While the rest of the Philippines is reasonably orderly and under the rule of law, US Embassy Charge dAffaires Joseph Mussomeli claimed Muslims in Mindanao realize they are the minority and believe they have been unjustly treated by the government.
"The threat is more long-term; that Mindanao is such a lawless certain portions of Mindanao are so lawless, so porous the borders that you run the risk of it becoming like an Afghanistan situation," Mussomeli said in an interview with SBS-TV Australia.
"What we do find is that it seems that the links are stronger, that Mindanao is almost, forgive the religious pun, the new Mecca of terrorism," he said.
Mussomeli said there has been no focus on the real danger or threat in the present situation in Southern Philippines, which has been volatile since mid 1990s.
"Were not focused enough on the threat here," Mussomeli said. "Its not the sort of threat that should be worried about coming here on a day-to-day basis."
Mussomeli said the US government is more interested in helping improve the situation of Muslims in Mindanao since the Sept. 11, 2001 terror attacks, and that Washington has acknowledged the threat of terrorism.
"Since 2001 September 11th, weve been focused more on whats happening in Mindanao, but the threat remains and frankly, in some ways, it is growing. The number of JI (Jemaah Islamiyah) and the MILF (Moro Islamic Liberation Front) factions and the ASG (Abu Sayyaf bandit group) may even be increasing," he said.
Mussomeli earlier said in an interview during the commemoration of the Fall of Bataan last Saturday that the US government has immediate plans of including the MILF in its list of foreign terrorist organizations.
He said the US is "always reviewing all various groups to see if they (rightfully) belong in the list of terrorist groups."
Mussomeli also clarified that incoming Assistant Secretary of State for East Asian and Pacific Affairs Christopher Hill "did not say that the US is planning to put the MILF on its list of terror groups."
"We do not have current plans to put the MILF as an institution on the (terror) list. This is an ongoing process and its something that we do every year and throughout the year," he said.
Mussomeli stressed the US government continues to support the peace initiatives between the Philippine government and the MILF.
He said Washington had even offered $30 million as an incentive for the MILF for development assistance should the separatist Muslim guerrilla group succeed in forging a peace deal with the Philippine government.
"Were still hoping and pushing for the peace process (between the Philippines and the MILF) to succeed," Mussomeli said.
The US Embassy official likewise doubted previous claims that the MILF had no links with the JI and Abu Sayyaf.
Mussomeli pointed out that the available information indicated certain individuals or factions within the MILF had ties with extremist groups which must be immediately addressed by the Muslim rebel leaders.
On the supposed details given by detained JI leader Hambali that they had funded the MILF, Mussomeli said the MILF denied the links with the JI.
"I think certain portions of the MILF are still in denial. Whether its conscious or not, I honestly dont know. But they dont seem to want to accept the reality that some of their colleagues, friends and leaders are in bed with the JI," Mussomeli said.
He said the MILF had not taken concrete steps to sever their ties with the JI. "If they want to be taken seriously as a legitimate group and not as another terrorist organization, they have to get rid of those within their organization that clearly do have links to (the) JI," Mussomeli said.
Although it has renounced terrorism and repeatedly denied links with the JI, the MILF has been dogged by accusations that it has been sheltering operatives of the regional terror network.
The accusation likewise cast doubts on the MILFs sincerity to forge peace with the Philippine government.
The government has said the isolated attacks by some MILF guerrillas will not affect its commitment to enter into a peace accord with the MILF.
President Arroyo also maintained only a small group of rogue MILF fighters are aligned with the JI. Mussomeli added the information on supposed JI terror training camps in MILF areas in Mindanao are "firm."
Rohmat, an Indonesian who was arrested by the military last month as an alleged JI operative, also claimed Mindanao has become a major training ground for the regional terror group.
Rohmat claimed Central Mindanao had hosted several terror camps maintained by the JI that also serve as a refuge for Indonesians involved in major attacks, including those in the 2002 Bali bombings.
The details provided by the 25-year-old Indonesian also showed a close but highly compartmentalized relationship between the JI and the Abu Sayyaf two of the most dangerous groups in Southeast Asia and partly explained why the threat of terrorism has persisted despite years of crackdown.