Philippine soldiers killed in hostage drama

Soldiers surround the hospital where rebels took shelter and more hostages

By staff and wire reports

ISABELA, Philippines -- Two soldiers were killed when Muslim extremists holding an estimated 20 hostages clashed with pursuing troops Tuesday, a military official said.

Colonel Horacio Lapinit described it as a "fierce fire fight" between military and Abu Sayyaf forces holding the hostages, Associated Press reports.

It began shortly after 11 a.m. (Philippines time) and was still going on a half-hour later, coming on the heels of another clash just before sundown Monday.

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"Ongoing fighting proves we are constantly tracking down the rebels," Lapinit told reporters at the military's southern command.

The fighting was taking place on the slopes of Mount Sinangcapan, a 600-meter (2,000-foot) peak in the east of Basilan island in the southern Philippines. There was no word on the condition of the hostages, who Lapinit said were being used as human shields.

"We still believe that these hostages used as shields by the bandits are still alive."

The clash occurred after the military said a negotiating team has "established contact" with the Abu Sayyaf extremists who have been on the run since capturing 20 hostages in a raid on a beach resort nine days earlier, Brig. Gen. Edilberto Adan said.

"It is very difficult to pursue them for fear of injuring hostages," Adan told a news conference.

He would not specify how contact had been made with the group, who normally use satellite telephones and two-way radios to communicate.

But he ruled out any ransom or major political concessions like the separate Muslim homeland that the Abu Sayyaf claims it is fighting for.

"The strategy is to apply military pressure and at the same time talk to them and communicate," Adan said.

"This is a negotiation not for ransom, but to find out what they want and under what conditions the hostages can be released. Without fighting, the other party may not be in a condition to talk at all."

Reports of ransoms being paid

The contact follows unconfirmed reports that some of the nine hostages who managed to flee while the Abu Sayyaf occupied a hospital in the nearby town of Lamitam had paid ransoms and were allowed to escape.

"We are not aware of any ransom paid for any of the hostages," Adan said.

"We do not know what the terrorists will be asking, but judging from the statements from the governor of Basilan, these people are basically motivated by money. "That is one thing the government will not grant. That is also the same stand of the U.S. government. Giving money to these terrorists will only encourage many others to follow and no Filipino resort will be safe."

The Philippine military has said it favors emergency law on a southern island.

A state of emergency in Basilan would give the military and police powers to detain people without arrest warrants -- the same powers President Gloria Macapagal-Arroyo used last month to quell an alleged coup plot after thousands of supporters of former leader Joseph Estrada assaulted the presidential palace.

Hostages seen tied together

A spokesman said the military might be able to deal more effectively with the hostage crisis if it could crack down on the Muslim villagers providing sanctuary to the Abu Sayyaf.

Villagers earlier reported sighting the hostages lashed together with a rope and being dragged by their captors through the jungle near Tuburan town on Basilan.

"Resident said they were tied into one cluster," a local politician, who asked not to be identified, told reporters.

The military said the Abu Sayyaf, who numbered about 100, were trying to link up with guerrillas of the Moro Islamic Liberation Front (MILF), a much larger separatist group.

Both are fighting for an Islamic state in the south of the mainly Catholic country, but the government has dismissed the Abu Sayyaf as a group of bandits.

The Abu Sayyaf first kidnapped 17 Filipinos and three Americans from a luxury resort in the western Philippine province of Palawan on May 27.

Two dead hostages found

The military has found the bodies of two Filipino hostages, one of them beheaded.

President Arroyo has vowed the offensive would not stop until the rebels were vanquished or surrendered unconditionally.

Last year, the government of former president Estrada tried to negotiate with the Abu Sayyaf after a series of kidnappings of foreigners and Filipinos.

Millions of dollars in ransom changed hands and were used by the group to buy more arms.