BULLETS FLY, HOSTAGES FREE : TROOPS SAVE 71 AS ASSAULT ENDS EMBASSY SIEGE IN PERU.

Byline: Lynn Monahan Associated Press 

In a lightning assault, Peruvian troops stormed the Japanese ambassador's mansion Tuesday and rescued 71 hostages held for four months, killing all 14 rebel captors as the unsuspecting guerrillas reportedly played soccer.

One captive, Supreme Court Justice Carlos Giusti, and two soldiers also died, said President Alberto Fujimori. Some hostages were secretly warned just before the raid, one of the freed men said.

Fujimori said 25 other captives were injured in the gunfire and explosions that rocked the compound, only two seriously - Peru's foreign minister, Francisco Tudela, and another Supreme Court justice, both suffering gunshot wounds.

``I didn't waver for a single minute in giving the order for this rescue operation,'' said the president, who throughout the crisis adamantly rejected the guerrillas' demand that jailed comrades be freed in exchange for the captive diplomats and businessmen.

The operation ended an international ordeal that had transfixed two nations and focused global attention on a little-known leftist rebel group, Tupac Amaru, which has waged guerrilla war here since 1984.

In Tokyo, Japan's prime minister called it a ``splendid rescue,'' but also said it was ``regrettable'' that Peru had not forewarned his government of the surprise, broad-daylight attack.

Fujimori told reporters late Tuesday that intelligence information convinced him it was an ideal time to end the impasse by force.

He apparently was referring to word of the indoor soccer game. Bolivian Ambassador Jorge Gumucio, one of the freed hostages, said eight hostage-holders were playing soccer in the main hall of the diplomatic residence when the security forces struck, first setting off an explosion in a tunnel directly under the hall.

It was about 3:30 p.m. The 140-man military-police assault team poured through the compound's front gate, then blasted open the mansion's front door. Others attacked from the rear, and a third unit climbed to the rooftop and shepherded hostages down.

It ended quickly. As smoke billowed over the residence, triumphant soldiers hauled down the guerrillas' flag, and ex-hostages and rescuers cheered and jubilantly sang the Peruvian national anthem. A large pool of blood could be seen at the bottom of a stairway.

The dead rebels included the group's leader, Nestor Cerpa, and at least two teen-age girls. Gumucio said Cerpa was one of those playing soccer.

Gumucio also said authorities managed to warn some of the captives 10 minutes before the raid. He declined to say how.

The relatively low casualty toll among hostages was surprising to some. An armed forces assessment early in the 126-day siege estimated such an assault would cost the lives of 70 percent of those in the compound.

The hostages, all male, were mostly Peruvians, but also included 24 Japanese - 12 businessmen and 12 diplomats, including Japan's ambassador, Morihisa Aoki, who suffered a slight elbow injury during the rescue. There were no Americans among the hostages.

Less than an hour after the raid, Fujimori strapped on a bulletproof vest and victoriously entered the compound. He shook ex-hostages' hands and joined with them and soldiers in singing the national anthem.

Smiling and carrying a large red-and-white Peruvian flag, Fujimori traveled with two busloads of hostages, apparently unharmed, to a military hospital. From inside the buses, the freed men gave the thumbs-up sign and smiled.

Other hostages were rushed off in ambulances. Friends and family gathered at the nearby hospital to look for loved ones.

``We're here to applaud the hostages and police for their bravery,'' said one woman, Edith Gonzalez. ``There was no other alternative but to attack.''

But the sister of one hostage said she wasn't sure.

``I don't know if the attack was necessary,'' said Nancy Dominguez, 53. ``All I know is it was a horrible shame.''

Japanese Prime Minister Ryutaro Hashimoto said Peru had not told him in advance of the raid, even though the compound is technically Japanese soil. Japan repeatedly had asked the Peruvians to avoid any actions that might endanger the hostages.

``Our country was not informed in advance and this is very regrettable,'' Hashimoto said. But he expressed support for Peru's leader, saying, ``There should be nobody who could criticize Mr. Fujimori for his decision.''

CAPTION(S):

2 Photos

PHOTO (1 -- color) Peruvian soldiers help hostages escape from the Japanese ambassador's residence in Lima. One hostage was killed.

Associated Press

(2) CNN footage shows Peruvian President Alberto Fujimori hugging an unidentified hostage at the compound.

Associated Press