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Communist rebels yesterday shelved low-profile peace negotiations with the Philippine government and charged it with undertaking "state terrorism worst of its kind".

The government continued pursuing members of the communist New People's Army (NPA) who fled after soldiers overran last week a rebel camp housing around 75 armed men in Zambales, central Luzon.

Rivalry has intensified between armed rebel factions of the Communist Party of the Philippines (CPP) founder, Jose Maria Sison, and his rivals, who are called "rejectionists", most of whom are based in central Luzon.

An overseas Filipina worker's three-year-old daughter was kidnapped by a couple who duped the girl's aunt and caretaker by claiming they were friends of the girl's mother.

The National Anti-Kidnapping Task Force (Naktaf) is expected to help investigate the case of a three-year-old girl, abducted from her aunt on Thursday morning.

Communist guerillas have devised a new 'taxation' scheme. According to the military, the rebels are 'extorting' money from families of Overseas Filipino Workers (OFWs).