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ZAMBOANGA, Philippines, Wednesday (Reuters) Philippine Muslim gunmen linked to the al Qaeda network have demanded a ransom of 16 million pesos ($300,000) for their seven Indonesian and Filipino hostages, an official said on Wednesday.

Provincial governor Yusop Jikiri of the Sulu islands in the southern Philippines said he had rejected the demand because paying the ransom would only encourage the Abu Sayyaf guerrillas to kidnap other people.

The hostages included three Indonesian crewmen who were abducted from a Singaporean-owned tugboat in June and four Filipino women Christian evangelists kidnapped in August.

They are being held in the mountain stronghold of the Abu Sayyaf on Jolo, the main island in the Sulu archipelago, about 960 km (600 miles) south of Manila.

The United States has linked the Abu Sayyaf to Osama bin Laden's al Qaeda network, alleged mastermind of last year's September 11 attacks on New York and Washington, which killed about 3,000 people.

Jikiri said on state radio that kidnap leader Radulan Sahiron had sent him a letter promising "to end the spate of kidnappings if the governor would pay the 16 million pesos for the release of the captives".

"Sahiron should release the hostages without any condition or face military consequences," Jikiri said. "Kidnappings will not stop if the government gives in to the demand of these bandits.".

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