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DATE=5/22/2000 TYPE=CORRESPONDENT REPORT TITLE=PHILIPPINES SITREP (L UPDATE) NUMBER=2-262639 BYLINE=KONRAD MULLER DATELINE=MANILA CONTENT= VOICED AT: INTRO: In the Philippines, Muslim rebels holding 21 hostages failed to show up for talks with government negotiators on Monday, dealing another blow to efforts to win the release of the hostages, who are entering their fifth week of captivity. As Konrad Muller reports from Manila, this latest setback is one in a long series. TEXT: Formal talks with the rebels have been repeatedly delayed by skirmishes with government forces, changes in the negotiating teams and security arrangements for the meeting. The hostage crisis and a series of violent incidents and explosions have taken a toll on the Philippine economy and investor confidence. The country's stock exchange hit a new 19-month low Monday, dropping four and a half percent. Sunday, a bomb exploded at a cinema in Manila's largest shopping complex, killing one person and injuring 14. It was the second bombing of a Manila mall in a week. It is still not clear if the bombings are related to the Islamic insurgency in the south of this mostly Christian nation. Philippine Defense Secretary Orly Mercado has suggested another Muslim rebel group might be behind the terror. However, the Moro Islamic Liberation Front, or M- I-L-F, denies the charge. Moreover, the M-I-L-F signaled a willingness Monday to resume peace talks with Manila on May 30th. A fragile cease-fire appears to be holding for the moment after some of the worst fighting in the southern Mindanao region in recent years. (Signed) NEB/KM/JO/KL 22-May-2000 09:22 AM EDT (22-May-2000 1322 UTC) NNNN Source: Voice of America .





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