Francis Joseph Ricciardone Jr., a veteran American diplomat who held various posts in the Middle East, yesterday assumed the post of U.S. Ambassador to the Philippines. Yesterday, when he met President Gloria Macapagal-Arroyo to present his credentials, the two discussed relations between their countries.

The appointment of Ricciardone comes at a time when relations between the two countries are at its warmest since the close of the Second World War when American troops helped liberate the country from Japanese occupational forces.

Washington has regarded the Philippines as its chief ally in Southeast Asia, which it considers the new breeding ground for extremist forces opposing American interests.

Hundreds of American troops are now holding joint military exercises with Filipino soldiers in southern Philippines to help neutralise the Abu Sayyaf, which is believed to have links with anti-American extremist groups in other countries.

Two American hostages are being held by the Abu Sayyaf for almost nine months in Basilan, where the military exercises will also be held.

The plight of American captives Martin and Gracia Burnham topped the list of issues discussed by Arroyo and Ricciardone, said an official statement from the presidential palace. Ricciardone arrived in Manila on Monday.

"The posting of Ricciardone to Manila represents America's strong intention to establish a firmer relationship with the Philippines specially in the area of anti-terrorism," said a Department of Foreign Affairs official.

The new U.S. envoy brings with him vast experience in America's renewed war against extremism in the wake of the September 11 terrorist attacks in New York and Washington.

Before coming to the Philippines, Ricciardone served as director of the U.S. State Department's task force on the United Nations-backed Coalition Against Terrorism which was formed in the aftermath of the September 11 attacks.