MANILA (Reuters) - The Philippines announced on Thursday it had cancelled a peace deal with the country's biggest Muslim rebel group after fighting broke out this week, but a guerrilla leader rejected its calls for re-negotiation.
The announcement by President Gloria Macapagal Arroyo's government that it was giving up on the agreement with the Moro Islamic Liberation Front (MILF) forged only last month looks certain to prolong a decades-long conflict in the south.
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