August 22, 2000, Seattle Times / AP, Libya to pay ransom for hostages held by Philippine rebels, by Jim Gomez,

August 22, 2000, Seattle Times / AP, Libya to pay ransom for hostages held by Philippine rebels, by Jim Gomez, 

MANILA, Philippines - Libya reluctantly agreed to pay the entire multimillion-dollar ransom demanded by Philippine Muslim guerrillas in a last-ditch effort to win the release of 12 foreign hostages, negotiators said yesterday.

Members of the negotiating team said privately that a deal to free all 24 captives held by the separatists in the southern Philippine jungle fell through Saturday because Libya offered only $700,000 for each foreigner instead of the $1 million the rebels wanted.

Oil-rich Libya denies paying any money directly to the Abu Sayyaf rebels, saying all of it will go to economic development projects in the impoverished region.

Libya, which has long had ties with Philippine Muslim separatists, has played a prominent role in negotiations, hoping it can improve its international image. Libya threatened to end negotiations if there was no progress, then said Sunday that it reconsidered after appeals from European countries.

The Abu Sayyaf hold six French citizens, two Germans, two Finns, two South Africans and 12 Filipino evangelists who came to pray for the hostages.

Most of the foreigners were taken from a Malaysian resort April 23, although three French journalists were seized while visiting the camp last month.

Three Malaysians were freed Friday. An estimated $5.5 million was paid last month for the release of six other Malaysians and a German, Philippine officials say.

The payments have led to fears that the rebels will buy more weapons for more kidnappings.

Chief government negotiator Robert Aventajado said he recommended a new approach to negotiations, which Libya approved yesterday, but declined to offer details. He said only that negotiators will continue trying to gain all the hostages' release at once.

But presidential spokesman Ricardo Puno said Aventajado was given the right to "make decisions on the ground," suggesting he could decide to accept the release of the hostages in batches.

A Libyan negotiator said Libya and the Philippine government decided to accept a rebel demand that the hostages be released in at least two groups.

The first would consist of the remaining Western women. The men's release would follow, according to the Libyan, who spoke on condition of anonymity.

The rebels fear attack once the hostages are out of range.