Prosecutors dropped charges against MILF leader Ebrahim Murad in October bombings; MILF had denied involvement and sharply objected to charges. No timeline set for MILF-Manila talks. 30 soldiers face court martial for February coup attempt; gov’t said would adopt hard line.

Talks between MILF rebels and government close to breakdown after Manila blamed rebel leaders for deadly blast that killed 7 in Mindanao 10 October; worst of series of 7 bombs in week. MILF denied involvement and demanded charges be dropped before continuing peace talks with government; later accused government of breaking ceasefire by strafing MILF bases. Supreme Court rejected Arroyo administration’s petition to hold referendum on adopting parliamentary system of government; administration vowed to appeal.

Short-term progress in peace talks with Moro Islamic Liberation Front (MILF) unlikely after informal talks fell apart 7 September and Manila failed to offer new initiative. Borders of “Bangsamoro” autonomous territory in Mindanao remained point of contention: MILF seeks UN-supervised autonomy referendum open only to Moro minority, but local officials condemned plan. Deadly clashes continued on southern island of Jolo between military - backed by U.S. technical support - and Abu Sayyaf terrorist group, while U.S. Ambassador Kenney visited Jolo in bid for peace.

Communist New People’s army attacks on military and police continued, including raid on army outpost in Mindanao 23 August and army convoy ambush 26 August. President Arroyo appointed commission to investigate series of killings and kidnappings of left-wing activists: Amnesty International report accused military of being involved. 6 killed in attack by Moro Islamic Liberation Front (MILF) members on Tulunan town 12 August. Sporadic attacks by MILF on military posts in Mindanao also continued. Government spokesman said peace talks with MILF to resume but without any public deadline. 1 civilian and 2 rebels killed in military offensive and airstrikes against Abu Sayyaf on southern island of Jolo.

Government troops and MILF rebel group involved in fresh clashes on Mindanao, as peace talks remained stalled. Explosion at Maguindanao market 23 June killed 7 in suspected attack on local governor known for support of President Arroyo. MILF denied responsibility but National Police chief ordered arrest of 2 MILF commanders. Opposition parties filed impeachment claims against Arroyo, citing fraud in 2004 election and corruption. At least 25 killed in land dispute between tribesmen and Muslim clan in south.

Despite initial optimism, informal MILF-Manila talks stalled over territorial delimitation and jurisdiction of ancestral homeland on Mindanao. MILF also stated serious opposition to renewed government interest in foreign mining investment. Muslim envoys visiting Mindanao to revive lapsed 1996 peace deal between Manila and MNLF called for better implementation by Manila of autonomy provisions, release of leader and MILF-MNLF cooperation. Communist rebels threatened more attacks on mining facilities in northern Luzon.

Relative calm after period of political turmoil. Debate continued over constitutional shift to parliamentary-style government proposed by President Arroyo. Opposition groups sought legislative means to block initiative from reaching nationwide referendum. Police anti-terrorism chief said authorities believe Moro Islamic Liberation Front (MILF) has cut ties with Jemaah Islamiyah and dismantled training camps; further talks between government and MILF scheduled early May.

President Arroyo ended week-long state of emergency tied to alleged coup attempts and protests in capital 3 March. Government announced arrests of suspected organisers and increased defence spending to quell unrest. Administration pushed “people’s initiative” petition to prompt referendum on constitutional shift from presidential to parliamentary system. Bombing on Jolo island 27 March killed 9; police suspect Abu Sayyaf group. Informal negotiations between government and Moro Islamic Liberation Front rebels resumed but yielded no firm agreements; to reconvene April.

State of emergency declared by President Arroyo 24 February amidst reports that military thwarted coup attempt and after minor blast at presidential palace. Top military officers “retired” in end to minor rebellion by marines, Daily Tribune newspaper’s offices raided while 16 members of congress and security forces charged with coup plot. Commemorations to mark 20th anniversary of revolution that ousted President Marcos cancelled but small rallies held, leading to minor standoffs with security forces. Exploratory talks began 6 February between Moro Islamic Liberation Front (MILF) and government; both sides hopeful for peace agreement on Moro homeland and future of 12,000-strong MILF force by September 2006. Clashes continued between military and suspected Abu Sayyaf members on Basilan and with Communist National People’s Army south of capital.

Optimism surrounded talks with Muslim groups while army chief vowed not to negotiate with communists. Military and Moro National Liberation Front, based on southern island of Jolo, agreed to truce 21 January. Moro Islamic Liberation Front (MILF) said confident of agreement for ancestral homeland on Mindanao within first 6 months of 2006. Next round of informal peace talks between MILF and government to start 6 February in Malaysia despite reported clashes between MILF and government troops in south. Internal MILF dispute led to factional fighting 25 January. Clashes reported between Communist New People’s Army and soldiers in northern Tarlac province 31 January.