The Philippine government and Muslim separatists have signed an agreement setting the stage for the resumption of peace negotiations after a week of informal talks in Malaysia, a spokesman for the rebels said today.

Eid Kabalu of the Moro Islamic Liberation Front (MILF) told AFP by telephone from the southern Philippines that the two sides had ratified a document first released after talks in March.

"The MILF and the Philippines inked the March 2003 joint-statement," he said.

Quashing arrests

Kabalu said key elements in the agreement included the withdrawal of Filipino troops from MILF controlled areas, the quashing of criminal arrest warrants for top MILF leaders and the entry of ceasefire monitoring teams from Indonesia, Libya and Malaysia.

The agreement was signed on Monday. "It was a successful meeting. Our hope now is that the agreement can be translated into action. Our people have suffered enough. We want peace and prosperity," he said.

Kabalu said Malaysia had pressed the MILF to be patient and refrain from offensive activities.

"We will abide by the request. We will ensure our fighters are disciplined. We will not strike unless to defend ourselves" he said.

Asked about the significance of the meeting, Kabalu said: "It sets the stage for the resumption of peace talks with Manila.

Development funds

"But it depends on what happens on the ground. If it is satisfactory, then we will hold another round of informal talks in Malaysia before we proceed to holding the peace talks," he said.

Kabalu said as part of the agreement, Manila had agreed to channel money to MILF agencies to fund development activities in Mindanao.

Manila said Tuesday it was close to resuming negotiations to end the 12,500-strong MILF's 25-year rebellion for an independent Islamic state in the south, after MILF chairman Salamat Hashim categorically renounced terrorism, fulfilling one of several conditions set by President Gloria Arroyo. - AFP