Tuesday, February 26, 2019



2 more banks face sanctions for peso speculation



September 4, 2000, AFP, American seen freed in two weeks if Muslim rebels are "reasonable",

September 5, 2000, The Straits Times, Manila may attempt rescue of US hostage, by Luz Baguioro,

September 6, 2000, AFP, Mother of US held hostage in Philippines breaks silence,
September 6, 2000, AP, Philippine Rebels Won't Swap Hostage, by Jim Gomez, Associated Press Writer

September 20, 2000, NYT, Officials Puzzle Over American's Behavior : Hostages' Fate Unclear As Filipinos Hit Rebels, by Thomas Fuller,



Sayyaf threatens to behead Schilling
ZAMBOANGA CITY, (ABS-CBN) - Abu Sayyaf spokesperson Abu Sabaya issued a stern warning on Wednesday that they will behead the abducted American national, whom they accused of being a Central Intelligence Agency Agent if the Philippine government fails to give in to their demands.

Sabaya said that they will give their three-point demand on Thursday, even as he reiterated his group's oft-repeated 'scare scheme' that they will behead Jeffrey Craig Edwards Schilling.

"Dapat maghanda ang Malacañang....kapag sinabi naming pupugutan namin ito ng ulo, pupugutan namin," he said in a radio interview.

["Malacañang should prepare itself because when we say that we are going to behead Schilling, we will not hesitate."]

Meanwhile, the Abu Sayyaf also claimed that Schilling's Filipina fiancé is also an intelligence agent. 

In a local radio interview on Wednesday, Abu Sayyaf spokesperson Abu Sabaya revealed Ivy Osani, Schilling's fiance is a deep penetration agent of the American CIA.

Sabaya reportedly pointed out that Osani was instrumental in the arrest of several leaders of the Abu Sayyaf. He, however refused to elaborate.

"Ginamit siya ng CIA itong si Ivy na ito para ....ditokamag-anak ko nga ito," he reportedly said.

["The CIA used Ivy, who is my relative."]

A mother's plight
Following confirmation of reports that the Abu Sayyaf rebels have Schilling in their custody, police invited Osani for questioning late Tuesday afternoon then turned her over to the Presidential Anti-Organized Crime Task Force (PAOCTF) on Tuesday night.

Her mother, Aida Ajijul, took the first ferry out of Basilan to Zamboanga on Wednesday to see Ivy. Mrs. Ajijul confirmed she is related to Sabaya's father.

But PAOCTF officials told Ajijul that Ivy was transferred to a local hospital after she developed fever.

Meanwhile, Ajijul has threatened to seek legal assistance to secure the freedom of her daughter after the local PAOCTF failed to produce her late Wednesday.

For his part, Commission on Human Rights (CHR) regional director Manuel Mamauag said Mrs. Ajijul has to file a formal petition before the CHR steps in.

A police source has confirmed that charges may be filed against Ivy but could not expound on the specifics.

Hours after news of Schilling's kidnapping broke out Tuesday, a new twist developed after Ivy herself admitted that her uncle, Sabaya, invited her and Schilling to visit the Abu Sayyaf camp in Patikul town in Jolo, Sulu.

They accepted Sabaya's invitation last Sunday. When they were at the outskirts of Jolo town, Sabaya's men took Schilling hostage but set Ivy free.

... and another mother's plight
"I'm just scared, " said Carol Schilling, Jeffrey's mother, her eyes rimmed red and her voice trembling as she reacts to her son's abduction. "I don't know what's going to happen next. I'm just hoping that everybody will pray for him - I'd like him home safe," she added.

Aside from Schilling, the Abu Sayyaf is currently holding 22 hostages in their jungle lair in Talipao town, Jolo, Sulu.

Four of the original 21 Sipadan hostages remain in Abu Sayyaf custody as five of them were released last Sunday. Another South African was freed at noon on Monday. 

Two French television journalists abducted while covering the hostage crisis remain in captivity. Also being held in the rebel lair are 16 Filipino hostages, including the preachers from the Jesus Miracle Crusade (JMC) led by Wilde Almeda.

Late Monday night, a ring at the door from the Federal Bureau of Investigation (FBI) confirmed her fears.

And fearful of saying anything that could worsen the situation, Mrs. Schilling declined to talk about the specifics of the kidnapping.

But she and family friend Anthony Rodgers did dispute the rebel spokesman's claim that her son worked for the CIA. 

"This is in essence simply a love story. He just met a girl in the Philippines and fell in love. That's all the story is," Rodgers said.

"There's no CIA involvement. He's apolitical. He's not involved in any kind of terrorist group. He's just a guy who happens to be in love," he added.

Mrs. Schilling said her son went to visit the Philippines in March partly because of a longtime interest in the region - he has a degree in Near Eastern Studies from the University of California at Berkeley - and also to see the sister of some friends in Oakland. 

As it turned out, he fell in love with the sister and ended up staying in the Philippines, extending his tourist visa twice. 

Carol Schilling had tried three times to persuade her son to leave the Philippines. "He didn't come out. He was too much in love." 

But recently, Jeffrey had changed his mind and had been planning to fly home on September 3, intending to look for a job and start planning a future for himself and his fiancé, she said. 

"I had looked forward to him coming home and now I'm just scared," she said. 

She said her son converted to Islam six years ago. 

"We do not blame Islam or Muslims for the kidnapping," she said.

Schilling said she he has no idea why her son was taken, but at six feet tall he tends to stand out in a crowd.

"I think they were looking for any American they could get and they found one," she said

(With reports from Jun del Rosario and Pal Marquez)



August 29, 2000, ABS-CBN, 4:55 PM. Abu Sayyaf threatens to execute suspected CIA agent,
August 29, 2000, ABS-CBN, 7:39 PM, Aventajado confirms American's abduction,
August 30, 2000, ABS-CBN, 1:16 AM, Schilling's Filipina fiancée is Abu Sabaya's kin,
August 30, 2000, ABS-CBN, 4:35 PM, US slams door on talks for American's freedom,
August 31, 2000, ABS-CBN, [e-borneo] Schilling is no spy-- US gov't,
August 31, 2000, ABS-CBN, 10:28 PM, Schilling and Osani: Love at first chat,
August 31, 2000, ABS-CBN, 03:59 PM, American's kidnapping to boil down to ransom -- Mercado,
August 31, 2000, ABS-CBN, 6:39 PM, Schilling's wife suffers miscarriage,
August 31, 2000, ABS-CBN, 2:55 AM, Sayyaf threatens to behead Schilling,
September 1, 2000, ABS-CBN, 2:00 AM, Schilling kidnapping a con trick?,
September 1, 2000, ABS-CBN,3:49 PM, "Goodwill money" for American captive sought,
September 1, 2000, ABS-CBN, [e-borneo] Malacanang to create council for Schilling's release,
September 1, 2000, ABS-CBN, 6:54 PM, Malacañang denies RP-US offensive vs Abu Sayyaf,
September 3, 2000, ABS-CBN, 9:30 PM, Abu Sayyaf-Schilling conspiracy possible,
September 3, 2000, ABS-CBN, [e-borneo] Abu Sayyaf-Schilling conspiracy possible?,
September 3, 2000, ABS-CBN, [e-borneo] American captive's wife had a son with Abu Sayyaf leader,
September 4, 2000, ABS-CBN, [e-borneo] Biazon wants background investigation of Schilling
September 5, 2000, ABS-CBN, 7:08 PM, Abu Sayyaf rejects swap offer for Schilling,
September 5, 2000, ABS-CBN, 12:57 AM, Abu wants Danding, Erap in-law as negotiators,
September 7, 2000, ABS-CBN, 3:30 PM, Capture of Abu relative blocks release of American,


_________________________________________________________________________

August 29, 2000, ABS-CBN, 4:55 PM, Abu Sayyaf threatens to execute suspected CIA agent,

[pages 1 & 3 of four only]

ZAMBOANGA CITY, (ABS-CBN) - Abu Sayyaf bandits warned they would not hesitate to execute alleged US Central Intelligence Agency (CIA) agent Jeffrey Craig Edwards Schilling whom they kidnapped on Monday, unless Washington frees World Trade Center bomber Ramzi Yousef and two other convicted international terrorists.

"We will not hesitate to execute this American guy if President Estrada and US President Bill Clinton will not give in to our demands. This will be an embarrassing situation for them," threatened Abu Sayyaf spokesman Abu Sabaya through a local radio station.

Chief hostage negotiator Robert Aventajado confirmed on Tuesday afternoon the veracity of Schilling's abduction.

Sabaya announced over DXRZ radio in the southern city of Zamboanga earlier Tuesday that the gunmen are holding Schilling, whom they claim is a spy of the US CIA.

Reportedly tortured, Schilling was forced to admit his affiliation, according to Senator Rodolfo Biazon who quoted a high-ranking military official.

However, defense secretary Orlando Mercado declared that Schilling is not a CIA agent nor a member of the US military.

Sabaya added that Schilling is a native of Minnesota with passport number 055689589.

The Abu Sayyaf spokesman reiterated a demand they made months earlier that the US government should release Yousef and two other international terrorists, Abdurahman Omar and Abu Haider, who were jailed for the 1993 bombing of the World Trade Center in New York.

It was unclear if Abdurahman Omar is Sheik Omar Abdel Rahman, a Muslim cleric arrested for plotting to bomb several New York City establishments.

Haider is reportedly one of the teachers of an Abu Sayyaf leader.

The demand was first aired at the height of the Basilan hostage crisis which started in March, involving 31 school children, teachers and a Claretian priest . Six were found tortured and eventually killed, including the priest, Fr. Rhoel Gallardo.

Besides the release of the three terrorists, Sabaya said Abu Sayyaf has "two more demands" which they will disclose within three days.

"We cannot reveal (them) now," Sabaya said.

Asked by reporters if he would allow the American captive to speak to the press, he said: "Maybe in three days we will allow him, but today we will not allow him."

Page: 1 2 3 4 Next »

continued, page 3 of 4

When asked if the government would welcome US assistance in handling the latest development, Senga could only say, "They have to respect the sovereignty of the Philippines and it's in the realm of policy. The military will abide with whatever decision of the national leadership."

On the possible escape of Abu Sayyaf bandits to Sabah after all hostages are freed, Senga said: "We don't want them to flee but we're not talking of operations matters."

He said that possibilities abound regarding the Sulu crisis, including the escape of the terrorists.

"Anything is possible here and considering that the area is very big , we cannot guard every corner of it," Senga said.

Still investigating 

The US Embassy in Manila said on Tuesday afternoon it still lacked ample information about the incident and is still conducting an investigation.

"We"ve heard the stories, the same place as you have on the radio, and of course we"re checking into it, but we don"t have confirmation yet," said Thomas Skipper, a spokesman for the US Embassy in Manila.

Reuters reported that a man called their Manila office claiming that Schilling had been taken to Jolo, an island 150 km (100 miles) southwest of Zamboanga, where the Abu Sayyaf is holding at least six other Westerners in jungle hideouts.

The caller gave conflicting information about the identity of the man but said he was "a big man, around a six-footer, and it is turning out that he is a member of the CIA."

The presence of five US Embassy officials now in Zamboanga City to investigate the incident is just standard operating procedure, the embassy said.

Still in effect is a US State Department advisory issued last June discouraging Americans from travelling to Mindanao, particularly General Santos City, Cotabato, Basilan, Sulu, amd Tawi-Tawi.

US assistance still welcome

Abu Sayyaf bandits who reportedly abducted an American national allegedly working for the CIA are digging their own grave.

Press secretary Ricardo Puno said this Tuesday, even as he warned the Abu Sayyaf that they are just making the situation worse should they not stop their kidnapping activities.

"All they are doing here is they are going to galvanize the international opinion against them, and they are going galvanize international action against them. Kaya nga ang sinasabi ko kung totoong Amerikano ito, kung totoong CIA ito hindi sila dapat matuwa," Puno told DZXL.

[ . . . That's why I'm saying that if (the captive) is really an American, if he is really with the CIA, they shouldn't rejoice.]

Page: 1 2 3 4 Next »
________________________________________________________________________

August 29, 2000, ABS-CBN, 7:39 PM, Aventajado confirms American's abduction,

QUEZON CITY, (ABS-CBN) - Chief government negotiator Robert Aventajado confirmed on Tuesday afternoon the abduction of American national Jeffrey Craig Schilling on Monday by an Abu Sayyaf faction headed by guerrilla leader Commander Radullan Sajiron.

In an interview over ABS-CBN's TV-Patrol on Tuesday, Aventajado said he has received confirmed intelligence reports that Schilling, an alleged agent of the Central Intelligence Agency (CIA) of the United States, was indeed abducted by the bandit group and is now being held in the rebels' lair in the town of Patikul in Jolo, Sulu.

"Nag-report na sa akin itong inutusan kong mga tao na pumunta mismo dito sa kampo ni Kumander Radullan Sajiron. Nandoon nga itong si Kumander (Abu) Sabaya at kinumpirma nga nila na nandoon nga si Jeffrey Craig Schilling at nakuha nga siya ng Abu Sayyaf kahapon," Aventajado said.

[The people I sent to the camp of (Abu Sayyaf) commander Radullan Sajiron reported that Commander Sabaya and Jeffrey Craig Schilling are there and that (Schilling) was abducted by the Abu Sayyaf yesterday.]

Based on the report, Aventajado said, Schilling was with a local woman who served as his tour guide.

The chief government negotiator added they would look into reports that the woman may have been an accomplice in the kidnapping.

"May kasama siya na gumaganap na tourist guide na babae na pinaghihinalaan na kasabwat kung papaano nakuha itong si Schilling. Marunong mag-Tagalog at mag-Tausug itong babae," he added.

[He had a female companion who acted as a tourist guide and who is suspected of being an accomplice in Schilling's kidnapping. She knows how to speak Tagalog and Tausug.]

Meanwhile, Aventajado said the Philippine government has yet to discuss what action it would undertake to rescue Schilling.

Early Tuesday, Aventajado dispatched a group of emissaries to the jungle hideout of the Abu Sayyaf to verify a claim that they had abducted an American man.

"I'm sending my people to the camp of Commander Radulan where Abu Sabaya is staying to find out whether there is truth to this," Aventajado had said.

Abu Sabaya, spokesman of the Abu Sayaf who belongs to a faction headed by Commander Sajiron, announced on DXRZ radio on Tuesday that Schilling was abducted in Zamboanga City on Monday. He was then transported to Sulu via speedboat and was taken to Sajiron's camp in Patikul town.

The US embassy, on the other hand, has dispatched five officials, including an agent of the Federal Bureau of Investigation to Zamboanga City late Tuesday afternoon to conduct its own operations in checking the veracity of the report.

The Abu Sayyaf is still holding hostage six Europeans and 16 Filipinos including 12 preachers of the Jesus Miracle Crusade, three construction workers, and Rolando Ullah - who was among the 21 hostages seized from Sipadan Island in Malaysia last April and is now being kept in Sajiron's camp.

__________________________________________________________________________
August 29, 2000, ABS-CBN, 4:55 PM. Abu Sayyaf threatens to execute suspected CIA agent,

[pages 1 and 3 of four only]

ZAMBOANGA CITY, (ABS-CBN) - Abu Sayyaf bandits warned they would not hesitate to execute alleged US Central Intelligence Agency (CIA) agent Jeffrey Craig Edwards Schilling whom they kidnapped on Monday, unless Washington frees World Trade Center bomber Ramzi Yousef and two other convicted international terrorists.

"We will not hesitate to execute this American guy if President Estrada and US President Bill Clinton will not give in to our demands. This will be an embarrassing situation for them," threatened Abu Sayyaf spokesman Abu Sabaya through a local radio station.

Chief hostage negotiator Robert Aventajado confirmed on Tuesday afternoon the veracity of Schilling's abduction.

Sabaya announced over DXRZ radio in the southern city of Zamboanga earlier Tuesday that the gunmen are holding Schilling, whom they claim is a spy of the US CIA.

Reportedly tortured, Schilling was forced to admit his affiliation, according to Senator Rodolfo Biazon who quoted a high-ranking military official.

However, defense secretary Orlando Mercado declared that Schilling is not a CIA agent nor a member of the US military.

Sabaya added that Schilling is a native of Minnesota with passport number 055689589.

The Abu Sayyaf spokesman reiterated a demand they made months earlier that the US government should release Yousef and two other international terrorists, Abdurahman Omar and Abu Haider, who were jailed for the 1993 bombing of the World Trade Center in New York.

It was unclear if Abdurahman Omar is Sheik Omar Abdel Rahman, a Muslim cleric arrested for plotting to bomb several New York City establishments.

Haider is reportedly one of the teachers of an Abu Sayyaf leader.

The demand was first aired at the height of the Basilan hostage crisis which started in March, involving 31 school children, teachers and a Claretian priest . Six were found tortured and eventually killed, including the priest, Fr. Rhoel Gallardo.

Besides the release of the three terrorists, Sabaya said Abu Sayyaf has "two more demands" which they will disclose within three days.

"We cannot reveal (them) now," Sabaya said.

Asked by reporters if he would allow the American captive to speak to the press, he said: "Maybe in three days we will allow him, but today we will not allow him."

Page: 1 2 3 4 Next »

continued, page 3 of 4

When asked if the government would welcome US assistance in handling the latest development, Senga could only say, "They have to respect the sovereignty of the Philippines and it's in the realm of policy. The military will abide with whatever decision of the national leadership."

On the possible escape of Abu Sayyaf bandits to Sabah after all hostages are freed, Senga said: "We don't want them to flee but we're not talking of operations matters."

He said that possibilities abound regarding the Sulu crisis, including the escape of the terrorists.

"Anything is possible here and considering that the area is very big , we cannot guard every corner of it," Senga said.

Still investigating 

The US Embassy in Manila said on Tuesday afternoon it still lacked ample information about the incident and is still conducting an investigation.

"We've heard the stories, the same place as you have on the radio, and of course we"re checking into it, but we don"t have confirmation yet," said Thomas Skipper, a spokesman for the US Embassy in Manila.

Reuters reported that a man called their Manila office claiming that Schilling had been taken to Jolo, an island 150 km (100 miles) southwest of Zamboanga, where the Abu Sayyaf is holding at least six other Westerners in jungle hideouts.

The caller gave conflicting information about the identity of the man but said he was "a big man, around a six-footer, and it is turning out that he is a member of the CIA."

The presence of five US Embassy officials now in Zamboanga City to investigate the incident is just standard operating procedure, the embassy said.

Still in effect is a US State Department advisory issued last June discouraging Americans from travelling to Mindanao, particularly General Santos City, Cotabato, Basilan, Sulu, amd Tawi-Tawi.

US assistance still welcome

Abu Sayyaf bandits who reportedly abducted an American national allegedly working for the CIA are digging their own grave.

Press secretary Ricardo Puno said this Tuesday, even as he warned the Abu Sayyaf that they are just making the situation worse should they not stop their kidnapping activities.

"All they are doing here is they are going to galvanize the international opinion against them, and they are going galvanize international action against them. Kaya nga ang sinasabi ko kung totoong Amerikano ito, kung totoong CIA ito hindi sila dapat matuwa," Puno told DZXL.

[ . . . That's why I'm saying that if (the captive) is really an American, if he is really with the CIA, they shouldn't rejoice.]

Page: 1 2 3 4 Next »
__________________________________________________________________________
August 30, 2000, ABS-CBN, 1:16 AM, Schilling's Filipina fiancée is Abu Sabaya's kin,

ZAMBOANGA CITY, (ABS-CBN) - The Filipina fiancée of kidnapped American national Jeffrey Craig Edwards Schilling admitted she is a relative of Abu Sayyaf spokesman Abu Sabaya, who announced Tuesday the abduction over a local radio station in the city.

Sabaya, who belongs to an Abu Sayyaf faction headed by Commander Radulan Sajiron, later threatened to execute the "American guy" if President Estrada and US President Bill Clinton do not give in to their demands to release three international terrorists jailed in the US.

Schilling's Filipina live-in partner, Ivy Osani, was presented to authorities for an interview early Tuesday evening, a report on the ABS-CBN News Channel's The World Tonight said.

Osani said she was confident her American fiancée would be released when they were taken to Jolo, Sulu. But upon reaching Jolo, Abu Sayyaf members reportedly separated them and took Schilling to their camp in the Patikul hinterlands.

Sources speculated that Schilling's fiancée was used as an accomplice by the Abu Sayyaf.

Following his admission about the latest abduction, chief hostage negotiator Robert Aventajado said Schilling was with a local woman who served as his tour guide.

For his part, defense secretary Orlando Mercado explained that the American went to the Philippines in search of a wife after having recently converted to Islam.

Mercado denied that the American captive is a Central Intelligence Agency (CIA) operative.

"We do not know him, he's not a government employee, he's a private person," Mercado said.

Earlier reports said Schilling was tortured and forced to admit his affiliation with the CIA, according to Senator Rodolfo Biazon who quoted a high-ranking military official.

The US Embassy has sent a consular team to coordinate with Aventajado to negotiate for the release of Schilling.

The embassy team, headed by the consul general and four other officials, including a representative of the Federal Bureau of Investigation, arrived Tuesday afternoon in Zamboanga City but refused to issue any statement to the media.

Mercado stressed that the defense department would not meddle in the problem. Instead, it would be the task of the Department of Foreign Affairs and the US embassy to facilitate the release of Schilling.

Despite Aventajado's confirmation of the kidnapping, the Jolo police believes Schilling voluntarily went to the Abu Sayyaf lair.

According to Jolo police chief Mohamad Noe Alamiya, Schilling was looking for a guide to reach the bandits' lair and was not abducted

Schilling and Osani

Rene Bautista Jr., son of the landlord where the couple were staying, said that since two months ago, Schilling had been living with his supposed fiancée in a room she rented since 1998. Bautista said Schilling and Osani got acquainted through the internet.

Bautista said Osani is a masteral student of Ateneo de Zamboanga.

He further revealed that Schilling often stays in his girlfriend's room whenever Osani goes to school but also goes to a mosque every Friday.

On Sundays, both Schilling and Osani go out on a date at the Mindpro Citimall downtown.

However, Bautista said the couple left their room last Sunday and has never returned since.

Meanwhile, Malacañang said the kidnapping was another black-eye for the Abu Sayyaf which has already earned international condemnation for its kidnap-for-ransom activities.

The Palace, however, claimed the latest kidnapping incident would not affect President Estrada's scheduled trip to the US next week.

(With reports from Rey Candido, Janice Sabnal and David Santos)

____________________________________________________________________________

August 30, 2000, ABS-CBN, 4:35 PM, US slams door on talks for American's freedom,

QUEZON CITY, (ABS-CBN) - The United States flexed its superpower muscles and rejected any form of negotiation for the release of American Jeffrey Craig Edward Schilling, who is being held by Abu Sayyaf rebels in the jungles of Jolo.

US State Department spokesperson Philip Reeker said on Tuesday the country is calling for the "immediate and unconditional" release of the American. He added a ransom payment and the fulfillment of certain Abu Sayyaf demands is out of the question.

"The US government wants to have the release of all the hostages immediately and unconditionally. We support effort by negotiators to find a quick resolution. We are extremely concerned about the safety of all the hostages and obviously look forward to the release," Reeker said in a news conference in Washington.

"But again as far as paying ransom is concerned US policy is very clear we do not make deals with terrorists," he stressed.

"We will not pay ransom, we will not change policy, we will not release prisoners or make any other concessions or other rewards for hostage-taking," Reeker added.

Earlier, the Muslim extremist group threatened to behead Schilling if their demand that three suspected Muslim terrorists who are currently being held in various US penal institutions are not freed. These include Abu Haider, Ramzi Yousef and Omar Abdel Rahman.

Asked if they are afraid of a counter-offensive from the US, Abu Sayyaf spokesperson Abu Sabaya had replied: "It is most welcome."

On Wednesday morning, Chief government negotiator Robert Aventajado, on the other hand, said the US government's position was "understandable."

"Kasi understandable naman sa kanila 'yon dahilan sa marami naman talagang tumatarget sa nationals nilabeing the superpower," Aventajado said in an interview on DZMM radio. "Kaya talagang very definite ang mgapolicies nila tungkol dito."

[Their response is understandable as many terrorists target American nationals. This comes with the US being a superpower. They have definite policies regarding these matters.]

Aside from Schilling, the Abu Sayyaf is currently holding 22 hostages in their jungle lair in Talipao town, Jolo, Sulu.

Four of the original 21 Sipadan hostages remain in Abu Sayyaf custody as five of them were released last Sunday. Another South African was freed at noon on Monday.

Two French television journalists abducted while covering the hostage crisis remain in captivity. Also being held in the rebel lair are 16 Filipino hostages, including the preachers from the Jesus Miracle Crusade (JMC) led by Wilde Almeda.

continued, page 2 of 2

What now?

So far, the Abu Sayyaf is reportedly willing to negotiate for Schilling's release provided there is an assurance that their demands will be met.

In an interview with Zamboanga City radio station DXRZ on Wednesday morning, Sabaya said his group is open to talks for the release of the American. However, he issued another warning that they will execute their latest captive if they sense that the government is not sincere in dealing with them.

When asked as to what actions will be undertaken regarding this new kidnapping, Aventajado said they are still in the process of determining their next move, with the Unites States' position being taken into consideration.

"Ang ano dito, we will have to determine kung papano ang magiging action dito. Of course, di mo maalis, the US will try to influence the situation because they have their own policy and citizen nila yan," Aventajado said. "So, ayaw ko munang pangunahan kung ano ang magiging particular policy on this particular incident."

[We will have to determine what action to take. Of course, it cannot be helped that the US will try to influence the situation because they have their own policies regarding these situations. And the captive is their citizen. I wouldn't want to preempt whatever policy will be followed.]

Schilling's Filipina girlfriend, Ivy Osani, said that Sabaya had asked them to go to the rebels' camp several times but they declined the invitation. Schilling, however, relented last Sunday and decided to venture into the rebel lair.

Osani, who is allegedly a relative of Sabaya, was allowed to return to Zamboanga City while Schilling was taken by the rebels to Jolo in Sulu.

Osani is reportedly in the custody of the Presidential Anti-Organized Crime Task Force (PAOCTF) in Zamboanga City where she is currently being investigated for possible involvement in the abduction.

US Embassy

In a statement issued by the US Embassy in Manila, the United States strongly condemned the kidnapping of Schilling and called for his immediate, safe and unconditional release and the others still being held captive in Jolo.

The US Embassy refused to comment about any steps which might be taken to secure the released of the American hostage.

"The Embassy in Manila is working very closely and intensely with the appropriate authorities in the Philippines to gather more information. An Embassy team is in Zamboanga or consult with officials there," the statement said.

The Embassy also reiterated its warning to U.S. citizens to avoid travelling to the southern and western areas of the island of Mindanao.

"We encourage all Americans planning to travel to Mindanao to review the State Department's most recent public announcement and contact the Embassy for the latest security information," it said.

Page: 1 2
_________________________________________________________________

August 31, 2000, ABS-CBN, Schilling is no spy-- US gov't,

QUEZON CITY, (ABS-CBN) - The United States government claimed on Wednesday that the American national kidnapped by Abu Sayyaf bandits in Zamboanga City last Monday is not an agent of the Central Intelligence Agency (CIA).

The US government also reiterated its order for the victim's immediate and safe release.

"This is an innocent man. And there is not justification for taking him hostage and he must be released immediately," US consul general John Patrick Caulfield said in a press statement.

Defense secretary Orlando Mercado likewise said that Schilling is an Islam convert and is not affiliated with the CIA nor any agency of the US government.

"He is a convert of Islam andnagpunta dito para maghanap ng asawa (and came here looking for a wife). He's not connected with the CIA," Mercado said in a radio interview on Wednesday.

At the same time, the US government said it "strongly condemns" the latest kidnapping in the southern Philippines and is calling not only "for the immediate, safe and unconditional release of Mr. Schilling" but also that of the Abu Sayyaf's remaining hostages still being held in the bandits' lair in Jolo.
_____________________________________________________________________

August 31, 2000 10:28 PM, Schilling and Osani: Love at first chat,

ZAMBOANGA CITY, (ABS-CBN) - The story of a 24-year-old Filipina, Ivy Osani, and kidnapped American national Jeffrey Craig Edwards Schilling, has transformed from a modern-day internet love story to a tragic tale with twists and turns.

Ivy and Jeff crossed paths via the Internet and were both swept off their feet.

Hours of internet chatting and countless e-mails later, Jeff came to Zamboanga all the way from Minnesota to meet Ivy in person. Love at first chat apparently became love at first sight.

Six months ago, Jeff converted to Islam and was reportedly even more religious than those born to the faith. Ivy recounted that they were married a month later.

They rented a one-room apartment along Estrada st. in Zamboanga City and together made plans for a grand future.

They were inseparable and went to the mosque every Friday.

Jeff stayed home while Ivy went to school to finish a masters degree. Ivy said she cannot remember a time when they had meals apart.

Abu Sabaya is a distant uncle of Ivy. His father, Hadji Arula Tilao, is the third cousin of Ivy's mother, Aida Ajijul, the municipal treasurer of Lantawan town, Basilan province.

Sabaya was allegedly persistent in inviting the couple to visit the Abu Sayyaf lair in Patikul, Sulu province. Ivy and Jeff finally agreed to accept Abu Sabaya's invitation last August 27, Sunday.

When they reached the outskirts of Jolo, their Abu Sayyaf escorts held on to Jeff while Ivy was ordered to return home.

For the first time, supposedly against their will, they were separated.

Ivy said she pleaded with the Abu Sayyaf to let her stay with Jeff. The bandits refused.

Jeff reportedly asked her to go home so that she "won't miss (her) classes."

Dazed and confused

She reportedly returned to their one-room apartment in Zamboanga dazed and confused. She said it never occurred to her to report the incident to the police as she hoped Jeff would eventually return home.

Two days after the reported abduction, Ivy was fetched by the Zamboanga police for "debriefing".

She was then turned over to the custody of the Presidential Anti-Organized Crime Task Force (PAOCTF) last Tuesday and has stayed there since.

Her mother learned about Schilling's kidnapping that night and took the first ferry out of Basilan to Zamboanga City the following day to see her daughter. From the Zamboanga wharf, Aida proceeded to Ivy's rented apartment.

She was then told by Ivy's landlady that her daughter was picked up by elements of the PAOCTF a day before.

When Aida arrived at the PAOCTF office at around 10 a.m., Wednesday, Aida was told that her daughter had requested that she be taken to a local hospital. She demanded to see her daughter but was asked to wait.

Later in the afternoon, Aida was still at the PAOCTF office waiting to see Ivy. Aida said she knew her rights and that of her daughter's. She said she was aware that the PAOCTF could not hold Ivy for more than 36 hours without a case filed against her.

Aida was then taken to the Armed Forces Southern Command (Southcom) hospital that same night to see Ivy.

Stressed out and tired, Ivy reportedly ran a high fever which led to her eventual miscarriage. Southcom doctors told Aida that Ivy was two months pregnant.

(by Pal A. Marquez, ABS-CBN Regional News Group)
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August 31, 2000 03:59 PM, American's kidnapping to boil down to ransom -- Mercado,


QUEZON CITY (ABS-CBN) - The abduction of 24-year-old African American Jeffrey Craig Schilling will eventually boil down to a ransom demand by Abu Sayyaf bandits, said defense secretary Orlando Mercado on Thursday.

Contrary to claims by the bandit group, Mercado said Schilling's abduction is "motivated not by ideology but greed for money."

"When money talks, ideology becomes silent," he said.

Earlier, Abu Ahmad Salayuddi, alias Abu Sabaya, spokesman of the Abu Sayyaf's Basilan-based faction, said the abduction was meant to teach the United States and Philippine governments' a lesson. He said the kidnapping is meant to measure how great a "superpower" America is.

The Abu Sayyaf is demanding the release of three international terrorists jailed in the United States for involvement in the World Trade Center bombing in New York in 1993.

Sabaya threatened to behead Schilling if the demand for the release of international terrorists Ramzi Yousef, Shiek Oman Abdel Rahman, and Abu Haider is not met.

Yousef is an international terrorist, Rahman a radical Egyptian Muslim cleric, and Haider a teacher of slain Abu Sayyaf founder Abdurajak Janjalani.

The Abu Sayyaf had raised the same demand in March when Sabaya's faction, along with Abu Sayyaf chieftain Khadafy Janjalani, kidnapped 31 students, teachers and a Claretian priest in Basilan.

The previous refusal of the US government to grant the demand prompted the kidnappers to execute two hostaged schoolteachers.

"We've seen and heard Sabaya in the Basilan kidnapping first making these so-called ideological demands, yet in the end asked for money," Mercado said.

"Now, they found a hostage and are getting the propaganda again. He now has a forum again," the defense chief added.

Mercado then described the hostage situation as a "revolving door activity where some people get out and others get in."

"Something must be done in this situation," Mercado stressed, even as he dismissed reports of a military assault to end the hostage crisis in Sulu.

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August 31, 2000, ABS-CBN, 2:55 AM, Sayyaf threatens to behead Schilling,

ZAMBOANGA CITY, (ABS-CBN) - Abu Sayyaf spokesperson Abu Sabaya issued a stern warning on Wednesday that they will behead the abducted American national, whom they accused of being a Central Intelligence Agency Agent if the Philippine government fails to give in to their demands.

Sabaya said that they will give their three-point demand on Thursday, even as he reiterated his group's oft-repeated 'scare scheme' that they will behead Jeffrey Craig Edwards Schilling.

"Dapat maghanda ang Malacañang....kapag sinabi naming pupugutan namin ito ng ulo, pupugutan namin," he said in a radio interview.

["Malacañang should prepare itself because when we say that we are going to behead Schilling, we will not hesitate."]

Meanwhile, the Abu Sayyaf also claimed that Schilling's Filipina fiancé is also an intelligence agent.

In a local radio interview on Wednesday, Abu Sayyaf spokesperson Abu Sabaya revealed Ivy Osani, Schilling's fiance is a deep penetration agent of the American CIA.

Sabaya reportedly pointed out that Osani was instrumental in the arrest of several leaders of the Abu Sayyaf. He, however refused to elaborate.

"Ginamit siya ng CIA itong si Ivy na ito para ....dito,kamag-anak ko nga ito," he reportedly said.

["The CIA used Ivy, who is my relative."]

A mother's plight

Following confirmation of reports that the Abu Sayyaf rebels have Schilling in their custody, police invited Osani for questioning late Tuesday afternoon then turned her over to the Presidential Anti-Organized Crime Task Force (PAOCTF) on Tuesday night.

Her mother, Aida Ajijul, took the first ferry out of Basilan to Zamboanga on Wednesday to see Ivy. Mrs. Ajijul confirmed she is related to Sabaya's father.

But PAOCTF officials told Ajijul that Ivy was transferred to a local hospital after she developed fever.

Meanwhile, Ajijul has threatened to seek legal assistance to secure the freedom of her daughter after the local PAOCTF failed to produce her late Wednesday.

For his part, Commission on Human Rights (CHR) regional director Manuel Mamauag said Mrs. Ajijul has to file a formal petition before the CHR steps in.

A police source has confirmed that charges may be filed against Ivy but could not expound on the specifics.

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continued, page 2 of 2

Hours after news of Schilling's kidnapping broke out Tuesday, a new twist developed after Ivy herself admitted that her uncle, Sabaya, invited her and Schilling to visit the Abu Sayyaf camp in Patikul town in Jolo, Sulu.

They accepted Sabaya's invitation last Sunday. When they were at the outskirts of Jolo town, Sabaya's men took Schilling hostage but set Ivy free.

... and another mother's plight

"I'm just scared, " said Carol Schilling, Jeffrey's mother, her eyes rimmed red and her voice trembling as she reacts to her son's abduction. "I don't know what's going to happen next. I'm just hoping that everybody will pray for him - I'd like him home safe," she added.

Aside from Schilling, the Abu Sayyaf is currently holding 22 hostages in their jungle lair in Talipao town, Jolo, Sulu.

Four of the original 21 Sipadan hostages remain in Abu Sayyaf custody as five of them were released last Sunday. Another South African was freed at noon on Monday.

Two French television journalists abducted while covering the hostage crisis remain in captivity. Also being held in the rebel lair are 16 Filipino hostages, including the preachers from the Jesus Miracle Crusade (JMC) led by Wilde Almeda.

Late Monday night, a ring at the door from the Federal Bureau of Investigation (FBI) confirmed her fears.

And fearful of saying anything that could worsen the situation, Mrs. Schilling declined to talk about the specifics of the kidnapping.

But she and family friend Anthony Rodgers did dispute the rebel spokesman's claim that her son worked for the CIA.

"This is in essence simply a love story. He just met a girl in the Philippines and fell in love. That's all the story is," Rodgers said.

"There's no CIA involvement. He's apolitical. He's not involved in any kind of terrorist group. He's just a guy who happens to be in love," he added.

Mrs. Schilling said her son went to visit the Philippines in March partly because of a longtime interest in the region - he has a degree in Near Eastern Studies from the University of California at Berkeley - and also to see the sister of some friends in Oakland.

As it turned out, he fell in love with the sister and ended up staying in the Philippines, extending his tourist visa twice.

Carol Schilling had tried three times to persuade her son to leave the Philippines. "He didn't come out. He was too much in love."

But recently, Jeffrey had changed his mind and had been planning to fly home on September 3, intending to look for a job and start planning a future for himself and his fiancé, she said.

"I had looked forward to him coming home and now I'm just scared," she said.

She said her son converted to Islam six years ago.

"We do not blame Islam or Muslims for the kidnapping," she said.

Schilling said she he has no idea why her son was taken, but at six feet tall he tends to stand out in a crowd.

"I think they were looking for any American they could get and they found one," she said

(With reports from Jun del Rosario and Pal Marquez)

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August 31, 2000, ABS-CBN, 6:39 PM, Schilling's wife suffers miscarriage,

ZAMBOANGA CITY, (ABS-CBN) - The wife of Abu Sayyaf captive African-American Jeffrey Craig Edwards Schilling recently suffered a miscarriage while under the custody of the Presidential Anti-Organized Crime Task Force (PAOCTF) and is now confined in an undisclosed hospital in this city.

Sources at the PAOCTF said Schilling's Filipina wife Ivy Osani was two months pregnant.

Osani's mother, Aida Ajijul, confirmed the miscarriage, adding that her daughter and Schilling have been married for almost five months now. Initial reports stated that Osani was Schilling's fiancée.

Ajijul arrived in Zamboanga City early Wednesday morning to see her daughter who is suspected of acting as an accomplice in Schilling's abduction.

Abu Sayyaf spokesperson Abu Sabaya announced Schilling's abduction on Monday over a local radio station the following day. The American is being held at the rebel group's lair in Sulu.

Ajijul said she and Sabaya are relatives. She also defended her daughter's reputation, whom she claimed is a masteral student at a local university and is not one to be involved in crimes such as kidnapping.

Osani claimed that Sabaya had asked her and Schilling to visit the Abu Sayyaf's camp in Sulu several times but that they had always declined the invitation. She added that her husband finally consented last Sunday to venture into the Abu Sayyaf camp.

Osani, however, claimed she was allowed to return to Zamboanga City while Schilling was left in the bandit group's jungle hideout.

The PAOCTF took Osani into custody to investigate if she was an accessory to Schilling's kidnapping. Ajijul earlier said she would file charges against the PAOCTF for detaining her daughter.

Ajijul later agreed to let her daughter remain in the PAOCTF's custody and even signed an affidavit on Thursday as proof of this, according to a report on ABS-CBN's TV Patrol.

The Commission of Human Rights (CHR) in Region 9 was reportedly set to contact Ajijul on Thursday to offer representation for Osani while she is under PAOCTF custody.

CHR Western Mindanao regional director Manuel Mamauag said Osani has the right not to answer any questions being asked her by investigators without the presence of her legal counsel.
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September 1, 2000, ABS-CBN, 2:00 AM, Schilling kidnapping a con trick?,

BACOLOD CITY, (ABS-CBN) - Doubts arise over the kidnapping of 24-year-old American Jeffrey Craig Edwards Schilling.

Aside from the Americans, even Negros Occidental congressman Apolinario Lozada speculated there is more to the matter than meets the eye.

In a report on the ABS-CBN News Channel's The World Tonight, Lozada reportedly raised the question why the kidnaping occurred days after the President rejected the United States' offer to help resolve the kidnapping crisis through a military option.

Earlier in a CNN report, Clinton administration officials are said to believe that the Abu Sayyaf has received financial support and even arms and explosives training from the Al Qaida, a terrorist group established and funded by Osama Bin Laden.

They reportedly said it may or may not be a kidnapping as there is a possibility that Schilling is a sympathizer of the terrorist group.

Unnamed authorities in Zamboanga City, meanwhile, said Schilling, his wife Ivy Osani, and the Abu Sayyaf bandits have allegedly staged the kidnapping with an aim to obtain a huge sum in ransom.

Amid a series of hostage releases in the past weeks, the Abu Sayyaf has reportedly amassed a huge amount of money in their successful money-making activity - kidnap-for-ransom.

The Philippine National Police (PNP) and the Presidential Anti-Organized Crime Task Force (PAOCTF) are tasked to probe Osani, who admitted she is a cousin of Abu Sayyaf spokesman Abu Sabaya.

The US government said it will not negotiate with the Abu Sayyaf but is reportedly open to discussions of his safe release.

Malacañang, for its part, announced will not appoint a special negotiator. Press secretary Ricardo Puno said they will leave the matter to the local peace and order council.

A military intelligence report said Schilling voluntarily went to the Abu Sayyaf camp in Patikul, Jolo contrary to reports that the American was abducted by the rebels.

Schilling allegedly pursued to meet with the Abu Sayyaf leaders after his wife assured that he will be safe in the rebel's camp.

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September 1, 2000 03:49 PM, "Goodwill money" for American captive sought,

ZAMBOANGA CITY, (ABS-CBN) - A reliable source revealed that the Muslim extremist group Abu Sayyaf is already demanding money in exchange for the freedom of American captive Jeffrey Schilling.

The source disclosed that a dialogue between Abu Sayyaf spokesperson Abu Sabaya and a certain Roland Sarmiento took place Friday morning through a local radio station. The source said the kidnapers demanded $10-million in "goodwill money" for Schilling's release.

Sarmiento, the designated person to begin talks with the kidnappers of Schilling, reportedly told Sabaya the government wants to resolve the matter in a peaceful way. He also said they plan to send food and medicine to Schilling. 

With the conversation being cordial, the source said Sabaya agreed to accept provisions for Schilling. 

Sarmiento was reportedly given clearance to go to the Abu Sayyaf camp on the condition that he bring along a representative from at least one foreign country, particularly Libya, China, North Korea or Saudi Arabia.

Abu Sabaya reportedly said he wants presidential adviser Lee Peng Wee to be the emissary of the government for the talks. He said they would not harm Schilling because they are open for negotiations. 

"Maganda naman ang kanyang mga kondisyon, pero masama nga daw ang pakiramdam ni Schilling kaya pumayag na magpadala ng gamot," the source quoted Sabaya. (His condition is good but he (Schilling) is ailing so they allowed that he be given medicine.)

Government options

On Thursday, the government said it was still studying all options to secure the release of Schilling, who was earlier threatened to be beheaded by his captors.

Government officials also said witness accounts indicated the American may have gone voluntarily to the rebels' camp.

The government earlier rejected the Abu Sayyaf's demand for representatives from China, Iraq, Libya and North Korea to take part in talks for Schilling's release.

In Washington, state department spokesman Richard Boucher said the United States was not interested in mediation by third countries and the Philippine government would be in charge of attempts to secure the release of Schilling.

Sabaya earlier threatened to behead Schilling if the United States would not release three Islamic fundamentalists jailed for the 1993 bombing of New York's World Trade Center.

Schilling, from Oakland, California, is a graduate of the University of California, Berkeley, and majored in near Eastern Studies. He is married to a Muslim woman from Zamboanga City.

Le Peng Wee to volunteer?

Wee is reportedly willing to negotiate for the release of kidnapped American national Jeffrey Craig Edward Schilling if President Joseph Estrada asks him to do so.

Wee is allegedly hesitant to take part in the negotiations for Schilling's release as he might be accused of partaking in the ransom payments reportedly made to secure the freedom of the other Sipadan hostages.

In an interview with local radio station DXRZ, Abu Sayyaf spokesperson Abu Sabaya said the extremist group wants Wee to spearhead the talks for the American's freedom.

Wee confirmed that Sabaya called him up to relay the Abu Sayyaf's request. He allegedly told the rebel leader that the President will still have the final say on the matter.

(With reports from Reuters and Pal Marquez)

___________________________________________________________________

September 1, 2000, ABS-CBN, 6:54 PM, Malacañang denies RP-US offensive vs Abu Sayyaf,

MALACAÑANG (ABS-CBN) -- Malacañang on Friday belied reports that government and the US is set to launch joint offensives against the Moslem extremist Abu Sayyaf group in effort to rescue American hostages, Jeffrey Edwards Craig Schilling.

As this developed, the Palace has also ordered the background checking of certain Ronaldo Sarmiento, who Abu Sayyaf leader Abu Sabaya wanted to negotiate with for the release of Schilling.

Executive Secretary Ronaldo Zamora said, in a radio interview, that the US government committed to its earlier claims that it would not interfere on Philippines' affairs despite threats of the Abu Sayyaf to execute the kidnapped victim.

Zamora made such statements in reaction to claims of Autonomous Region in Muslim Mindanao (ARMM) Governor Nur Misuari about the supposed action plan being readied by the government against the Abu Sayyaf.

It was reported that Misuari claimed that he would soon be meeting with Southern Command chief Diomedio Villanueva to finalize a military strategy supposed to be used in rescuing Schilling.

Also, Zamora clarified the arrival of some 40 members of the US Army elite force was not in any way related to the Schilling kidnapping. He said the visit to the Philippines of the US Green Beret is official and related to the regular exercises for both the country and the US forces under the Visiting Forces Agreement (VFA).

"They are saying that this is completely an internal affair of the Philippines. Hindi sila makikialam in the way of even planning for a rescue attempt. Walang ganoon," Zamora said. [They won't interfere even in the way of planning a rescue attempt. There's nothing like that]

Zamora also confirmed that chief government negotiator Robert Aventajado will no longer be used in the Schilling case. It was President Estrada himself who instructed the Cabinet Cluster E to not include Aventajado in the negotiations for the release of the American hostage, he said.

In a related development, Puno said authorities have been checking on the background of one Ronaldo Sarmiento after being mentioned by the Abu Sayyaf as the person whom they want to negotiate with.

Sarmiento sent his taped-interview with Abu Sabaya to a local radio in Zamboanga, where the latter has issued his group's initial set of conditions to the government.

"We are still continuing to check on this individual. I have already checked with some government officials and they said that he is not authorized (to negotiate)," Puno told reporters in a press briefing.

Puno said, Sarmiento's name only cropped up following reports that the government is in search for a government chief negotiator to replace Aventajado.

While the authorities are checking into Sarmiento's background, the government, according to Puno has been urging the group of Abu Sabaya to make real and firm contact with the government.

Sarmiento, on the other hand, has reportedly been waiting for President Estrada's order as to whether he would pursue negotiations with the Abu Sayyaf, Puno said quoting some reports from Mindanao.

Puno also reiterated the government wanted to secure the release of Schilling using peaceful means.

"At this time, we are ruling out any military assault, only if it becomes clear that we can no longer handle the situation peacefully will the other options be considered," Puno said, stressing that this option does not necessarily mean a military action.

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September 1, 2000, ABS-CBN, [e-borneo] Malacanang to create council for Schilling's release,

MALACAÑANG (ABS-CBN) - The Philippine government has flatly rejected an Abu Sayyaf demand requiring five foreign nations to negotiate along with Philippine negotiators in exchange for the release of Jeffrey Craig Edwards Schilling who was abducted on Monday by the extremist group.

As this developed, Malacañang announced that the Cabinet Cluster E is looking into the possibility of creating a local Peace and Order Council that will negotiate for the release of Schilling.

Executive Secretary Ronaldo Zamora announced on Thursday that Malacañang will not allow Libya, Iraq, North Korea, China, and the United States to negotiate with the bandits for Schilling's immediate release, even as he stressed that the latest abduction is purely an internal problem which does not need any involvement from other foreign governments.

"This Sipadan hostages were taken outside of the country. This case (Schilling's abduction) is purely internal. This is purely a police matter and I don't think we should involve any other country," Zamora said in an interview over dzMM.

________________________________________________________________

September 3, 2000, ABS-CBN, 9:30 PM, Abu Sayyaf-Schilling conspiracy possible,

QUEZON CITY, (ABS-CBN) - Government officials are closely pursuing a conspiracy angle between the Abu Sayyaf and its Afro-American captive Jeffrey Craig Edwards Schilling.

A ranking government official made the disclosure Sunday following published reports that prior to Schilling's "abduction," the American was supposed to return to the United States to buy night vision goggles and assorted weapons for the extremist group.

"It's very possible. It's an angle we're closely looking at since the report is not totally incredible," said the official who refused to be identified.

The official added that doubts were raised over Schilling's abduction shortly after it was verified that the Afro-American voluntarily went to the rebel lair in Sulu last week.

"It's strange because he was just an ordinary American and not a member of any US government agency, more particularly the Central Intelligence Agency (CIA)," the official said. "Now if he were not a CIA agent, why would he go to Sulu knowing the tense situation there particularly for foreigners like him."

Defense Secretary Orlando Mercado and other military officials refused to comment on the report, saying the Cabinet Cluster E has decided that no government official will speak regarding the Schilling case without clearance.

ABS-CBN sources on the other hand, said Saturday, Schilling may have gone up to the Abu Sayyaf lair to get back the son of his wife with one of the bandits' leaders. Sources said Schilling's wife, Ivy Osani, has a seven year old son with one of the Janjalani brothers - the founders of the Abu Sayyaf movement in the country.

Unnamed authorities in Zamboanga City last week said Schilling and his wife and the Abu Sayyaf bandits allegedly staged the kidnapping to obtain a huge sum in ransom.

Reports have it Schilling and Abu Sayyaf spokesman Abu Sabaya had been talking via cellular phone and handheld radio about the planned purchase of sophisticated equipment for the extremist group, days before the American was taken hostage.

It added that Schilling's fate was a consequence of his verbal tussle with the outspoken Sabaya. He is reportedly being guarded by 10 to 15 men inside a nipa hut and his hands are tied with electrical wire.

The wife of the 24-year-old Afro-American is said to be Sabaya's cousin and widow of an alleged Abu Sayyaf member. Schilling is a Muslim from Oakland, California.

No ransom demand

Meanwhile, Sabaya reportedly has denied that his group is after a $10 million ransom payment as earlier reported.

continued, page 2 of 3

In an interview by a local radio station in Sulu, Sabaya noted other anti-US groups have been offering them money to kill Schilling and not release him.

"Hindi ko na babanggitin kung sino yung mga anti-American na nag-offer sa amin ng huwag palayain, bibigyan ka naman ng ano, ng pera at saka armas basta patay lamang ang CIA na ito," he said.

[I won't mention the anti-American groups that have been offering us money so that he would not be released. They are willing to give money and arms just so that we kill this CIA man.]

Sabaya said they are only after the release of three terrorists jailed in the US for the bombing of the World Trade Center in New York.

"Sa amin walang problema. Isa na lang ang kailangan namin dito, yung political demand namin, pero kung pera at saka armas, marami maraming nag-aalok sa amin ngayon basta patay lamang ang CIA na to," he said.

[For us, we don't have any problems but one, our political demand, but if it were money and arms, there are a lot offering us just so that we'd kill this CIA agent.]

US alarmed

While the US government refused to make a statement, it said it is alarmed over Sabaya's statement concerning the anti-American groups.

US embassy spokesman Tom Skipper has refused to issue an official statement saying the US is leaving the kidnapping case to the Philippine government.

On Saturday, the Palace appointed Sulu vice governor Hadji Munib Estino to immediately negotiate for the safe release of the American.

But Press Secretary Ricardo Puno said this decision does not mean the problem has gotten worse. "This does not mean that it has been transformed into something bigger than a police matter. It could still be treated that way," he insisted.

Upon receiving word of the appointment, Estino expressed confidence that he is the best man for the task. He added that as soon as he meets with the rebels, negotiations will not take longer than two weeks.

Despite the sudden appointment of a negotiator, Puno stressed there will be no outside intervention and the government's "no ransom policy" still holds.

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September 4, 2000, ABS-CBN, Biazon wants background investigation of Schilling,

PASAY CITY (ABS-CBN) -- Senator Rodolfo G. Biazon, Chairman of the Senate Committee On National Defense and Security recommended on Tuesday a thorough background investigation of Jeffrey Craig Schilling and his wife Ivy Osana to determine whether the American should be considered as a hostage or a co-conspirator of the Abu Sayyaf.

Biazon said the government's options vis-a-vis the Abu Sayyaf will depend on the outcome of the investigation as to the true nature of Schilling's presence in the Abu Sayyaf's lair.

"It is turning out that Schilling was not abducted but went into the Abu Sayyaf's lair willingly and for a conspirational purpose," he said.

According to Biazon, "Schilling is being projected by the Abu Sayyaf as a replacement hostage to the Europeans in the event that the Abu Sayyaf will be forced to release the Europeans after the ransom payment has been completed.

The senator stressed, "the value of Schilling to the Abu Sayyaf is therefore to project Schilling as a hostage, even if he is a co-conspirator. The reported intended role of Schilling was to buy sophisticated equipment, arms and ammunition for the Abu Sayyaf. If all these are confirmed, the Schilling abduction should be devalued and negotiations for his release should be terminated."

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September 5, 2000, ABS-CBN, 7:08 PM, Abu Sayyaf rejects swap offer for Schilling,

QUEZON CITY (ABS-CBN) - Abu Sayyaf spokesman Abu Sabaya has rejected on Tuesday an offer by Malacañang-designated negotiator and Sulu Vice Gov. Munib Estino to swap its American captive for Sabaya's uncle who was apprehended by authorities last Friday.

"There will be no swapping involving my grandfather and Schilling. They should release the old man because he is innocent," Sabaya, spokesman of the Basilan-based faction of the extremist group said on Tuesday over a local radio station.

Earlier, Estino has urged the Abu Sayyaf to release American captive Jeffrey Edward Schilling in exchange for the release of Sabaya's 73-year-old uncle Hadji Ahmad Upao.

Upao was nabbed in Zamboanga City last Friday by elements of the Presidential Anti-Organized Crime Task Force (PAOCTF) for allegedly having plotted the kidnapping of Fr. Roel Gallardo and several teachers and pupils in Basilan last March.

Earlier, Sabaya threatened to boycott talks for Schilling's release unless his uncle is freed.

As this developed, police and military in Basilan were immediately put on high alert following intelligence reports that Sabaya's group was planning to spring Upao from jail.

Aside from Upao, the Abu Sayyaf has also demanded the freedom of convicted World Trade Center bomber Ramzi Youssef and two other Islamic militants languishing in US jails.

Good condition

Meantime, Estino assured that Schilling was in good condition. He is okay," Estino said shortly before leaving for Zamboanga on Tuesday.

continued, page 2 of 2

Earlier, the Abu Sayyaf rejected Estino to negotiate for the release of the American captive, and instead demanded billionaire businessman Eduardo "Danding" Cojuangco and presidential brother-in-law Dr. Raul de Guzman to serve as negotiators.

"The negotiator here is the Philippine government and my role is only to facilitate (Schilling's release)," Estino stressed.

He said he will spend the night at his home in Zamboaga and leave for Jolo on Thursday, during which he may personally trek to the Jolo camp to coordinate with the Abu Sayyaf faction holding Shilling.

Negotiators

Meanwhile, two sets of negotiators flew to Jolo on Tuesday ahead of the scheduled weekend release of six Europeans still held by Muslim extremists, and to bargain for the freedom of Schilling.

Aides to chief hostage negotiator Roberto Aventajado are to meet with a go-between and prepare the ground for the release of two Finns, a German and three Frenchman held by Abu Sayyaf gunmen in Talipao, Jolo.

Meantime, Libyan mediator Rajab Azzarouq arrived in Manila from Tripoli later Tuesday and is due to fly to Zamboanga later in the week together with Aventajado to work for the release of the remaining European captives.

The Abu Sayyaf earlier freed the rest of the original hostages in several batches and have promised Aventajado they would release the remaining captives this weekend.

"Within this week, there will be a release," government emissary Eduardo Pacuño told reporters on Tuesday. "I am still waiting for the latest instruction before I go in," he added.

Plunge

Meantime, Tourism Secretary Gemma Cruz Araneta admitted the Philippine tourist industry is reeling from the international hostage crisis, with arrivals seen plunging at least nine percent this year.

The United States, the biggest tourist market of the Philippines, slapped a travel advisory for the second time on the southwestern section of the Philippines last week following Schilling's abduction.

Visitor numbers were down 1.49 percent from a year earlier to 1.07 million in the six months to June after the separatist gunmen raided the Malaysian resort Sipadan and shipped 21 tourist and resort staff hostages to their southern Philippines stronghold of Jolo island.

"We are really very worried because the United States is still our biggest market," Tourism Secretary Gemma Araneta said over radio station DZMM.

Tourism is a key source of foreign exchange for the Philippines, which still has to fully recover from the Asian crisis.

Araneta said it was now "unlikely" that the full-year target of 2.3 million arrivals would be achieved " because of all the things that are happening in the different areas of Mindanao," the southern third of the Philippine archipelago and the homeland of a sizeable Muslim minority.

Aside from the Abu Sayyaf, the government is also fighting a larger Muslim separatist guerilla group, the Moro Islamic Liberation Front, on Mindanao island.

The government now hopes to attract two million tourists this year, down nine percent from calendar year 1999 and 13 percent off the target, she added.

(With reports from Agence France Presse)

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September 5, 2000, ABS-CBN, 12:57 AM, Abu wants Danding, Erap in-law as negotiators,

QUEZON CITY (ABS-CBN) - The extremist Abu Sayyaf group on Monday demanded the government to appoint former Ambassador Eduardo "Danding" Cojuangco and presidential brother-in-law Dr. Raul de Guzman as negotiators for the release of American captive Jeffrey Edward Schilling.

The request came following the group's rejection of Sulu vice governor Estino Munib as Malacañang's designated negotiator.

In a radio interview on Monday, Abu Sayyaf spokesman Abu Ahmad Salayuddi, alias Abu Sabaya demanded that Cojuangco and de Guzman act as negotiators. He described the two as "sensitive" persons worth talking with concerning the fate of the captive.

"Balita ko magandang kausap and mga ito, may pagka-sensitibo (I heard they're nice people to talk with and they're sensitive," Sabaya said.

Cojuangco, chairman of food and beverage conglomerate San Miguel Corp., is a known ally of President Joseph Estrada. He ran during the presidential polls in May 1992 as Estrada's running mate.

The billionaire businessman belongs to the rich Cojuangco clan in Tarlac and is the first cousin of former President Corazon Aquino.

On Sunday, the bandit group rejected Sulu Vice Gov. Munib Estino as the chief government negotiator for the release of Schilling, claiming the local official should act instead as a facilitator.

Previously, Estino played a crucial role in securing the release of 18-year-old Richard Sintos, two teachers and ABS-CBN crew Maan Macapagal and Val Cuenca from the Abu Sayyaf.

Apart from Cojuangco and de Guzman, Sabaya also demanded that an American emissary be named to facilitate Schilling's release. He also reiterated that the negotiating team be composed of representatives from Libya, China, North Korea, Iraq, and Saudi Arabia.

"If the Americans have a policy of not talking with terrorists, then we'll not talk with them also. But we don't want to talk with local officials since this (incident) involves an American," Sabaya said.

Devalued hostage

So far, the government is expected to reject the rebels' demand following a disclosure of a possible conspiracy between Schilling and the Abu Sayyaf.

Senator Rodolfo Biazon, who heads the Senate committee on national defense and security, on Monday said a probe will be conducted to confirm reports that Schilling and his Filipina wife, Ivy Osani, are co-conspirators of the Abu Sayyaf.

Prior to the alleged abduction, reports said Schilling had long been coordinating with Sabaya's group, concerning the procurement of modern equipment for the group, he said.

"The value of Schilling to the Abu Sayyaf is therefore to project Schilling as a hostage, even if he is a co-conspirator. The reported intended role of Schilling was to buy sophisticated equipment, arms and ammunition for the Abu Sayyaf," Biazon said.

If all these are confirmed, Biazon said the Schilling abduction should be devalued and negotiations for his release be terminated.

"Thus, the government should proceed to do what it should do, that is, to clean-up the Abu Sayyaf mess by first mounting an anti-terrorist strike to eliminate these bandits as a further threat to everyone especially to the peace and stability of that part of Mindanao," he said.

According to Biazon, Schilling is being projected by the Abu Sayyaf as a replacement hostage to the Europeans in the event that the Abu Sayyaf will be forced to release the Europeans. He said this is so that military and police forces will kept at bay to prevent a counter-terrorist strike.

"These bandits will do if this is their only means of survival," Biazon said.

Last September 1, Schilling was reportedly abducted while roaming around Zamboanga City by the Basilan-based faction of the Abu Sayyaf. The American is married to Osani, who was previously married to an Abu Sayyaf member and is a distant relative of Sabaya.

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September 7, 2000 03:30 PM, Capture of Abu relative blocks release of American

ZAMBOANGA CITY, (ABS-CBN) - The extremist Abu Sayyaf group has reiterated its demand for authorities to free an elderly relative of group spokesman Abu Sabaya before negotiations for their American captive's release continue.

Sabaya went on air at a local radio station in Zamboanga City on Wednesday saying the Abu Sayyaf faction will not face any negotiator unless Hadji Ahmad Upao is released.

Upao, said to be Sabaya's distant relative, is presently detained at the Basilan provincial jail after he was arrested in his residence in Guiwan village, Zamboanga City over the weekend.

Upao was picked up by members of the Presidential Anti-organized Crime Task Force (PAOCTF) after it determined that he was an accessory to the kidnapping of more than 50 school teachers, students and a priest in Basilan last March.

On the other hand, Upao's daughter, Rhea, has denied the charges and has threatened to file formal charges against members of the PAOCTF before the Commission on Human Rights.

She claimed her father is an innocent and ailing man and was never a part of the Abu Sayyaf's illegal activities.

No military operations vs. ASG

Despite calls for a military operation against the Abu Sayyaf group in Sulu, the government maintains it will stick to peaceful negotiations for the release of their remaining captives.

National security adviser Alexander Aguirre stressed the government will continue negotiating with the bandit group for the safe release of all Sipadan and other hostages, including African-American Jeffrey Schilling.

Local government, police and military officials in Basilan province earlier suggested the launching of a military attack on the camps of the Abu Sayyaf in Talipao and Patikul, Sulu.

Basilan vice governor Abdul-aziz Balamo explained the military option, as what the authorities did in Basilan, will put an end to the rebel group's existence in Sulu.

Aguirre however remains optimistic everything can be solved thru peaceful negotiations for the freedom of six European hostages, a Filipino resort worker, and the group of Jesus Miracle Crusade evangelist Wilde Almeda.

Four of the Europeans were among a group of 21 tourists and resort workers abducted by the rebels from the diving resort of Sipadan in Malaysia last April. Two others, members of a French television crew, were snatched in Jolo in July while covering the hostage crisis.

ASG barred in Basilan

Meanwhile, local authorities in all seven municipalities of Basilan firmly declared they will not allow the Abu Sayyaf to return to the province.

Police regional command chief Dominador Domingo said he has directed Basilan provincial police chief Ahmadul Pangambayan to secure all entry points to the island as the rebel group might once again try to sneak into the province.

Police intelligence reports revealed the Basilan-based Abu Sayyaf led by Khadaffy Janjalani is planning to return to Basilan and once again establish a camp there after Camp Abdurajak in Sumisip town was sieged by government troops last April.

"The rebels will soon find out that it is impossible for them to carry out their plans," Domingo said. He added that both the police and military in Basilan remain vigilant against all members of the extremist group.

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