Talks between Philippines and rebels break down

KUALA LUMPUR, Sep 7 (Reuters) Peace talks between the Philippine government and Muslim rebels broke down in Malaysia today without an agreement on the difficult issue of ancestral land, a source close to the talks told Reuters.

Manila and the Moro Islamic Liberation Front (MILF) have been holding talks for years over the specifics of a proposal for an enlarged Muslim homeland that is meant to end a nearly 40-year insurgency in the southern Philippines. ''The impasse on the territory aspect of the ancestral domain continues,'' the source said after three days' of the latest round of talks in Malaysia, which has brokered the peace negotiations since 2001.

''The respective panels are going back to consult their principals,'' the source said. The two parties issued no joint statement.

REUTERS SP SSC1525