Military

DATE=9/2/04

TYPE=CORRESPONDENT REPORT

NUMBER=2-318682

TITLE=RUSSIA / SCHOOL SIEGE (L)

BYLINE=BILL GASPERINI

DATELINE=MOSCOW

CONTENT=

VOICED AT:

HEADLINE: Talks with Terrorists in Southern Russia Go Nowhere

INTRO: Russian officials say there has been no progress in talks with militants holding over 300 people hostage inside a school in the region of North Ossetia near war-torn Chechnya. President Vladimir Putin has postponed a trip to Turkey to deal with the crisis. Bill Gasperini has more from Moscow.

TEXT: Officials maintained telephone contact with the militants for nearly three hours through the night as the hostage siege continues for a second day. They offered to grant the militants safe passage out of the region and requested to exchange adults for the more than 100 children being held, but were turned down by the militants.

The group of about 17 heavily-armed attackers stormed into the school on Wednesday during a ceremony to mark the first day of class in the new school year. Some have suicide bomb belts strapped on and have threatened to set off the explosives if Russian troops make any attempt to storm the building.

Outside on the school grounds hundreds of anguished parents kept an all-night vigil, at times pleading with soldiers to do whatever possible to free their children. On Wednesday the militants demanded to talk with the president of North Ossetia and that other rebels jailed in the nearby region of Ingushetia be freed.

But now they are also reportedly demanding that all Russian troops be withdrawn from Chechnya.

Some officials believe the militants are linked with Shamil Basayev, the most notorious of rebel commanders in Chechnya who claimed responsibility for the hostage-taking siege at a Moscow theater nearly two years ago.

That incident ended after a knock-out gas was pumped in to immobilize Chechen militants, but it led to the deaths of over 100 of the hostages as well.

President Vladimir Putin continues to discuss options with his advisers in the Kremlin, and has postponed an official trip to Turkey because of the crisis.

On Wednesday Russia took the unusual step of asking the U.N. Security Council to condemn the hostage-taking, and a strong statement was later passed unanimously.

Historically Russia has refrained from taking its fight in Chechnya before the international community.

But Defense Minister Sergei Ivanov says the current crisis reflects the global issue of terrorism.

/// IVANOV ACT, IN RUSSIAN WITH ENGLISH VOICEOVER ///

The world must close ranks against this danger, even though it is a very difficult thing to confront. However it must be fought, and we will do that using all of the means and resources at our disposal, including political resources.

/// END ACT ///

Mr. Ivanov did not elaborate on what he meant by political resources. The Kremlin has long characterized the conflict in Chechnya as solely an issue of terrorism, ruling out any attempt to seek a political solution to the problem.

And there is little indication that policy has changed in light of recent events, including the downing of two airliners last week and a bombing in Moscow, which are believed to be the work of Chechen suicide bombers. (Signed)

NEB/BG/MAR/MEM