<B>HOPES OF</B> finding alive any of about 100 people missing after fire gutted a Philippine ferry faded yesterday as rescuers scoured the sea near the capital Manila and divers searched the partly submerged ship. At least one person was confirmed dead after the early Friday fire on the 155-metre (510-foot) ship. The cause of the blaze was under investigation as the military dismissed a reported claim from al Qaeda-linked rebels that they were responsible.

?We can say it is a bit difficult now but we are continuing with our search?, coastguard Rear Admiral Arthur Gosingan told Reuters when asked about the chance any survivors could be found. The Super Ferry 14 had just set sail from Manila bound for the central city of Bacolod when a fire ? preceded by what some survivors said was an explosion ? swept through the vessel. Many people jumped from the ship to escape the flames and were picked up by fishing boats.

Gosingan said the coastguard and the shipowners were working out the exact number of people missing. ?There were 899 people aboard and we have rescued in excess of 700?, he said, adding that ?about 100? were unaccounted for and divers had entered the ship but had found no victims, he said.

Dozens of relatives of missing milled about outside the coastguard?s headquarters in Manila but many of them were giving up hope. ?Even if only bones are found, that would be enough, said Pamela Avisilya as she waited for word about a missing uncle, but personally, I have lost hope.?

A spokeswoman for the WG&A shipping consortium which owns the ferry, said rescue efforts would continue. ?We are still hoping but, of course, you have to look at the reality?, said Gina Virtusio. Military spokesman Lieutenant-Colonel Daniel Lucero dismissed a reported claim by Abu Sayyaf rebels that they had caused the fire as sheer propaganda. Transportation Secretary Leandro Mendoza said the claim was far fetched. Investigators had not found any link between the disaster and rebel groups, Lucero said.

A man identifying himself as an Abu Sayyaf spokesman called the RMN radio network and said the group caused the fire to ?avenge? abuses by security forces against Muslim women, the station said.

<B>Roli Ng /Romeo Ranoco</B>