THE HAGUE - The International Court of Justice (ICJ) will hold public hearings in June to help it settle a territorial dispute between Indonesia and Malaysia over two tiny islands in the Celebes Sea, the ICJ said yesterday.

Indonesia and Malaysia have both laid claim to the islands of Pulau Ligitan and Pulau Sipadan, which lie off the coast of Malaysia's North Borneo.

The two countries signed an accord in May 1997, handing the ICJ responsibility for resolving the territorial dispute "in the spirit of friendly relations," adding that they would accept the court's decision "as final and binding upon them."

Mediator rejected

The court will hear arguments at its seat in The Hague from June 3-June 12, the ICJ, also known as the World Court, said in a statement.

In October, the court rejected a Philippines request to mediate the dispute, saying Manila could use the role to continue its 20-year struggle to gain control of North Borneo from Malaysia.