In an open forum at the conservative think-tank Heritage Foundation in Washington, Reyes also said the two countries strengthened further their "strategic relationship" by creating a policy board manned by the civilian defense hierarchy.
The US has pledged $25 million in additional military assistance to the Philippines this year, with the possibility of putting in another $30 million, Reyes revealed.
The funds will bankroll training of Filipino helicopter pilots in night-time flying, as well as training for two elite anti-terrorism units of about 90 members each, and four light infantry battalions.
US military experts will also train Filipino officers who will later become trainers themselves, Reyes said. "After that training, we will be able to do the training ourselves so the Americans dont have to be there forever."
Reyes said he agreed with his US counterpart, Defense Secretary Donald Rumsfeld, that setting up a defense policy board was a good idea.
He underscored the significance of the defense policy board by saying there is a need for the two countries for more interaction, more dialogues at the policy level.
He added that the mechanics and other details of the board have yet to be discussed.
The two countries have just concluded a six-month joint military training exercise dubbed Balikatan 02-1 staged in Basilan island province.
The maneuvers involved a sustained campaign to wipe out the Abu Sayyaf Islamic terrorist group holding an American missionary couple and a Filipino nurse.
A raid on a camp of the Abu Sayyaf, linked to the al-Qaeda network of Osama bin Laden, resulted in the rescue of American Gracia Burnham, although her husband Martin and Filipino nurse Deborah Yap were killing during the operation.
The US contingent in the exercise involved some 1,600 troops including the Green Berets.
Reyes described the campaign against the Abu Sayyaf as "a success," saying it emaciated the groups strength from a high of 1,200 armed combatants to fewer than 100 at present.
"They are largely on the defensive, running for their lives," Reyes said.
The secretary also said Manila was discussing with Jakarta regarding the case of several Indonesians arrested in the Philippines on suspicion of being terrorists.
Philippine officials claimed that the suspects were members of the Jemaah Islamiyah, a group linked to the al-Qaeda, that wants to create an Islamic state in Malaysia, Singapore, Indonesia and in southern Philippines.
At the same time, Reyes ruled out a military coup to topple the Arroyo administration.
"We have a very, very professional military committed to the Constitution and to playing an active and positive role in strengthening the country and contributing to its economic development," Reyes said.
Explaining his role in the ouster of jailed former President Joseph Estrada in January 2001, Reyes said his withdrawal of support "was in response to a popular, legitimate clamor and in accordance with the Constitution."
Convinced that their mission in Basilan was almost complete, the AFP hierarchy pulled out about five battalions from the island province.
But two more battalions were deployed in nearby Sulu to hunt down Abu Sayyaf leaders believed holed out in the place.
Southern Command chief Lt. Gen. Ernesto Carolina indicated that the Abu Sayyaf has been reduced to a rag tag band of terrorists who could not survive without foreign assistance.
Among the Abu Sayyaf leaders still in hiding were Khadafi Janjalani, Abu Solaiman, Isnilon Hapilon, Hamsiraji Sali, Ghalib Andang, Mujib Susukan, Umbra Jumdail alias Abu Pula and Radulan Sahiron.
The US has raised a $5-million reward for the capture of the five top Abu Sayyaf leaders, including Aldam Tilao alias Abu Sabaya who was reportedly killed in an encounter with elite troops in the sea off Sabuco town in Zamboanga del Norte last June.
Carolina said the Abu Sayyaf faction led by Andang, Susukan and Jamdail has more than 100 armed members and still capable of staging a terrorist attack.
He pointed out, however, that while Andangs band also has huge amounts of money mustered from ransom payments, the bandits are on the run in Sulu due to a relentless offensive by the troops.Jose Katigbak, Roel Pareno, AFP report