President Gloria Macapagal-Arroyo yesterday vowed to continue military operations against the Abu Sayyaf in southern Basilan as the group continued to hold on to their 26 hostages deep in the island's jungles.

"We will continue our strategy of continuous pressure. We will not surrender the combat initiative," stated Arroyo, who is also the civilian government's military commander-in-chief.

"At this point, the threat to national security is isolated ... the people are on our side, the international community is on our side ... we shall not relax our guard," she said during a speech at the Southern Command headquarters in Zamboanga City after she visited Basilan. "The location of the Abu Sayyaf has been pinpointed, although the terrain is difficult to operate in," Arroyo noted.

Arroyo arrived in Lamitan with Defence Secretary Angelo Reyes and National Security Adviser Roilo Golez. The Philippine president visited the bullet-riddled Jose Torres Memorial Hospital and St. Peter's Parish Church in Lamitan town and spoke with Fr. Cirilo Nacorda, who escaped death from the Abu Sayyaf when guerrillas seized the two buildings on June 9 and detained dozens of people for two days before escaping with several new hostages.

Arroyo also released two million pesos for the church's renovation and fifteen million pesos for the hundreds of families, mostly ethnic Muslims, who fled their homes in the towns of Lantawan, Lamitan and Tuburan because of the fighting. She stayed in Basilan for several hours where she also spoke with top military, police and local government officials. She flew back to Zamboanga City at11am.

Arroyo's visit was marked by tight security in and around Lamitan because of the possibility of an attack while Arroyo was in town. Lamitan is near Tuburan where the Abu Sayyaf are believed to be holed up with their hostages trying to evade a massive military manhunt.

Arroyo said the freedom of hostages Francis Ganzon, 50, and Kimberly Jao Uy, 13, "demonstrates the effectiveness of unceasing military pressure on the bandits". She noted that the government has not backed down on its demand for the "unconditional release of all hostages" and rejected press reports that ransom had been paid for the two.

As the president praised Lamitan residents for their "sacrifice and patience" she steeled them for future setbacks.

Arroyo took time to console the relatives of four hospital staff snatched by the rebels from a Lamitan hospital during the raid in early June. She then presented a cheque for one million pesos for the municipality of Luuk on nearby Jolo island for securing the release of Jeffrey Schilling, an American hostage captured by the Abu Sayyaf last year and freed in April.