U.S. POWS RELEASED BY YUGOSLAVIA.

Byline: Associated Press 

Yugoslav authorities handed over three captured U.S. soldiers to the Rev. Jesse Jackson today, ending their 32 days in captivity with calls home, saying: ``I am free.''

The soldiers stood solemnly with their hands behind their backs while a brief signing ceremony formally marking the transfer was held at a military headquarters in Belgrade. Jackson then invited them to take their hands from behind their backs, saying they were no longer prisoners.

The three then spoke to their families on a cellular phone passed to them by Jackson. They were to then accompany Jackson and his interfaith delegation on a bus to Croatia.

``All three of them said almost to the letter in talks to their loved ones, `I am free, I am free,' '' Jackson said. `` `I love you very much. I hope to see you soon.' That was the message.''

Jackson wiped away tears as Staff Sgt. Andrew A. Ramirez, also crying, spoke to his family. The other two soldiers - Staff Sgt. Christopher J. Stone, and Spc. Steven M. Gonzales - wore broad smiles.

Jackson said President Clinton had called him and congratulated him on the soldiers' release. The civil rights leader said he would meet with Clinton as early as Monday to deliver a letter from Yugoslav President Slobodan Milosevic offering a face-to-face meeting to end the five-week NATO bombing campaign and resolve the crisis over Kosovo.

The drive from Belgrade to the Croatian border is expected to take about three hours.

Jackson had called for NATO to reciprocate Milosevic's gesture of releasing the soldiers by calling a pause in its bombing campaign.

But strikes went on through the night, and before dawn today NATO suffered its second loss since launching its air war on March 24, when an American F-16 went down in western Serbia. NATO and Pentagon officials said the pilot was rescued but the cause of the crash was not yet known.

And NATO acknowledged early today that one of its jets had struck a bus crossing a bridge during daylight strikes Saturday. Tanjug reported 40 civilians 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.''

The soldiers' release could be a sign Milosevic is moving to find a way to end the Kosovo crisis. The Yugoslav leader might also be trying to improve his image in the United States and to exploit anti-war rumblings in Congress.

``The president took the decision in support of Jesse Jackson's peace efforts,'' Tanjug said. ``We do not see them as enemies but victims of war and militarism.''

Jackson said the three U.S. soldiers would fly from Croatia 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.

``If they were able to secure the release of the prisoners, that would be a positive development,'' said National Security Council spokesman David Leavy.

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.

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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