Speaking for the first time on the post-Balikatan scenario, Mrs. Arroyo said the additional exercises are part of the countrys commitment in the fight against terrorism.
Some 1,000 US forces have been training and assisting the local military fight the Abu Sayyaf kidnap gang since January in what is seen as the Southeast Asian phase of the US-led war on terrorism.
US forces in the southern Philippines will be pulled out by mid-July despite the murder by Muslim guerrillas of two hostages, including American missionary Martin Burnham, a Philippine military official said yesterday.
"They (US forces) are doing everything to finish the training exercises as jointly approved by the terms of reference between the United States and the Philippines," Brig. Gen. Emmanuel Teodosio, the co-director of the mission, told AFP. "We agreed that this should be done by the end of July."
Earlier, Deputy Defense Secretary Paul Wolfowitz said the US troop presence in the South might be extended because of the ongoing military offensive against the Abu Sayyaf.
Mrs. Arroyo said she had told US President George Bush in a phone call, made immediately after it was learned that American missionary Martin Burnham was killed in a military rescue operation against the Abu Sayyaf, that Manila would "obliterate" the bandits.
"I said that we will continue and we will have to finish this war because terrorism is a scourge upon the earth. And we must obliterate it so that we can move and win the battle against poverty, which is the most important battle in our country," she told reporters.
Mrs. Arroyo said Bush expressed admiration for her tenacity in the fight against terrorism.
Asked about the possible nature of the succeeding joint exercises, Mrs. Arroyo said, "That is part of the joint planning of our two forces." She gave no details.
Mrs. Arroyo said she had ordered the military to make a list of US military assistance the Philippines would need to put an end to terrorist groups in the country.
Last week, acting Press Secretary Silvestre Afable said although the US government presented no option on the nature and extent of the succeeding exercises, there are four possible alternatives.
One, the ongoing exercises could be extended under the current arrangement; two, extending the training in Basilan only; three, extending the Balikatan to other parts of the country; and four, starting a new round of counter-terrorism exercises.
Afable said any recommendation will come from military commanders from both sides. "It will be suggested at the operational level and then decided all the way up to the political level," he said.
The elusive Abu Sayyaf gunmen have been linked to the al-Qaeda terror network of Saudi financier Osama bin Laden.
Defense Secretary Angelo Reyes said the US forces had helped plan and provide intelligence data to elite Army Scout Rangers who mounted a bloody rescue attempt on Friday that led to the deaths of two hostages, including US missionary Martin Burnham.
Martins wife, Gracia, was wounded but was rescued, while a Filipina nurse, Deborah Yap, was also slain. The three were the last of dozens of hostages seized by the rebels last year.
Teodosio said there were no calls from the American government to extend the stay of the US forces. "What will happen is, as we approach the end of July, little by little, we will wind down activities," he said.
The US forces are officially barred from taking part in actual combat except in self-defense, but calls had been mounting to let them join operations against the Abu Sayyaf. Teodosio said there was some talk of letting US forces take part in lower-level operations, bringing them closer to possible fighting. With AFP