Wanna make a bet that this leads to disaster...

Terrorism should not be rewarded...

The Philippines government and separatist rebels have struck a deal on creating a Muslim homeland in the country's south which is expected to lead to a peace accord next year, officials said Thursday.

The agreement on the extent of territory to be handed over had been a major stumbling block in the peace talks that opened when a ceasefire was forged with the Moro Islamic Liberation Front (MILF) in 2001.

The two sides did not disclose the new borders agreed after two days of talks here, but Malaysian officials said the territory would be greater than the present autonomous region in the troubled island of Mindanao.

"After more than three decades of problems in Mindanao, it is for the government to give concessions. It could not be the other side, so the government has to concede what it think is reasonable," said Philippines chief negotiator Rodolfo Garcia.