IRAQ’S interim government vowed yesterday to restore the death penalty and take a “sharp sword” to insurgents, but also promised an amnesty to any rebels who stop fighting.

The new Anglo-American resolution on Iraq still does not properly spell out the new government’s sovereignty, UN Security Council diplomats said today.

The United States and Britain have released a revised resolution on post-occupation Iraq that would give the new interim government control over the Iraqi army and police and end the mandate for the multi-national force by January 2006 at the latest.

IRAQ is still intent on trying former leader Saddam Hussein at home despite his current status as a prisoner of war in US hands, Iraqi Foreign Minister Hoshiyar Zebari said yesterday.

The news of the capture of former Iraqi dictator Saddam Hussein was greeted by dancing in the streets and celebratory gunfire by the people of Baghdad, according to reports.

Saddam Hussein’s capture marks the “beginning of the end” for resistance against US forces in Iraq, security experts predicted today.

Iraqis will be queuing up to give evidence against Saddam at his trial, the country's foreign minister says.