Philippines, U.S. on verge of military deal

U.S. military experts were reportedly less impressed with the Philippines' antiquated military equipment

MANILA, PHILIPPINES (CNN) -- The Philippines and United States are expected to finalize details of a U.S. military aid package to Manila when the two meet in Washington next week.

Philippine President Gloria Macapagal Arroyo and U.S. President George W. Bush meet for talks centering on security and economic cooperation.

Admiral Denis Blair, commander of U.S. armed forces in the Pacific, said he anticipated a final decision on assistance the U.S. would provide Manila in its fight against Muslim extremists.

Blair is in Manila and will meet Arroyo and other top Philippine officials on Tuesday to discuss U.S. military assistance and the progress of the Philippine military's operation against the Abu Sayyaf.

In-Depth Abu Sayyaf:  Militants in the Philippines

Earlier in the month, a group of U.S. anti-terror experts arrived in the southern Philippines to assess on-going military operations against the Muslim bandit group.

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In the report, the military experts were said to be impressed with the capabilities of the Philippine troops but were not impressed with their antiquated equipment.

The Abu Sayyaf group is holding an American couple and at least eight Filipinos hostage on Basilan island.

The group professes to fight for an Islamic state but pursues kidnap for ransom as its main activity.

The United States has linked the Abu Sayyaf to Saudi-born militant Osama bin Laden and his al Qaeda network, which U.S. officials have accused of masterminding the September 11 attacks on New York and Washington.

Treaty anniversary

The United States will provide the Philippines military aid in its fight against Muslim extremists linked to Osama bin Laden

Unfazed by reports of an American Airlines Airbus A300 crash in New York, President Arroyo said she would push through with her visit to the United States "barring any event which will prevent the plane from landing."

Arroyo is returning to Manila on Tuesday evening from a trip to Indonesia and will fly to the United States on Wednesday for a weeklong visit, including talks with Bush on November 20.

"President Bush and I are alike in many things. We both believe that the Philippines and the United States are strategic allies both in defense and in economic matters," Arroyo told CNN.

The two leaders are expected to tackle developments in the campaign against terror, regional security matters, and ways to further strengthen cooperation between the US and the Philippines.

Washington will host President Arroyo this year, which marks the 50th anniversary of the Mutual Defense Treaty between the United States and the Philippines.