2.00pm
WASHINGTON - United States President George W Bush warned Iraq his patience was running out for it to come clean over any weapons of mass destruction, and a top United Nations arms inspector demanded more co-operation from Baghdad.
"I'm sick and tired of games and deception," Bush said on Tuesday in one his sharpest attacks on Iraqi President Saddam Hussein as a huge build-up of US warplanes, ships and tens of thousands of troops in the oil-rich Gulf region gathers pace.
"I haven't seen any evidence that he has disarmed. Time is running out on Saddam Hussein. He must disarm," Bush said.
Britain, flexing its military muscle alongside Washington, said it was ready like the United States to go to war against Iraq with or without a fresh UN resolution.
The dollar fell to fresh three-year lows against the euro and oil prices rose as financial markets got a case of jitters on Tuesday, anxiously watching for clues as to if and when there might be a war. London Brent crude futures at one stage touched $31.25, the highest level since December 2000.
Iraq, the world's eighth biggest oil exporter under tight UN sanctions but whose proven oil reserves are second only to Saudi Arabia's, said on Tuesday it had nothing to hide. "Saddam Hussein is a courageous leader and will...fight until the last Iraqi bullet," said Deputy Prime Minister Tareq Aziz.
UN nuclear watchdog head Mohamed ElBaradei made clear he and fellow top United Nations inspector Hans Blix were going to Baghdad this weekend for some tough talking on whether Iraq has chemical, biological or nuclear weapons or long-range missiles.
"We still need further cooperation on the part of Iraq," the International Atomic Energy Agency chief said in Moscow.
Iraq says it has no such weapons, having destroyed anything that would have breached UN resolutions before inspectors returned to Iraq last November after a four-year absence.
Washington and London have threatened war to back up their intelligence that Iraq does have arms of mass destruction, and US officials have signalled that any failure by Baghdad to co-operate with the inspectors could trigger military action.
This weekend's talks in Baghdad will be key to a major report that Blix and ElBaradei are due to make to the UN Security Council on January 27 on Iraqi compliance.
Blix repeated remarks that his teams had uncovered smuggled weapons-related material but said it was unclear if it was linked to arms that breached UN resolutions. Last week he said his teams had found suspect imports related to making missiles.
The dollar slipped on his comments and oil prices rose despite the lack of a clear link to the current crisis.
Many countries, particularly in the Muslim world, are opposed to war unless there is clear evidence against Baghdad. In Europe, there is widespread opposition to any rush to war.
Bush and Blair have given no timetable for war but one US official said this week there could be no invasion until March.
April in the Gulf heralds fierce summer heat and sandstorms.
Even before any shots are fired, many in the world are questioning what will happen if Bush achieves his long-stated wish to oust Saddam who has wielded power for three decades.
Iraq, a country of some 24 million, has long posed problems for rulers due to ethnic and religious divides. Shi'ite Muslims form a majority over Sunnis like Saddam, who have traditionally ruled the country, and there is a sizeable Kurdish minority.
US officials have said their aim would be to disarm Iraq, preserve its current borders and set up a democratic government representative of Iraq's ethnic and religious communities.
Conservatives close to the Bush administration have advanced more ambitious objectives -- redrawing the political map of the Middle East to promote democracy, undermining Saudi Arabia's role as swing producer in Opec and somehow making it easier to end the conflict between Israelis and Palestinians.
Critics of US policy suspect more selfish motives, such as opening Iraq's vast oil reserves to US oil companies and tightening US domination over the weak Gulf states that already depend on Washington for their defence.
"Iraq is the last country in the world to be a beacon. There is no history of democracy, no structure," said Edward Walker, Assistant Secretary of State for the Middle East under former US President Bill Clinton.
"You are more likely to have chaos, instability and competing demands."
- REUTERS
Herald feature: Iraq
Iraq links and resources
Bush warns Iraq that time is running out
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