IRAQ’S deputy president Rowsch Shways said talks on a new government between the main Shi’ite alliance and Kurds would continue after parliament meets for the first time on Wednesday.

American forces pushed through the centre of the insurgent stronghold of Fallujah today, fighting bands of guerrillas in the streets and conducting house-to-house searches on the second day of a major offensive to retake the Iraqi city from Islamic militants.

American troops have arrested a senior commander of the US-trained Iraqi National Guard for alleged ties to insurgents.