Palestinians balk at demands for reporter's release

RAMALLAH, West Bank, Apr 30 (Reuters) The Palestinian government held talks today with those holding abducted BBC reporter Alan Johnston in the Gaza Strip and rejected their ransom demands, deputy Prime Minister Azzam al-Ahmad said.

''There was a phone conversation with the abductors this morning.

For our part, all the conditions that were made (by the captors) were rejected,'' Ahmad, a Fatah leader, told reporters in the West Bank city of Ramallah.

Ahmad declined to give further details but added that talks were at a sensitive stage some six weeks after Johnston was kidnapped.

Palestinian President Mahmoud Abbas was quoted by a German broadcaster on Friday as saying the government knows the journalist's whereabouts.

Johnston, 44, the only foreign correspondent based full time in Gaza, has not been heard of since his car was found abandoned on March 12.

Ahmad said that Johnston was in good condition, rejecting claims earlier this month that an al Qaeda-linked group had killed him.

Ahmad ruled out a rescue mission for the time being because of the risk that Johnston would be killed.

REUTERS JS RAI2244