RP, CHINA AGREE TO FIGHT ILLEGAL DRUGS

MALACAQANG - on Sunday struck an agreement with the Chinese government in
fighting off transnational crimes and proliferation of illegal drugs.

General Chi Haotian, China's Defense Minister, yesterday paid President
Gloria Macapagal-Arroyo a visit at the Palace before flying back to his
country.

Press Secretary Ignacio Bunye said that among the highlights of the
courtesy call was the reaffirmation of the two countries to "combat
terrorism," with the intention to execute the memorandum of agreement in
the fight against transnational crime.

"We are ready to cooperate with China to combat terrorism," Bunye said.

Implementing the agreement, he said, would mean more high-level visits to
the Philippines, including docking privileges of Chinese naval ships in
local ports, intelligence exchanges, student and officer exchanges,
environmental cooperation, symposium or workshops and language exchange
programs, particularly for the military.

The President, he said, also emphasized the country's commitment to resolve
the Spratley's Islands dispute in Palawan peacefully.

"We are taking a consistent procedure of exercising restraint and avoiding
actions, which may aggravate the situation," Bunye said.

In fact, Bunye said the President committed to "explore areas of
cooperation in the South China Sea" to mutually benefit from the possible
developmental gains in the disputed jurisdiction.

"South China sea is the sea that unites rather than divides the Philippines
and China," Bunye said.

Among the possible expansion areas to be undertaken by the two countries in
confidence building, Bunye said, are fisheries cooperation, and marine
environmental protection.

As a sign of the Chinese government's commitment to peace, Bunye said 40
dump trucks were donated to the Armed Forces of the Philippines worth $3
million.

"We also thank the Chinese government for offering a Mandarin language
program to our DND-AFP personnel," he said.