Earlier in the day, however, Mr. Estrada said he was willing to study the proposal of Ilocos Norte Gov. Ferdinand Marcos Jr. to include it. "These are mere proposals so let's study them first," the President said.

President Estrada also expressed willingness to allow the payment of $150 million in Marcos funds as indemnification to human rights victims despite an existing restriction under the Comprehensive Agrarian Reform Law (CARL) which mandates that all money recovered from the Marcos estate be used for land reform.

The President stressed that the rights settlement is entirely different from the tax case, and that just because the Marcoses have agreed to settle with the claimants does not mean that government's tax claim will be forfeited.

"That's a different story. The rights claim does not mean that they (the Marcoses) will be immune from taxes," the President said.

In a press conference, Mr. Estrada said that although he has not yet received a formal request from the young Marcos to include the tax liability as part of the settlement, he said the government may consider this proposal.

Executive Secretary Ronaldo Zamora admitted yesterday that the Estrada administration has been kept in the dark about the Marcos family's designated negotiator.

"That's what we've been asking for. We have been saying this, month after month ... for the Marcos family to come up with just one negotiator. The problem is they keep changing," Zamora said.

The governor's older sister, Ilocos Norte Rep. Imee Marcos, who arrived at the Palace yesterday for the signing of a law resetting the election date for the Autonomous Region in Muslim Mindanao, met privately with the President. She refused to be interviewed by reporters afterward.

Zamora said: "Congresswoman Marcos was right in saying it is not yet a settled issue. What was settled is that they have tax liabilities. Where it will come from is something for the Marcoses to determine."

Unless the tax case is settled, Zamora said the government is obliged to collect the liabilities from the Marcoses as affirmed by the courts.

He likewise did not rule out the possibility that the government may agree to the inclusion of the tax liabilities in the compromise settlement on the ill-gotten wealth cases.

But Zamora explained that the Supreme Court can still block any compromise settlement with the Marcoses, as in the case of a pending temporary restraining order on a previous agreement reached by the Ramos administration with the heirs of the late dictator.

Meanwhile, President Estrada conceded the government needs to study the legal ramifications if the administration allows the payment of $150 million in indemnification claims to 10,000 Marcos human rights victims.

Under the CARL, funding sources for land reform are to come "from assets recovered and sales of ill-gotten wealth recovered from the Presidential Commission on Good Government (PCGG)."

But the President pointed out that the indemnification ruling was previously handed down by Judge Manuel Real of the Hawaii Federal District Court which heard the class suit.

"It's already in court that the $150 million should go to the human rights victims, so we cannot go against the order of the court," he said. "But we will study that. Anyway, there's still some (money) that we can use for the CARL. Why not do something for those who are victims of human rights?"

The President admitted that Congress needs to amend CARL but so far, no such initiative has been taken by both chambers.

In an ambush interview yesterday at the Manila Hotel where he spoke before an international jurists group, Mr. Estrada deplored anew what he described as the "smart alecks" trying to stall the indemnification of the Marcos human rights victims.

Marcoses may talk with BIR

Another alternative for the Marcos family is for them to negotiate or make necessary arrangements with the Bureau of Internal Revenue (BIR) to comply with their P23.5-billion tax arrears, the Ombudsman said yesterday.

"Under the rules on the collection of taxes, anything can be negotiated," Ombudsman Aniano Desierto said. "Of course they can stipulate. The parties, even if there is a (Supreme Court) decision, can stipulate among themselves."

Like Sen. Aquilino Pimentel Jr., the chief graft-buster clarified the Marcos family cannot touch the $580 million in escrow funds at the Philippine National Bank (PNB) nor the $150 million eyed as settlement money for the rights victims since these are considered ill-gotten wealth.

However, the Ombudsman added that the BIR and the Marcoses could even "reduce" the amount for as long as both parties agree to it. But as things stand now, Desierto said the government can seize all Marcos properties including the jewelry of the dictator's widow.

Meanwhile, the 9,539 human rights victims who stand to benefit from the Marcos compensation will create a foundation to accommodate the other victims of Marcos atrocities who were not able to get anything from the class suit.

Rep. Loretta Anne Rosales said yesterday that some of the claimants who stand to get $16,000 each have expressed willingness to donate their share toward the creation of a foundation.

"The funds for the creation of the foundation for human rights victims will be on a voluntary sharing scheme," the Akbayan party-list representative said.

She said among those who have volunteered to serve as advisers to the foundation are former Reps. Edcel Lagman and Bonifacio Gillego and Quezon Rep. Wigberto Tañada.

For his part, Sen. Franklin Drilon said yesterday there should be no settlement with the Marcoses' tax liabilities.

"The Marcoses are in no position to dictate the terms of any agreement. There is already a final Supreme Court decision and the government has the upper hand. There should be no compromise on this matter," Drilon said.

By MARICHU VILLANUEVA, with reports from Delon Porcalla, Jose Rodel Clapano, Perseus Echeminada