GMA nets $1.23 B in trade pacts, investments in NZ visit

CANBERRA (AP) - Australia and the Philippines prepared Wednesday to sign a landmark security pact to supply the Southeast Asian country with gunboats and military training to fight terrorists, as President Gloria Macapagal Arroyo visited Australia.

The pact would also provide for large-scale joint exercises by the defense forces of Australia and the Philippines, where al-Qaida-linked militants and other insurgents have a foothold in the country's restive south.

Arroyo arrived in Australia's capital, Canberra, overnight and was set to attend ceremonial functions before formal talks with Prime Minister John Howard on Thursday, when the leaders will also witness the signing of the security agreement.

Arroyo came from New Zealand, the second stop on a three-nation trip that started with Japan, to promote security, economic and business ties. Protests against her government's record on extra-judicial killings have been held in New Zealand and Australia.

Filipino defense officials said Australia has promised to donate 28 high-speed gunboats worth about 4 million Australian dollars (US$3.28 million; ?2.44 million) to the Philippine military.

Australia has also pledged to continue providing various types of training, including a planned leadership workshop for the Philippine military's 44 two-star generals, said Defense Assistant Secretary Joji Aragon.

The agreement, aspects of which were finalized in talks between senior officials Manila on Tuesday, is a sign of intensifying defense ties between the two nations _ both key U.S. military allies in the Asia-Pacific region.

The gunboats, which can each carry six soldiers and three crewmen and navigate with a global positioning system, are to be delivered in batches starting this year and would likely be used nationwide, including the restive south, said the Philippines' Defense Undersecretary Antonio Santos.

"We have a common (interest) in terms of a peaceful and secure region, and in particular, in dealing with the common threats from terrorists in the region," said senior Australian Defense Ministry official Ben Coleman.

The Australian assistance has made the country one of the Philippines' most important allies after the United States, Santos said.

The U.S. and the Philippines have had a military alliance since 1951. Australia and the Philippines already have an accord to bolster cooperation in battling al-Qaida-linked militants.