President Gloria Arroyo said the government would not be black-mailed into negotiating with the Abu Sayyaf group after another faction abducted 30 people, beheading five of them near Lamitan town, Basilan, southern Philippines on Thursday.

"Probably, because the heat is so strong the Abu Sayyaf had to do this retaliatory or diversionary action. That's how war is," Arroyo said, adding that the government would not change its 'no ransom and no negotiations' policy with the hostage-takers.

"What has happened again is of crisis proportions," Congressman Neri Acosta who called on all lawmen to assist in resolving the embarrassing hostage crisis in Mindanao.

The residents of Balobo, a small farming village about seven kilometres from the Lamitan's main business district were about to sleep when gunmen, armed with machetes and automatic rifles, went on a shooting rampage.

The attackers, allegedly led by Ghalib Andang, also known as Commander Robot, dragged out farmers who were mostly Christian and ransacked homes.

Last month, Andang sent surrender feelers to a local government official because he wanted to return to the fold of the law.

Pursuing military men found the severed heads and bodies of Roland Rojas, Alvin Ramirez, Elmer Tananay, and Feliciano Cristobal inside a coconut plantation in Caulie village, on the outskirts of Lamitan. The mangled body of Feliciano Ramos was found in the grounds of a nearby school, said Basilan police chief Akmadul Pangambayan.

Eight hostages managed to escape. One of those who escaped was Antonio Santos. When he tried to fight off his attackers, he was hacked with a machete and his two hands were nearly severed. He was left for dead and was found by soldiers yesterday. His wife Genalyn Santos, however, remained with the Abu Sayyaf group.

Ian Rebollos, 17, said he was set free, but his abductors threatened that he would be hunted down again and finally killed. The abduction was allegedly carried out because of orders from a local official in Basilan, said Rebollos.

Six of the victims included a husband and wife identified only as Lito and Glenda. Their four children, Maya, Jay Ann, Janet and Carlo were also abducted. The attackers bound their hostages with a nylon rope.

Angry citizens called up the Radio Mindanao Network and other radio stations to denounce the latest atrocities of the Abu Sayyaf group. They urged Basilan residents to arm themselves. Others called for the kidnapping of the relatives of Abu Sayyaf leaders and their public execution.

"Policemen and soldiers were tracking down the attackers. We are in a hot pursuit of the rebels and we will not let this thing pass," said the police chief.