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31 August 2000 - AP

State Dept. Rules Out U.S. Deals

WASHINGTON (AP) - The State Department Wednesday ruled out paying ransom or making any deal with rebels in the Philippines who are holding an American hostage and threatening to execute him if their still-undisclosed demands are not met.

In a statement issued Wednesday in Washington and in Manila, the department condemned the abduction of Jeffrey Schilling of Oakland, Calif., and called for his safe release and for the release of 18 other hostages on southern Jolo island.

A spokesman for the Abu Sabaya rebels said in Zamboanga, Philippines, that they will behead Schilling. Six Western hostages were released earlier this week for a reported $6 million ransom paid by Libya.

The State Department steered clear of what outsiders might do to try to free Schilling. ``We have no comment about any steps which might be taken to secure the release of the American hostage,'' the statement said.

It added, however, ``we want to make it very clear that the U.S. government does not make deals with terrorists.''

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