agreeing to pursue a project for the enhancement of the English language.

The program is designed to improve the level of proficiency in English among teachers and students in both the formal and non-formal sectors.

It will involve training and certifying English teachers at the collegiate and secondary school levels using a blended approach of classroom teaching and computer-aided instruction.

The MOA was signed by Ramon del Rosario Jr., chairman of the RP-US Business Council and vice chairman of the Makati Business Club, and George Henefeld, president of the American Chamber of Commerce of the Philippines.

The program, which will run for an initial three years, envisions a total of 50 computerized English Language Centers with 250 teachers and 42,000 students trained and certified in that period.

Ricciardone said that President Bush approved both these major increase in American development assistance "because we listen carefully to Filipinos."

"And we’ve been listening all the more carefully since we discovered our common suffering at the hands of international terrorism," he said.