He noted intense efforts by current and retired military officials to broker a surrender by some 200 military rebels who seized part of the high-end Ayala Center complex of shopping malls, hotels and condominiums in the Makati financial district before dawn.

"They are young men, I understand they are junior officers (and they) will feel that they have made whatever their point is, and will now stand down and pursue lawful means to address their grievances," he told a news conference.

Since the Ricciardone statement, about 50 of the rebels have surrendered, and a top Arroyo envoy was locked in talks with the leaders of the mutiny more than an hour after a deadline set by Arroyo to mount an assault if they did not surrender.

The rebels have demanded the resignation of Arroyo and Defense Secretary Angelo Reyes, blaming them for corruption in the ranks and the economic hardships suffered by ordinary soldiers, among others.

Ricciardone said he did not believe this to be the case.

"The people who undertake actions like these have to calculate the consequences for their country. Evidently they profess to be patriotic and care about their country, but what they have now done is cast their country in the worst possible light.

"People around the world are now wondering about the stability of the Philippines," he said.

Ricciardone said he did not believe the rebels staged their action to grab power for themselves. "I don't believe that is what is attempted here. So we are confident still that the situation will be resolved in a lawful way and in a way that does not involve violence."

The envoy added: "I do not feel under threat by this event. Those rogue officers, I think, let the foreigners out of the hotel that they occupied today without any problem, and that is a good sign in itself."

On Saturday, the US State Department warned of "immediate negative consequences" to bilateral relations of a military coup in the Philippines.

WAR.WIRE