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26 August 2000 - AP

Rebel Arrests Snag Hostage Release

By JIM GOMEZ, Associated Press Writer

ZAMBOANGA, Philippines (AP) - Muslim rebels threatened to call off a deal to free six hostages after police arrested two men carrying bundles of money believed to be part of a ransom payment, officials said Friday.

The two suspected Abu Sayyaf rebels were arrested Thursday while trying to convert $240,000 into Philippine pesos at a bank in the city of Zamboanga, police said.

Abu Sayyaf commander Ghalib ``Robot'' Andang earlier agreed to release six foreign hostages - three French women, a South African woman, a German man and a Finnish man - on Saturday. But he told a go-between late Thursday that he would not free them unless the two detained rebels were released, an official close to the negotiations said.

A lawyer was attempting to obtain bail for the two suspects.

Police Supt. Angelito Casimiro said the two men were detained on suspicion they were Abu Sayyaf rebels after they tried to exchange bundles of $100 bills at a government bank.

The military says the rebels were paid more than $5.5 million for the earlier releases of nine Malaysians and a German.

Zamboanga, a southern port city, is about three hours by ferry from Jolo, the impoverished island where the rebels are holding their hostages.

The Abu Sayyaf kidnapped 21 people from Malaysia's Sipadan diving resort on April 23. Most have been released for ransom, but three French, two Germans, two Finns and two South Africans remain.

The rebels are also holding three French television journalists who visited their hideout and 12 Filipino Christian evangelists who came to pray for the hostages.

All are imprisoned in primitive mountain camps on Jolo, 580 miles south of Manila.

The rebels say they are fighting for an independent Islamic state in the predominantly Roman Catholic Philippines, but the government says they are a group of bandits who thrive on kidnapping and piracy.

Asked whether the hostages would be released Saturday, President Joseph Estrada replied, ``I don't know yet.''

The expected release last week of the 12 remaining foreign hostages fell through when Libya, which is playing a prominent role in the negotiations, offered only $700,000 per captive instead of the $1 million demanded by the guerrillas.

Andang agreed to release some hostages Saturday after Libya agreed to pay the full amount, negotiators said. The group fears a military attack after all are released, a spokesman said.

``It will be done batch by batch because we're 100 percent sure they will launch an offensive,'' Abu Sayyaf spokesman Abu Escobar said.

Libya denies it is paying money directly to the rebels, saying the money will go to economic development projects in the region.

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