In Putrajaya, Malaysia, Foreign Minister Syed Hamid Albar said Kuala Lumpur is willing to host talks if both sides want to resume them, but he said he was not aware of any official request that the rebels extend a self imposed ceasefire.
"We welcome any unilateral gesture to further silence the guns, but we would rather have a permanent ceasefire leading to substantive negotiations than a ceasefire by installment designed only to gain tactical advantage," Mrs. Arroyo told foreign diplomats at an Independence Day reception here.
Responding to an appeal from Malaysia, the MILF decided on Wednesday to extend a 10-day unilateral ceasefire in Mindanao to June 22.
"If the (Arroyo) administration really wants lasting peace in Mindanao, there is ample time to reciprocate," said Ghadzali Jaafar, MILF vice chairman for political affairs.
As Mrs. Arroyo visited Armed Forces Southern Command headquarters here, police killed three MILF rebels and wounded three others as they tried to plunder a barangay in Midsayap, North Cotabato yesterday afternoon.
The hostilities forced more than a dozen families in Barangay Malingao, Midsayap, to evacuate to safer areas.
Midsayap police said the rebels, led by Samal Mandal of the MILF special operations group, opened fire at soldiers and militiamen as they raided a farming community in Barangay Malingao.
Barangay officials said the retreating rebels were seen carrying three wounded comrades, one of them identified as Salipudin Arip, son of an MILF commander.
While thanking the Malaysian government for its effort, Mrs. Arroyo said "punitive actions against terrorist formations" would continue because the permanent safety of the public was her priority.
"My decision on this issue will depend on national security considerations, the permanent safety of our communities and a concrete show of sincerity on the other side. We will never allow terrorism to take the upper hand."
The government said it will closely watch for signs of "good faith" on the part of the MILF before resuming peace talks, after the guerrillas extended a unilateral ceasefire.
Retired Gen. Eduardo Ermita, a former legislator who is married to a Muslim woman, now heads the peace panel, taking over from Presidential Assistant for Mindanao Jesus Dureza, who resigned amid a wave of violence in Mindanao last month.
But Jaafar said the Arroyo administration must do more.
"We welcome his appointment as (government) peace panel chairman," he said over dzRH radio in a telephone interview from an unspecified hideout.
"We challenge him to prove that he is a man of peace. But nominating somebody to head the administrations peace initiative does not in itself signal sincerity. Malacañang would convince the people that it is really interested in a peaceful solution to the Mindanao problem."
Syed Hamid said Malaysia supports a peaceful settlement to the dispute.
"It has always been our approach that they (the rebels) should go to the negotiatios," Syed told The Associated Press. "If there is a cesefire, they should not continue with any armed struggle."
"Its a welcome development," he told reporters. "But why just go for 10 days when we can go for a lifetime ceasefire?"
However, he said the militarys "punitive action" against "embedded terrorists" within the separatist movement will continue.
"Theres no need for the government to call for ceasefire," he said. "Well continue with our punitive actions against MILF units in several areas of Mindanao."
Abaya said the military will hunt down those responsible for recent bombings and raids, which have killed more than 200 people this year.
Abaya said military operations were directed against individuals rather than the entire secessionist movement.
"Our punitive action is related to the atrocities and attacks committed against innocent civilians," he said. "We are targeting specific targets."
Operations would continue until the MILF hands over guerrilla suspects in a series of bombings and raids on Mindanao that claimed nearly a hundred lives since March, he added.
Speaking upon arrival at Edwin Andrews Air Force Base here, Abaya said the military is after "MILF terrorists" and leaders who had masterminded the series of attacks on civilians and government installations.
"We will continue our punitive actions against those who attacked Siocon, Maigo in Lanao del Norte and the Koronadal bombers," he said. There is no need for the government to reciprocate the MILFs call for a ceasefire, he added.
MILF spokesman Eid Kabalu said the office of Malaysian Prime Minister Mahathir Mohamad requested the extension, and that he hoped the Armed Forces would honor the truce, too.
"We can assure you that there will be an extension of another 10 days because of the request of the Malaysian government," he said.
"It was a request of the prime minister himself. We will not be acting like this if it is just anybody."
Kabalu said he expects the government to halt the offensive in the coming days. With Roel Pareño, John Unson, Mike Frialde, Bong Fabe, AFP