TOP AND GROUND VIEWS KOTA KINABALU; MALAY AND CHINESE WOMEN; FISHING BOATS; WATER VILLAGE; HOUSES ON STILTS; HARBOUR AREA.




Initials PW/VS/PW/SS



Script is copyright Reuters Limited. All rights reserved

Background: THE PHILIPPINES, IN DISPUTE WITH MALAYSIA OVER THE NORTH BORNEO TERRITORY OF MALAYSIAN SABAH, TODAY ORDERED THE WITHDRAWAL OF ALL BUT ONE OF ITS EMBASSY STAFF IN THE MALAYSIAN CAPITAL OF KUALA LUMPUR. THIS FOLLOWS THE BREAKDOWN OF TALKS BETWEEN THE TWO COUNTRIES, HELD IN BANGKOK, THAILAND, WHICH HAD BEEN SEEKING A SOLUTION TO THE DISPUTE.

THE PHILIPPINES HAVE LAID CLAIM TO THE TINY TERRITORY -- A CLAIM WHICH MALAYSIA REJECTS.

MEANWHILE THE PEOPLE OF SABAH - WHO VOTED UNDER UN SUPERVISION IN 1963 TO BECOME PART OF THE MALAYSIAN FEDERATION -- AWAIT THE OUTCOME OF THE DISPUTE.

TODAY'S ANNOUNCEMENT FROM MANILA CAME FROM PRESIDENT MARCOS. THE WITHDRAWAL OF PHILIPPINES DIPLOMATIC STAFF WAS THE UNANIMOUS DECISION OF THE PHILIPPINES FOREIGN POLICY COUNCIL. IT HAS BEEN ORDERED, SAYS TODAY'S ANNOUNCEMENT, BECAUSE OF THE MALAYSIA'S WALKOUT FROM THE BANGKOK TALKS.

PRESIDENT MARCOS HAS ALSO RECALLED THE PHILIPPINES NEGOTIATING TEAM FROM BANGKOK. LED BY AMBASSADOR QAUTTIER BISNAR HAS BEEN IN THE THAI CAPITAL SINCE THE TALKS WERE BROKEN OFF ON TUESDAY.

THE ANNOUNCEMENT SAID THAT THE PHILIPPINES WOULD CONTINUE TO PRESS ITS CLAIM TO SABAH.

THE TERRITORY, ON THE NORTHERN TIP OF BORNEO, IS RICH IN TIMBER, RUBBER AND SPICES AND HAS PROSPECTS OF OIL AND COPPER. IT HAS AN AREA OF 30,000 SQUARE MILES AND A POPULATION OF 550,000.