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The two Israelis, Igar Damary, 49 and Udi Hargov, 37, were serving a three year jail sentence for approaching a restricted area and possessing banned listening equipment without the permission of the Cypriot authorities. They had been arrested in early November 1998 and initially charged with spying but these charges were later dropped.

The decision of the President was taken with the national interest of Cyprus in mind. A statement says their continuing imprisonment no longer serves the national interest. On the contrary, it adds, this gesture towards the friendly neighbouring state of Israel is being made on the occasion of the assumption of power by the Barak Government, inaugurating a new period of friendly bilateral relations.

The release of the two men follows a recommendation by the Attorney-General to President Glafcos Clerides, citing reasons of "national interest".

Acting Attorney-General, Nikos Charalambous said in a statement that "special reasons made the Attorney General submit the recommendation which are directly involved with the handling of the national issue."

Therefore, he said, "details cannot be revealed because that would not serve the purpose of the recommendation."

From the Republic of Cyprus Press and Information Office (PIO) Server at http://www.pio.gov.cy/

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