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DATE=8/30/2000 TYPE=CORRESPONDENT REPORT TITLE=PHILIPPINES HOSTAGE (L) CQ NUMBER=2-265975 BYLINE=AMY BICKERS DATELINE=TOKYO INTERNET=YES CONTENT= VOICED AT: ////// DROPS LAST PHRASE OF INTRO TO CR2-265975. ///// INTRO: The United States is refusing to negotiate with extremist Muslim rebels in the southern Philippines who are holding an American man hostage. V-O-A's Amy Bickers reports. TEXT: The Abu Sayyaf rebel group says its American hostage will be killed unless negotiations are held. A rebel spokesman says the group will issue detailed demands later this week. In a local radio interview, he demanded that representatives of North Korea, China, Iraq, Saudi Arabia, and Libya also take part in the talks. Jeffrey Craig Schilling of California was taken hostage Monday in the southern Philippines city of Zamboanga. What he was doing there remains unclear. The U-S Consul-General to the Philippines denies that he is a spy, as alleged by the rebels. His mother, Carole Schilling, also denies the allegations. She says her son went to the Philippines in March, married a Philippine woman and was abducted during a visit to Jolo. /// SCHILLING ACT /// The U-S Embassy has contacted me several times, and the U-S State Department, also. We are just hoping to find out what it is they want and I would like to know that he is still safe. /// END ACT /// The kidnapping came as another faction of the Abu Sayyaf freed six of the two-dozen captives it had held on Jolo Island. Many of the hostages had been held for four months. Millions of dollars of ransom has reportedly been paid. But State Department spokesman Phil Reeker says the United State will not negotiate: /// REEKER ACT /// U-S policy is very clear: We do not make deals with terrorists. We will not pay ransom. We will not change policies. We will not release prisoners or make any other concessions that will reward hostage-taking. /// END ACT /// Mr. Schilling is the first American, but the latest victim of Abu Sayyaf kidnappers demanding huge sums of money. The group has taken dozens of foreign and local people hostage since April. About 20 people remain captive on remote Jolo Island. The rebels have said that one of their demands for releasing Mr. Schilling will be for the United States to free three Islamic militants serving prison sentences for the bombing of the World Trade Center in 1993. The United States rejects the demand outright. But a spokesman for the Philippine government told reporters that Manila will negotiate for Mr. Schilling's release, saying it is his country's responsibility to do so. But others in the Philippine government have expressed concerns that the large ransom payments recently made to the rebels and protracted negotiations have encouraged the latest abduction. (SIGNED) NEB/HK/AB/JO/rae 30-Aug-2000 08:01 AM EDT (30-Aug-2000 1201 UTC) NNNN Source: Voice of America .





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