For decades, an Islamic rebellion has simmered fitfully on Mindanao, the second largest island in the Philippines. In 1996 the Moro National Liberation Front (MNLF), a secular guerrilla movement, laid down its arms after the government in Manila agreed to a semi-autonomous Muslim region in central Mindanao. But the Moro Islamic Liberation Front (MILF), a more militant group with about 13,000 armed members, says it wants an independent Islamic state, and has clashed frequently with government troops in recent months. Peace talks have begun, but there have been numerous ceasefire violations on both sides. As head of the Quick Response Team, an independent group that helps resolve ceasefire disputes, Eliseo Mercado plays a key role in efforts to end the conflict. A distinguished academic (he is president of Notre Dame University in Cotabato City), he is something of a rarity–a Catholic priest in the Philippines who is also an accomplished student of Islam: he holds a degree from Cairo’s Oriental Institute. He talked with NEWSWEEK’s Marites D. Vitug in Davao, on Mindanao. Excerpts:

VITUG: Why is peace so elusive in Muslim Mindanao?

MERCADO: People still expect peace dividends which aren’t there. The peace accord signed with the Moro National Liberation Front will be three years old in September. But people still have to see results like work opportunities, basic services. The other very important factor is that settlement does not mean surrender. It must be a negotiated peace, with dignity. Change must not only come from the rebels. There should be movement on the part of the government too.

Have government negotiators learned from this experience?

This is going to be a real test with the Moro Islamic Liberation Front. Their slant is strictly Islamic, while the government’s is secular. It cannot be a one-way road. There should be equal adjustment on the part of the Philippine government to [accommodate] this [minority faith] within the [Philippine] nation. Unless this is done, peace will remain elusive.

In the more than two decades of Muslim rebellion, is Islam a big factor? Or is it more of an economic war?

Definitely, economic deprivation plus exclusion of the Muslim population from politics make a fertile ground for rebellion. The failure of the Philippine government to deliver economic benefits, and the failure of Muslim leaders educated in the secular world to improve the lives of their people–these two failures made Muslims cling to Islam. So Islam is the answer. If development comes in, the religious aspect will be de-emphasized.

The MILF and the Philippine government are now talking. What are the most ticklish issues?

The MILF is really religious in its orientation. Will there be a possibility for the Philippine government to accept pluralism in the real sense of the word? That a people with a different faith will be able to chart their own destiny? These are the big questions. But first there’s a need to understand the terminology “independent Islamic state.” At this stage, both sides are discussing in parallel lines. They don’t speak the same language. One comes from the perspective of Islam, the other from the nation-state. Second, both sides need to thoroughly understand and accept that this problem cannot be solved militarily. This has been tried for a long time, since the Spanish and American colonizers. A resolution cannot happen on the battlefield; [it has to happen] at the negotiating table. Third, the government of President Joseph Estrada is myopic in its perception of the peace process. My impression is that they have no short- and long-term vision for peace. Estrada even gave a deadline to finish the talks within the year. But this war has been going on for a long, long time. Hostilities and prejudices are deep-seated.

Can the talks with the MILF still lead to a political settlement?

My first objective is to firm up a ceasefire between the MILF and the Armed Forces of the Philippines. With a ceasefire that holds, development can happen. This will create a climate of confidence which will help us understand each other. As Filipinos and Malays, I think ideological divides can give way to friendships. Malays, by nature, are for harmonious relations. I see a negotiated peace settlement happening in the next five years.

As a peacemaker, what lessons have you learned from the experiences of Bosnia, Mozambique or other places?

First, that we have to settle our differences at the negotiating table. Second, there is a need for healing. We cannot just sign a peace accord. The only case where a healing process has begun to take place is South Africa, with the Truth Commission, where there is some admission of one’s contribution to the damage done to the society and human lives. Healing is very important in reconstruction and making a new start. Here in Mindanao, there are a lot of prejudices and stereotypes contributing to the separation of Christians and Muslims. But there’s no program yet for healing.