Fighting erupts in Philippine south, truce holds

MANILA, Oct 2 (Reuters) At least five people were wounded when Philippine soldiers clashed with Muslim insurgents in the south but rebels said today a 2003 ceasefire would hold despite the violence.

Analysts and some insurgents fear that a number of military commanders are trying to sabotage the truce and on-going peace talks between the central government and the country's largest Muslim rebel group, the Moro Islamic Liberation Front (MILF).

The MILF accused soldiers of firing at people praying at a mosque in a remote mountain village in Matnog town, on the southern island of Mindanao, yesterday.

Lieutenant-Colonel Julieto Ando disputed the account, saying soldiers were on a routine patrol when they were attacked by the Muslim rebels. ''It was the rebels who fired the first shot,'' he said.

The government of the mainly Catholic country and the MILF are trying to end decades of violence but talks have stalled since May amid differences over territory.

MILF spokesman Eid Kabalu said the incident remained ''isolated'' and would not affect their truce with Manila.

The MILF has warned that business groups, local politicians and the military were out to sabotage peace talks to maintain their political and economic control of the south.

Manila has been talking with the MILF for nearly 10 years to try to end a rebellion that has killed more than 120,000 people and displaced over one million since the late 1960s.

Previous truces broke down in 2000 and 2003 after the army launched offensives against the MILF.

Manila failed over the weekend to meet a self-imposed September 30 deadline for a fresh initiative to kick-start stalled peace talks amid differences over the size and wealth of a proposed Muslim homeland in the south.

REUTERS LL HS1553