The announcement came during a joint press conference with Philippine President Gloria Arroyo, honored here with just the third state visit Bush has hosted since taking office, and the first by an Asian leader.

"I was pleased to inform President Arroyo that the United States plans to designate the Philippines as a major non-NATO ally," Bush said during a joint press conference during Arroyo's state visit here.

"This step will allow our countries to work together on military research and development and give the Philippines greater access to American defense equipment and supplies," the US leader said.

When that designation takes effect, the Philippines will join Argentina, Australia, Egypt, Israel, Japan, Jordan, New Zealand and South Korea.

It enables beneficiary nations to buy US surplus military material on a priority status, obtain US military loans, benefit from training programs and increased research and development cooperation, and permits US forces to stockpile war material on its territory.

WAR.WIRE