One soldier was killed and another wounded in a clash between government troops and communist rebels in the northern Philippines, a military report said Friday, according to DPA. The report said the fighting erupted when communist rebels attacked a government militia outpost in Baay town in Abra province, 330 kilometres north of Manila, on Wednesday. There were no reported casualties on the rebel side and more troops have been dispatched to the area to pursue the rebels who fled to the mountains. Clashes between government troops and communist guerrillas have escalated during the past months due to the continued refusal of the rebels to return to the negotiating table. The government cancelled guarantees from arrests given to about 100 guerrillas involved in peace negotiations. The police have also proposed the revival of cash rewards given to informants who can lead to the capture of top communist rebel leaders. The bounty system had earlier been suspended in a bid to boost the peace negotiations between the rebels and the government.