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December 29, 1998
              Web posted at: 3:50 p.m. EST (2050 GMT) 

              BOGOTA, Colombia (Reuters) --
              Colombia's most-feared death
              squad leader Carlos Castano is
              believed to have died when Marxist
              rebels overran his mountain
              stronghold in the north of the
              country, sources on both sides said
              on Tuesday. 

              One politician predicted bloody reprisals by paramilitary 
forces against the
              Marxists if Castano's death is confirmed. 

              In a call to local media, Revolutionary Armed Forces of 
Colombia (FARC)
              guerrillas said they had killed their arch-enemy Castano, 
who had led a
              10-year "dirty war" against the rebels and suspected 
civilian sympathizers, in
              fighting that began Sunday. 

              Regional politician Max Alberto Morales, a self-styled 
spokesman for the
              ultra-right death squads, said Castano's headquarters near 
the remote village
              of Nudo de Paramillo, in Cordoba province, had been razed 
and that the
              paramilitary chieftain was missing. 

              "There has been no communication within the organization 
with Castano
              since 9 a.m. (local time) Monday. The camp and the village 
has been totally
              destroyed. The attack was very fierce," Morales said. 

              Morales warned that "this will not be good for peace or 
for the country" if
              Castano's death was confirmed-- raising fears of a 
paramilitary backlash
              against rebel support bases. 

              Castano, whose fighters have been blamed for burning their 
victims or
              beheading them with chain-saws in a wave of brutal 
massacres, was the
              undisputed leader of a nationwide death squad alliance 
known as the United
              Self-Defence Forces of Colombia (AUC). 

              International human rights groups have accused government 
security forces
              of openly backing the outlawed gangs. Some political 
analysts and the
              guerrillas themselves say the paramilitary units are part 
of an official,
              undercover counter-insurgency strategy. 

              The attack on the heavily-guarded fortress of Nudo de 
Paramillo shattered
              an 18-day ceasefire which the AUC had declared over the 
Christmas period
              and was due to last until Jan. 6. 

              A regional army commander, who did not wish to be named, 
said he had
              sent troops into the area late Monday and that at least 15 
were missing after
              clashes with the FARC. He was unable to confirm, however, 
whether
              Castano had died. 

              The fighting came just 10 days before the FARC are due to 
launch formal
              talks with the government in a bid to end Colombia's 
long-running civil
              conflict that has left more than 35,000 dead in the last 
decade. 

              Castano, thought to be in his 30s, had also been pressing 
the government to
              recognize the AUC as a legitimate political force and had 
offered to take
              part in peace talks. 

              Colombia's paramilitary groups, drawing on training and 
advice provided by
              U.S. officials, were legally set up by the armed forces in 
the late 1960s as
              part of an official anti- guerrilla strategy. But they 
were outlawed in the late
              1980s as they threatened to spin out of government 
control. 

              Castano and his brother Fidel started out as guides for 
army
              counterinsurgency units but later set up their own gang, 
known as the
              Peasant Self-Defence Forces of Cordoba and Uraba (ACCU), 
when the
              government ordered the official paramilitary groups to 
disband. 

              That group, like most of the country's other paramilitary 
gangs, was financed
              with contributions from large landowners and 
cattle-ranchers. The Castano
              brothers are also said to have been heavily involved in 
drug trafficking and
              arms smuggling. 

              Fidel Castano is thought to have died in fighting with the 
FARC four years
              ago, leaving Carlos to head the ACCU. 

              Due to his strong military leadership, Castano succeeded 
in bringing some
              5,000 paramilitary fighters from across the country 
together to form the
              AUC in April 1997. 

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