Freed Colombia rebel pushes demand for hostage deal

BOGOTA, June 6 (Reuters) A Colombian guerrilla leader freed to broker the release of rebel-held hostages said an accord was essential, but insisted President Alvaro Uribe agree to a demilitarized zone as a condition for talks.

Uribe's release of Rodrigo Granda, known as the ''foreign minister'' of the FARC guerrillas, revived hopes of a deal over hostages held for as long as eight years, including a French-Colombian politician and three Americans.

France, Spain and Switzerland yesterday urged the FARC to respond positively to the initiative to free Granda in hopes the guerrilla leadership would release kidnap victims held in Latin America's oldest left-wing insurgency.

The FARC -- the Revolutionary Armed Forces of Colombia -- has demanded Uribe pull troops back from an area the size of New York City around two rural towns to facilitate talks over exchanging around 60 hostages for jailed rebel fighters.

''The imperative at the moment is the humanitarian exchange, but that is only possible with the demilitarization of Florida and Pradera,'' Granda said in a recording released from the Roman Catholic Church building in Bogota where he has stayed since his release from prison on Monday.

The demand shows the complex task Uribe faces in reaching an accord with the FARC. A Washington ally who has received billions of dollars in US military aid, Uribe is popular for his hard line on guerrillas and has rejected a demilitarized zone.

As Uribe announced his initiative on Monday, guerrillas kidnapped the police commander of the town of Florida.

French President Nicolas Sarkozy had asked Uribe to release Granda to broker talks on freeing French-Colombian Ingrid Betancourt, captured while campaigning for the presidency in 2002.

Rebels also hold three US Defense Department contract workers kidnapped in 2003.

Granda has been granted conditional freedom to act as a negotiator under the supervision of the country's peace commissioner. But his lawyer says his legal status remains unclear.

Granda said his role depended on the FARC leadership.

Paraguayan President Nicanor Duarte said on Tuesday his government would seek an international arrest warrant for Granda for participating in the kidnap and murder of the daughter of the country's former president.

One of the FARC's top men, Granda was captured in 2004 by undercover agents in Caracas and whisked over the border in an incident that fueled tensions between Venezuela and Colombia.

Uribe's US-backed campaign has reduce violence by driving back the FARC and disarming illegal paramilitaries that once fought the guerrillas in a dirty war fueled by the country's huge cocaine trade.

REUTERS JK BST0725