Peru rebels release two more hostages

Peruvian rebels in the Japanese ambassador's residence in Lima released two more hostages yesterday, the Honduran Ambassador, Eduardo Martel, and the Argentine Consul, Juan Antonio Ibanez. It was the first release since 20 hostages were freed on Saturday, and left 81 still prisoner.

The rebels, who stormed the residence last month, yesterday also denied they were terrorists and renewed demands that their jailed comrades be freed. "What we have is terrorism of state, where thousands of children are killed by starvation," said a rebel from inside the compound. He urged reporters to go to prisons where rebel prisoners are held, saying conditions there were equal to a death sentence. AP - Lima