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For the first time, Iraq allowed Western diplomats Thursday to visit two Americans held in custody since they strayed across the border 10 days ago, a source said.

Another source confirmed that the men were being held in Baghdad and were in good condition, but gave no further details.

The Americans have been identified as David Daliberti, 41, of Jacksonville, Fla., and Bill Barloon, 39, of New Hampton, Iowa. Both were employees of American military contractors in Kuwait.

The fact that Iraq has begun to allow them visitors suggests that Saddam Hussein's government might be leaning toward charging them with illegal entry, a crime punishable by up to 20 years in prison, rather than releasing them.

Iraqi officials have linked the fate of the men to the U.N. sanctions, imposed after Iraq's 1990 invasion of Kuwait and a continuing sore point with Saddam's regime.

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