PRESS DIGEST - Philippine newspapers - Dec 17

MANILA, Dec 17 (Reuters) - These are the leading stories in Manila newspapers on Monday. Reuters has not verified these stories.

- The presidential palace stopped the release of convicted child rapist and former congressman Romeo Jalosjos from prison. (THE MANILA TIMES, PHILIPPINE DAILY INQUIRER, THE PHILIPPINE STAR, MANILA STANDARD TODAY)

- Top government officials, including President Gloria Macapagal Arroyo's adviser on the peace process, oppose a proposal to revive an anti-subversion law. (THE PHILIPPINE STAR)

- Three unarmed marines on their way to market in a remote village in Palawan were killed in an ambush by communist guerrillas on Sunday -- six-and-a-half hours into a 22-day Christmas ceasefire, a military spokesman said. (MANILA STANDARD TODAY)

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BUSINESS

- The government has adopted an exchange rate of 42-45 pesos ($1.02-$1.1) to the U.S. dollar as a basis for setting its fiscal programme, economic targets and policies next year. (PHILIPPINE DAILY INQUIRER)

- San Miguel Energy Corp, the power investment arm of food and beverage giant San Miguel Corp (SMC.PS), is reportedly looking at participating in the sale of PNOC-Exploration Corp (PECB.PS), the oil and gas development subsidiary of Philippine National Oil Co. (THE PHILIPPINE STAR, MANILA STANDARD TODAY)

- The Philippine central bank has relaxed certain restrictions on interlocking directorships and "officerships" among regulated financial institutions to allow better resource-sharing, especially among related companies. (PHILIPPINE DAILY INQUIRER)

($1=41.21)

(Reporting by Karen Lema)