He said the government was also unilaterally abrogating a preliminary agreement which called for the release of jailed guerrillas and the compensation for victims of human rights abuses in the rebels' battle with the late dictator Ferdinand Marcos.

The cancellation of the talks ''affects all these,'' he said.

Mr. Estrada said rebels with safe conduct passes would have 24 hours, or until 3 p.m. today, to run for cover, ''as a matter of fair play.''

Both government and opposition members of Congress as well as his predecessor, former President Fidel Ramos, supported his decision, but religious leaders--Catholic, Protestant and Muslim--urged him to reconsider.

New People's Army guerrillas abducted Army Gen. Victor Obillo and his logistics officer, Capt. Eduardo Montealto, near Davao City last week and seized police Chief Inspector Roberto Bernal in Sorsogon on Sunday.

Inquirer sources in Mindanao said Obillo and Montealto were brought to a safehouse in an urban area shortly after they were abducted.

''Let me say this today: Enough is enough,'' Mr. Estrada said. ''We will not tolerate this abuse of our goodwill, of our good faith, and of our deep and abiding commitment to bring peace to our countryside and to our cities.''

Asked what would change his mind, he said: ''Well, it will depend on how they will react and they have to prove their sincerity now.''

Safe conduct passes have allowed key leaders of the Communist Party of the Philippines, the NPA and the National Democratic Front ''to resurface and consult with their cadres, guarantees that enabled them to go on national television, to grant media interviews, and even to come to Malacañang.''

''But we cannot allow treachery and bad faith to succeed,'' Mr. Estrada said.

Glum Cabinet

He made the announcement three hours after receiving the recommendation of the Cabinet advisory committee for the peace talks chaired by Executive Secretary Ronaldo Zamora and the government negotiating panel headed by Ambassador Howard Dee.

Zamora, Aguirre, Press Secretary Rod Reyes and presidential spokesperson Jerry Barican looked glum while the President read his statement and answered questions.

Mr. Estrada said military operations would be conducted against the ''kidnappers'' even though these may endanger the lives of the officers.

Even as he announced the suspension of the peace negotiations, Mr. Estrada sought to assure the people and the business community.

''I can assure you we are in control,'' he said. ''The military and the police are in control of the situation.''

There is no need to impose curfew, according to him.

What if the NPAs killed Obillo and Montealto, the President was asked.

''Well, they are military men and law enforcers,'' he said. ''It is part of their profession.'' He glanced at Aguirre, who then whispered something in his ear.

After listening to Aguirre, the President added: ''But I'd like to assure you that the CPP-NPA and the NDF, they will all be held responsible for all of this.''

Don't blame us

NDF chief negotiator Luis Jalandoni said the communist rebels should not be blamed if the talks collapsed.

''It was the government that unilaterally declared an indefinite recess of the talks and refused to implement (the preliminary rights accord),'' the Netherlands-based rebel leader told a Philippine radio station.

''The chances of more prisoners of war falling into the NPA's hands in other areas will be greater.''

The decision to scrap the peace talks drew support from Mr. Estrada's predecessor Fidel V. Ramos.

''I think President Estrada is correct in threatening to cut off the talks which are supposed to take place in an amenable atmosphere so that agreements can be reached,'' Ramos said before Mr. Estrada announced the suspension of negotiations.

''The CPP-NPA is up to its old tricks,'' Ramos told a news conference where he announced his three-day trip to South Korea. He leaves today to address the International Conference on Democracy, Market Economy and Development.

''These kidnappings happened in my time but we did not allow them to disrupt the talks at the highest level,'' he said.

Peaceful course

Twenty-four Catholic and Protestant bishops and 10 Muslim religious leaders from Mindanao urged President Estrada in an open letter to ''rethink'' his position against negotiating for the release of Obillo and Montealto.

They also asked Mr. Estrada to stop military operations at the boundaries of Davao City, Bukidnon, North Cotabato and Davao del Sur.

''It is our sincere belief that the release of the two military officers is best attained by taking the course of peaceful, negotiated resolution rather than a confrontational approach to the crisis,'' their letter said.

Payot 'seized'

Amado Payot, alias Kumander Benzar, the NPA leader that the communist rebels wanted freed in exchange for Obillo and Montealto, was ''seized'' yesterday by 23 policemen and jail guards reportedly on orders of Rep. Rodrigo Duterte and the regional police chief.

On Tuesday, Payot was acquitted of double murder for insufficient evidence.

Payot was taken from the jail in Ma-a, Davao City, at 2 a.m. even as jail authorities had told his lawyers late Tuesday that the transfer would be done at 5 a.m.

Jail authorities refused to say where Payot was taken. At about 9:30 a.m., or more than seven hours after he was taken from the Ma-a jail, human rights advocates in Davao City found him in the sala of Judge Hilario Mapayo Jr. of Branch 19 of the Regional Trial Court, where he is being tried for rebellion.

Joel Virador, secretary general of Karapatan in Southern Mindanao, said Payot phoned him shortly after midnight Tuesday informing him that Maj. Ronald de la Rosa, chief of the Police Regional Mobile Group, was taking him on orders of Duterte.

De la Rosa later said 23 people took Payot from jail--16 from his unit and seven from the Bureau of Jail Management Penology.

Duterte was not available for comment.

Duterte cleared

''I am very tired, I have not slept,'' Payot said when reporters and lawyers Ramon Edison Batacan, Carlos Isagani Zarate and Vincent Paul Montejo found him in Mapayo's courtroom in Digos.

He said he did not meet with Duterte yesterday but he admitted he was brought to the house of former city administrator Antonio Llamas, a close friend and partymate of Duterte, in Juna Subdivision in Davao City, ''for coffee.''

De la Rosa and Senior Insp. Gil Delima, Ma-a City Jail chief warden, denied Duterte was involved in the change of schedule.

De la Rosa said he and Delima said they purposely changed the time of Payot's transfer following reports that the time of transfer was leaked to the press and other people ''whom we cannot trust.''

De la Rosa said he was only following the instructions of Senior Supt. Nicolas Olarte, Southern Mindanao regional police chief, to ''secure'' Payot.

Judge Mapayo immediately ordered Payot to be detained in the provincial jail.

Payot's lawyers had petitioned for bail in connection with the rebellion charges filed against Payot and at least 15 other people for serious crimes, including murder and multiple murder for the massacre of 39 Bagobo natives in 1989 in Sitio Rano, Digos.

Payot's lawyers, led by Leonardo Suario, had managed to convince the court the charges be classified as ''in furtherance of rebellion.''

No deal

In Bicol, the NPA command in Sorsogon said it was closed to any negotiations over Sunday morning's abduction of Chief Inspector Bernal.

The local NPA called for a stop to military and police operations to rescue Bernal, saying these could endanger his life.

Their NPA message was contained in a letter obtained by the Regional Peace and Order Council and read by RPOC chair, Legazpi City Mayor Imelda Roces, in an emergency meeting yesterday.

Brig. Gen. Jose Lachica, commander of the 2nd Infantry Division, and Chief Supt. Marcelo Navarro Jr., Bicol police director, said the local communists were ''terrorists and therefore criminals'' and the military and police would treat them as such.

The NPA, however, assured Bernal's family that the police officer was safe and in good condition. It said the police officer would be released if found innocent of ''crimes against the people.''

In Central Luzon, the regional police director ordered all policemen in the region to be extra cautious as rebel sightings and encounters with government forces continued.

The order was issued by Senior Supt. Roberto Calinisan, in reaction to what appeared to be an organized plan by the NPA to seize policemen.

By Juliet L. Javellana, Jowel F. Canuday and Allan A. Nawal, PDI Mindanao Bureau, with reports from Stella Gonzales in Manila; Tonette Orejas, Ashley Manabat, PDI Central Luzon Desk; Floreño G. Solmirano, Southern Luzon Bureau; AFP, AP