The two sides pronounced the war games a success and said their troops have broken the backbone of Abu Sayyaf terrorists who were pushed out of Basilan.
Brig. Gen. Donald Wurster, head of the US contingent, said the Abu Sayyaf should now "pursue another line of work" because the war exercises have bolstered the Philippine military.
Some 1,000 of the 1,600 US troops who took part in the maneuvers that were held largely in Basilan were headed for their homebase in Okinawa, Japan.
A few of the US soldiers, mostly elements of the navy Seabees and security personnel, will stay behind to tie up some loose ends in their unfinished infrastructure projects on the island.
Armed Forces chief Gen. Roy Cimatu said the joint exercise successfully ended the year-long hostage crisis in Basilan with the rescue of American hostage Gracia Burnham, although her husband Martin and Filipino nurse Deborah Yap were killed during the rescue operations on June 7.
Adm. Thomas Fargo, commander-in-chief of the US Pacific Command, said Balikatan, also code-named "Operation Enduring Freedom; Philippines," wound up with success in its war against terrorism sowed by the Abu Sayyaf.
The guerrillas styled themselves as freedom fighters struggling for an independent Islamic state in Mindanao, but mainly engaged in mass kidnapping for ransom and other terrorist acts.
The Abu Sayyaf seized a total of 102 hostages, three of them Americans, in a year-long kidnapping spree that ended last month.
Fargo flew to Basilan to inaugurate an airstrip rehabilitated by US troops.
"I think if they go back to Basilan, they are going back to a different place," Wurster said in Zamboanga City.
He said the Filipino solders have greatly improved their marksmanship, leadership, special operations, intelligence, communications and survival techniques.
"With what is in the future for them (Abu Sayyaf), I think they ought to take up another line of work because they are going to have an unlucky day and it’s going to be the end of them and the world will be better for it," Wurster said.
Elite Filipino soldiers, backed by US military experts and advisers, waged a relentless offensive against the Abu Sayyaf for the duration of the Balikatan.
The drive also brought a bloody end to the criminal career of Abu Sayyaf spokesman Aldam Tilao, alias Abu Sabaya, who was reportedly shot dead in a seaborne encounter with a naval patrol off Sibuco town in Zamboanga del Norte on June 21. However, his body has never been recovered.
The military said other top Abu Sayyaf leaders have been on the run while several of their followers have either deserted or merged with the mainstream of society to elude pursuing government forces.
The military estimated that the Abu Sayyaf strength has been decimated from over 1,200 armed followers to just about 140 scattered throughout Basilan, the Zamboanga provinces, Sulu and other surrounding islands.
Cimatu said the training not only greatly improved the efficiency of the Filipino soldiers in counter-terrorism, but also dramatically improved the peace and order conditions in Basilan.
"After six months, the Armed Forces of the Philippines (AFP) is better now. The Abu Sayyaf backbone is broken. Basilan will never be the same again," Cimatu said during the closing rites held at the AFP’s Southern Command headquarters in Zamboanga City.
Philippine Army Brig. Gen. Emmanuel Teodosio, co-director of the exercise, said the local troops have become a "better fighting force."
"More than the technical expertise that we have gained, is the renewed resolve and fighting commitment of our men because of the improvement in their confidence," Teodosio said.
The US mission in Mindanao was the first expansion of the US war on terrorism outside Afghanistan.
The Balikatan, which lasted much longer than normal exercises, involved US soldiers joining patrols although they were prevented from participating in actual combat, and could only fire back if attacked.
However, 10 Americans were killed when a Chinook helicopter crashed off Negros Oriental last Feb. 22.
US military engineers also built new roads, bridges, deep wells and renovated a dilapidated airstrip on Basilan island.
"Our strategy was really built around a triangle, which was to connect the people to the government, assist the military to defeat the terrorists and to separate the people from the terrorists," Wurster said.
"This was a job well done," Fargo said.
He noted that the two allies were "working together as free republics to rid the world of terror and to create a safer and more secure environment within which we and democratic nations can live, work and prosper.
Wurster also said he expects Philippine soldiers to receive further US training in helicopter night flying and maintenance of ships and vehicles as well as communications, navigation and night-vision equipment. The training is expected to start in October and to run for about eight months.
"The US military will also continue sharing intelligence with Philippine troops to help hunt down the rebels," Wurster said.
Zamboanga City Rep. Celso Lobregat said the rallyists led by sectoral Rep. Satur Ocampo and Bayan Muna leaders Teddy Casiño and Nathaniel Santiago left at about 2 a.m. aboard a convoy of buses.
Lobregat warned the protesters that city authorities will never allow them to hold their rally outside of the area stipulated in their permit to ward off possible clashes with local residents favoring the US presence.
"They received the message that they were not accepted in the city so they decided to leave," he said.
The protesters, denouncing US military presence in Mindanao, were pelted with rocks by irate residents, then restrained in a sports stadium on Tuesday night.
In Manila, bishops, priests, seminarians and lay leaders marked the end of the Balikatan by sending off at the breakwater along Roxas boulevard an effigy of a US warship with US Secretary of State Colin Powell and President Arroyo aboard.
Bishop Alan Ray Sarte claimed that Powell’s visit to Manila Friday and Saturday was meant to railroad passage of the Mutual Logistics and Support Agreement that contains the US’ plan to permanently stay in the Philippines. — With Paolo Romero, Sandy Araneta