BESLAN, Russia—Hundreds of mainly young hostages, seized at a school close to Chechnya, faced a second agonizing day in captivity Thursday after negotiations between the Russian authorities and their captors proved fruitless.

In three hours of phone negotiations, officials said they offered the hostage-takers safe passage out of the region and also to exchange the trapped children—some as young as five—with adults.  Both offers were turned down.

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