President Gloria Macapagal-Arroyo gave the military junior officers and soldiers occupying a part of Makati until 5 this afternoon to stand down, surrender their weapons and return to barracks or face the force of military action.

Going on the air nationwide at about 9:40 a.m. today and addressing the officers and soldiers as "your Commander in Chief," the President warned that beyond the 5 p.m. deadline, "the Chief of Staff (Gen. Narciso Abaya) is authorized to use reasonable force to dislodge your group quickly and efficiently, and arrest you."

"I urge you, in the interest of those who still believe in your cause, to make the right decision," the Commander in Chief added.

"I remind you that there is absolutely no justification for the action you have taken," the President said.

I would like to address this message directly to the soldiers in Makati

This is your Commander in Chief

I would like you remind you that there is absolutely no justification for the actions you have taken.

You have crossed the line of professionalism and are now engaged in unlawful political action backed by the use of force.

Your actions are already hovering at the fringes of outright terrorism. You will find no support for your actions among our people and the world.

I asked you to remember your oath to the flag. You have already stained the uniform. Do not drench it with dishonor I ask others in the Armed Forces to keep to the constitutional side of the line.

I am duty bound, under the same oath you took, to uphold the Constitution at all times. For this reason, I am giving you up to five o’clock this afternoon to stand down, surrender down your weapons and return to barracks.

Past this deadline, the Chief of Staff is authorized to use reasonable force to dislodge your group quickly and efficiently, and arrest you. I urge you, in the interest of those who still believe in your cause, to make the right decision now.

Even if you think you can gain political power in this way, which you cannot, you will realize that there is no substitute for democracy and constitutional means to solve the problems of our people. Do not believe that force will change our nation overnight

Malacaņang said today that the lines of communication remain open for a dialogue with military officers and soldiers who have gone astray.

In a press briefing in Malacaņang and in interviews with various radio and television stations, Presidential Spokesman Ignacio R. Bunye said President Gloria Macapagal-Arroyo and the entire government is on top of the situation, finding a speedy and peaceful solution to the crisis.

Bunye at the same time appealed to the public to remain calm and to avoid the Makati area, particularly the area now being occupied by a band of soldiers.

He also said the entire Armed Forces of the Philippines remains in full support of the Macapagal-Arroyo government and the people.

"Our lines of communication remain open, and we remain hopeful that a speedy and peaceful solution to the problem would be reached through dialogue," Bunye said.

"We’re willing to wait the whole morning" in order to have a dialogue with them, the Presidential Spokesman said.

Bunye also appealed to the officers and men occupying Makati not to worsen the situation and to confine their action to where they are now.

The Presidential Spokesman also appealed to the various political leaders and factions now to fuel the present crisis.

"Let’s not try to aggravate the situation. Let’s try to confine the extent of the effects of this situation to the present level," he added.

"Itong insidenteng ito ay isolated at walang suporta mula sa ibang miyembro ng Armed Forces (The present situation is isolated and does not have the support of other members of the AFP)," Bunye also said.

We need sobriety. The call of the hour is to be calm and deliberate. Any missstep can further inflame what already is a very tense and explosive situation. While we need to listen to the legitimate grievances of soldiers who have dared to stand up for what they believe in, the greater and immediate challenge is to defuse this explosive state and resolve the crisis peacefully without bloodshed. Let us pause and use and use this crisis as an opportunity to heal the division in our land. Let this heightened passion be the impetus for all of us to one nation again, despite our diversity and our differences.

Malacaņang warned today of the severe impact on the economy of the siege by the rebel military officers and soldiers in the Makati business district.

In a press briefing in Malacaņang, Trade and Industry Secretary Manuel A. Roxas II said the Makati mutiny "will certainly have a negative impact on our economy and, even now, the business sector is reeling in a state of shock."

"Our economy cannot tolerate military adventurism. Peace and order are among the major considerations of investors in their decision to locate and remain in the Philippines," Roxas said.

"This action of the military rebels will not do good for the development of our economy, lalu na sa paghahanap ng trabaho at hanapbuhay," Roxas said.

He expressed hope that the Makati siege will be resolved soon to wipe away its negative impact on the capital market, especially the stock market.

"We must remember the 1989 coup that brought down our economy to nearly zero growth – it took us several years before our economy began to recover," Roxas said.

He said he is in constant communication with the leaders of various business organizations and assured them of a speedy solution and return to stability.

Roxas also assured that the DTI is also monitoring the prices of basic commodities.

Tourism Secretary Richard J. Gordon echoed the sentiment of Roxas, further assuring the people that other parts of the country are moving business as usual.

While the military mutiny has the nation’s attention riveted on Makati, Gordon said "the rest of the country is moving business usual. Nonetheless, this (rebellion) certainly would take its toll on the economy and the big loser here is Juan de la Cruz."

Gordon thus appealed to the mutineers to open the lines of communication lines and resort to peaceful negotiations.

Director General Hermogenes Ebdane, chief of the Philippine National Police, called today on all police officers and men all over the country to "continue to assure the public that the PNP and AFP (Armed Forces of the Philippines) are squarely behind the leadership" of President Macapagal-Arroyo and fully support the Constitution.

In a statement and guidance addressed to all regional police directors, Ebdane also called on the PNP officers and men to "remain calm and vigilant and strictly follow the chain of command."

Meanwhile, the members of Philippine Military Academy Class 1994 today expressed their full support to President Gloria Macapagal-Arroyo, the government and the Constitution.

In a statement, Capt. Noel Tolentino, PMA Class 1994 president, said: "We believe in the chain of command and abhor military adventurism."

Any change for good should be done through peaceful means, Tolentino stressed.

Not for a single moment did President Gloria Macapagal-Arroyo consider the declaration of martial law during the two and a half years that she has been in power.

"The President has gone through a lot of crises in her administration," said National Security Adviser J. Roilo Golez during a press briefing in Malacaņang today. "But not for a single moment did she consider martial law."

Martial law is almost anathema to her instinct, Golez added.

"We had May 1, 2001, and not once was martial law discussed at the time," said Golez. "And of course we had the Abu Sayyaf situation, and then the bombings in Zamboanga and Davao. But not for a single moment did the President consider martial law," he went on.

Golez noted martial law can be declared only in the case of two events – rebellion and invasion. "And then it (declaration) has to be submitted to Congress within 48 hours for concurrence."

If Congress concurs, martial law would only be for 60 days, so it’s a tough proposition, the National Security Adviser said.

President Gloria Macapagal-Arroyo today issued Proclamation No. 427 declaring the whole nation under a state of rebellion and ordered the Armed Forces of the Philippines and the Philippine National Police to suppress and quell such rebellion.

President Arroyo said that certain elements of the Armed Forces of the Philippines, armed with high-powered firearms and explosives, had acted upon the instigation and command and direction of known and unknown leaders and seized a building in Makati City.

Arroyo said these elements have put bombs in the area, publicly declared withdrawal of support for, and took arms against the duly constituted Government, and continue to rise publicly and show open hostility.

She said the purpose of these elements is to remove allegiance to the government, certain bodies of the Armed Forces of the Philippines and Philippine National Police, depriving the President of the Philippines, wholly or partially, of her powers and prerogatives which constituted the crime of rebellion.

The President added that these misguided elements of the AFP are being supported, abetted and aided by known and unknown leaders, conspirators and plotters in the government service and outside the government.

"Now therefore I…by virtue of the powers vested in me by law, hereby confirm the existence of an actual and on-going rebellion, compelling me to declare a state of rebellion," the President said.

The President also issued General Order No. 4 directing the AFP and the PNP to suppress the rebellion now going on in Makati City.

Under Section 18, Article VII of the present Constitution, she said that whenever it becomes necessary, the President as the Commander in Chief of the Armed Forces of the Philippines may call out such Armed Forces to suppress the rebellion.

The United States and Australia today threw their support behind the government of President Gloria Macapagal-Arroyo and condemned the coup plot by some military officers and soldiers.

"Let there be no doubt that the United States supports the government of President Arroyo," US President George W. Bush said in a statement read by US Ambassador to Manila Francis Ricciardone.

"We have no reason to believe that there is no real threat to the Arroyo government," Bush's statement added.

Meanwhile, Australian Foreign Minister Alexander Downer denounced the alleged coup plot by a handful of junior officers and soldiers, saying "it couldn’t have come at a worse time," noting that President Macapagal-Arroyo's government was engaged in a campaign to curb terrorism.

The leaders of the various political parties in the country today declared their support for President Gloria Macapagal-Arroyo and the constitutional government, at the same time condemning the armed protest staged by junior officers of the Armed Forces of the Philippines.

House Speaker Jose de Venecia, Jr. said that among the largest political parties who expressed support for the President were the Liberal Party, Nacionalista Party, Laban ng Demokratikong Pilipino, PDP-Laban, and the Nationalist People’s Coalition (NPC).

"All of us overwhelmingly declare our support, if not unanimously declare our support, for President Gloria Macapagal-Arroyo, for constitutional government," de Venecia said during a press conference in Malacanang.

Aside from the political parties, De Venecia noted that even the Governors League of the Philippines representing 79 governors; the City Mayors League with 115 mayors; Municipal Mayors League composed of 1,500 town mayors; and Barangay Officials League composed of 420,000 barangay officials have declared their all-out support to the President.

During the briefing, De Venecia urged the junior officers and soldiers conducting an armed protest and siege at the Oakwood Hotel in Makati to sit down with government authorities to thresh out grievances.

De Venecia noted that if the President and the government would be willing to sit down and negotiate a peace agreement with the Moro Islamic Liberation Front and with the New People’s Army, why not with their group.

"I think we can sit down and talk under a flag of truce with you – young, idealistic but apparently misguided -- officers of the AFP. You don’t have to be ashamed because I, too, have made mistakes in life. All of us have made our mistakes in life. So let’s sit down and we will listen to your grievances," De Venecia said.

Senate President Franklin Drilon said today the military adventure by some junior military officers and soldiers does not have the support of the people.

"Our recent political history will show that the people will never support such adventurism resorted to in order to address grievances, no matter how legitimate," Drilon told reporters during a press conference in Malacaņang.

The Senate president said the people would continue to support democratic institutions and resist any form of adventurism by a very small element of the Armed Forces of the Philippines.

Drilon also said the incident in Makati is not enough reason for the President to cancel her State of the Nation Address tomorrow before both houses of Congress.

Malacaņang announced this afternoon a two-hour extension of the deadline for the junior officers and soldiers staging an armed siege in Makati to stand down, surrender their weapons and return to barracks or face the force of military action.

Barely 15 minutes before 5 p.m., Presidential Spokesman Ignacio R. Bunye announced that the deadline was extended as a breakthrough in the standoff was reached, with the mutineers expressing willingness to negotiate.

"Thank you, Mrs. President, for extending the deadline for my son."

After expressing these words of gratitude, Mrs. Estrellita Trillanes, mother of Navy Lt. Sr. Grade (equivalent of captain in the Army) Antonio Trillanes, Jr. one of the leaders of the rebel soldiers holed out at the Oakwood Hotel in Makati City, assured President Gloria Macapagal-Arroyo that she would convince her son to surrender peacefully.

Mrs. Trillanes, who was accompanied by former President Fidel V. Ramos to Malacanang to meet the President and the press, said she hopes the Makati siege would be over soon, expressing a mother’s wish to see her son celebrate his birthday on August 6.

Mrs. Trillanes is the widow of Navy Captain (equivalent of Colonel) Antonio Trillanes, a member of Philippine Military Academy Class 1959 who served as signal officer in the Navy during the time of former President Ramos.

Also with Mrs. Trillanes were Commodore Carlos Agustin, chairman of the Philippine Military Academy Alumni Association, and some of the PMA classmates of her husband. The Palace meeting came just minutes after Malacanang announced a two-hour extension of the 5 p.m. deadline for Lieutenant Trillanes and his group to give themselves up peacefully, lay down their arms and return to barracks.

Mrs. Trillanes assured the President that she’s willing to help convince her son to surrender. She said that before she left the vicinity of the Oakwood Hotel, she was able to talk to her son on the cellular phone and told him to leave the place right away.

Former President Fidel V. Ramos said today he believed that the grievances aired by the young officers and soldiers staging a siege in a Makati hotel are legitimate ones but nonetheless tagged them as "rebel soldiers."

In a press briefing at Malacaņang this afternoon, Ramos said he has considered the rebel soldiers’ grievances as valid grievances but added that they should have coursed these through the military chain of command and process.

Ramos said he regarded the Makati uprising as a surprise action, and not a premeditated one, by young military officers.

He noted that previous coups were premeditated moves, complete with scenarios of full military backing and political support.

"I believe that this is something na biglaan (spur of the moment). I do not think that this was premeditated in the sense that previous coup attempts have been premeditated. I’m saying na biglaan ito because, maybe, the officers and soldiers concerned became emotional over the problems facing them," Ramos said.

The former President urged the government to give utmost attention to the grievances aired by the rebel soldiers in order to attain a sincere reconciliation between the military and the present leadership.

He also expressed hope that the uprising will soon come to an end that would be favorable to the government.

He appealed to the rebel soldiers to think twice and consider their future and the plight of their families because their call for reforms could be undertaken under a united program for a more effective and stable future for the country.

The crisis in Makati is over.

Two hundred ninety six soldiers, including 70 officers are standing down and returning to barracks.

They will be investigated and their cases will be disposed of in accordance with the Articles of War. They have not asked and they shall not be given special treatment.

I have directed the Chief of Staff to immediately restore normalcy in the military organization. I commend the officers and men who have handled the crisis with the loyalty and professionalism.

Civilians shown to be involved in any conspiracy will be prosecuted.

I thank the leaders of Congress, the church and the civil society for their support.

I am also thankful for the support extended by the diplomatic community. I assure the world that this event does not in any way injure our national security and political instability. The issues involved are domestic, operational or administrative; they do not involve ideological or fundamental policy areas. Our decision to enter dialogue reaped positive results.

Once more, this has been a triumph for democracy.