Fargo said the al-Qaeda-linked Jemaah Islamiyah (JI) terrorist group accused of perpetrating the Bali bombings still presents a threat to Southeast Asia.
"Jemaah Islamiyah still has the capability to conduct terrorist operations," Fargo told a news conference Tuesday in Kota Kinabalu, Malaysia, where he visited Malaysian troops patrolling the state of Sabah.
"We have to continue to keep our guard up and share information to better understand the organization and make sure it cannot threaten the population."
Washington said Sabah faces security risks from the al-Qaeda linked groups operating in Mindanao, particularly the Abu Sayyaf. The Abu Sayyaf was tagged a terrorist organization by Washington.
Last month, the US State Department reissued warnings to Americans in Malaysia that the Abu Sayyaf "remains a security threat" to Sabah, which carried out kidnappings from island diving resorts off Sabahs coast in 2000.
Fargo also denied press reports last week that the US is seeking military bases in Malaysia and to redeploy a large number of Marines from Okinawa, Japan to Australia.
The US is reviewing its troop posture worldwide, he said, but stressed that "any adjustments we will make will be done with the full collaboration and cooperation of our good friends and allies."
Fargo arrived in Zamboanga City at 11 a.m. aboard a US Boeing 77 via Malaysia from Hawaii with top Marine officials. He was immediately whisked to a nearby military headquarters for closed-door meetings with Armed Forces of the Philippines (AFP) chief Gen. Narciso Abaya and AFP Southern Command (Southcom) chief Maj. Gen. Roy Kyamko.
Fargo, on a three-day visit to the Philippines, discussed with the generals preparations for the upcoming Balikatan 03-1 counter-terror exercises set later this year.
"The security assistance training is designed to assist the Philippine military in developing a sustained, long-term capability to defeat terrorism, a primary goal of the military relationship," a press statement issued by Fargos staff said. Roel Pareño, Sandy Araneta, AFP