Mr. Richard Barclay,
     President of the Australia-New Zealand Chamber of Commerce;
Members of the Chamber;
Honored Guests;
Ladies and Gentlemen;
Friends:

I deeply appreciate your inviting me to this annual General Meeting of the Australia-New Zealand Chamber of Commerce.  As you know, I cherish my attachment--professional and personal--to your part of our world.
 
I apologize for my inability to come personally. Exigencies of duty take me away from the country.  However, I am glad to be represented by  my very capable colleague, Undersecretary Sonia Brady, who shares my attachment--both professional and personal—to your countries.

New Zealand and Australia were recipients of many accolades during the Academy Awards night last week, in Hollywood.  I shall be brief, but sincere, in thanking you for doing business with our country.

Congratulations to you all, on your Chamber’s thirty years of fruitful  work. It has certainly lived up to its objective of being “a highly effective organization that visibly supports and promotes business relationships between Australia, New Zealand, and the Philippines.”  Your efforts, through the years have opened many opportunities for our peoples.  You have contributed significantly to our growth and development. Thank you!

 When a little over a century ago, the First Philippine Republic waged a diplomatic campaign for diplomatic recognition, it sent envoys to four places: to Paris, where a treaty was being negotiated by the United States and Spain, affecting the fate of the Philippines;
 
      to Washington, D.C.;
 
     to Japan;  and

      to Australia

Why Australia?  The answer may be traced to the Filipino exiles, led by General Emilio Aguinaldo, in Hong Kong, after the Pact of Biak-na-Bato. The exiles became acquainted with Mr. Hermenegildo Zarcal,  Aguinaldo’s friend. Manila-born Zarcal had relocated to Thursday Island in Australia, where he had a successful pearling business. In his travels to Hong Kong, he won the confidence of the exiles.  He impressed on them the strategic value to an independent Philippines of relations with Australia and New Zealand. He was thus entrusted with a diplomatic mission to Australia. The  Philippines has valued to this day cooperation with  your countries.

In the last sixty years, our relations have developed from strength to strength.  We were staunch allies during the Second World War.

One of the highlights of my term as Ambassador to Australia was the formal recognition given by the Philippines to Australians who had participated in the liberation of the Philippines. The list of these gallant Australians is now permanently enshrined in the Australian War Memorial in Canberra. We owe a similar debt of. gratitude to New Zealand soldiers who contributed to the liberation.

Our men also fought side by side in Korea.

Today, we face together a new menace: terrorism.

Terrorism knows no boundaries.  It affects us all.  Its toll on human life defies quantification. Australia and New Zealand sorely grieved for its people who lost their lives in Bali last October.

Our three countries realize the gravity of the terrorist  menace. We  have acted resolutely to fight it. The Philippines and Australia signed an agreement on counter-terrorism.  Just last month,  Australia co-chaired with Indonesia the Bali Ministerial Meeting on Counter-Terrorism. I was there.

I had the opportunity, in bilateral meetings, to discuss shared  concerns  with Minister Alexander Downer and Minister Phil Goff. We considered areas for further cooperation.

In trade, Philippine-Australian relations continue to improve. According to the latest data (January to November 2003) from the Department of Trade and Industry, Philippine exports to Australia totaled US$377.67 million, while imports amounted to US$ 453.63 million.

The Philippine trade deficit of US$75.96 million has been largely reduced.  Recent exports to Australia have registered an 18% increase.  Our imports have declined by 14.2%.  I expect this trade gap to be narrowed further, once Philippine mangoes, bananas, and pineapples gain greater market access in Australia.

Philippine trade with New Zealand, on the other hand, has a much wider imbalance. According to DTI trade figures from January to November 2003, Philippine imports—principally of traditional primary products--totaled US$211.55 million.  Our exports—made up of primary commodities and light manufactures--amounted to only US$31.7 million. The Philippines incurred a balance-of-trade deficit of US$179.85 million.

I am aware that one of the concerns of your Chamber is the recent unfavorable decision of the Philippine Supreme Court on certain provisions of the Philippine Mining Act of 1995.

Let me assure you that you have not heard the final word on this important sector of our economy.  President Arroyo’s administration remains committed to modernizing the mining industry.  Much as the administration is bound to respect the Court’s decision, it is nonetheless aware that the decision adversely affects our revitalization program. Thus, the Department of Environment and Natural Resources is set to appeal the Supreme Court decision.

The Philippine Constitution adopted after the 1986 EDSA People Power revolution manifests nationalistic sentiment in provisions on the utilization of natural resources.

Present day realities, however, raise questions on the sufficiency of local capital for large-scale mining operations and  on the relevance of the 60%  local-ownership requirement.

Because of the Constitution’s perceived legal limitations, there is a growing clamor in the business sector for Charter amendments. This seems to be the long-term solution to this problem.

Returning briefly to the terrorist threat, I must say that terrorism has also exacted a heavy toll on our economic growth and development.

Every terrorist incident prompts travel advisories, often unwarranted, causing a setback in tourism, an industry that every country strives hard to promote.

I understand that governments, concerned about the well being of their citizens, may issue travel warnings.  However, such warnings, should be based on reliable information. They should pinpoint danger areas.  It is unfair to issue blanket advisories covering an entire country.

The Philippines, like Australia and New Zealand, is committed to development--of our region and of the world. Thus, our countries have collaborated actively in the ASEAN Regional Forum, the Asia Pacific Economic Cooperation, the Forum for East Asia and Latin American Cooperation, ASEAN/AFTA Close Economic Partnership, the Cairns Group, the World Trade Organization,  and the United Nations.

I have attempted to present a panoramic view of our countries’ relations.  Our peoples value liberal democracy, cherish human rights,  respect cultural diversity.  We have achieved much, reached far in our sharing and in our collaboration.

Working closely together, we will overcome the difficult challenges  faced by our countries and  our region.  Let us continue, then, our journey toward progress and development, in a milieu of mutual understanding, goodwill, and peace.

Thank you.