President Gloria Macapagal-Arroyo arrived back in Manila yesterday, flaunting gains from her nine-day visit to the United States that include a hefty military assistance package and several trade agreements, as well as the 'pardoning' of the country's $430m debt to the U.S.

In her arrival statement, Arroyo said her U.S. visit "paved the way to a new century of closer Philippine-American friendship and cooperation and brought the Philippines to the threshold of a new year of stronger partnership with the world".

Arroyo also announced that she and U.S. President George W. Bush agreed to a two-pronged approach to achieving peace in the southern main island of Mindanao. She said the U.S. pledge for military cooperation and assistance will go alongside efforts to promote economic and social development in the Muslim communities of Mindanao.

The U.S. had made a commitment of $100m as initial security package which will be implemented under an integrated plan to strengthen the local armed force's capacity to combat terrorism and protect Philippine sovereignty.

The integrated plan includes a robust training package, equipment needed for increased mobility, such as C-130 cargo aircraft and military trucks, a maintenance program to enhance overall capabilities, specific targeted law enforcement and counter-terrorism cooperation, and a new bilateral defence consultative mechanism, the President said.

In the area of economic and social aid for Mindanao, Arroyo also said that Bush had promised a $55m package for this year and the next that will be used for infrastructure development and education of Muslim children.

"While pledging military cooperation to end the terrorist activities of the extremist Abu Sayyaf, we agreed that sustainable peace in Southern Philippines requires addressing Mindanao's economic problems," the President said.

The Mindanao assistance package, the President said, will provide direct support for the peace process by integrating the ex-combatants and their communities into the peacetime economy, creating an environment that is attractive for investment; job creation and economic progress; and providing improved public services in Mindanao, especially the Autonomous Region in Muslim Mindanao.

The president said her visit to the United States likewise improved the prospects of the country's economy rebounding after several pledges of assistance from the U.S. government and the business agreements signed by Filipino and American businessmen and investors.

Arroyo explained that the area of economic cooperation signed between the two countries which was contained in her Joint Statement with President Bush after their official talks at the White House in Washington, DC, reached more or less $2b.

The visit also gained more than $2b in new investments and financing and multilateral package, she added. Arroyo also cited a debt relief extended by Washington to Manila. "We are now eligible for debt relief of nearly $430m. As we spend more for forest conservation, to the same extent, our debt to the United States government will be condoned," she said.

Emelyn Tapaoan adds: Anti-U.S. protesters greeted the arrival of Arroyo, saying she has tied the country to the U.S. war machine with the military package she received. The protesters carried placards that said, 'U.S. out of the Philippines', 'No to Another U.S. Bases', 'No to U.S. War Machine', 'No to $4.6B Military Package'.

"For the Filipino people, this only spells more intensified military operations in the countryside; more weapons that will kill innocent civilians; multilateral aid that will further bury us in foreign debt and investment," said Manny Sarmiento of the May First Labour Movement.