51.   The implementation of more red tape may have the effect of discouraging investments, and should be considered against the need to track where overseas investments goes to.

52.   The new investment will go toward modernizing the factory, improving working conditions and retraining employees, said a statement released by Philip Morris on Thursday.

53.   But most investment has been going to its mainly Christian cities like Davao, General Santos and Cagayan de Oro, largely untouched by the Moslem rebellion.

54.   It said the investment would go towards the production of colour televisions, washing machines, refrigerators and microwave ovens.

55.   Most investment went to a dozen countries in the middle-income bracket with the exception of China.

56.   Mr Howard responded by noting that while Australia had a strong affinity with the Asia-Pacific region, most direct Australia investment went into Europe.

57.   The investment would go towards expanding four production sites in South Carolina, where the US arm of the company is based.