COTABATO CITY, Philippines, July 23 (UPI) -- The president of the Philippines said Wednesday that peace is achievable in the often violent Mindanao region through further talks and economic development.

Philippine President Gloria Macapagal-Arroyo, during a speech launching a value-added tax program, said she remained optimistic about peace in the largely impoverished Mindanao, the Philippine government reported.

As part of the program, Arroyo offered financial backing to the Department of Health-Autonomous Region for Muslim Mindanao for hospital improvements in the region.

Arroyo called for an end to what she referred to as an "endless conflict" between the Philippine government and the rebel separatist Moro Islamic Liberation Front.

"For decades, a comprehensive peace eluded us," Arroyo said in a statement.

"But I am proud that (peace) talks will soon resume. We are on the threshold of peace."