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23 June 2000 - AFP

HOSTAGE CRISIS PUSHING TOWARDS CASH SOLUTION

JOLO (Philippines) -- As an international hostage crisis enters into its third month, the Philippine government said yesterday that it expects to wear down the Muslim extremist kidnappers into settling for a straight cash-for-captives swop.

President Joseph Estrada's chief aide, Mr Ronaldo Zamora, said that although there is currently no such discussion regarding the ransom, the Muslim rebels' demands might no longer be political as they would also demand ransom.

The Abu Sayyaf has formally tabled political demands, most of them deemed by the government as ""impossible'' -- including the establishment of an Islamic nation in the southern Philippines.

Some of the guerilla leaders have told government emissaries informally that they would free the hostages for US$21 million (S$36.5 million), emissaries said.

Executive Secretary Zamora said in a radio interview yesterday that as soon as the rebels formally table a demand for ransom, government negotiators would persuade them to convert the ransom into development projects for Jolo island.

Manila has failed to make any headway in its efforts to convince the guerilla group to free their Filipino, Finnish, French, German, Lebanese, Malaysian and South African hostages.

Foreign Affairs Secretary Domingo Siazon said yesterday that Manila is against ransom as ""it would prolong the negotiations''.

However, Manila would not stand in the way if foreign governments were to ""strike their own deals'' and offer cash to the rebels to redeem their citizens.

The hostages were taken from the Malaysian resort island of Sipadan on April 23 and shipped to the southern Philippine island of Jolo.

The Abu Sayyaf styles itself as independence fighters, but the police consider them ordinary bandits and pirates. --AFP

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