Iran To Free British Hostages

Iranian President Mahmoud Ahmadinejad announced Wednesday that his government would release the detained 15 British sailors and marines as a gift to the British people.

He pardoned the sailors and announced their release minutes after he gave medals of honor to the Iranian coast guards who intercepted the sailors and marines, saying Iran will never accept trespassing of its territorial waters.

"On behalf of the great Iranian people, I want to thank the Iranian Coast Guard who courageously defended and captured those who violated their territorial waters, the president told a press conference.

He then interrupted his speech and pinned medals on the chests of three Coast Guard officers involved in capturing the British sailors and marines in the northern Gulf on March 23.

"We are sorry that British troops remain in Iraq and their sailors are being arrested in Iran," Ahmadinejad said.

In London, a spokesman for Blair's office said, "We are looking at what has been said," but would not comment further. He spoke on condition of anonymity, in line with government policy.

Ahmadinejad said the crew would be taken to Tehran airport at the end of the press conference.

"On the occasion of the birthday of the great prophet (Muhammad) ... and for the occasion of the passing of Christ, I say the Islamic Republic government and the Iranian people — with all powers and legal right to put the soldiers on trial — forgave those 15," he said, referring to the Muslim prophet's birthday last Saturday and Easter, next Sunday.

"This pardon is a gift to the British people," he said.

Ahmadinejad criticized Britain for deploying Leading Seaman Faye Turney, one of the 15 detainees, in the Gulf, pointing out that she is a woman with a child.

"How can you justify seeing a mother away from her home, her children? Why don't they respect family values in the West?" he asked of the British government.

The announcement "was Iran's way of taking control of the crisis and an effort to make the point that they were taking the high ground, after a speech that was a recitation of Iran's case against the West including U.S. and British support for Saddam Hussein against Iran, his criticism of the U.N. Security Council, and Iran's right to have peaceful nuclear programs" said CBS News foreign affairs analyst Pamela Falk.

On Tuesday, Britain called for direct talks with Iran over 15 captive Britons after speaking for the first time with the chief Iranian negotiator. The announcement followed the sudden release of an Iranian diplomat in Iraq that raised new hope in resolving the standoff.

Great Britain and Iran have exchanged diplomatic documents outlining the terms of the deal, reports CBS News national security correspondent David Martin. In return for the release of the sailors and marines, the British government would say it regrets the incident and will make sure it doesn't happen again, but would not admit its personnel violated Iranian waters.

In a statement late Tuesday, Prime Minister Blair's Downing Street office said "both sides share a desire for an early resolution to this issue through direct talks."

"The prime minister remains committed to resolving this by diplomatic means. The U.K. has proposed direct bilateral discussions and awaits an Iranian response on when these can begin," Blair's office said.