"Aside from the one that we have already asked to leave, there is this one diplomat with some evidence of espionage and I have asked (Foreign Affairs) Secretary Blas Ople to take steps regarding this," Mrs. Arroyo told reporters.
The Philippines in February expelled Iraq embassy second secretary Husham Hussein for allegedly consorting with the Abu Sayyaf.
Intelligence officials said Hussein was monitored to have received a call from an Abu Sayyaf guerrilla shortly after a bomb attack in Zamboanga City that killed three people, one of them an American serviceman, last Oct. 2.
Asked whether Manila would sever diplomatic ties with Iraq until the US-led war is over, Mrs. Arroyo said there would not be direct "cutting off diplomatic ties, per se."
"Its individual by individual. So if there is evidence against other diplomats or employees, we will also take action against them," she said.
An administration lawmaker, Negros Occidental Rep. Jose Apolinario Lozada warned against expelling Iraqi diplomats in response to the call of the United States.
He said there is no legal or diplomatic reason that could warrant expulsion of Iraqi diplomats from the country.
"There is no basis (for expelling Iraqi diplomats)," said Lozada, chairman of the House foreign affairs committee.
He stressed the provisions of the Vienna Convention only allow the expulsion of diplomats on grounds inimical to the interest of the host country.
Lozada said Malacañang should not rush to heed Washingtons request.
Last week, the Philippines said it would deport 11 Iraqis held for suspected terrorism.
Among those in detention was a suspect in the 1991 attempted bombing of Thomas Jefferson Library in Makati City who was arrested in Zamboanga City, where US troops are holding counter-terrorism training with Filipinos.
Intelligence reports have also confirmed that terrorist groups sympathetic to Iraq were planning attacks against American targets in the Philippines. With Paolo Romero, AFP