MANILA, 5 January 2007 — Malacañang Palace yesterday said the Philippines will review its Visiting Forces Agreement (VFA) with the United States amid controversies sparked by the case of an American Marine convicted of rape and sentenced to 40 years in prison.

Last week, the government transferred Lance Cpl. Daniel Smith, 21, from a jail in suburban Makati to the US Embassy even before the Court of Appeals could issue a ruling on Smith’s appeal on his conviction.

The court on Wednesday ruled that Smith can stay in the US Embassy’s custody pending the conclusion of his case, but that Philippine authorities should supervise his stay there.

The government’s pre-emptive move, however, caused even President Gloria Macapagal Arroyo’s allies to protest.

The rape victim, her lawyer, and legal experts have petitioned the appellate court to hold in contempt Smith and five officials, including President Arroyo’s executive, justice and interior secretaries, claiming the transfer violated the court’s ruling on the issue.

Left-wing protesters have cried treason and opposition lawmakers said they may seek to impeach Arroyo.

Arroyo has said she had to act to protect the country’s interest after the US government said it was suspending major military exercises with Philippine forces.

The government justified its action by citing provisions of the VFA signed in 1998 between the two countries.

The VFA gives legal protection to American military personnel accused of crimes while on official duty in the Philippines.

Two days after Smith’s transfer to the US Embassy, Washington announced the resumption of annual Balikatan training exercises between US and Philippine forces.

Bunye noted that “the scheduled Balikatan exercise is now under more stringent rules” with the US prohibiting participating American soldiers from leaving areas of training even if they are not on duty.

US forces are also not allowed to go to night clubs and bars, and can only drink two bottles of beer when dining out, according to the foreign affairs department.

Smith was among thousands of US troops that participated in Balikatan exercises in Subic Bay Freeport near Olongapo City, 90 kilometers north of Manila, where he met his victim in a nightclub in November 2005.

Still, presidential spokesman Ignacio Bunye said a review of the pact would have to be done. “The government is resolved to review the VFA, and, if warranted, to work with Congress to amend certain provisions thereof in order to prevent future controversies,” Bunye said in a statement.

“It is now time to move on as we let the wheels of justice take its course,” he added. “Meantime, the government will firm up its security arrangements with the US.”

“Both the US and the Philippine governments have learned good lessons from this case and we believe that the friendship between our two countries has grown stronger as we hurdled the issues in the spirit of mutuality,” he said.

“The government is also resolved to review the VFA and, if warranted, to work with Congress to amend certain provisions thereof in order to prevent future controversies,” Bunye said. (With input from agencies)