* Action taken against more than 60,000 people after failed coup
* Turkey's western allies rattled by scale of Erdogan's crackdown
* But top Turkish defence official says military purge not over

Turkey on Saturday released more than 750 soldiers who had been detained after an abortive coup, state media reported, while President Tayyip Erdogan said he would drop lawsuits against those who had insulted him, in a one-time gesture of ‘unity’.

More than 60,000 people have been detained, removed or suspended over suspected links with the coup attempt, when a faction of the military commandeered tanks, helicopters and fighter jets and attempted to topple the government.

Turkey's Western allies have condemned the coup, in which Erdogan has said 237 people were killed and more than 2,100 were wounded, but have been rattled by the scale of the crackdown since.

The purges have targeted supporters of US-based Muslim cleric Fethullah Gulen, accused by Ankara of masterminding the July 15-16 failed coup. The cleric denies the charges and Erdogan's critics say the president is using the purges to clamp down on dissent.

State-run Anadolu Agency reported that 758 soldiers were released on the recommendation of prosecutors after giving testimony. A judge agreed, calling their detention unnecessary, Anadolu said.

Another 231 soldiers remain in custody, it said.

Turkey's military, the second-largest in NATO, has been hard hit in the wake of the coup. On Thursday, 99 colonels were promoted to the rank of general or admiral, following the dishonourable discharge of nearly 1,700 military personnel over their alleged roles in the coup.

About 40 percent of all generals and admirals in the military have been dismissed since the coup.

Turkish Defence Minister Fikri Isik told broadcaster NTV on Friday that the shake-up in the military was not yet over, adding that military academies would now be a target of ‘cleansing’.

Turkey's military is already stretched, given the violence in the mainly Kurdish southeast, and threats from Islamic State attacks on its border with Syria.

The army killed 35 Kurdish militants after they attempted to storm a base in the southeastern Hakkari province early on Saturday, military officials said.

The head of the pro-Kurdish opposition told Reuters that the government's chance to revive a wrecked peace process with Kurdish rebels has been missed as Erdogan taps nationalist sentiment to consolidate support.

ERDOGAN'S LAWSUITS

In an unexpected move, Erdogan said late on Friday he would drop, as a one-off gesture, all lawsuits filed against people for insulting him. He said the decision was triggered by feelings of ‘unity’ against the coup attempt.

It could also be aimed at silencing his Western critics. Prosecutors have opened more than 1,800 cases against people for insulting Erdogan since he became president in 2014, the justice minister said earlier this year. Those targeted include journalists, cartoonists and even children.

It was not immediately clear whether Erdogan would also drop his legal action against German comedian Jan Boehmermann, who earlier this year recited a poem on television suggesting Erdogan engaged in bestiality and watched child pornography, prompting the president to file a complaint with German prosecutors that he had been insulted.

Erdogan also lashed out at the West on Friday, accusing his allies of failing to show solidarity with Turkey over the failed coup, saying those who worried over the fate of coup supporters instead of Turkish democracy could not be friends of Ankara.

‘The attitude of many countries and their officials over the coup attempt in Turkey is shameful in the name of democracy,’ Erdogan told hundreds of supporters at the presidential palace in the Turkish capital.

‘Any country and any leader who does not worry about the life of Turkish people and our democracy as much as they worry about the fate of coupists are not our friends,’ said Erdogan, who narrowly escaped capture and perhaps death on the night of the coup.

He also criticised the European Council and the European Union, which Turkey aspires to be a part of, for their failure to pay a visit to offer condolences, saying their criticism was ‘shameful’.

Erdogan has blamed Gulen for masterminding the attempted coup and has called on Washington to extradite him. Turkish officials have suggested the United States could extradite him based on strong suspicion while President Obama last week insisted Turkey must first present evidence of Gulen's alleged complicity in the failed coup.

COURT REPORTERS

On Saturday, 56 employees of Turkey's constitutional court were suspended from their jobs as part of the investigation into the alleged coup, private broadcaster Haberturk TV reported.

Among those, more than 20 court reporters were detained, it reported.

The number of public sector workers removed from their posts since the coup attempt now stands at more than 66,000, including some 43,000 people in education, the state-run Anadolu news agency reported on Friday.

Interior Minister Efkan Ala said more than 18,000 people had been detained over the failed coup, and that 50,000 passports had been cancelled. The labour ministry said it was investigating 1,300 staff over their possible involvement.

Erdogan has said that Gulen harnessed his extensive network of schools, charities and businesses, built up in Turkey and abroad over decades, to create a secretive ‘parallel state’ that aimed to take over the country.

The government is now going after Gulen's network of schools and other institutions abroad. Since the coup, Somalia has already shut two schools and a hospital believed to have links to Gulen, and other governments have received similar requests from Ankara, although not all have been willing to comply.