India May Be Trying To Buy Freedom For Spokanite, Europeans India Reportedly Offers Rebels $1.2 Million For Release Of Hostages

For the first time the government apparently is trying to buy the freedom of a Spokane psychologist and three Europeans held by Kashmiri separatists, offering a reported $1.2 million for their release.

Also Monday, the Al-Faran separatists claimed army commandos attacked one of their hideouts in the Himalayas, causing some casualties. But the separatists would not say whether any hostages were among the injured.

The United News of India news agency quoted unnamed army officials as saying that no such gunbattle took place.

Al-Faran repeatedly has threatened to kill its captives if the government does not release 15 jailed guerrillas. So far the government has refused and the rebels have responded by killing one hostage - a Norwegian.

Officials close to the negotiations said Monday that the government has offered rebels $1.2 million to release the remaining four hostages. One official, who spoke on condition of anonymity, said the two sides are discussing the offer.

Government spokesman Kulbhushan Jandiyal declined to comment.

Later, Al-Faran telephoned The Associated Press in Srinagar and reported a gunbattle with army commandos at a rebel base near the town of Pahalgam.

Pahalgam is some 65 miles south of Srinagar, the summer capital of Jammu-Kashmir state in northern India. The beheaded body of the slain tourist - Hans Christian Ostro of Oslo, Norway - was found near Pahalgam Aug. 13.

“There are casualties, but we don’t have the details,” said the caller, who established his identity though a pre-arranged code. He would not answer any questions about the ransom offer but said rebels had not been in contact with the government in the last two days.

However, the government spokesman, Jandiyal, said there had been constant contact between the two sides, the latest Monday night.

Six tourists were kidnapped in early July while visiting the Himalayas in Kashmir. One escaped after a few days, and Ostro was killed. The other four are: Donald Hutchings, 42, of Spokane; Keith Mangan, 33, and Paul Wells, 23, both of England; and Dirk Hasert, 26, of Germany.

Dozens of Muslim militant groups have been fighting Indian soldiers for the last five years to win independence for Kashmir, the lone state in India with a Muslim majority.

Although India is a secular nation, most of its 900 million people are Hindus. Kashmiri Muslims accuse the government of denying them religious freedom.

It was not the first time Al-Faran has claimed army attacks on its hideouts since the standoff began.