Police have not identified the suspects, who are detained at Camp Crame in Quezon City.
Immigration and police officials said the suspects were arrested based on several warrants of arrest for violations of the country’s immigration laws.
"One Iraqi guy now under custody has been monitored lately buying expensive remote-controlled toy planes which can easily be converted into powerful bombs," one police source said.
The other Iraqi has been monitored to be in constant contact with a top Al Mukhabarat (Iraq Intelligence Agency) officer in Baghdad, sources added.
Intelligence sources at the immigration bureau and the police said the 11 were picked up after a tip from an Iraqi implicated in the 1989 kidnapping in Manila of a member of the Kuwaiti royal family. Prince Shaikh Salman al-Sabah and his 10-year-old son, Faisal al-Sabah, are still missing, sources added.
Police and immigration agents arrested suspect Karim Abdul Jassim Bidawi, 45, at the Ninoy Aquino International Airport in Pasay City at around 1 p.m. Monday after arriving from Palawan.
Intelligence sources said Bidawi denied the kidnapping charge but told investigators about the alleged activities of the other Iraqis.
"We are still verifying the statement made by (Bidawi) and have arrested the other suspects," the sources said.
Meanwhile, Transportation and Communications Secretary Leandro Mendoza said his department has coordinated with the office of Metro Manila police commander Deputy Director General Reynaldo Velasco to thwart any terrorist attack on ports, terminals, and communications facilities in the metropolis.
"I have already requested the PNP leadership and General Velasco to augment our security personnel at the Ninoy Aquino International Airport Centennial Building, in our domestic airport, bus terminals, ports, (Metro Rail Transit) and (Light Rail Transit) stations, and communications system."
Mendoza said he has activated the 24-hour "Eagle Eye" security operation to monitor any threat from groups opposing perceived Philippine support for the US against Iraq.
"The DOTC activated ‘Eagle Eye’ and Action Center operatives will be fielded to monitor any terrorist threat against communications facilities and transportation facilities, such as bus terminals, ports and airports," he said.
"Our main goal is to stop damage to any communication and transportation facility, especially in highly urbanized areas."
The US has warned the Philippines that Iraqi militants could launch attacks on US interests in the country if the Americans move to oust Iraqi leader Saddam Hussein.
In Israel, Philippine Ambassador Belen Anota said the estimated 30,000 Filipinos in that Middle East country are prepared for any possible biological and chemical attack.
Anota said Filipinos have been given a manual on the measures to be taken in case of emergencies.
Filipinos were also advised to ready "grab bags" containing their important documents, clothing, food and cash, she added. — With reports from Mayen Jaymalin, AFP