MANILA, Philippines -- The Philippines, along with Indonesia, is “poised to lead East Asian and Pacific region towards economic prosperity and democracy," Philippine ambassador to the United States Willy C. Gaa quoted the US State Department as saying.

In a statement posted on the Philippine embassy's website, Gaa thanked the State Department for expressing its continued confidence on the Philippine economy and democracy in its recently released US State Department 2009 Congressional Budget Justification Report.

He said that over half of the budget request of the State Department for Fiscal Year 2009 for the East Asia and Pacific region was intended for these two countries.

In addition, the report states that "the East Asian and Pacific region includes some of the most impressive democratic transformations of our time in places as diverse as South Korea, the Philippines, Indonesia, Mongolia and Taiwan."

With respect to the Philippines, Gaa said the report stated that the country has achieved significant peace, development and security enforcement gains.

The report noted that there was need to further support the efforts of the Philippines to bring growth and development to areas marred by terrorist activities. With this in mind, the report continued, the US government intends to partner with the Philippines as a key country for assistance programs under the economic growth category to help address underlying conditions such as poverty and underdevelopment.

In terms of US security objectives, the Philippines, along with Indonesia and Mongolia, are cited in the report as key allies of the US in the war on terror in the East Asia and Pacific region.

Gaa said that these three countries will be getting major portions of the request for assistance programs under the Peace and Security category.

"This report clearly shows that the US government recognizes the Philippines as a leading partner in the war on terror in the region and gleaming example of a vibrant economy under a democratic system," Gaa said.

"The Philippine Government appreciates the support of the US government in our efforts to address those challenges that remain to be hurdled in our Government’s pursuit of establishing a strong and prosperous democracy for the Filipino people," he added.