RP seeking $1-B US loan for AFP

WASHINGTON — A Philippine delegation led by Defense Secretary Angelo Reyes is negotiating for a $1-billion loan package to modernize the Armed Forces of the Philippines (AFP).

As a member of President Arroyo’s advance team for her May 19 state visit, Reyes arrived here Wednesday for talks with Condolleeza Rice, US President George W. Bush’s national security adviser, on the $1-billion loan package spread over five years.

Aside from the AFP modernization package, Mrs. Arroyo is also expected to sign several agreements during her visit here.

White House spokesman Ari Fleischer had described Arroyo’s visit as a "thank you to the government of the Philippines, to President Arroyo and to the people of the Philippines for their stalwart efforts in fighting the war on terror, for being such a good and reliable ally to the United States."

As a staunch member of the "coalition of the willing" in the US-led war against Iraq despite adverse criticisms in the Philippines, "Arroyo wants more than a TY (thank you). She wants something tangible," said a source with ties to the embassy.

A source told The STAR that up to 10 agreements were being finalized for Mrs. Arroyo to sign, including a science and technology pact, a deal to facilitate remittance, and a project in Mindanao.

Other projects being worked out include a deal to revitalize Philippine ports, a service agreement with Bell helicopter to upgrade Philippine military helicopters, and an agreement with a manufacturing company to build military trucks in the Philippines using 40 percent local components, embassy and business sources said.

The President wants strongly to show tangible results from her state visit to silence domestic critics, even as Philippine Embassy officials are scampering around to secure major deals for her to sign or announce, sources said.

Sources also disclosed Mrs. Arroyo will arrive in Washington with an official delegation of 12 people and an "accompanying delegation" of about 40. In total, more than 100 people, including journalists, businessmen, spouses and friends are expected to join her in the trip.

So far, only her official welcome at the White House on May 19 and a state dinner later that night hosted by President Bush had been announced.

Mrs. Arroyo has invited The STAR publisher Max Soliven, the only non-government official to join her at the dinner with Bush.

Other details of Mrs. Arroyo’s itinerary is still being worked out. Her visit was originally scheduled April 2 but had to be postponed because of the Iraq war.

Mrs. Arroyo is scheduled to arrive in Los Angeles, California on May 17. She will fly to Washington the following day.

Sources said she may be flown to a US marine base in Quantico, Virginia and from there, transferred by helicopter to the Blair state guest house.

Arrangements are also being made for Mrs. Arroyo to meet the Filipino-American community at a reception at the Capitol Hilton Hotel shortly after her arrival, but many of the guests are said to be balking at having to pay $60 per head.

Organizers have invited Filipino-American soldiers who were deployed in Iraq to provide a photo opportunity for Mrs. Arroyo.

Her delegation will be accorded official welcome at the South Lawn of the White House on the morning of May 19.

Bush will be on hand to greet Mrs. Arroyo and after brief remarks, they will proceed to the Oval Office for one-on-one talks before an expanded meeting with Cabinet members from both sides, capping it up with a press conference at the Rose Garden.

This will be the second meeting between the two presidents at the White House. Both leaders met Nov. 20, 2001 during Mrs. Arroyo’s working visit to the US.

Following the Rose Garden press conference, Mrs. Arroyo will proceed to the State Department where Secretary of State Colin Powell will host a luncheon.

The activities after the State Department luncheon for Mrs. Arroyo is still being worked out, sources said.

On May 20, Mrs. Arroyo’s two main engagements are a meeting with the Philippine-US friendship caucus on Capitol Hill and a dinner hosted by the US-ASEAN Business Council where she is expected to deliver a major policy address on business prospects in the Philippines.

The President is scheduled to leave that same night or the following day, May 21 for New York to speak at Fordham University. She leaves for Monterrey, California in the afternoon and is due to return home from Los Angeles on May 24.