1.
LS MALAYSIAN NAVAL BOAT PATROLLING SEA
0.09

2.
MS INDONESIAN BARTER BOATS
0.14

3.
MS POLICE BOAT
0.24

4.
MS INDONESIANS SHOPPING IN OPEN-AIR MARKET
0.28

5.
MCU BARTER BOATS AGAIN (THREE SHOTS)
0.40

6.
CU UNLOADING COPRA (TWO SHOTS)
0.50

7.
CU CHINESE SHOP
0.52

8.
CU US-MADE CIGARETTES IN SHOWCASE
0.57

9.
CU TWO INDONESIAN INSIDE SHOP (TWO SHOTS)
1.00

10.
LS TOWN SCENE
1.10

11.
CU MILITARY TRAINING CAMP (THREE SHOTS)
1.16

12.
CU TARGET
1.20

13.
CU RESERVISTS AT FIRM RANGE (TWO SHOTS)
1.26

14.
MS PATROLLING (TWO SHOTS)
1.36

15.
LS SEA PATROL (TWO SHOTS)
1.45



Initials CAR/VS/MK/YA/RBI



Script is copyright Reuters Limited. All rights reserved

Background: IN SABAH, MALAYSIAN SECURITY FORCES HAVE STEPPED UP SEA AND LAND PATROLS TO CUT OFF ANY INFILTRATION, OR SNEAK ATTACK FROM THE PHILIPPINES, FOLLOWING THE COLLAPSE OF THE SABAH TALKS. MEANWHILE FILIPINO CONGRESSMAN ROQUE ABLAN OF THE RULING NACIONALISTA PARTY, CHARGED THAT MALAYSIA HAD LAUNCHED AN OPERATION CODE-NAMED "TROJAN HORSE" AIMED AT WEAKENING THE ECONOMY OF THE PHILIPPINES BY SMUGGLING IN THE SULU ARCHIPELAGO, AND STIRRING UP UNREST. THE ARCHIPELAGO IS PREDOMINANTLY A MUSLIM-POPULATED ISLAND CHAIN NEAR THE EAST COAST.

MR. ABLAN TOLD THE PHILIPPINES CONGRESS THAT AN INTELLIGENT REPORT FROM MALAYSIANS OF FILIPINO EXTRACTION HAD DISCLOSED THE OPERATION.

FOLLOWING THE BREAKDOWN, CENTURIES OF BARTER TRADE BETWEEN THE PEOPLE OF THE SULU TAWAU, ON THE EAST COAST OF SABAH, HAS VIRTUALLY COME TO AND END. AND THE INDONESIANS, WHO HAVE BEEN TRADING SINCE THE END OF CONFRONTATION, ARE DOUBLING THEIR BUSINESS IN COPRA AND OTHER PRODUCTS IN RETURN FOR DRESS MATERIALS, CLOTHING AND EVEN MUSICAL INSTRUMENTS.

THE CHINESE, WHO FORM THE SINEW OF THE MALAYSIAN ECONOMY, ARE SLIGHTLY HIT BY THE HALT IN FILIPINO BARTER TRADE.....

AS DIPLOMATIC RELATION BETWEEN MALAYSIA AND THE PHILIPPINES REMAIN STRAINED, THE FIRST GROUP OF SABAH NATIONAL SERVICEMEN HAS BEEN CALLED BACK FOR REFRESHER TRAINING.

MEANWHILE, MALAYSIA HAS DECIDED AGAINST ADOPTING ANY RETALIATORY MEASURES AGAINST THE PHILIPPINES WHICH IS RECALLING HOME ALL BUT ONE OF ITS EMBASSY STAFF.

MALAYSIA IS RECALLING HER AMBASSADOR FROM MANILA FOR CONSULTATIONS ONLY BUT NOT WITHDRAWING EMBASSY STAFF AT PRESENT.