U.S. Defense Secretary Lloyd Austin, left, and Philippines Defense Secretary Delfin Lorenzana shake hands after a bilateral meeting at Camp Aguinaldo military camp in Quezon City, Metro Manila, Philippines Friday, July 30. Austin is visiting Manila to hold talks with Philippine officials to boost defense ties and possibly discuss the The Visiting Forces Agreement between the US and Philippines. MANILA, Philippines — Philippine President Rodrigo Duterte has retracted a decision to end a key defense pact with the United States, allowing large-scale combat exercises between U.S. and Philippine forces that at times have alarmed China to proceed. Duterte's decision was announced Friday by Defense Secretary Delfin Lorenzana in a joint news conference with visiting U.S. counterpart Lloyd Austin in Manila. It was a step back from the Philippine leader's stunning vow early in his term to distance himself from Washington as he tried to rebuild frayed ties with China over territorial rifts in the South China Sea.