President A P J Abdul Kalam with Philippines President Gloria Macapagal Arroyo, who hosted a banquet for him in Manila on Saturday night.

President Kalam is on a three-nation tour; Philippines has been his second stop. India and Philippines have signed, in his presence, an agreement on defence cooperation.

Speaking at the banquet, President Kalam said India and the Philippines can use the fight against terrorism as a base to improve mutual understanding.