World leaders reacted quickly to the news.
British Prime Minister Tony Blair, a staunch supporter of the war in Iraq, said: "This is very good news for the people of Iraq. It removes the shadow that has been hanging over them for too long of the nightmare of a return to the Saddam regime.
"This fear is now removed.
"It also gives an opportunity for Saddam to be tried in Iraqi courts for his crimes against the Iraqi people. We should try now to unite the whole of Iraq in rebuilding the country and offering it a new future."
Australian Prime Minister John Howard said the capture had lifted a great burden of fear from Iraqi people and boosted prospects for democracy in the country.
"I congratulate those elements of the United States military responsible for his capture.
"Saddam's capture is a huge boost for the cause of liberty and democracy in Iraq."
Foreign Affairs Minister Phil Goff described Saddam's arrest as "great news" that would help Iraq to move forward.
"It will hopefully discourage those that are still fighting for the Baathist cause - Iraqis can now look forward to the creation of a new and democratic Iraq.
"Hopefully his imprisonment will be less likely to inspire the sort of violence that organisations such as the Red Cross and United Nations have seen ... and instead encourage those groups to have greater participation in the rebuilding of a new Iraq.
"It by no way resolves all of the problems that still confront a peaceful future for Iraqis but it takes one of the problems out of the arena."
German Chancellor Gerhard Schroeder sent a telegram of congratulations to US President George W Bush. "It's with great delight that I learned of Saddam Hussein's capture," he wrote.
"I congratulate you on this successful operation. Saddam Hussein caused horrible suffering to his people and the region. I hope the capture will help the international community's effort to rebuild and stabilise Iraq."
French President Jacques Chirac said he was delighted at the arrest and believed it would clear the way for Iraqis to rule Iraq.
"The president is delighted at the arrest of Saddam Hussein. This is a major event which should strongly contribute to the democratisation and the stabilisation of Iraq and allow the Iraqis to once more be masters of their destiny in a sovereign Iraq," Chirac said in remarks transmitted by telephone by his spokeswoman Catherine Colonna.
Chirac strongly opposed the US-led invasion of Iraq and the issue has been a source of friction with Washington.
Amar al-Hakin, a senior member of the Shi'ite political party the Supreme Council for the Islamic Revolution in Iraq, said: "His arrest will put an end to military and terrorist attacks and the Iraqi nation will achieve stability.
"We want Saddam to get what he deserves.
"I believe he will be sentenced to hundreds of death sentences at a fair trial because he's responsible for all the massacres and crimes in Iraq."
Herald Feature: Iraq
Iraq links and resources
World leaders react with delight
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