BY MICHAEL EASTERBROOK
 Associated Press

 BOGOTA, Colombia -- Colombia's second largest rebel group appeared on the
 verge of gaining a haven for holding peace talks with the government after freeing
 dozens of police and soldiers.

 Speaking to reporters Sunday, President Andrés Pastrana said ``there is a draft
 for an agreement'' on pulling out all government troops from a northern region that
 is a stronghold of the leftist National Liberation Army, or ELN.

 GROUP FREED

 A day earlier, the rebel group freed 42 police and soldiers captured in fighting
 during the past few years.

 It had been using the men as bargaining chips to gain a demilitarized zone similar
 to one Pastrana granted two years ago to a larger leftist group, the Revolutionary
 Armed Forces of Colombia, or FARC.

 The ELN has demanded the area be cleared to encourage dialogue.

 But most Colombians believe the southern FARC-held demilitarized zone has
 been a disaster, and a new land concession in the north could spark protest,
 especially from residents of Bolívar state, where the zone would likely be created.

 In its Switzerland-sized area, the FARC has allegedly abused local residents and
 used the zone to recruit fighters and stage attacks.

 Meanwhile, peace talks with the FARC on ending Colombia's 36-year conflict
 have gone nowhere.

 Pastrana said government officials would meet with Bolívar residents and
 community leaders before making a final decision to surrender the territory to the
 ELN.

 He said the draft agreement contemplates sending human rights monitors and
 has other guarantees to protect civilians.

 TALKS IN CUBA

 The announcement follows the hostage release and weeks of meetings between
 government envoys and rebel commanders in Cuba.

 The ELN, formed during the 1960s, has been a major irritant to the Colombian
 government in recent years, blowing up oil pipelines and kidnapping large groups
 of Colombians for ransom.

 Evidence is growing, however, that the rebels may be pining for a peace
 settlement, in part due to heavy pressure from the armed forces and surging
 right-wing paramilitary forces.