I have approved the Terms of Reference (ToR) for Balikatan 02-1.

 Today we exchanged copies of the Agreed Minutes of our discussion with the representative of Secretary of State Colin Powell, Assistant Secretary for East Asian and Pacific Affairs James Kelly.  That was yesterday morning.  The Agreed Minutes, which represent the respective commitments of both Governments, the Philippines’ and the United States’,  in the conduct of Balikatan 02-1 exercise, were signed by, on the Philippine side, Assistant Secretary for American Affairs Minerva Jean A. Falcon and, on the American side, by Charge d'Affaires Robert Fitts.

 We approved the ToR after we made certain changes to it and after my telephone call with the representative of Secretary Powell and the Department of State.

 I asked to speak to the American side because of the importance I have given to certain aspects of Balikatan.  In particular, I wanted a clear and mutual understanding on the possible implications of the exercise on other aspects of our national security.

 In this regard, we were able to get the agreement of the United States that the Exercise shall not in any manner contribute to any escalation of other conflicts in Mindanao, shall not adversely affect the progress of ongoing peace negotiations between the Government of the Philippines and other parties: shall not put at risk the friendly relations between the Philippines and its neighbors as well as its friendly ties with other states.

 We also emphasized that I particularly had in mind the ongoing peace negotiations with the NDF and the MILF and we emphasized that it is important that the Exercise shall not in any way hinder these peace negotiations.

 I also wanted to have a clear understanding on the issue of authority,  the issue of unilateral actions, and the issue of combat.

 These issues are now resolved to our satisfaction, as can be seen from the Terms of Reference and the Agreed Minutes themselves.

 I have already briefed Her Excellency the President of the Philippines on this.  I have sent copies of the Terms of Reference and Agreed Minutes to the Chairmen of the Committees on Foreign Affairs and Defense of both the Senate and the House of Representatives and I have forwarded a copy each of these documents to Defense Secretary Angelo Reyes and National Security Adviser J. Roilo Golez.

 I would like to take this opportunity to thank the Department of Justice and the Department of Defense,  the Armed Forces of the Philippines and particularly  the personnel (and) the officials of this Department  for their hard work and cooperation.

 Copies of these documents are now being made available and we are now ready to answer your questions.