A MILITANT rebel has pinpointed the remote village where he claims the bodies of student Paul Wells and three other hostages have been buried.
The news has come as Paul's father admitted for the first time it was looking more and more likely that the kidnapped Westerners were dead.
Indian police are questioning the rebel after he was captured in a gun battle.
Another rebel was also captured but was seriously injured in the clash and police have been unable to quiz him.
Details of the captured rebel's claims remain sketchy, but the British High Commission in New Delhi is being kept informed of any breakthroughs.
Paul's father Bob, who has just returned from his second visit to Kashmir, had hoped reported sightings of the hostages last summer meant they were still alive. But after failing to find any new information he said: "It is looking more and more likely that the story is correct that Paul and the other hostages were killed in December 1995. It is desperately sad.
"I feel now that a lot of the false hope we had in the summer of 1996 has evaporated and it is less and less likely that the boys will return."
Mr Wells said he may make a third trip to Kashmir and wouldn't give up hope. He added: "If by some chance he is still alive I would hate him to think we had given up on him."
British High Commission spokesman Mr Ian Hughes said: "There are regular clashes in Kashmir and this was one of them.
"One man was seriously injured and the other is being questioned. He has been interviewed and says he thinks the hostages have been killed and buried near Magam."
He explained that the police's next move would be to get the man to show them where the bodies were buried. They are also trying to establish the extent of the man's involvement in the Kashmir separatist movement.
The captured rebels are believed to be members of Harkat Ul Ansar, a separatist group thought to be responsible for holding the four Westerners hostage.
The area named by the rebel was searched by the Indian authorities last June after another captured separatist guerrilla made similar claims.
Sniffer dogs and hundreds of Indian policemen were drafted in to help check the claims that the hostages were killed and buried in a mountain forest.
The British, US and German embassies in India called on the country's government to carry out the search in a bid to confirm or rule out the rebel's story.
Mr Hughes explained that Magam covered around six miles square and was difficult to search.
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