Bangla2000 | International News - 3 million pesos apiece won’t do

Released German hostage Renate Wallert, left, walks together with her son Dirk Wallert, right, after their arrival at a hospital in Goettingen, Lower Saxony, on Tuesday, July 18, 2000. Renate Wallert, who was held almost three months as a hostage in the Philippines by Muslim rebels, arrived in Germany 20 hours after her release. In background is Cornelius Sommer, the German government's Asia specialist. (AP Photo/Jens Meyer)

ZAMBOANGA, Philippines (AP) - Malaysian negotiators attempted Tuesday to repair a sudden snag in talks with Philippine Muslim rebels that blocked the scheduled release of seven Malaysian hostages, officials said Tuesday.

The seven hostages, among a group of 21 mostly foreign hostages snatched by Abu Sayyaf rebels 86 days ago from a Malaysian diving resort, were to have been released Monday night, Malaysian negotiators said. A 28-seat Malaysian plane is standing by at Zamboanga's airport to take them home.

The negotiators had agreed to pay a ransom of 3 million pesos (dlrs 67,400) for each of the Malaysian hostages, but at the last minute Monday night, the Abu Sayyaf raised their ransom demand, blocking the release, they said.

The Malaysian negotiators traveled Tuesday to a rebel hide-out on Jolo island, where the hostages are being held, in an attempt to settle the problem.

The Abu Sayyaf have already freed two Malaysian hostages - a policeman released last Friday and a forest ranger freed last month.

On Monday, the rebels released their first European captive, an ailing German woman.

Since the 21 hostages were abducted April 23 from Malaysia's Sipadan diving resort, Muslim extremists on Jolo have kidnapped several other groups and now hold about 38 people.

The remaining hostages consist of five French, three Germans, two Finns, two South Africans, a Lebanese, seven Malaysians and 18 Filipinos. All but a German journalist are believed to be held by the Abu Sayyaf, a band of Muslim extremists accused of a wide range of kidnappings and attacks on Christians in the past.

Two groups of negotiators are working for their release. One consisting of former presidential adviser Wee Dee Ping and several Malaysian officials and businessmen is attempting to free the Malaysians and three Filipinos kidnapped on nearby Basilan island, while a second led by chief government negotiator Robert Aventajado is working to free the others.

The Philippine government has an official no-ransom policy. The Malaysian negotiators, however, confirmed that ransoms had been paid for the two Malaysians who were earlier released.

The Malaysian government has also promised to provide development assistance through the Philippine government for Jolo, at the southern tip of the Philippines.

The release of European hostage Renate Wallert appeared to mark a turning point in the negotiations. Aventajado said Tuesday he expects the four remaining female hostages from Sipadan will be freed soon.

Ghalib Andang, an Abu Sayyaf commander holding most of the hostages, has given up an earlier demand that an independent nation be created in the impoverished southern Philippines for the country's Muslim minority, but is continuing to demand dlrs 1 million for each European hostage, a government negotiator said.

It is not clear, however, how much control Andang has in the negotiations. Three other Abu Sayyaf leaders have clashed with him over the large ransom demand and the withdrawal of the demand for an Islamic state, officials say.