THREE soldiers and three bandits were killed as Marines for a second day yesterday battled Abu Sayyaf fighters, who have kidnapped three Red Cross workers and held them hostage.

There w0as no word about the fate of the hostages?a Swiss, an Italian and a Filipino?held for more than two months, but the International Committee of the Red Cross expressed concern that a military rescue could harm them.

Nineteen soldiers were wounded in yesterday?s skirmishes.

The fighting erupted Monday when Abu Sayyaf gunmen led by Albader Parad tried to break out of a loose cordon set up by government forces to box in dozens of the bandits and their hostages in a hilly jungle near the town of Indanan in Sulu.

?They are desperate. They want to get out of the constriction area,? said military spokesman Brig. Gen. Gaudencio Pangilinan.

Pangilinan yesterday confirmed that Parad was killed.

Maj. Gen. Juancho Sabban, who heads the task force pursuing the bandits, confirmed that Parad was hit by sniper fire during fighting Monday, Pangilinan said.

?I was assured by General Sabban that Parad was killed, [but] we have yet to locate his cadaver and take a DNA test,? Pangilinan said.

National Security Adviser Norberto Gonzales said Parad?s relatives were spotted in Sulu in what appeared to be a burial rite for the slain bandit.

US and Philippine officials have offered a reward for the capture or killing of Parad. Last month, Parad acknowledged on TV that his group was holding the Red Cross workers.

The death of Parad is a blow to the bandits, but Pangilinan said it would not stop the group from kidnapping more people.

The bandits snatched Swiss Andreas Notter, Italian Eugenio Vagni, and Filipino Mary Jean Lacaba in Jolo on Jan. 15.

Red Cross officials worried that the hostages might be hurt in the fighting.

?Their safety is paramount. We repeat our call that no action should be taken that could put [their lives] in danger,? said Alain Aeschlimann, head of Southeast Asia operations of the International Red Cross.

So far, the military has refrained from a rescue attempt to ensure the safety of the hostages and to allow local officials to negotiate their safe release.

But the Abu Sayyaf has demanded that the military back off from its stronghold before any negotiation can take place. The government has rejected these demands.

Sulu Gov. Abdusakur Tan, who heads the task force dealing with the hostage taking, said he had not authorized a military rescue, but added that troops could open fire if the bandits tried to escape from the jungle area of if they attacked.

?Anytime they attempt to escape, we?ll engage them,? Tan said.

?It?s clear the Abu Sayyaf is feeling the pressure of the military presence.?

Troops recovered some tents from the Abu Sayyaf, which were issued by the Red Cross as temporary shelter for the hostages.

Pangilinan added that a certain Igasan, and not Parad, was the leader of those holding the Red Cross workers.

?Parad was just talkative,? he said. AP, with Joyce Pangco Pa?ares and Jaime Pilapil