DATE=4/6/98 TYPE=CORRESPONDENT REPORT NUMBER=2-229265 TITLE=PAK U-S (L) BYLINE=SARAH HORNER DATELINE=ISLAMABAD CONTENT= VOICED AT: INTRO: PAKISTAN HAS RELEASED A PAKISTANI EMPLOYEE OF THE U-S DRUG ENFORCEMENT AGENCY (DEA) WHO WAS CONVICTED LAST YEAR OF "ANTI-STATE ACTIVITIES" AND DRUG TRAFFICKING. AS SARAH HORNER REPORTS FROM ISLAMABAD, THE U-S GOVERNMENT HAD URGED PAKISTAN TO RELEASE THE D-E-A EMPLOYEE. TEXT: THE MINISTRY OF DEFENSE SAYS IN A PRESS RELEASE IT REMITTED AYAZ BALOCH'S SENTENCE FOLLOWING A PETITION FROM THE MAN'S WIFE THAT HE BE RELEASED FOR COMPASSIONATE REASONS. THE STATEMENT SAYS MR. BALOCH HAD BEEN FOUND GUILTY OF WHAT IT CALLS "SEDUCING" A PAKISTAN AIR FORCE OFFICER TO TRAFFIC DRUGS, BUT THAT THE CHIEF OF THE AIR STAFF HAS ACCEPTED A MERCY APPEAL AND CUT THE UNEXPIRED PORTION OF MR. BALOCH'S SENTENCE. MR. BALOCH WORKS FOR THE U-S DRUG ENFORCEMENT AGENCY AT THE AMERICAN EMBASSY IN THE PAKISTANI CAPITAL, ISLAMABAD. LAST OCTOBER, HE WAS SENTENCED BY AN AIR FORCE COURT MARTIAL TO 10 YEARS IMPRISONMENT. IN FEBRUARY, THE SENTENCE WAS CUT TO FIVE YEARS. AT A NEWS BRIEFING (MONDAY), FOREIGN MINISTRY SPOKESMAN TARIQ ALTAF SAID LITTLE ABOUT THE REMISSION OF MR BALOCH'S SENTENCE. // ALTAF ACT // AYAZ BALOCH'S RELEASE HAS TAKEN PLACE IN ACCORDANCE WITH THE LAW UNDER WHICH HE WAS BEING TRIED. THE LAW HAS TAKEN ITS OWN COURSE AND HE HAS BEEN RELEASED. // END ACT // MR BALOCH WAS ARRESTED IN APRIL, 1997 -- SHORTLY AFTER THE ARREST OF A PAKISTANI AIR FORCE OFFICER IN NEW YORK WHO WAS ALLEGEDLY CAUGHT TRYING TO SELL HEROIN TO AN UNDERCOVER U-S GOVERNMENT AGENT. NEWS REPORTS HAVE LINKED THE TWO CASES, ALTHOUGH THE GOVERNMENT IN ISLAMABAD HAS DENIED MR BALOCH'S ARREST WAS IN RETALIATION FOR THE ARREST OF THE PAKISTANI PILOT. THE U-S GOVERNMENT HAS BEEN URGING PAKISTAN TO RELEASE MR. BALOCH, WHOSE ARREST HAD STRAINED RELATIONS BETWEEN THE UNITED STATES AND PAKISTAN. A RECENT REPORT FROM THE STATE DEPARTMENT INTERNATIONAL NARCOTICS BUREAU LINKED U-S GOVERNMENT HELP WITH DRUG CONTROL IN PAKISTAN TO THE BALOCH CASE. THE REPORT SAYS UPON THE RELEASE OF THE D-E-A EMPLOYEE -- MR. BALOCH -- THE U-S GOVERNMENT WILL BE PREPARED TO CONSIDER RESUMING FINANCIAL ASSISTANCE TO DRUG ENFORCEMENT AGENCIES IN PAKISTAN. U-S GOVERNMENT OFFICIALS CONTACTED BY V-O-A SAID THEY HAD JUST HEARD ABOUT MR BALOCH'S RELEASE AND HAD NO COMMENT ABOUT IT. (SIGNED) NEB/SLH/LTD/MMK 06-Apr-98 10:15 AM EDT (1415 UTC) NNNN Source: Voice of America .