Mrs. Arroyo pointed out the holding of Balikatan 03-1 in Sulu or in any other area in Mindanao might be complicated by the Philippines joining the US-led "coalition of the willing" in supporting military strikes against Iraq since Thursday.
"And because of this complication, it is part of sensitivity on the people of Sulu, and even to the Muslim population given there is a war going on in Iraq that we fashion the TOR more on the prudent side rather than the aggressive side," she said.
Mrs. Arroyo said there is no final decision yet on the possible venue of Balikatan 03-1.
But she claimed residents in Sulu, who initially opposed the presence of US troops in the island-province, have asked for her reconsideration to hold it there as originally planned.
Mrs. Arroyo said that in holding the exercises in Sulu, Filipino troops would be trained better to fight the bandit Abu Sayyaf.
"Because its an Abu Sayyaf area. And when I accepted Balikatan in Basilan at that time, the Abu Sayyaf were very great threat and you really needed to take some risks, even to do something that even might be unpopular. As it turned out, it was not unpopular among the people there," she said.
Mrs. Arroyo said the opposition in holding the Balikatan in Sulu was "more pronounced" given the backdrop of the Iraq and Middle East situation. "So it became more complicated," she said.
In case Sulu should be reconsidered as the next venue for the Balikatan war exercises, Mrs. Arroyo said the local officials should now negotiate directly with American military officials.
"I told them to put that in writing and talk with Americans and negotiate with them directly because I think that considering how many provinces want Balikatan to be held there. I dont think we should force it on a province that doesnt want it," the President said.
"But I want very specific, a more conservative TOR than we had in Basilan," she added.
Mrs. Arroyo earlier disclosed the military and defense agencies are evaluating various areas in the country where Balikatan 03-1 joint military exercises could be held.
Because of the stiff objections in using Sulu as the venue for the war exercises, Mrs. Arroyo clarified Balikatan 03-1 would still be conducted elsewhere.
It was widely expected that the planned joint military operation in Sulu would neutralize the Abu Sayyaf who have been kidnapping Christians and foreigners for decades, holding them hostage in the jungles of the island province.
The Abu Sayyaf has been linked by both Washington and Manila to the al-Qaeda network of terror mastermind Osama bin Laden. The bandit group is still holding three Indonesian seamen and four Filipina Christian preachers in the jungles of Sulu.