BAGHDAD, Iraq - A Filipino truck driver held hostage in Iraq for nearly two weeks was freed today, a day after his nation withdrew its final peacekeepers from Iraq - a move that met the kidnappers' demands but angered U.S. and Iraqi officials.

The Philippines government and the family of Angelo dela Cruz were overjoyed at his release. His wife, Arsenia, burst into tears upon hearing the news in neighboring Jordan. Philippines President Gloria Macapagal Arroyo grinned during a nationally televised address in the Philippines.

"We must rejoice at the good news, but our happiness must be tempered by the awareness that we live in dangerous times, and that we must work to create a more peaceful world," Arroyo said.

The ordeal of dela Cruz, a father of eight, had captivated the Philippines, since he was first shown on video wearing a bright orange garment similar to that worn by other foreign hostages who were killed by kidnappers.

With more than 7 million Filipinos working overseas, 1.4 million of them in the Middle East, many in the Philippines felt a personal connection to dela Cruz.

"Angelo has become a Filipino 'everyman,' a symbol of the hardworking Filipino seeking hope and opportunity," Arroyo said in her national address.

The news of dela Cruz's release came amid an ongoing wave of deadly violence across Iraq, much of it targeting police and other government officials, whom insurgents view as collaborators.

In the southern city of Basra, gunmen killed Hazim al-Aynachi, an Iraqi council member running for governor, along with his bodyguard and driver as they were pulling out of his driveway to head to work this morning, said council head Abdul Bari Faiyek.

Faiyek blamed the killing on opposition to the gubernatorial elections that were scheduled for today, but were delayed in response to the shooting.

"Many threats have been directed to the eight council members nominated to the post," Faiyek said, adding that another councilman escaped an assassination attempt Monday.

Insurgents have also taken foreigners in Iraq hostage in an effort to push out coalition forces and private companies helping rebuild Iraq.

The militants holding dela Cruz, who first appeared in a videotape July 7 surrounded by masked, armed gunmen, demanded the Philippines pull out its 51-member force here or they would kill him.

The government initially made a series of ambiguous statements, but finally agreed. On Monday the last Philippine troops, who had been scheduled to leave Aug. 20, drove out of the country and into Kuwait.

About 10:30 a.m. today, dela Cruz was dropped on the steps of the United Arab Emirates Embassy in Baghdad, said UAE officials, who denied there was any coordination between them and the kidnappers.

About three hours later, dela Cruz was driven in a silver Mercedes to the Philippines Embassy, where jubilant embassy staff members embraced him.

At news of his release, dela Cruz's family burst into celebration.

"I thank all who offered prayers for our family," Arsenia dela Cruz said from Jordan, where she had been awaiting word of her husband's fate.

The Philippines government released a videotape showing Arroyo talking on the telephone with dela Cruz.

"I hope you are happy now," she said.

"Yes, ma'am," responded dela Cruz, who appeared to be having trouble hearing Arroyo.

Dela Cruz was to be flown to Abu Dhabi on Wednesday for a medical checkup before heading home.

The Philippines' decision has come under criticism from its closest allies, including the United States, who said it would endanger other troops here. Iraq's government warned Monday that the pullout would encourage terrorists.

But Arroyo said concern for the millions of Filipino contract workers around the world influenced her decision.

"My government has a deep national interest in their well being wherever they live and work," Arroyo said. "I made a decision to bring our troops home a few days early in order to spare the life of Angelo. I do not regret that decision."

But while she said she was happy that Angelo dela Cruz is coming home, she warned that other "innocents" will not be so lucky if terrorists continue to mount attacks and kidnappings.

In another kidnapping case, an Egyptian truck driver held hostage was freed Monday evening and taken to his country's embassy. Alsayeid Mohammed Alsayeid Algarabawi was abducted from a truck he had driven from Saudi Arabia into Iraq.

Algarabawi's captors, who called themselves the Iraqi Legitimate Resistance, never threatened to harm him but made a series of demands on his Saudi company, including asking for $1 million ransom and insisting it stop doing business in Iraq.

The Al-Jarie Transport company refused to pay the ransom but agreed to end its business in Iraq, said Faisal al-Naheet, a subcontractor speaking on behalf of the firm.

Militants have used near-constant car bombs, sabotage, assassinations and kidnappings as weapons in their 15-month-old insurgency.

Also Monday, a fuel tanker rigged as a massive bomb hurtled toward a Baghdad police station and