Separatists take hostages Group thinks Texas should be an independent country. ' FORT DAVIS, Texas (AP) — A militant separatist group that believes Texas should be an independent na tion took two neighbors hostage Sun day in retaliation for the arrest of two members by police. Richard McLaren, the self-styled “ambassador” of the Republic of Texas, told San Antonio radio station WOAI that the group would end its standoff at the couple’s home in ex change for the release of Republic members under arrest and another key concession. “We want them to... agree to a ref erendum to allow Texans to vote on the independence issue,” McLaren said from his group's headquarters in a remote area of the Davis Mountains, 75 miles north of the Mexico border. Dozens of police had surrounded the area since the standoff began at noon. The FBI was also called. The armed separatists stormed the home of Joe Rowe and his wife, M.A. Rowe, firing gunshots, authorities said. Rowe was injured by broken shards of glass in the gunfire, but “de clined” to be exchanged for a volun teer firefighter who offered to replace him, a man identifying himself as White Eagle, a chief aide to McLaren, told WOAI. Earlier Sunday, McLaren said the group exchanged Rowe for a volun teer. McLaren said the hostages were being held under the rules of interna tional law. “They’re in Mr. Rowe’s house and being well taken care of,” McLaren said A telephone call to the Rowe home Sunday was answered by a man who identified himself as Lt. Keys of the Republic of Texas Militia. He referred all questions to McLaren. “I can’t conduct a military opera tion and answer your questions at the same time,” he told The Associated Press. The Republic of Texas contends that the annexation of Texas as a state in 1845 was illegal, that Texas should remain an independent nation, and that the group’s leaders constitute the legitimate government of the indepen dent nation of Texas. Texas was an independent repub lic from 1836, when it broke away from Mexico in the Texas Revolution, until 1845. Nike shoemakers win pay 1 JAKARTA, Indonesia (AP) — A wage dispute at a factory that makes Nike shoes was resolved Saturday, with employees winning a 10.7 per cent pay increase, a Nike spokesman said. In demonstrations on Friday, work ers burned cars and ransacked the factory’s offices, saying the company wasn’t paying them a $2.50-a-day minimum wage. The factory was closed for the weekend while officials met with union representatives. Nike was monitoring the talks but was not involved in the negotiations. Almost half the factory’s 10,000 employees took part in the demonstra tion at Tangerang, an industrial town outside Jakarta, according to Indone sian media. It was the second protest in a week against PT Hardaya Aneka Shoe In dustry, which owns the factory that makes shoes under contract for Nike Inc., based in Portland, Ore. Nike spokesman Jim Small said the settlement was a relief, but raised concerns. Small said wages in Indonesia have increased threefold in the last two years and “there’s concern what that does to the market — whether or not Indonesia could be reaching a point where it’s pricing itself out of the market,” Small said. Nike will not pay more to contract with the factory as a result of the in creased wages, Small said. Indonesia, which allows only one government-controlled labor union, has been accused of holding down wages to attract foreign investment. Independent labor organizers have been arrested, beaten and sometimes killed. The government acknowledges that its minimum wage is sufficient to pay only about 90 percent of the liv ing expenses of a single person. Nike and its competitor Reebok have denied accusations that they pay Indonesian workers too little and tol erate poor working conditions and other abuses at Indonesian factories run by contractors. Canada deploys navy against river flood WINNIPEG, Manitoba (AP) — Canada’s military sent navy rescue units and thousands of soldiers Sun day to meet the flood pouring down the Red River from the United States, expanding its largest deployment in 20 years. Today more than 6,700 military personnel were expected to be in southern Manitoba, helping to build dikes, guard evacuated towns and search for people stranded by the region’s worst flood of the century. The force includes 200 sailors equipped with inflatable boats that were used in the Adriatic Sea during the Bosnian war. Also coming were air force traffic controllers assigned to en force a no-fly zone and keep airborne sightseers from congesting the sky over the flooded Red River Valley. The front edge of the river’s flood i--— crest, coming in from North Dakota and Minnesota, reached the border town of Emerson, Manitoba, but a huge swath of southern Manitoba already was turned into a lake covering everything but a few dike-protected towns. The lake is expected eventually to cover 700 square miles. Provincial officials Sunday ordered the last 400 civilians lingering in the valley to leave immediately. He said state-of-emergency measures empow ered police to remove them by force and arrest them if necessary. The water was still about 3 feet below the top of the dike protecting Emerson. “We’re going to survive this,” said Royal Canadian Mounted Police Sgt. John Fleming, one of the men on duty at Emerson. “There’s no doubt in anybody’s mind behind this wall.” _ | I [ There Really Is A Difference. “iBonus Bucks " in addition to cash for your textbooks... 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