The PKK party is regarded as a terrorist organization by the European Union, the United States and Turkey.

"What struck the court is that we showed that French authorities continued relations with our clients between 2000 and 2006, tolerating their fundraising, and that we didn't see how they could close their eyes to the infractions of which they are now being accused," lawyers Antoine Comte, Jean-Louis Malterre and Sylvie Boitel said.

Those released by the Paris appeals court included Riza Altun, 52, Attila Balikci, 31, and Nedim Seven, 39. They were considered, respectively, as the PKK's representative in Europe, its secretary and its treasurer.

Authorities arrested 14 Turks and an Australian of Kurdish origin legally residing in France on February 5 and 6 in the Paris region and in Brittany. Fourteen of them had been remanded in custody.

Two other Kurds were arrested in July, at the start of the investigation, after they exchanged 200,000 euros (265,000 dollars) for dollars without being able to justify the money's origin.

All have been accused of being PKK members and are suspected of having helped finance attacks committed in Turkey and fighting in Iraqi Kurdistan. They were also accused of money laundering.

In addition, Canan Kurtyilmaz, 33, the alleged PKK leader arrested in Belgium on February 5, was transferred to France a week ago.

One of the Kurds freed Friday had offered to assist France's counterintelligence service, according to officials with knowledge of the case.

The counterintelligence service confirmed having contacts with PKK members, but only "to remind them that they must not cross the line."

Turkish police welcomed the French arrests and called on other European countries to do the same. Turkish newspapers spoke of a "raid" against the PKK in France and Belgium.

According to other sources, 5 million euros has been collected in one year from Kurds living in Europe, with a quarter of it originating in France.