H.E. Gloria Macapagal Arroyo, President of the Republic of the Philippines,

Leaders and members of the Chinese-Filipino community,

Distinguished guests,

Ladies and Gentlemen:

It is very significant for us to be gathered happily together to celebrate the second Filipino-Chinese Friendship Day, concurrently the 28th anniversary of the establishment of the diplomatic ties between China and the Philippines and the 105th National Day of the Philippines. Over the last twenty-eight years, our relationship has become closer and deeper with each passing year, owing to the concerted efforts of our two leaders, governments and peoples. On January 24 last year, H.E. President Gloria Macapagal Arroyo declared June 9 every year as the Filipino-Chinese Friendship Day. It was full of wisdom and foresight for Her Excellence to make that decision, bringing centuries-old friendship to a historic new height.

Experience of the past serves best as guidance to the future. In the past several years, we have seen rapid developments in various fields between our two nations.

Our political ties have been further strengthened. In May 2000, China and the Philippines signed a Joint Statement defining the Framework of bilateral Cooperation in the 21st Century, opening high ground for bilateral ties in the new century. Frequent exchanges of high-level visits have been maintained. President Arroyo has contributed a great deal to promoting Filipino-Chinese friendship both before and after she took office as president. The state visit of Her Excellence to China in 2001 was very fruitful. In January 2002, Wang Zhongyu, member of State Council and Secretary General of the State Council visited the Philippines. In April 2002, Jose De Venecia, Speaker of the House of the Representatives of the Philippines, went to China attending the 3rd session of the Association of Asian Parliaments for Peace(AAPP). In September, Li Peng, Chairman of the National People's Congress paid an official friendly visit to the Philippines. H.E. Mr. Wu Bangguo, new chairman of the National People' Congress of China is expected to visit this country this year. It shows that the new Chinese leadership attaches great importance to the relationship between our two countries.

We have also witnessed a rapid increase in our bilateral economic cooperation in recent years. Our trade volume reached $5.26 billion in 2002, 40% higher than the year before, and more than doubled the amount of 1999. Agriculture technology cooperation has also yield fruits. The introduction of China's quality hybrid rice seeds to the Philippine farmland will enable the country to produce enough rice for its own consumption in the near future. I am very pleased to see that, with the help of Mr. Yuan Longping, father of hybrid rice in China, SL-8 good eating quality hybrid rice, a product of President Gloria Macapagal Arroyo rice program has been brought about and the seeding is being extended. Several agricultural infrastructure projects supported by China have been completed and some more are under construction. As both our economies are expanding, there are still a great potential for trade and economic cooperation between our two countries.

Cultural exchanges between our two nations are on the rise.

We held a successful Filipino-Chinese Traditional Cultural Festival early this year. More activities as such will be carried out in the future to further promote understanding between our two nations.

We also work closely in the international arena. Our cooperation under the framework of 10+1,10+3 and other regional organizations has been very smooth. In November last year, ASEAN and China signed the Declaration on the Conduct of Parties in the South China Sea, making a great step forward in helping maintain regional stability. To show our further commitment to peace and prosperity for the region, China, as a state outside the region, would like to join ASEAN's Treaty of Amity and Cooperation (TAC) before the end of the year.

The notion of setting up China ASEAN Free Trade Zone won wide support from ASEAN nations. With an increasing speed of regional integration in other parts of the world, we all recognize that East Asia nations can not ignore this trend if we want to maintain our competitiveness. We agreed at the 10+1 summit last year that the Free Trade Area will be established by 2010. We are convinced that the Free Trade Zone will bring a win-win situation to all the countries involved. China will be better prepared to contribute more to regional stability and prosperity, just as what we did during the Asia financial crisis several years ago. With increasing import from ASEAN, China has also been contributing to the economic recovery of the region over the past several years. China will guarantee a trade surplus for ASEAN nations during and after the free trade process. The Philippines, among other ASEAN countries is supportive of the process, and will stand to gain from it.

Under international frameworks, we have been cooperating on some non-traditional security issues, including anti-terrorism and drug control. The Chinese government strongly supports the Philippines in its fight against terrorism. As we are facing increasing common challenges, we should further promote our cooperation in those fields.

In addition, we stand together in combating the SARS epidemic. Both governments have been taking strong measures to fight the disease and protect health and life of our peoples. Chinese Premier Wen Jiabao and President Arroyo both attended the ASEAN plus China Emergency Summit on SARS, and discussed cooperation plans. We congratulate the Philippines for having been declared SARS free on May 20. We are also happy to learn that SARS is brought gradually under control in China. We will make further efforts to reduce the losses caused by SARS. We are confident that with close cooperation in the region those nations adversely affected by SARS will fully recover after the epidemic is put under complete control.

We are here also to celebrate the Philippine National day coming in two days. On June 12, 1898 General Aguinaldo declared the independence of the Philippines. About one and a half years earlier, the Philippine national hero Dr Jose Rizal sacrificed his young life for the great cause of national liberation. His love for this beautiful nation is well defined in his last poem:

Farewell, my adored land, region of the Sun caressed,

Pearl of the Orient Sea, our Eden lost,

With gladness I give you my life, sad and repressed;

And were it more brilliant, more fresh and at its best,

I would still give it to you for your welfare at most.

Rizal's blood and poems inspired generations of Filipinos to fight for independence and to work for the prosperity of the nation. Dr. Jose Rizal is also a fine example of Filipino-Chinese. He and other Filipino-Chinese devoted themselves to the cause of founding the nation. For generations, Filipino-Chinese have made considerable contributions to the economic and social development of the Philippine society. It is a meaningful thing to designate Dr. Jose Rizal Award to excellent Filipino-Chinese. I would like to congratulate those to be awarded with the prize tonight for their outstanding performance in their chosen fields and their contribution to the growth of the nation.

President Arroyo has been showing a lot of consideration to the Filipino-Chinese community. Early in her office as head of the state, President Arroyo visited once and again the Chinatown in Binondo. I am sure that under the leadership of President Arroyo, Filipino-Chinese will make greater contributions to the prosperity of the Philippines. And as a bridge for China- Philippines friendship, the Chinese community will make still greater contributions to promoting the friendship between our two nations.

May the friendship between our two nations last for ever.

Thank you.