UK soldiers 'freed from militia'
Two British soldiers freed after tanks broke into a Basra prison were being held by Shia militiamen, the Ministry of Defence said.
The MoD said the men had been found at a nearby house after troops broke into the city's prison to look for them.
Basra governor Mohammed al-Waili called the Army action a "barbaric act of aggression".
The arrests sparked unrest in which UK tanks came under attack. Reports said two Iraqi civilians were killed.
The two men - thought to be British servicemen working undercover - were accused of opening fire on local police.
An MoD spokesman said: "Two British soldiers were detained and taken to an Iraqi police station. We then started negotiating with the Iraqi authorities for their release.

"We understand that the authorities ordered their release. Unfortunately they weren't released and we became concerned for their safety and as a result a Warrior infantry fighting vehicle broke down the perimeter wall in one place.
We remain committed to helping the Iraqi government
Defence Secretary John Reid
What effect will unrest have?
"Our guys went in there and searched it from top to bottom in order to go and recover our two soldiers who had been detained.
"They weren't there unfortunately but we did obtain intelligence that pointed to where they were. We then launched another operation to recover them, from a house in Basra."
Mr al-Waili said more than 10 tanks and helicopters were used in the operation at the jail.
The MoD denied witness reports to the Associated Press that about 150 prisoners escaped after the demolition of the wall.
Flaming tanks
Earlier, two British tanks sent to the police station where the soldiers were being held, were set alight in clashes.
Crowds of angry protesters hurled petrol bombs and stones, injuring three servicemen and several civilians.
TV pictures showed soldiers in combat gear clambering from one of the flaming tanks and making their escape - three soldiers were reportedly injured.

In a statement, Defence Secretary John Reid said the soldiers who fled from the tanks were being treated for minor injuries.
Mr Reid added that he was not certain what had caused the disturbances.
"We remain committed to helping the Iraqi government for as long as they judge that a coalition presence is necessary to provide security," the statement said.
Tensions have been running high in the city since the arrest of a senior figure in the Shia Mehdi Army by UK troops.
But Colonel Tim Collins, the former commander of British troops in Iraq, described the Basra unrest as like a "busy night in Belfast".
Col Collins said it did not represent a breakdown of law and order in Basra, which was still a safer city than Baghdad.
Two British soldiers freed after tanks broke into a Basra prison were being held by Shia militiamen, the Ministry of Defence said.
The MoD said the men had been found at a nearby house after troops broke into the city's prison to look for them.
Basra governor Mohammed al-Waili called the Army action a "barbaric act of aggression".
The arrests sparked unrest in which UK tanks came under attack. Reports said two Iraqi civilians were killed.
The two men - thought to be British servicemen working undercover - were accused of opening fire on local police.
An MoD spokesman said: "Two British soldiers were detained and taken to an Iraqi police station. We then started negotiating with the Iraqi authorities for their release.

"We understand that the authorities ordered their release. Unfortunately they weren't released and we became concerned for their safety and as a result a Warrior infantry fighting vehicle broke down the perimeter wall in one place.
We remain committed to helping the Iraqi government
Defence Secretary John Reid
What effect will unrest have?
"Our guys went in there and searched it from top to bottom in order to go and recover our two soldiers who had been detained.
"They weren't there unfortunately but we did obtain intelligence that pointed to where they were. We then launched another operation to recover them, from a house in Basra."
Mr al-Waili said more than 10 tanks and helicopters were used in the operation at the jail.
The MoD denied witness reports to the Associated Press that about 150 prisoners escaped after the demolition of the wall.
Flaming tanks
Earlier, two British tanks sent to the police station where the soldiers were being held, were set alight in clashes.
Crowds of angry protesters hurled petrol bombs and stones, injuring three servicemen and several civilians.
TV pictures showed soldiers in combat gear clambering from one of the flaming tanks and making their escape - three soldiers were reportedly injured.

In a statement, Defence Secretary John Reid said the soldiers who fled from the tanks were being treated for minor injuries.
Mr Reid added that he was not certain what had caused the disturbances.
"We remain committed to helping the Iraqi government for as long as they judge that a coalition presence is necessary to provide security," the statement said.
Tensions have been running high in the city since the arrest of a senior figure in the Shia Mehdi Army by UK troops.
But Colonel Tim Collins, the former commander of British troops in Iraq, described the Basra unrest as like a "busy night in Belfast".
Col Collins said it did not represent a breakdown of law and order in Basra, which was still a safer city than Baghdad.
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