Philippines and Australia sign to new security pact

MANILA, May 28 (Reuters) The Philippines and Australia are due to sign this week a new security deal allowing Australian soldiers to hold exercises in the troubled south, a defence official said today.

The agreement will be signed during President Gloria Macapagal Arroyo's visit to Australia on Wednesday, said Edna Guevarra, the head of the ministry's public and legislative affairs department.

''The new security pact is a fair, balanced and reciprocal agreement that promotes our national interests,'' Guevarra said in a statement.

The Philippines, a close ally of the United States, has sought to expand its security links within Asia, including cooperation with Australia.

Another defence official said the agreement with Australia could also be used as a template for similar arrangements with Southeast Asian neighbours, such as Brunei, Indonesia, Malaysia and Singapore.

The Philippines already hosts US troops and receives millions of dollars in military aid from Washington as it battles Muslim and communist rebel groups.

REUTERS NY ND1618