CLARK SPECIAL ECONOMIC ZONE -- This former 13^th US Air Force Base, the largest US military facility outside the US continent, is making appropriate preparations for the visit to the Philippines of American President George W. Bush next week.

Air Force One carrying President Bush is scheduled to land at Diosdado Macapagal International Airport (DMIA) here. He will then transfer to Marine One, that will ferry him directly to Malacañang.

Although there are no official arrangements for President Bush to stay here even for a few minutes, Emmanuel Y. Angeles, president of Clark Development Corp. (CDC), and Superintendent Carmen Trinidad, chief of the CDC Security Force, have been making some preparations.

The preparations would include the tightening of security measures at DMIA and a possible briefing for the visiting President in a still undisclosed place here on the development of Clark Zone since it was abandoned by the Americans in June 1991.

When the US Air Force (USAF) was prematurely forced by a natural calamity, the eruption of Mount Pinatubo, to abandon Clark Air Force base in June 1991, this main base and other satellite stations were injecting an estimated $102.6 million into the Philippine economy.

This was in addition to the defense capability of USAF assigned units provided to the Filipino people and the millions of dollars worth of assistance in military training and equipment extended under the RP-US Mutual Defense Treaty.

The US Armed Forces in the Philippines were supposed to abandon their military bases and other facilities in the country on Sept. 16, 1991 after the Philippine Senate rejected an extension of the Military Bases Agreement (MBA) scheduled to expire on that date.

This former US military facility has grown to be the country's premier economic zone employing more than 12,000 civilian employees.

A very short prepared briefing for the US President would probably include the fantastic development of this former vast US military facility situated in a 4,500-hectare area, particularly on the growth of committed investments of at least P72.22 billion and the projected increase of the current 27,521 jobs to about 73,362 in the next five years.

The Americans, composed of the US 5th Cavalry Regiment, arrived in Pampanga on September 1, 1902 and established Ft. Stotsenburg in a 7,700-acre area in Sapangbato, Angeles City.

In 1919, Ft. Stotsenburg, which was expanded to 156,204 acres, was renamed Clark Air Field in honor of Maj. Harold M. Clark of the US Army Signal Corps who died in a seaplane crash in Panama.

The occupation by the Americans of Pampanga was interrupted, however, on Dec. 8, 1941 when it was attacked and then occupied by the Japanese Imperial Army.

On April 9, 1942, American and Filipino forces fell in Bataan and Corregidor, that led, a few days later, to the infamous Bataan Death March from Bataan to San Fernando, Pampanga while Japanese forces took firm control of Clark Field.

In October 1944, American forces begin air raids on Japanese occupation forces in Clark Field, which continued for four months, destroying over 1,500 Japanese aircraft.

On Jan. 31, 1945, American forces regained possession of Clark Field after three years of Japanese control.

The US 13th Air Force was transferred to Clark Field in January, 1946, and stayed there until the end except for a brief period between May 1946 and August 1947 when it was in Ft. William McKinley in Luzon.

The US and Philippine governments signed the Military Bases Agreement (MBA) on March 15, 1947 which guaranteed American possession of US bases in the Philippines for 99 years.

The Philippine Senate rejected an extension of the MBA scheduled to expire on Sept. 16, 1991. But the Americans were forced to abandon Clark Field earlier on June 12, 1991, when Mount Pinatubo erupted and the base was covered with ash fall.

After the departure of the Americans from Clark Field, the Philippine government started to develop it into a globally-competitive and efficient center for aviation, business and leisure.

Clark Zone has become an investment haven covering 33,000 hectares of prime land in Central Luzon.

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

They ventured where few before them dared - pioneering men and women whose imagination was fired by America's conquest of the Far East.

Their story, however, transcends adventure. It is also about idealism, commitment, and call of duty.

And the rebirth of a ravaged nation.

On July 23, 1901, some 500 teachers from the United States boarded a former cattle ship docked at San Francisco's Pier 12 and braved the perils of the Pacific Ocean to educate inhabitants of a land they barely knew.

They became known as the 'Thomasites,' after the US transport ship "Thomas" which brought them to a Southeast Asian archipelago then named the Philippine Islands.

Although this group was the biggest ever formed for the purpose, it was not the first to be deployed by Washington.

A few weeks earlier, 48 teachers arrived on board the 'Sheridan' to also teach Filipinos basic education.

However, it was the US Army that laid the foundation for a public school system in the Philippines.

Despite being largely unschooled in pedagogy, these soldiers began teaching English to the natives barely three weeks after being stationed in the country.

They opened the country's first public school in Corregidor Island, shortly after Admiral George Dewey defeated the Spanish armada in Manila Bay on May 1, 1898.

The Thomasites successfully built upon this foundation and firmly established education as one of America's major contributions to the 'Pearl of the Orient.'

It was a legacy destined to drastically alter the fabric of Philippine life forever.

President William McKinley appointed William Howard Taft to head a commission tasked with continuing the educational work started by the US Army.

The Taft Commission passed Act No. 34 on January 21, 1901, establishing the Department of Public Instruction charged with establishing a public school system throughout the country.

It also authorized deployment to the Philippines of 1,000 educators from the US mainland to teach Filipinos.

The US government spent an estimated $105,000 for the expedition that brought 365 male and 165 female teachers from San Francisco to Manila.

The Thomasites reached Manila Bay on August 21, 1901 but were quarantined inside the ship for two days before they were allowed to disembark two days later.

The Thomasites travelled from the Anda Circle to their quarters in Intramuros where they stayed before being deployed to the provinces.

Among the assignments given were teaching posts for 20 Thomasites in Albay and Catanduanes, 32 others in Camarines Norte and Camarines Sur as well as 13 in Sorsogon and Masbate.

These Thomasites endeared themselves to the masses who longed to be educated, having been denied access to learning opportunities by the Spanish colonizers.

So consequently, American teachers who arrived later were also referred to as 'Thomasites.'

Twenty-seven of the original Thomasites either died of tropical diseases or were murdered by outlaws during their first 20 months of residence.

The teachers also had to correct certain Filipino habits that became obstacles to effective education.

Among these was the tendency of pupils to attend classes and leave whenever they pleased and this was particularly noticeable during town fiestas and other festivities.

Despite the hardships, the Thomasites persisted.

Aside from the elementary schools, the American teachers also built learning institutions that prepared students for their chosen professions or trades.

They opened the Philippine Normal School and the Philippine School of Arts and Trades (PSAT) in 1901 while the Philippine Nautical School, established in 1839 by the Board of Commerce of Manila under Spain, was reopened soon after American forces occupied the country.

Towards the end of 1904, primary courses were already mostly taught by Filipinos who were under American supervision.

After their initial teaching stint, about half of the Thomasites quietly returned to the U.S., while others were left buried in modest graves in the country they zealously served.

Many remained to complete several more terms before leaving although more than a hundred chose to permanently live in the Philippines and engage in other ventures.

For example, A.V.H. Hartendorp, a Thomasite assigned in Samar and Zambales, went into print media as the publisher of the 'Philippine Magazine.'

All the original Thomasites have already passed away but the fruits of their labor continue to be evident.

"The United States government decided to send out an army, not of conquest, but of education: hence this great movement, which is inevitably destined to be greater, in its final effect, more far-reaching, than the wisest of us can now estimate," Thomasite Adeline Knapp stressed in her memoirs.

She was correct as the public school system, which they successfully built, continues to provide countless Filipinos the opportunity to study and make a better life for themselves.

(Editor’s Note: Following is the third 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)

The state visit of President Gloria Macapagal-Arroyo to the United States in May on the invitation of US President George W. Bush signaled a new era in Philippine-US relations.

Philippine-American ties are no longer characterized by patronage nor transaction-driven based purely on consideration of compensation. This relationship has developed into a vigorous and quality partnership based on shared values and mutual benefits, thanks to the forward looking foreign policy of the President.

Or as US Ambassador to Manila Francis J. Ricciardone said of Bush’s return visit on October 18: "The emphasis will be based on partnership and maturity of the relationship between equals" while acknowledging US willingness to provide the Philippines with additional development assistance.

The Philippines and the US have shared a long and proud history, standing shoulder-to-shoulder in conflicts from World War II, Korea and Vietnam, and lately in the war against terrorism.

Since the closure of the American military facilities in 1991, the relationship between the two countries has moved to a more comprehensive and modern framework based on mutual respect and shared values.

Thus, when the President visited Washington in May, Bush tendered a state dinner in her honor that was only the third since he took over as president of the US. The only other heads of state given such honor by Bush were Mexican President Vicente Fox in 2001 and Polish President Aleksander Kwasnievski in 2002.

It was Bush’s way of saying thank you to the President, the Philippine government and the Filipino people for their "stalwart efforts" in fighting terrorism and as a reliable ally of the US.

And it was a sharp departure from the traditional displays of international friendship that characterized previous US governments.

In Washington, the President and Bush "discussed the full range of global and bilateral issues and reaffirmed the breadth and depth of ties between the United States and the Republic of the Philippines."

The two Presidents agreed that the relationships are deeper and warmer today than at anytime in recent history and noted those ties are rooted in shared history, shared values, and a common interest in global peace and prosperity.

President Bush and President Macapagal-Arroyo paid tribute to a revitalized and maturing bilateral alliance and pledged to further strengthen the partnership in the years ahead.

"The two Presidents agreed on the need for efforts to alleviate poverty and other socio-economic grievances which can create conditions that can be exploited by terrorists. President Macapagal-Arroyo expressed appreciation for the increased US economic and development assistance to southern Philippines, which reinforces the Philippine government’s own efforts to heal divisions in Philippine society," a joint communiqué issued after the visit said.

The communiqué also said that the two Presidents agreed that the US-Philippine security partnership has never been healthier as it emphasized the importance of US support for the continuing efforts to improve the capabilities of the Armed Forces of the Philippines (AFP).

"The two Presidents expressed great pride in the robust economic and trade ties that bind the United States and the Philippines, as evidenced by annual bilateral trade exceeding $18 billion and cumulative direct private investment of $3.5 billion," the communiqué said.

The communiqué said that the two Presidents also reviewed with pride the contributions made by Philippine World War II veterans who gave so much in defense of freedom.

President Bush announced his intention to support legislation extending new benefits for Commonwealth Army veterans and guerillas who lawfully reside in the United States. He also announced continuing efforts to improve medical care for Filipino veterans in the Philippines by providing medical equipment to the Veterans Memorial Medical Center in Quezon City in the 2004 fiscal year.

The Philippines and the United States share a unique relationship that is built on close historical, political, economic, social and cultural ties. Filipinos and Americans are two freedom-loving people who are equally committed to democracy, free enterprise and social openness and progress.

(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.

(Editor’s Note: Following is the sixth 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)

On September 13, 1991, the Philippine Senate voted to reject a proposed 10-year extension RP-US Military Bases Treaty; thus, ending the 94 years of American military presence in the Philippines.

But the transformation of Subic from one of the US largest naval bases outside of the United States into a bustling commercial-industrial complex came about on March 13, 1992 after the passage of Republic Act 7227 creating the Subic Bay Metropolitan Authority (SBMA). Richard J. Gordon, then Olongapo City mayor, was appointed as the first SBMA Chairman.

In that same year, the last American ship and helicopter carrier USS Belleau Wood sailed out of the base. Then President Fidel V. Ramos and the SBMA Chairman raised the biggest free-flying Philippine flag in front of the SBMA Administration Building 229.

The succeeding years saw the Subic Bay Freeport (SBF) became a bustling hub of commerce and tourism, creating thousands of jobs and $2 billion worth of investments. SBF was venue of the Asia Pacific Economic Cooperation (APEC) Leaders’ Meeting in 1996.

Aside from being turned into an economic hub for the Philippines, the Subic Freeport was also transformed into one of the country’s top tourist destinations. Visitors have increased from 2.35 million in 1998 to almost 8 million in June 2003.

Investors and traders in Subic Bay contributed greatly to the national coffers. The 5 percent tax on gross income of Freeport enterprises is valued now at approximately P700 million, up from the previous figure of P463 million. The duties and taxes on importation have risen to P4 billion from only P2.8 billion five years ago.

Taken together, SBMA revenue contributions for the National Treasury have reached P21 billion as of June 2003. In short, its revenue collections enabled the SBMA to return the national government’s capital contribution to the establishment of the Freeport 25 times over.

The activities in the seaport reflect a buoyant commerce. More than 1,761 ships called on the Subic Port in 2002 compared to 1,373 in 1998.

The SBMA has embarked on a Subic-Clark Alliance that will transform both Subic and Clark and the Central Luzon corridor into an inter-modal transport center.

This will give the Subic-Clark-Central Luzon corridor a 3-way connectivity, a platform that will enable businessmen to ship their products to the global marketplace ahead of their competitors.

This is important in this day and age of "just in time production" when speed in doing business, more than just cheap labor, is becoming the determinant of success.

The components of this Alliance are Subic’s seaport, Clark’s airport, and the toll-road in-between. The seaport development project and the toll-road have already been funded by a combined $640 million Overseas Development Assistance (ODA) funds by the Japan Bank for International Cooperation. Started this year, the construction alone will pump-prime the Central Luzon economy.

In 2001, immediately following the ascendancy of President Gloria Macapagal-Arroyo, the Subic Clark Alliance for Development (SCAD) was formally approved in Malacañang. A Memorandum of Agreement was signed among the Bases Conversion and Development Authority (BCDA), Subic Bay Metropolitan Authority (SBMA), Clark Development Corporation (CDC), and the Department of Trade and Industry (DTI).

Subic Bay Freeport’s workforce has reached 45,742. Together with employees of SBMA and its subsidiary, the Freeport Service Corporation, total employment now totals 49,705.

The year 2002 marked the 4^th consecutive year that the Freeport’s exports record breached the $1 billion mark. Records show that total cumulative committed investments reached $4.047 billion.

During that year, there were 629 companies in operation with a total workforce of 48,874. With the inclusion of the SBMA and FSC, the total number of workers has now reached 53,107 or 77 percent higher than the peak employment level of 30,000 during the occupancy of the US Navy.

The year also saw the completion of the P620-million World Bank-funded Rizal-Argonaut Highway that opens up the Freeport to better flow of commerce. The newly-widened roads will connect to the proposed $425 million Subic-Clark-Tarlac Toll Road.

Also, the putting up of the first ever marine park in the country—The Ocean Adventure—and Subic Bay’s various eco-tourism attractions has attracted more than eight million tourists.

This year, the SBMA was awarded the ISO 9001:2000 Certificate of Excellence for Investor Servicing and Locator Assistance (ISLA), an international certification on quality management systems from the TUV Product Service, which is considered a first among economic zones and public agencies.

Under the RP-US Bases Treaty, Olongapo was turned over to the Philippines in 1959 and converted into a municipality through Executive Order No. 366 issued by President Carlos P. Garcia.

(Editor’s Note: Following is the eighth of 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)

CARMEN, North Cotabato – Omar Tacuken, 41 years old, and a former Moro National Liberation Front (MNLF) field commander, is tending the several fishponds that he and his comrades built some months ago.

Tacuken and his comrades are all graduates of the United States Agency for International Development (USAID)-funded Livelihood Enhancement and Peace (LEAP) Program which has trained nearly 20,000 former MNLF combatants to be productive farmers.

This year, USAID has programmed grants for the Philippines worth $70 million, more than half of which are allotted to former conflict areas in Mindanao.

The ponds, according to Tacuken, were in fact built without the aid of modern equipment. "These ponds were all built by hand," he proudly says.

When asked what makes him work so diligently, he replies: "Ahh…hito (catfish)."

There is excitement in his voice as he surveys the well-constructed fishponds teeming with foot-long African hito (catfish) that are now ready for harvest.

"Tomorrow, our efforts for the past four months will finally bear fruit," he says, as he expertly casts a net into a fishpond. Omar waits for a few seconds and then pulls on the net that is heavy with the weight of the struggling fish.

Marketing agreement

Omar’s catch will form part of the initial delivery of catfish to be made by the Sebastian Irrigators Farmers Association – a group formed by Omar and 36 other former MNLF combatants – to Evangeline Rabanal, a wholesale catfish buyer based in Kabacan, North Cotabato.

Under a forward marketing agreement, Rabanal committed to buy 100 kilos of catfish a week, at P60.00 per kilo. This price applies to catfish with an average body weight of three pieces to two pieces to a kilo. However, both parties agreed to negotiate on the price of catfish that do not meet the required specifications.

The forward marketing agreement was facilitated by the Targeted Commodity Expansion Program (TCEP), a component of the USAID-funded Growth with Equity in Mindanao (GEM) Program.

"This initial harvest will give Omar and the other members of the community an understanding of how to harvest and market their produce," explains Adel Oviedo, TCEP deputy team leader. "This is definitely a first for them," he adds.

Oviedo estimates that the association can earn as much P60,000 from one pond stocked with 2,000 pieces of catfish.

Confidence-building

The marketing agreement began as a "one-shot deal." The association only planned to purchase catfish fingerlings from Rabanal to start production.

However, the TCEP team offered technical and marketing support and convinced Rabanal, herself a fishery graduate and practitioner, to pay Omar a visit. The main objective of TCEP was to provide the association with the necessary technical training and at the same time, assure them of steady market for their catfish.

A series of negotiations between Evangeline and the members of the association soon followed.

"I could really sense their enthusiasm to start the business," says Rabanal. It did not take long before mutual trust between her and the association members was developed. Eventually, this led to the signing of the marketing agreement.

The agreement is a "win-win" situation for both parties, as Rabanal will also be guaranteed of a reliable source of catfish which she sells to the nearby towns in North Cotabato.

All hard work

Kumander Omar admits that looking after the fishponds seven days a week is hard work, and takes a lot of patience and sacrifice on his part. However, he is not complaining. The prospects for his newfound enterprise look very encouraging.

(Editor’s Note: Following is the ninth 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)

For fiscal year 2002, the composition and allocation of US Foreign Military Financing Assistance to the Philippines are as follow:

Foreign Military Financing Assistance to the Republic of the Philippines

Training (IMET) $2.0 M

Benefiting 146 students

• Balikatan – a combined/joint exercise to improve planning, readiness, and inter-operability conducted by US Pacific Command component units and all the components of the AFP

• Balance Piston – a Joint/Combined Exchange Training (JCET) Exercise specializing in small unit tactics conducted by the US Army’s 1^st Special Forces Group and the Philippine Army’s Special Operation Command

• Teak Piston – sponsored JCET Exercise specializing in various types of air operation and maintenance conducted by the USAF’s 353^rd Special Operations Group and the Philippine Air Force

• Flash Piston – JCET Exercise specializing in maritime operations and small unit tactics conducted by the US Navy Special Warfare Unit 1 and the Philippine Navy Special Warfare Group

• Vector Balance Piston – sponsored JCET Exercise specializing in close quarter battle and marksmanship skills

• Carat – (Cooperation Afloat Readiness and Training) 7^th Fleet sponsored US Navy and Philippine Navy exercise focusing on underway naval combat training, amphibious operations, and air surveillance

• MARSUVEX – (Maritime Surveillance Exercise) quarterly 7^th Fleet sponsored US Navy-Philippine Navy exercise involving US Navy P3 Orion aircraft to improve Over the Horizon Targeting (OTHT) and maritime operations with air and surface assets

• PALAH – (Pang Lupa Alon Himpapawid--Sea Land and Air) semi-annual 7^th Fleet sponsored bilateral exercise focusing on small unit tactics, marksmanship and over the beach (OTB) training conducted by US Navy Seals and Philippine SWAG

• MTWS – (Maritime Tactical Warfare Simulation) – annual III marine Expeditionary Force sponsored exercise emphasizing desktop computer decision-making and wargaming

• SAGIP – CINCPAC J08 sponsored annual multilateral gaming seminar dealing with Humanitarian Assistance and Disaster Response

• HANDA – Annual Seminar focusing on US-RP crisis action planning for coordinated and combined operations.

In the recent meeting of the US-Philippine Mutual Defense Board, the participants stressed that "new and emerging security challenges will require innovative, flexible and cooperative approaches to mutual security."

The state visit here of US President Bush on October 18 paves the way for closer consultations between the two countries in response to this reality.

(Editor’s Note: Following is the tenth 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)

BAGUIO CITY–Education is not the only legacy Filipinos could thank America for. This city noted for its pines and cool climate is another.

The vision and governance of great American leaders and soldiers shaped this highland city to what Asians and Europeans consider to this date as a beautiful American legacy.

What this city looked like when Captain Robert R. Rudd, commander of the U.S. 48th Infantry, maintained a mountain post here in 1900 may be different now, but basically, this 49-square kilometer plateau remains in accordance with the comprehensive development plan of architect Daniel Burnham.

Although the American's plan for the city's maximum residents was 25,000 people, the Philippine government was able to conserve and protect the city's environs even as Baguio’s population has already swelled to almost half-a-million to date.

Burnham's development plan (now known as land use plan or town plan) dated back to 1904 when at that time Baguio’s population was composed of only 811 Igorots and 30 Ilocanos, according to the "The Skyland of the Philippines" by Laurence L. Wilson.

While it is true that Baguio only became a chartered city on September 1, 1909 by virtue of Act No. 19644, the American government (Philippine Commission) spent a few millions of pesos for this place, which the Americans dubbed as "Summer Capital of the Philippines" since 1900, being the recreation center of the U.S. Thirteenth Air Force.

In 1901, the Philippine Commission appropriated P75,000 for the opening of the Kennon Road. When this road was finished on Jan. 29, 1905, the American government had already spent a total of P2.05 million.

In 1903, the Americans built the city roads which to date are the main thoroughfares: Session, Gov. Pack, Leonard Wood, Harrison, Brent and others. Governor Cameron Forbes built the Mansion House, which has since become the official presidential house here.

Other American landmarks which have survived over a century now include the city hall, and the US Ambassador's residence - - the historical place where Japanese General Tomoyuki Yamashita formally surrendered after World War II.

The Americans also spent a lot for the education of the natives that the English language was extensively propagated in this highlands by the "Thomasites."

Earliest Baguio historians like Wilson recalled that to date, many American-educated residents still have fond memories of their teachers, specially the well-loved Alice Kelly.

They also built the Brent and Easter schools which to date are among the leading educational institutions in the country.

In 1905, Camp John Hay, a 1,718.55 acre-reservation, was built as an American recreation center. The Country Club was built earlier, in 1902. Both former American facilities are now world-class sports and tourism facilities. The yearly Fil-Am golf tournament at Camp John Hay attracts hundreds of amateur golfers.

(Editor’s Note: Following is the eleventh 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 tomorrow, October 18)

Defying time and circumstance as well as shifting geo-strategic calculations, this 52-year-old alliance endures because it is anchored on the values that the Philippines and the US share—the values of adherence to democracy, human freedom and free enterprise. And whenever these cherished values are threatened or under attack, both Filipinos and Americans are willing to fight and lay down their lives.

The alliance has overcome a hiatus brought about by the withdrawal of American troops in 1991. In a twist of irony, the end of American military presence in the country ushered the maturing of relation, in all dimensions, between the two countries.

The treacherous September 11, 2001 terrorist attacks in the US by the Al-Qaeda terrorist network fortified the resolve of the US and the Philippines to fight terrorism. It drove home this strong message: unless freedom-loving nations unite against terrorism, this scourge will strike with impunity and extremism will triumph over democracy.

When the US rallied countries behind an international coalition against terror, President Gloria Macapagal-Arroyo was the first Asian leader to stand up and be counted. She committed Philippine support for the US and British military strikes against the Taliban-ruled Afghanistan under the aegis of "Operation Enduring Freedom."

Subsequently, the Philippines backed the "coalition of the willing" that launched "Operation Iraqi Freedom" culminating in the ouster of a tyrannical dictator and the liberation of the Iraqi people

During her working visit to the US in November 2001, President Macapagal-Arroyo and President George Bush discussed measures by which the Philippines and the US could work together to counter terrorism. They likewise shared the view that the war against terrorism must be waged in parallel with the war against poverty, which is a fertile breeding ground for this menace.

A key result was the launching of a six-month joint RP-US training exercise called "Balikatan 02-1." Balikatan, which means "shoulder-to-shoulder," was designed to ensure the interoperability of Philippine and US military forces. Its other objective is to enhance Philippine capabilities on counter terrorism in terms of mobility, communications, intelligence and training. Conforming with the provisions of the Philippine Constitution and laws, this exercise to neutralize the Abu Sayyaf terrorist group in Basilan was AFP-led and US-assisted.

The civic component of "Balikatan 02-1" was dubbed "Operation Gentle Wind." US Army engineers built or rehabilitated roads, bridges, air and seaports and schools, along with the provision of medical and health care for the residents of Basilan. With the mission’s success, Basilan is now an island province where peace and order prevails and where development efforts can proceed.

Building upon the success of "Balikatan 02-1," the terms of reference for "Balikatan 03-1" are under discussion. The holding of another joint Philippine-US military activity under which the US will provide support to ongoing AFP operations against the Abu Sayyaf was an outcome of the President’s state visit to Washington, D.C. in May this year.

Establishment of RP-US Defense Policy Board

Enhancing Philippine-US security and defense cooperation is the establishment of RP-US Defense Policy Board. It is the product of a previous agreement between President Macapagal-Arroyo and President Bush to create "a new bilateral defense consultative mechanism" as contained in their Joint Statement issued after the working of the Philippine Chief Executive to Washington, D.C. on Nov. 20, 2001.

The new bilateral policy body complements existing defense consultative mechanisms, namely the Council of Foreign Ministers and the Mutual Defense Board, both of which are under the framework of the 1951 MDT. It fills the need for a mechanism that allows a broader review of our defense and security relations, within the context of the new and emerging security challenges.

Representing another pillar in our strategic relationship with the United States is the Mutual Logistics Support Agreement (MLSA). Signed in November 2002, its purpose is to lower the cost of security cooperation by minimizing administrative costs and wastage. The MLSA can only come into play in conjunction with an approved activity under the Mutual Defense Treaty or the Visiting Forces Agreement (VFA). The US has similar agreements with 56 other countries.

In terms of military assistance, the United States is spending a total of $114.46 million for the Philippines in the next three fiscal years, the fourth highest in the world.

The cost of international military exercise and training program in the country alone is the highest in Asia and second highest in the world, according to a report of the Joint United States Military Group (JUSMAG).

JUSMAG Philippines conducts security assistance operations to enhance interoperability between the Armed Forces of the Philippines and the Armed Forces of the United States. It also supports the AFP in their fight to deny and defeat terrorist activities.

Security assistance operations for the first fiscal year amount to $38.03 million broken down into Foreign Military Financing (FMF), $1.99 million; International Military Education and Training (IMET), $1.44 million; Excess Defense Articles transfers (EDA) composed of medium class cutter/patrol vessel, $20 million; and 30,000 M-16 rifles with 120,000 M-16 magazines worth $14.60 million.

For the second fiscal year, FMF Mobility Maintenance Plan (MMP) for Technical Assistance Field Team (TAFT) and Support of critical systems amount to $20 million of the total $94.50 million.

FMF Counter-Terrorism (CT) Modules Supplemental amount to $25 million; and Presidential Drawdown Authority (Stocks/Services from existing US military inventories, $10 million; IMET accounts for $2 million while EDA Transfers total $3.20 million.

Visiting USAID projects in Mindanao, an official of the United States Agency for International Development (USAID) has made fresh pledge of US support for partnerships that accelerate economic growth, reduce poverty, and help bring about peace in the Southern Philippines.

Robert Barnes, Economic Growth Advisor, Office of Economic Development and Governance/USAID, visited recently the Islamic City of Marawi, capital of Lanao del Sur, to inaugurate post-harvest facilities for former combatants of the Moro National Liberation Front (MNLF) in Barangays Rorogagus and Cormatan.

Barnes presided over the turnover ceremonies for a grains warehouse and solar dryer that will benefit the 110-member Rorogagus Farmers Cooperative. The facilities were constructed with funds provided by the Community Infrastructure, a Program component of USAID’s Growth with Equity in Mindanao-2 (GEM-2) Program. The facility will be used for drying and storing corn harvested from the 150-hectare farm cultivated by the coop members.

In Barangay Cormatan, Barnes also turned over a grains warehouse and solar dryer to members of the Cormatan Matampay Farmers’ Association (CMFA). The project will benefit the 75 coop members and their families who are growing corn. This facility is one of the Transitional Assistance Grants (TAG) of the Livelihood Enhancement and Peace (LEAP) program.

"We are very thankful to USAID because this will truly enhance our agricultural productivity and support economic activities in the community," CMFA president Mapandi Aldem said.

Barnes explained that the post-harvest facilities are part of the more than 700 small-scale infrastructure projects that USAID is committed to build in Mindanao over the next five years through the GEM and LEAP programs. These include repairs and/or upgrades of roads, bridges, water systems, boat landings and community centers.

"These facilities, as well as a number of larger infrastructure projects that we are undertaking, complement the production inputs and skills training we provide to former MNLF combatants," Barnes said.

He added that the projects demonstrate the benefit of partnerships among the local residents, local governments, and donor agencies aimed at pushing countryside development in Mindanao.

Charles Feibel, Chief of Party of the GEM Program, and Noel Ruiz, Program Manager of the LEAP Program, were also present at the ceremonies.