A British Foreign Office minister said his administration would release Libyan assets frozen in the United Kingdom once Libyan authorities demonstrated their ability to manage them effectively.

This request was passed up to corps-level, however, there it was denied as Savige could not afford to release assets that were being used in the drive south.

The step will also release Libyan assets that had been frozen in a number of countries.

Iraq refused today to free two Britons serving long jail sentences for entering Iraq illegally unless London releases frozen Iraqi assets, the director general of the British Red Cross said.

Iran finally agreed to release the hostages after the US said it would release assets frozen in American and other banks, including the Bank of England, since the embassy was seized.

The new Swiss legislation also made another key change by leaving the door open to releasing disputed assets before a foreign country has concluded its criminal process.

It will release assets for investment that are currently tied up unproductively in collateral.

In the case of Mr. Richter, British officials said last weekend that they were prepared to release frozen Iraqi assets in Britain if Baghdad would agree to free him.

In late October US President George Bush ordered some US banks to release Iraqi assets for transfer to a UN fund.

But he suggested that Baghdad may be willing to free the two men if Britain releases frozen Iraqi assets.