Filipino rebels expected to release local hostages

Muslim guerrillas holding Filipino and U.S

Muslim guerrillas holding Filipino and U.S. hostages may release two more Filipinos in the next few days as troops stepped up their pursuit of the fleeing rebels, sources close to the hostages' families has said.

Lawyer Mr Francis Ganzon, one of three Filipinos freed by the Abu Sayyaf rebels in the southern Philippines, said the health of the remaining hostages was deteriorating fast and urged the Filipino government to send Red Cross workers to the rebel area.

Sources close to the families of the hostages told Reutersthe rebels were considering releasing two more Filipinos but gave no other details.

The sources said the guerrillas have been using a satellite phone to contact the victims' families and make ransom demands, with the amounts depending on the social status of the families.

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President Gloria Macapagal Arroyo has said her government is sticking to its no-ransom policy and demanded the unconditional release of the victims.

But the sources said administration officials were aware of the ransom discussions between the Abu Sayyaf and the hostages' families.

The military has poured thousands of troops into Basilan island, a mountainous area where the hostages are held, but has had no encounter for about a week with the kidnap gang, estimated to number 100, not counting local support.

They have scouts who tell them when the military is near so they avoid contact, National Security Adviser Mr Roilo Golez said.

Mr Ganzon told RMNradio yesterday that he last saw the Americans - missionary couple Mr and MrsMartin and Grace Burnham and Californian tourist Mr Guillermo Sobero - after clashes between troops and the rebels in Lamitan town on Basilan on June 2nd.

Rebel spokesman Abu Sabaya said on June 12 the rebels had beheaded Mr Sobero but there has been no confirmation of this.