Arroyo orders emergency rule in Philippines

PHILIPPINES: President Gloria Macapagal Arroyo invoked emergency rule in the Philippines on Friday after security forces said they had foiled a coup attempt, shocking analysts and driving down the country's currency.

Talk of plots against Arroyo, who survived a crisis last year over allegations of vote-rigging and corruption, has been running high around this week's anniversary of a "people power" revolt that toppled dictator Ferdinand Marcos in 1986.

"I have declared a state of emergency," Arroyo said in a taped address on television and radio, adding she had authorised the military and police "to take ample measures".

"This is my warning to those who are attempting anything against the government."

Executive orders do not require approval by Congress.

Emergency rule, which allows arrests without warrants and an extension of detention without charge, is a very sensitive issue in the Philippines after nine years of martial law under Marcos.

The peso weakened as far as 52.10 to the dollar after Arroyo's announcement from its close on Thursday at 51.66. The main stock market index was down 1.6 percent.

"This is a disaster," said one Singapore-based analyst who declined to be named. "If things get out of hand, then she is faced with the situation of sending the police and army in and things could get violent. It will show that she is weak."

Police cancelled permits for several political rallies on Friday and school classes were suspended. North of Manila, police stopped 10 buses carrying people to the rallies and advised them to go home. Despite the police action, about 1,000 protesters gathered peacefully at a shrine that was a focal point of the 1986 revolt and another in 2001 that chased out Joseph Estrada as president.

However, traffic was flowing as usual through the Makati business district and there did not appear to be any increased security on the streets.

Armed forces chief General Generoso Senga said the commander of the elite Scout Rangers regiment had been detained as the alleged leader of troops who planned to join protests against Arroyo by her political foes on Friday.

National police chief Arturo Lomibao replaced the four top commanders of the elite Special Action Force and placed his forces on the highest state of alert across the country.

The army said the rogue soldiers were planning to tell the protesters that they were withdrawing support from the president, hoping this would spark an uprising against Arroyo.

Last week, the army had said it had uncovered a scheme called "Oplan Hackle" that would have involved a mass escape of officers on trial over a failed mutiny in 2003, the ouster of Arroyo and the creation of a military junta.

Gilbert Remulla, an opposition leader in the lower house of Congress, said the government was "creating chaos and confusion".

"I have to warn the government they could not effect arrests without warrants because we're not under martial law," he said.

There have been a dozen coup attempts in the Philippines in the last 20 years but some analysts suspect Arroyo's government of playing up security threats to ward off would-be plotters and gain public sympathy.

"The government is overreacting," said Earl Parreno of the Institute of Political and Electoral Reform. "There may be a threat from a small faction within the army, but it's not serious enough to topple her government."

Manila, Friday (Reuters)