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President Arroyo leaves today for a five-day visit to New Zealand and Australia to enhance the Philippines’ bilateral, trade and economic relations with both countries.

The President will visit New Zealand from May 27-30 and proceed to Australia for a two-day state visit beginning Thursday.

During her visits, Mrs. Arroyo will encourage New Zealand and Australia to continue expanding their investments in the Philippines, particularly in the mining sector.

Executive Secretary Eduardo Ermita earlier said many Australian and New Zealand-based companies, particularly in the mining sector, are interested in investing in the Philippines.

The Status of Forces Agreement (SOFA) between the Philippines and Australia is also expected to be completed, possibly even signed, during Mrs. Arroyo’s state visit to Australia.

Australian Ambassador Tony Hely said in a briefing with reporters the other day that the text of the SOFA – which is equivalent to the Visiting Forces Agreement between the United States and the Philippines – is already being finalized.

The SOFA will effectively expand the defense cooperation program between the Philippines and Australia, which has been in place since the 1950s.

According to Hely, the SOFA will provide the basis for the entry of troops from Australia into the Philippines and vice-versa for training and capacity-building just as the VFA enables American forces to do the same.

He said the SOFA will not have any provision on setting up military bases in the country and that it will primarily expand the training program already being provided by Australia to the Armed Forces of the Philippines (AFP).

Defense Secretary Hermogenes Ebdane Jr. recently noted that the issue of criminal jurisdiction is the only contentious item left that is causing a delay in the signing of the SOFA.

Hely said he is hopeful that the text will be completed in time for Mrs. Arroyo’s visit to Canberra. “We are hopeful that when the President is in Canberra, the text will either be signed or acknowledged or announced in some way,” he said.

The signing of the agreement will be done by Philippine and Australian defense officials and, according to Hely, the President and Australian Prime Minister John Howard may serve as witnesses.

After the SOFA is signed, it will still have to be ratified by both countries.

In Australia, Hely said the SOFA will go through “administrative regulation,” which he said can happen quickly.

However, in the Philippines, the Senate, which has the responsibility of ratifying international treaties, has historically been known to deliberate hard, particularly on matters of national defense.

“We think it’s quite important because it provides the basis for growth in the defense cooperation program,” Hely said.

He said one of the immediate benefits of the SOFA for Australia is that its troops can become full participants of the Balikatan joint military exercises between the United States and the Philippines.

Because of the absence of a SOFA, Australia can only serve as observers in the annual military exercises.

Australia spends some A$3 million for its defense cooperation program with the Philippines, primarily for the training of the AFP.

As part of the program, Australia will be providing the AFP with 30 aluminum-hulled fast vessels under its warcraft vessel program, Hely said.

He said the vessels will be used in the rivers and marshlands of Mindanao to prevent the movement of terrorists and help keep the region from being a “safe haven for terrorists.”

The first batch of boats is expected to arrive early next year and, according to Hely, Australia will also be providing the AFP with training in the use of these boats.

Australia is also encouraging the AFP to develop a coast watch concept in the south based on Australia’s coast guard model to prevent the movement of terrorists through the Sulu and Celebes seas.

Mrs. Arroyo’s visit to Australia is the first state visit by a Philippine president since 1995, during the term of then President Fidel Ramos.

It will also be the second-ever state visit by a Philippine president to Australia.

After the state visit, Mrs. Arroyo will go to the port city of Sydney in September for the Asia-Pacific Economic Cooperation (APEC) Leaders’ Meeting.

The Philippines is now the fourth largest recipient of bilateral aid from Australia in the world.

In 2006, the Philippines received a total of A$60 million in grants and the amount will be increased this year to A$70 million.

Hely said the amount of aid grants will continue to increase over the next three years and is projected to reach some A$100 million in 2009.

In counter-terrorism capacity-building alone, Australia provides the Philippines with around A$10 million annually for intelligence cooperation on law enforcement, maritime, aviation and transport security and better immigration screening. – With Marvin Sy

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