COLOMBO, July 14: The Sri Lankan navy on Monday claimed that two LTTE boats guarding the abducted North Korean merchant ship were destroyed, killing three rebels, army sources said.

Sri Lankan navy destroyed the rebel boats guarding the ship `M V Morang Bong' off the north eastern coast of Mullaithivu, were the ship has been anchored for last six days, sources said.

The sources said a flotilla of LTTE boats attacked the approaching Lankan navy ships and in the ensuing encounter one rebel boat was destroyed, while another was sunk.

The LTTE had released 37 North Korean crew on July 12. One North Korean was killed by rebels.

Meanwhile, 200 of the 10,000 army deserters who left forces in the of thick fighting have reported for duty.

The International Committee of the Red Cross (ICRC) has said it was discussing with its head office in Geneva a proposal to transport the refugees out from rebel-held areas to safer places. The proposal to shift refugees comes in the wake of a recent attack on a refugee ferry off north-west Mannar coast.

Officials in Trincomalee say that more than 3000 people were waiting for transportation to Jaffna, while another 7000 were reportedly waiting at Mannar. Meanwhile, two other ships hired by the Sri Lankan Government refused to operate due to the threats from LTTE.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.