Prime Minister Junichiro Koizumi and visiting Philippine President Gloria Macapagal Arroyo on Thursday jointly condemned the recent terrorist attacks in the United States, pledging their utmost cooperation in helping the U.S. to fight terrorism.

In a joint press statement, they expressed their "heartfelt condolence and sympathy" to the people of the U.S.

"It is not simply a matter of the United States, but it's a challenge to the world's democracy," Koizumi said.

"Japan will support the United States to fight against the terrorism."

During the meeting at his official residence, Koizumi explained his economic reform plan to Arroyo, including his intention to cut official development assistance by 10 percent this fiscal year.

At the same time he emphasized that Japan is committed to reducing poverty in the Philippines and promised to increase the efficiency of aid projects by boosting development efforts there, the official said.

Arroyo, expressing her understanding of Japan's tight fiscal constraints, asked Koizumi for his continued support, the official said.

The Philippines was the sixth largest recipient of Japan ODA in 1999. About 40 percent of Japan's bilateral aid goes to Southeast Asian countries, with Indonesia being the top recipient.

Koizumi and Arroyo agreed to provide Third World countries with joint economic cooperation projects, including human resource development in East Timor and other countries in Southeast Asia.

"The two countries should step up the bilateral partnership for regional cooperation," Koizumi said.

They affirmed the importance of the U.S. military presence in the Asia-Pacific region.

Arroyo said a strong Japan-U.S. security agreement contributes greatly to peace and security in the region, adding she expects Japan to play an important role in maintaining regional security.

Arroyo also expressed support for Japan's bid for permanent membership on the U.N. Security Council, the official said.