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DATE=9/1/2000 TYPE=CORRESPONDENT REPORT TITLE=PHILIPPINE HOSTAGES (L-ONLY) NUMBER=2-266049 BYLINE=GRACE CUTLER DATELINE=HONG KONG CONTENT= VOICED AT: INTRO: Islamic rebels holding an American man hostage in the Southern Philippines have reportedly demanded 10 million dollars for his release. As Grace Cutler reports from our Asian News Center, the United States has said it refuses to pay any ransom. TEXT: Broadcast on Radio Mindanao Network, Abu Sayyaf spokesman Abu Ahmad Sabaya said the 10 million dollar demand was made through a government representative close to the hostage negotiations. Mr. Sabaya expressed concern for Jeffrey Schilling's health -- the California resident the group says they have been holding on the island of Jolo since Tuesday. He asked that food and medicine be sent for Mr. Schilling, who U-S officials say suffers from serious health problems. It has been agreed that provisions will be sent through the Red Cross. Earlier in the week, the Abu Sayyaf threatened to behead Mr. Schilling if the United States did not meet their demands, which included the release of three international terrorists jailed in the United States for the bombing of the 1993 World Trade Center. The rebel group also requested that Libya, Iraq, North Korea and China be included in the negotiations for Mr. Schilling's release. The Philippine government has rejected international assistance to help free Mr. Schilling. The U-S State Department has said it will not make deals with the rebels and has refused to pay any ransom. The Abu Sayyaf, who are calling for an independent Muslim state in the southern Philippines, say Mr. Schilling is a C-I-A agent and tried to pass himself off as an Islamic convert. The same group was responsible for the kidnapping of about 50 school children and teachers in March in the southern Philippines. A different faction of the Abu Sayyaf are still holding six foreign hostages and several others on the island of Jolo. (signed) NEB/HK/GC/PLM 01-Sep-2000 08:21 AM EDT (01-Sep-2000 1221 UTC) NNNN Source: Voice of America .





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