MANILA, Jan. 2 (Xinhua) -- The Philippines Tuesday welcomed the decision by the United States military to resume a major joint military exercise with Filipino counterparts after the transfer of a U.S. marine convicted of rape from Filipino jail to U.S. embassy here.

    The presidential spokesman Ignacio Bunye said that cancellation of the exercise would definitely adversely affect the operational capability of the armed forces of the two countries and would negatively impact on the fight against terrorism and poverty.

    The U.S. decision was apparently made in response to President Gloria Macapagal Arroyo's announcement that she would firmly comply with the Visiting Force Agreement (VFA), which stated that the custody of U.S. servicemen accused of crimes should remain with the Americans if they so requested.

    "The president did what was necessary, It's very clear to the president what our international obligations are. When you're faced with your obligations, all you need to do is review what your obligations are and you act accordingly," Bunye said.

    The Philippine military also has welcomed the resumption of the Balikatan (shoulder-to-shoulder) exercise, which is held yearly in the Philippines involving thousands of troops from both sides.

    "There will no longer be opportunities lost in terms of interoperability and training," said military spokesman Bartolome Bacarro.

    The U.S. marine Daniel Smith was convicted of raping a Filipina woman and was sentenced to 40 years in jail by a court in Makati, Metro Manila, early last month.

    The United States subsequently cancelled the Balikatan for this year to protest the Makati court's refusal to hand over Smith to U.S. custody after he made an appeal.

    Smith was transferred from a jail in Makati to the U.S. embassy late last month.