[0] U.S. POWS RELEASED BY YUGOSLAVIA.

Byline: George Jahn Associated Press 

Yugoslav leader Slobodan Milosevic early today handed over three captured U.S. soldiers to the Rev. Jesse Jackson, who urged NATO to reward the gesture by halting the bombing of Yugoslavia for one night.

Jackson said he would be carrying a letter from Milosevic offering a face-to-face meeting with President Clinton to resolve the five-week conflict. Despite Jackson's pleas to give Yugoslavia a ``night of peace from bombs,'' U.S. officials said the prisoners' release would have no effect on NATO's air campaign.

NATO acknowledged early today that one of its jets had struck a civilian bus crossing a bridge during daylight strikes Saturday. Tanjug reported 40 people were killed in the attack, while the private Beta news agency put the toll at 60.

The jet had been aiming at the Luzane bridge, used by Yugoslav troops operating in Kosovo, NATO said in a statement. ``Unfortunately after weapon release, a bus crossed the bridge,'' it said.

Hours later, the night's bombing began in several parts of the country. Tanjug reported that seven missiles struck an oil refinery before dawn today in Novi Sad - Yugoslavia's second largest city - and touched off a fire. More than a half hour after the raid, the area was rocked by repeated explosions, probably resulting from the fire.

Beta reported strong anti-aircraft fire along the coast of Montenegro. As NATO planes flew over from Italy several blasts were heard in the area of Kotor Bay, where the headquarters of the Yugoslav Navy is located.

``The end of the conflict will come when they stop persecuting innocent people in Kosovo,'' Vice President Al Gore said in Louisville, Ky. ``We can't stand by with that kind of atrocity going on.''

Peace move?

The soldiers' release after a more than a month in captivity could be a sign Milosevic is moving to find a way to end the Kosovo crisis. The Yugoslav leader also might be trying to improve his image in the United States and to exploit antiwar rumblings in Congress.

The three soldiers were handed over to Jackson, who led a religious delegation to Belgrade and met with Milosevic on Saturday.

Milosevic conferred with key advisers after seeing Jackson, who later said Yugoslav officials decided to ``release the three Americans held captive and to allow them to leave with us tomorrow.''

Jackson said the three U.S. soldiers would accompany his delegation back to Croatia today, where they would then fly to the nearest U.S. air base, likely in Germany.

U.S. officials were cautious in their initial responses to the announced release.

Jackson called Clinton's national security adviser, Sandy Berger, to brief him on developments involving the three soldiers, and Berger relayed the conversation to Clinton, who was playing golf in Virginia on Saturday afternoon. Jackson also spoke to Secretary of State Madeleine Albright.

No bomb respite

Pentagon spokesman Kenneth Bacon said the release of the prisoners would have no effect on NATO's air campaign.

Bacon also said it was premature to talk about a reciprocal release of Yugoslav prisoners. The United States captured one prisoner two weeks ago, and Bacon said NATO is now holding a second. He released no details on the second capture, except to say it was ``very recently,'' apparently within the last 24 hours.

Pentagon officials had previously all but ruled out a prisoner exchange.

Jackson made several pleas for NATO to halt its airstrikes, saying ``in the coming days, we shall urge all parties to seize upon this initiative'' and undertake new negotiations to end the crisis.

``The government of Yugoslavia has made their statement with the releasing of the prisoners,'' Jackson said. ``Suppose tonight . . . they (the U.S. soldiers) were hit and killed along their way to freedom? How ridiculous that would be. How unnecessary that would be, how insane that would be.''

``I hope that the response tonight is one of appreciation of this diplomatic gesture.''

Seized March 31 were Staff Sgt. Christopher J. Stone, 25, of Smiths Creek, Mich.; Spc. Steven M. Gonzales, 22, of Huntsville, Texas; and Staff Sgt. Andrew A. Ramirez, 24, of Los Angeles.

The soldiers were conducting a routine patrol along the Yugoslav-Macedonian border in support of a NATO force deployed there in the event that a peace deal enables them to enter Kosovo to serve as peacekeepers.

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Photo

PHOTO (Color) Vivian Ramirez, left, reacts to news that Yugoslav leader Slobodan Milosevic has agreed to release her son, Staff Sgt. Andrew Ramirez. See Page 20.

Charlotte Schmid-Maybach/Daily News