INTRODUCTION
For the Philippines, 1995 was a time when we attained a greater degree of political stability and economic vigor. The economy is in full swing, and we have placed the Philippines back on the world map. This feat would not have been accomplished without the support of the international community.
OUR PEACE PROCESS
I refer, first, to substantial progress in our peace process with the Moro National Liberation Front (MNLF). Such improvement was greatly facilitated by the good offices and support extended by our friends in the Organization of Islamic Conference (OIC), most especially by its members in the OIC Ministerial Committee of Six, led by Indonesia.

Following the sixth mixed committee meeting held last august in General Santos City, the way was paved for the successful holding of the third round of formal peace talks in Jakarta from November 27 to December 1, 1995. As of now, most of the issues with the MNLF have been resolved.

We also express our gratitude for the expressions of support for the peace process in Mindanao by Libya, the European Union (EU) Presidency in Madrid and the EU Commission in Brussels, and also by the United States, Japan and many other countries.

The peace process that we have started merited the attention of UNESCO, which in turn asked us to host the second international forum on the culture of peace in November 1995. We are proud of this distinction, and as part of our commitment to world peace, we are happy to share our experience in fostering peace and development as the long-term alternative to internal conflict.
ACHIEVEMENTS ON THE POLITICAL AND ECONOMIC FRONTS
Political stability in the country was also demonstrated during the successful holding of national and local elections in May 1995. We are aware that this democratic exercise was closely watched by the international community as an important barometer for investor confidence.

In the economy, we have continued our efforts to put the country on competitive footing in our region. Among these changes are the further opening up of the Philippine economy through liberalization and deregulation. These two major steps have raised the country’s exports and investments to new peaks.

Philippine exports grew to $14.3 billion for the first 11 months of 1995 from $11 billion during the same period in 1994, or a 30% increase.

Foreign equity investments, on the other hand, was registered at p47.3 billion, or approximately $1.8 billion for the first 10 months of 1995, with the highest registered investments coming from the United States, Thailand, Saudi Arabia, Japan, and the United Kingdom, in that order.

Other important economic indicators which point to continued growth are the increase in foreign exchange reserves to $7.7 billion as of December 1995; the rise in the savings rate from 16.5 percent in 1985 to 20.0 percent in 1994; a healthy government budgetary surplus of p10.9 billion as of end October 1995 due to improved tax collections and prudent fiscal management; a stable peso exchange rate; and a manageable single-digit inflation rate predicted as the average for all of 1995.

The Philippines’ economic performance has also been bolstered by the gathering strength of the East Asian region.
“MUST” MISSIONS ABROAD
Last year also, I embarked on several “must” missions abroad.

In Denmark in March, I had the privilege, as chair of the Group of 77 (G-77), of addressing the delegates to the World Summit on Social Development — which dealt with the challenges posed by global poverty and underdevelopment.

In August, I visited New Zealand and Australia to promote our economic diplomacy and to network with our large Filipino communities there.

I went to Kuala Lumpur in early October to keynote the International Conference on “Dr. Jose Rizal and the Asian Renaissance” — which the Malaysian government organized as its own tribute to our national hero it regards as the pride of all the Malay peoples.

At the 11th non-aligned movement summit in Colombia and the United Nations’ 50th anniversary in the United States — also last October — I had the opportunity to speak on peace, development and human rights in a democratic context.

In November, I attended in Osaka the Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit representing 18 economies on both sides of the Pacific.

Last month, I attended the fifth ASEAN summit in Bangkok — which produced a landmark agreement to create a Southeast Asia Nuclear Weapons-Free Zone (SEANWFZ).

Our new global partnerships were enhanced by the visits in 1995 of some nineteen foreign heads of state and government. These included His Holiness Pope John Paul II; the prime ministers of Thailand, Malaysia, Lithuania, Vanuatu, Pakistan; and the presidents of Vietnam, Singapore, Kyrgyzstan, Panama, Argentina, Chile, the Czech Republic, and Iran; the kings of Spain and Malaysia; and the governor of Hong Kong.

Most of these high-level delegations included leading businessmen and financiers of the countries concerned.

These missions and said return visits to the Philippines enabled us to maximize our economic, political and socio-cultural gains, expand our foreign linkages in the new world order, and strengthen our relationships with our neighbors. They confirm our strategic position in the region — as well as our place as an active player in the world’s fastest-growing region.
APEC AND INTERNATIONAL COOPERATION
The Philippines considers 1996 as an important milestone as we prepare to host the Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting and Leaders’ Summit in November of this year. As APEC chairman and host, the Philippines thanks the Manila-based ambassadors and representatives of all APEC member-economies for their continuing cooperation to insure a well harmonized Manila Action Plan for APEC 1996 (MAPA 96).

The Philippines also looks forward to the first ASEAN-Europe leaders meeting to be held in Bangkok in March of this year. This meeting is consistent with my administration’s goal of deepening the integration of the Philippines with the global economy, and expanding economic relations beyond the Asia-Pacific region.
ECONOMIC INTERDEPENDENCE
The Philippines will strive to accelerate economic growth through diplomacy for mutual benefit, including meetings with leaders of other countries and their business communities, as well as intensified participation in ASEAN, APEC and GATT/WTO, and the search for greater access to markets and sources of capital and technology.

We are deeply aware, however, of the existence of actual and potential international and regional tensions.

The Philippines will seek increased cooperation in facing regional and global challenges posed by problems such as transnational migration, the illegal trade in women and children, nuclear testing, drug trafficking and international crime and terrorism.

In the Asia-Pacific region, the Philippines will promote closer regional cooperation through ASEAN and the ASEAN Regional Forum (ARF), and to manage sensitive issues like the South China Sea on the basis of interdependent and cooperative regional security and stability.
CLOSING
For 1996 and beyond, the Philippines commits itself to cultivate, maintain and promote stable, friendly and cooperative relations with all nations, both individually and within the framework of regional and international agencies, most especially under the United Nations.

With this commitment, may I invite all of you to join me in a toast for genuine peace and sustainable development in 1996 and into the 21st century.

Mabuhay!