"Our country would be honored to have Prime Minister Mahathir Mohamad witness the signing of the (MILF peace) accord," she said.
Mrs. Arroyo told CNN in an interview that she thanks "President Bush for helping to provide diplomatic and financial support to the peace process (with the MILF) and I also welcome his witnessing it even on live video."
Bush had told Mrs. Arroyo of his desire to witness the signing of the peace pact.
Mrs. Arroyo reiterated that Malaysia is the third party facilitator in the peace talks with the MILF while the role of the US is to supplement the peace process in Mindanao as soon as the final peace pact is signed.
The President also expressed apprehension that the planned RP-US Balikatan 03-1 anti-terrorism training exercises in Mindanao might not push through this year.
"If it (Balikatan) will come, it will come and I would be very happy. I have told President Bush that Im very happy with the present intelligence fusion thats being done," she said.
"Whatever will be the negotiations on future and additional assistance, troop-related assistance on training, our present intelligence fusions should remain because its very effective," Mrs. Arroyo added.
Though she did not say why she was apprehensive, the conduct of these training exercises might complicate the projected resumption of the formal peace talks between the government and the MILF.
Mrs. Arroyo spoke with Bush, who called her up earlier this week after her administration successfully quelled the July 27 mutiny staged by disgruntled junior military officers.
Some of the mutineers include troopers from the Light Reaction Company who underwent a military skills training program under the regular Balikatan exercises and received modern US military equipment, including night-vision goggles, which they used during the 22-hour mutiny.
Among the causes cited by the mutineers in launching the failed mutiny was the unscrupulous military officials sale of arms and weapons to MILF rebels.
A US Embassy official, on the other hand, said he does not see the mutiny nor the recent escape of Indonesian terrorist Father Rohman Al-Ghozi as affecting the scheduled Balikatan exercises.
Ronald Post, counselor for public affairs of the US Embassy in Manila, said the US has a full roster of training exercises lined up for the Philippines, one of which is Balikatan.
The terms of the Balikatan exercises are still unclear and under discussion at various levels.
The President, however, refused to elaborate on how the government will raise the issue of the MILFs alleged links with international terrorist groups such as the Jakarta-based Jemaah Islamiyah during the peace talks.
The Philippines and the US-led anti-terror coalition have been waging war against the Jemaah Islamiyah.
"I believe that the willingness of the MILF to enter the peace process shows that they recognize that we must find peace," she said.
Mrs. Arroyo pointed out that "the important thing is that we must continue our international coalition against terrorism. But we also transform into an international coalition to fight poverty because that way, we will be able to address, not necessarily the root causes, but the fertility of breeding grounds for terrorism. With Marvin Sy, Lino dela Cruz