Both sides claim victory as Iran frees hostages

The Iranian President, Mahmoud Ahmadinejad, was basking in triumph yesterday as he announced that the 15 British sailors and marines captured in disputed waters of the Persian Gulf two weeks ago would be freed.

The surprise decision, announced by the President after he awarded medals to the border guards who seized the UK service personnel, was presented as a gesture of magnanimity. But it also reflects a success for British diplomacy conducted under enormous public pressure.

The first Tony Blair knew of the release was when it was announced on television by Mr Ahmadinejad during a press conference. Downing Street and the Foreign Office had hoped for movement over the next few days, but expected nothing so sudden as an immediate release.

By the time they were presented to the world press, they had still not met British consular officials, who were kept waiting outside the presidential palace for the press conference to end.

"Iran has every right to put these people on trial but they have been pardoned," Mr Ahmadinejad said as he announced the face-saving solution in which neither side backed down from its position of principle. "They will be set free as a gift from the people of Iran to the people of Britain. And I ask Tony Blair's government not to punish these soldiers for having told the truth. I also ask him to be concerned with truth, justice and service to the British people."

Mr Ahmadinejad denied the release was part of a quid pro quo deal involving Iranians taken captive in Iraq, but Iranian reports yesterday suggested the country would be given access to five Revolutionary Guards officers detained by US forces in Arbil in January. On Tuesday, an Iranian diplomat, who was abducted by uniformed Iraqis in Baghdad in February, was released. Iran had accused the US of involvement in his detention.

"If we wanted to exchange Iranians for these prisoners, we would ask for hundreds or thousands," he said. "These people were pardoned. It was a present. Our approach was humanitarian."

Iran insists the two boats, which have not been returned, were captured after crossing into its territorial waters, a charge that Britain forcefully denies. It has also said that British forces have repeatedly violated its borders. The fact that the capture was filmed by the Revolutionary Guards who seized the boats suggests that it was premeditated.

Last night, standing in Downing Street with Margaret Beckett, the Foreign Secretary, by his side, Mr Blair spoke of the "profound relief" of the detainees and their families. He, too, stressed that there had been no concessions. "We have taken a measured approach, firm but calm, not negotiating but not confronting either," he said.

Iranian insiders say the crisis was prolonged by Britain's decision last week to take the matter to the UN Security Council. It was also delayed by Iran's two-week new year holiday, which ended on Monday. Speaking to the Iranian people, Mr Blair said: "We respect Iran as an ancient civilisation, as a nation with a proud and dignified history. The disagreements that we have with your government, we wish to resolve peacefully through dialogue."

After escalating tensions last week, the mood softened on Monday, when Ali Larijani, head of Iran's Supreme National Security Council, said on Channel 4 News that the crisis could be resolved through bilateral diplomacy.

Mr Ahmadinejad used his 90-minute press conference as a platform to air his government's wider grievances with the West. He also accused British intelligence of carrying out military attacks in Iran in recent years.

"They wanted to show they could still inflict damage on Britain and America even though they were being sanctioned and more armour was moving to the Persian Gulf," said an analyst in Tehran. "They have now achieved that so they're letting these people go with a great big fanfare."

The 15 were presented to the media before securing consular access, which will surely provoke unofficial anger. Last night's news in Iran showed the sailors and marines jumping up and down and clapping as they saw Mr Ahmadinejad's announcement that they would be released. They were expected to return to Britain via Germany this morning.

So who did come out on top?

Iran Gets

* International applause and propaganda victory for release of hostages

* Britain in a position where it is beholden to Iran

* Reassertion of role as regional power capable of harming interests of US and Britain

* Potential support on issues such as nuclear dossier over dignified hostage outcome

UK Gets

* International applause for securing release diplomatically without recourse to making a military threat

* Release of hostages without any overt concessions

* Chance of improved relations with Iran thanks to hostages' safe release

* Possible improved relations with Damascus thanks to Syrian intervention

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