Arroyo offers reward for the capture, dead or alive, of Muslim separatist leaders blamed for deadly raids and abductions A major armed conflict in the southern Philippines loomed last night following a 'dead or alive' arrest order for Muslim separatist leaders and the cancellation of peace talks. President Gloria Macapagal-Arroyo yesterday offered a 25 million peso (HK$3.7 million) reward for the capture 'dead or alive' of Moro Islamic Liberation Front (MILF) chairman Hashim Salamat and his four deputies, whom she held collectively responsible for a series of deadly attacks in the south which have killed at least 89 people, mostly civilians. Yesterday, suspected separatists robbed residents of Parang, Maguindanao, of farm animals and torched homes, the military said. Mrs Arroyo issued a strongly-worded statement. 'We shall pursue an all-out legal offensive against the leaders of the MILF, while conducting punitive action against the direct perpetrators of terrorist acts.' Norberto Gonzales, Mrs Arroyo's negotiator, said 'she now wants to give punitive action top priority'. Presidential spokesman Ignacio Bunye said this was short of declaring an all-out war. He said it meant the military would 'take appropriate steps in order that the perpetrators are made to pay for these terrorist activities wherever they are and wherever it will take us'. The armed forces, according to military spokesman Colonel Daniel Lucero, is preparing for a major encounter with the rebels two days after they attacked an army post and a police station, strafed and torched homes in Siocon town, Zamboanga del Norte. American assistance would be sought in neutralising the separatists, Defence Secretary Angelo Reyes said yesterday. He said the planned US-led military exercises would not only cover Sulu province in the south where the Muslim extremist Abu Sayyaf group operates, but also possibly Cotabato and Zamboanga del Norte provinces on the Mindanao mainland, where the MILF operates. The chief government peace negotiator, Secretary Jesus Dureza, confirmed to the Post that 'peace negotiations will have to take the back seat'. 'The government's principal activity now is to hunt down the leaders, the perpetrators, and to see to it these communities that are subject to terrorist attacks are attended to by government.' Mrs Arroyo's decision to cancel talks and adopt a hardline policy against the separatists was generally applauded by lawmakers. Even Congressman Didagen Dilangalen, a former negotiator for the Moro National Liberation Front which signed a peace pact with the government in 1996, praised it as the right step and slammed the separatists for their 'lack of sincerity'. In the first sign of regret over the bloody rebel raid in Siocon town on Sunday, Ghazali Jaafar, the MILF vice-chairman for political affairs, said: 'We are distressed by the incident. It was an attack against government troops but [it] went out of hand.' However, his show of concern was negated by MILF spokesman Eid Kabalu who said: ' If any civilian was hurt or killed, we consider this collateral damage.' Still, Mr Jaafar said the president's response was a mistake, too. 'It [the reward money] will not resolve the problem in Mindanao. The solution is not this one,' he said. 'Granting we are neutralised, others will take our place because this is a revolution and the people themselves are the ones fighting, not just me.' ALL-OUT WAR? Arroyo offers 25 million pesos for the capture of MILF members MILF leaders are split over the bloody raid on southern town Armed forces preparing for a major encounter with the rebels