Earlier this year, Laura and I hosted President and Attorney Arroyo at the White House, the first state visit from an Asian country during my administration. Today we are honored to visit America's oldest ally in Asia, and one of America's most valued friends in the world.

The great patriot, Jose Rizal, said that nations win their freedom by deserving it, by loving what is just, what is good, what is great to the point of dying for it. In the 107 years since that good man's heroic death, Filipinos have fought for justice, you have sacrificed for democracy -- you have earned your freedom.

America is proud of its part in the great story of the Filipino people. Together our soldiers liberated the Philippines from colonial rule. Together we rescued the islands from invasion and occupation. The names of Bataan, Corregidor, Leyte, Luzon evoke the memories of shared struggle and shared loss and shared victory. Veterans of those battles are here today. I salute your courage and your service. Along the way and through the years, Americans have gained an abiding respect for the character of your nation and for the decency and courage of the Filipino people.

The Pacific is wide, but it does not divide us. Over 2 million American citizens trace their ancestry to these islands. The commerce between us is vibrant and growing. We work together each day in law enforcement and economic development and government reform. Our young people study at each other's universities. Many Filipinos teach in American public schools. And just this week, our two governments launched a six-year effort to extend greater educational opportunities to children in some of the poorest regions of this country. We understand -- we both know that education helps defeat poverty.

The United States and the Philippines are warm friends. We cherish that friendship, and we will keep it strong. Our countries are joined by more than a market, even more than an alliance. This friendship is rooted in the deepest convictions we hold. We believe in free enterprise, disciplined by humanity and compassion. We believe in the importance of religious faith, protected by religious liberty. We believe in the rule of law, made legitimate by the will of the people. And we believe that democracy is the only form of government fully compatible with human dignity.

These ideals speak to men and women in every culture; yet they are under attack in many cultures in many parts of the world. A new totalitarian threat has risen against civilization. Like other militarists and fascists before them, the terrorists and their allies seek to control every mind and soul. They seek to spread chaos and fear, intimidate whole societies and silence all opposition. They seek weapons of mass destruction to complete their hatred and genocide. The terrorists will continue their missions of murder and suicide until they're stopped, and we will stop them.

Every nation in Asia and across the world now faces a choice. Nations that choose to support terror are complicit in a war against civilization. Nations that try to ignore terror and hope it will only strike others are deluding themselves, undermining our common defense, and inviting a future of catastrophic violence. Nations that choose to fight terror are defending their own safety and the safety of free people everywhere.

The Philippines and the United States has seen the enemy on our own soil. Americans witnessed the murder of thousands on a single day. Filipinos have known bombings and kidnapping and brutal murders of the innocent. We've endured the violence and grief of terror. We know the enemy wants to spread fear and chaos. Our two nations have made our choice. We will defend ourselves, our civilization and the peace of the world. We will not be intimidated by the terrorists.

We're on the offensive against the terrorists, draining their funds, disrupting their plans and bringing them to justice, one person at a time. Here in the Philippines, one face of the enemy is the Abu Sayyaf group. These killers torture and behead their victims, while acting -- or claiming to act -- in the name of God. But murder has no home in any religious faith. And these terrorists must find no home in the Philippines.

My government and your government pursue a common objective: We will bring Abu Sayyaf to justice And we will continue to work together, along with our friends in Southeast Asia, to dismantle Jamaah Islamiya -- the terrorist network, as well as other groups that traffic in violence and chaos. As we fight the terrorists, we're also determined to end conflicts that spread hopelessness and feed terror.

The United States supports President Arroyo's campaign to establish a lasting peace with the Moro Islamic Liberation Front. Shortly before his death, Ustaz Hashim Salamat wrote a letter to me professing his rejection of terrorism. Only that commitment to peace can bring a better future to the people in Mindanao.

I call on all the members of the MILF to reject terror and to move forward with political negotiations. When a lasting peace is established, the United States is prepared to provide development assistance to Mindanao.

Yet there can be no compromise with terror. Philippine security forces have the right and the duty to protect local communities and to defeat terrorism in every form. In the war on terror, U.S.-Philippines military alliance is a rock of stability in the Pacific.

And this afternoon, President Arroyo and I agreed to update our defense cooperation. We completed the comprehensive review of Philippine security requirements announced last May. Today, President Arroyo and her government committed to a five-year plan to modernize and reform your military. I commend the President and your military leadership for taking this bold action. My country will provide technical assistance and field expertise and funding.

But success requires more than American assistance. The members of this body must invest in the Philippine military to ensure that your forces have the resources needed to win the war on terror, and to protect the Philippine people.

Free nations -- free nations have faced a great challenge all around the world and a great challenge in Iraq. Saddam Hussein pursued weapons of mass destruction, sponsored terrorism, oppressed his people, and for 12 years defied the demands of the United Nations. Finally, the U.N. Security Council in Resolution 1441 demanded that Saddam disarm, prove his disarmament to the world, or face serious consequences. Saddam Hussein chose defiance, and President Arroyo was one of the first world leaders to recognize the need for action. The Philippines joined the United States in supporting and enforcing the serious consequences. You rose to the moment, and the American people respect your courageous and principled stand.

Since the liberation of Iraq, we have discovered Saddam's clandestine laboratories suitable for biological and chemical weapons research, his design work on prohibited long-range missiles, his elaborate campaign to hide his illegal weapons programs. We've shut down terror camps, denied terrorists a sanctuary. By our actions, our coalition removed a grave and gathering danger. We also ended one of the cruelest regimes in our time. Saddam's rape rooms and torture chambers and children's prisons are closed forever. His mass graves will claim no victims. The world was right to confront the regime of Saddam Hussein, and we were right to end the regime of Saddam Hussein.

Now that the dictator is gone, Americans and Filipinos and many others share a common vision for that country. Coalition forces, including Filipino peacekeepers and medical workers, are working for the rise of freedom and self-government in Iraq. We're helping to build a free Iraq, because the long-suffering Iraqi people deserve lives of opportunity and dignity. And we're helping to build a free Iraq, because free nations do not threaten others or breed the ideologies of murder. By working for democracy, we serve the cause of peace.

Democracy always has skeptics. Some say the culture of the Middle East will not sustain the institutions of democracy. The same doubts were once expressed about the culture of Asia. These doubts were proven wrong nearly six decades ago, when the Republic of the Philippines became the first democratic nation in Asia. Since then, liberty has reached nearly every shore of the Western Pacific. In this region of the world, and in every other, let no one doubt the power of democracy, because freedom is the desire of every human heart.

Sustaining liberty is not always easy. The world saw this last July here in the Philippines. And all free nations rejoiced when the mutiny against this government failed. People of this land fought too hard, too long to surrender your freedom to the conspiracy of a few.

All of you in this chamber are the protectors of Philippine democracy, charged with upholding the legacy of Rizal and Quezon. Member of the Philippine Armed Forces are commissioned to fight for freedom, not to contend for power. I'm certain that in the coming election, this nation will show its deep commitment to democracy and continue to inspire people throughout Asia.

In this city, on a January morning in 1995, Pope John Paul II addressed millions of the faithful. He spoke of the goodness of the Filipino people, and the strength of your democracy and the example this nation has set for others. He said, "May your life spread out from Manila to the farthest corners of the world, like the great light which shone in the night at Bethlehem." Ladies and gentlemen, the world needs the Philippines to continue as a light to all of Asia and beyond.

There is so much to be proud of in your beloved country: your commitments to democracy and peace, and your willingness to oppose terrorism and tyranny. The United States and the Philippines have a proud history. And we face the future bound by the strongest ties two nations can share. We stand for liberty, and we stand together.

May God bless. Thank you all, very much.

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I'd like to take this opportunity to thank the United States for its support for the Philippines as a non-permanent member of the Security Council for the term 2004 to 2005, and also for designating the Philippines as a major non-NATO ally.

I also welcome the Joint Defense Assessment named by our respective defense agencies. It recognizes that the world today requires a new perspective on political and economic security. The assessment recognizes the determination of the Philippines to take greater responsibility for its own political and economic security, even as it acknowledges that strong relations with the U.S. will contribute greatly to peace and prosperity, stability and security, especially from terrorism. Indeed, we must close ranks and stand firm against terrorist threats, however grave, however armed, and from whatever quarter.

When those violence happened in May 2001, the Philippines chose to fight terrorism, compensating for such modest means of its commands with unshakable resolve to defeat it once and for all.

I thank President Bush for continued security assistance which enhances the means to defeat terrorism. I also appreciate the help of President Bush for increased economic assistance to alleviate poverty and other socio-economic ills from which terrorism draws its strength. I take pride in the robust economic ties that bind the Philippines and the United States.

This past week, in preparation for this visit, we witnessed the launching in the Philippines of Convergence, the largest customer air service company in the world, which has hired 3,000 workers in its first year of operation. We also witnessed the launching of a new $50-million investment from Ford to launch the Philippines as an export hub for the world. We received $33 million of new USAID money for educational assistance in the conflict-affected areas, and we celebrated the electrification of 1,650 barangays with a contribution of one million pesos per barangay from Mirant Cal Energy in San Roque all in preparation for your visit, Mr. President.

I look forward to the rest of my talks with President Bush and members of his administration. Once again, thank you, Mr. President, and thanks to Mrs. Bush for making this state visit to the Philippines.

PRESIDENT BUSH: Madam President, thanks. It's been a -- this is going to be a great trip, thanks to your wonderful hospitality. I want to thank you and your government for such wonderful arrangements. And I want to thank the people of Manila for being so friendly to Laura and me as we drove through the streets -- there was an outpouring of enthusiasm and waving that really made us feel great. And I want to thank your country very much.

I'm here to continue our important discussions. And I want to remind the people of this country what a great leader you've been when it comes to fighting terror. You've been strong and stalwart, and that's what's needed. The terrorists want to frighten people into inaction. They want to create fear, and therefore, have their way. And you have -- you've been strong. And I appreciate that very much. We want to continue to help you.

And I also want to thank you for your vision of understand that freedom is important, it's a human right, and where there's human suffering and tyranny, that -- at the same time, terrorist links -- the free world must work to change conditions, hopefully in peaceful ways, but sometimes tyranny is so stubborn and ignores the reality, that we have to take tough decisions. And, Mr. President, you understand that. And I want to thank you very much for that.

I also want to continue to work on close ties, particularly when it comes to trade and jobs. We want the people of the Philippines working, and we want the people of America working. And by having good free trade and fair trade, we can help both countries.

And finally, I want to thank you very much for working together on matters of education. We've got a great education initiative, and you recognize, like I recognize, that education is the best way to fight poverty. And therefore, education is also a great way to enhance democracy.

And thank you for your leadership. Thanks for your hospitality. I'm looking forward to the rest of the day in this beautiful country.

PRESIDENT ARROYO: Thank you.

PRESIDENT BUSH: If it's all right, we've got, obviously, some anxiety built up in our press corps there -- (laughter.)

Q Mr. President --

PRESIDENT BUSH: Yes. Speaking about anxiety -- yes. (Laughter.) -- traveling crowd here.

Q How serious do you think the terrorism threat is here in the Philippines? And what specifically can you do to help President Arroyo deal with it?

PRESIDENT BUSH: Well, I think the Abu Sayyaf is serious. It's serious because there are not rules when it comes to a crowd like the Abu Sayyaf. They kidnap, they kill, they maim. And there's only one way to deal with them, and that's to find them and to bring them to justice, which is precisely what the Arroyo government has been doing.

I was briefed before you all came in about the progress made against the Abu Sayyaf group. Not only is the leadership been slowly but surely brought to justice, but many members of the Abu Sayyaf have been brought to justice.

The best thing we can continue to do within our respective constitutions and/or budgets is to work in a close cooperative way, starting with intelligence-sharing, and then providing the assets and the capacity and training to move quickly when a particular target is found.

The cooperation between the United States and the Philippines is strong. The success against this particular group is a model for the region, as far as I'm concerned. And I want to thank the President for that.

Q Mr. President, you're trying to put security on the agenda at APEC. Do you think some leaders of this region, some countries are not doing enough to crack down on terrorism?

PRESIDENT BUSH: No, I think security is on the agenda. What I'm trying to do, and will do, is to remind people that the war on terror goes on. See, the easiest thing to do is to think the war on terror is over with. It's certainly the most comfortable approach. And I just will remind people that, in view of the United States, that the United States is still threatened, and our friends are threatened, and therefore, we must continue to cooperate work.

And the good news is that I don't have to convince Madam President of that. She understands that as well as anybody in the region.

We'll also, of course, talk about jobs. And I want our people working. And I know the President wants the people of the Philippines working. And trade is important, it's an important way to lift lives on both sides of the Pacific. But it's also important to have free -- fair trade. In other words, we want the trade to be -- markets to be equally open. And that's an important conversation that I will have with members of APEC.

And the other thing, of course, is a chance to renew friendships and to be able to kind of continue discussions that I had been having in the past. The President and I, gosh, we've talked a lot. We've met a lot and we've talked a lot. These meetings are important ways to keep our friendships going and keep our common interests alive.

Q Mr. President --

PRESIDENT BUSH: Stretch. We call him Stretch. (Laughter.)

PRESIDENT ARROYO: I can see why. (Laughter.)

Q You got a resolution through the U.N. this week, but some of the countries that opposed the war, going back to last year -- France, Germany, Russia -- still haven't come forward with any contributions. Do you think this -- and some members of your administration cautioned us against assuming there will be any major inflow of contributions, troops and money, as a result of this. Do you think that's a realistic outlook on things?

PRESIDENT BUSH: Well, first, let me thank those countries for their vote at the U.N. That was a very important vote. And as a matter of fact, the first thing that the President and I discussed, and the first thing that Prime Minister Koizumi and I discussed was the vote at the U.N. It's important for these countries around the world to see the U.N. act the way the U.N. acted in a 15-0 U.N. Security Council resolution vote. It was a strong vote.

And as to whether or not they'll participate, time will tell. But I -- take, for example, Germany. Germany is participating in the aftermath of certain battles in the war on terror, and that is in Afghanistan. They're making a very serious, important contribution. And for that we are very grateful. And there will be other ways for nations to contribute in the overall war on terror.

And I'm pleased with the progress we are making in Iraq. The President and I discussed that progress, and it's measurable progress. For example, we had a goal of a thousand schools to open after the end of the conflict, and it wasn't a thousand schools that were refurbished and opened, but it was 1,500 -- 1,500 -- schools. And the electricity is coming on. The water is more pure. And I can cite a series of examples where life is improving for the Iraqi citizen.

It is still a dangerous place because there's still haters and thugs and terrorists who are willing to take innocent life. And the reason why is, is because they want America to leave. They want to create the conditions of fear, and therefore, we'll say, we've had enough. Well, we're not leaving. See, we're not leaving until we complete the task.

And I am pleased with progress. And one of the President's ministers was there, talking about education matters and the need for us to continue to work together to improve the lives of the Iraqi citizens, and we will. It's in our interest that Iraq be free and peaceful. It will help change the world.

And I want to thank the President for her strong support. There are Philippine citizens there today.

All right, thank you all.

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President Gloria Macapagal-Arroyo warmly welcomed President George W. Bush to Malacanang today for the first State Visit of an American President to Manila in over 30 years. As the two Presidents highlighted during President Macapagal-Arroyo’s State Visit to the United States last May, the ties between the Philippine and American peoples are deeply rooted in shared history and values, as well as in a shared commitment to global peace, security and prosperity.

President Macapagal-Arroyo expressed her appreciation for the support extended by President Bush to the Veteran Equity bills pending in both houses of the U.S. Congress, designed to enhance benefits for Filipino veterans of World War II residing in the United States. Both Presidents noted that the American and Filipino fighting men of World War II remain a strong bond between the peoples of both nations. President Bush announced the doubling of U.S. funding for medical equipment at the Veterans Medical Center in Quezon City. President Bush highlighted his respect for the impressive contributions of Filipino-Americans to American social, cultural and economic life.

The two Presidents focused their discussion on the security challenges facing the United States and the Philippines, agreeing that the U.S.-Philippine partnership has taken on new vitality and importance in the context of the global war on terrorism. Presidents Macapagal-Arroyo and Bush reviewed recent successes in the war on terrorism, noting with satisfaction that a number of terrorist killers have been brought to justice. They agreed that while progress had been made in attacking terrorist organizations both globally and regionally, much work remains to be done.

President Bush praised President Macapagal-Arroyo’s courage and strength in confronting terrorism in the Philippines and in Southeast Asia. He expressed particular appreciation for Philippine initiatives to improve and expand international counterterrorism cooperation and thanked President Macapagal-Arroyo for her leadership working with key ASEAN partners to address the terrorist threat on a regional basis. The two leaders agreed that such cooperation, particularly in the area of information sharing, is an essential component of the war on terrorism.

In recognition of the strength and vitality of the alliance, as well as its vital role in promoting regional security and combating global terrorism, President Bush informed President Macapagal-Arroyo that he had designated the Philippines as a Major Non-NATO Ally (MNNA). President Macapagal-Arroyo thanked President Bush for this honor and expressed hope that this move would facilitate the modernization of the Philippine Armed Forces and the strengthening of our defense partnership.

In keeping with their May 19 pledge to conduct a comprehensive security assessment, the two Presidents also reviewed and endorsed the findings of the 2003 Joint Defense Assessment (JDA) of the Armed Forces of the Philippines’ capabilities and requirements. The purpose of the JDA is to assist the government of the Philippines in developing a defense program that will improve the ability of the Philippine military to respond to threats to Philippine security.

President Arroyo noted the determination of her government to move forward on an ambitious program of military reform, including increased allocation of resources to Philippine national defense. President Bush committed to assist the Philippines in this effort.

The two Presidents agreed that their respective defense establishments would embark on a multi-year plan to implement the key recommendations of the Joint Defense Assessment. They agreed to direct their defense establishment to finalize details of the plan and begin its implementation.

President Macapagal-Arroyo welcomed substantial new US programs of law enforcement training, equipment, and expertise in support of her efforts to strengthen the rule of law and to reform and strengthen the Philippine National Police and other law enforcement agencies.

President Bush commended President Gloria Macapagal-Arroyo for her steadfast leadership in pursuing economic reforms in the Philippines and welcomed her pledge to maintain resolve in pursuing reforms in revenue collection, energy privatization and intellectual property rights protection.

President Bush praised President Macapagal-Arroyo’s determination to alleviate poverty and other socio-economic grievances that are too often exploited by terrorist organizations to recruit followers. President Arroyo welcomed the new, six-year U.S. initiative to strengthen education in the poorest areas of the Philippines, particularly Mindanao, as supportive of her efforts. This new program complements the Philippine government’s efforts to uplift the communities in the Autonomous Region of Muslim Mindanao (ARMM) and expand their access to education and training.

The two Presidents discussed the Philippine government’s efforts to establish a durable effective peace with the Moro Islamic Liberation Front (MILF). They expressed appreciation for Malaysia’s role in facilitating the negotiating process. President Bush emphasized US willingness to provide diplomatic and financial assistance in support of peace but emphasized that the MILF must first fully renounce terror and demonstrate its commitment to peaceful political negotiations.

President Macapagal-Arroyo and Bush discussed the situation in Iraq. The two leaders reiterated their shared commitment to a free Iraq at peace with its neighbors and expressed unwavering determination to continue the important work of helping the Iraqi people build a stable, just and prosperous country that poses no threat to the world. President Bush thanked President Macapagal-Arroyo for the contributions made by the Philippines to security and reconstruction in Iraq. The two President’s affirmed the vital role of the United Nations in postwar Iraq and stressed the need for more countries to contribute peacekeeping and humanitarian contingents to Iraq as that country prepares for sovereignty under a democratic regime.

The two leaders welcomed the six-party talks in Beijing and reiterated their intention to work with other members of the Asia-Pacific region to ensure the complete, verifiable and reversible elimination of North Korea’s nuclear weapons program.

President Bush congratulated the Philippines on its nomination by Asian countries to join the United Nations Security Council and expressed confidence that the Philippines would contribute to global peace and security.

President Macapagal-Arroyo and President Bush concluded the visit by celebrating the impressive gains made in Philippine-U.S. relations under their administrations, expressing confidence that today’s State Visit marks another concrete step forward in the development of modern, mature relationship between friends and equals.

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