BBC News Online: World: Asia-Pacific

Arroyo declares war on Abu Sayyaf

The group have threatened to kill the hostage, Jeffrey Schilling, a US citizen, later this week.

The MILF has already agreed a ceasefire with the government, which comes into effect on Tuesday.

Last year, Mrs Arroyo's predecessor Joseph Estrada ordered a full-scale military operation against the MILF and Abu Sayyaf but with limited success.

'Gang of criminals'

The Abu Sayyaf, which is believed to have about 1,200 armed members, says it is fighting for a Muslim homeland.

It operates mainly on the island of Jolo, about 930km (580 miles) south of Manila.

President Arroyo described the group as "a money-crazed gang of criminals" without any ideology.

Despite making peace overtures to other insurgents, Mrs Arroyo has recently made it clear she will not negotiate with members of Abu Sayyaf.

They responded last week by threatening to present the head of Mr Schilling as a birthday gift to the president.

The rebels have held Mr Schiling since August last year.

No empty threat

Correspondents say this may not be an empty threat: last year, the group killed and beheaded two Filipino hostages.

But the BBC's south-east Asia correspondent, Jonathan Head, says this is unlikely to sway the new government, which can now concentrate all its resources on the Abu Sayyaf group.

Our correspondent says the outlook for peace in the southern Philippines, other than Jolo, looks more promising.

MILF ceasefire

The MILF has ordered its fighters to lay down their weapons once the ceasefire comes into effect.

Although the group will not get back bases it lost last year, the rebels say they will still continue to talk to the government over how best to resolve the 30-year conflict.

An end to hostilities in this part of the Philippines should now allow 300,000 displaced people to go back to their homes.