Saddam says Iraq not afraid of US threats

Saddam Hussein says Iraq is steadfast in the face of threats and he has rejected dialogue with Kurdish parties in the north of the country.

The Iraqi president made the comments while receiving members of pro-government Kurdish parties on the eve of the 32nd anniversary of a peace agreement between Baghdad and the Iraqi Kurds.

George Bush says Baghdad will face unspecified consequences if it does not allow UN weapons inspectors to resume inspections.

Saddam said: "Iraq is not afraid of any threats and will not be affected by evil misdeeds."

The Iraqi government's peace agreement with the Kurds gave limited autonomy to three northern Iraqi provinces with Kurdish majorities.

Meanwhile, Iraqi Deputy Prime Minister Tariq Aziz said US interests in the Middle East would be damaged if Iraq is attacked.

He was quoted by state-run al-Qadissiya newspaper as saying: "The United States knows well that if wages an aggression on Iraq, then its interests in the Arab world will be threatened by the Arab people, not the regimes."

Saddam also dismissed any chance of negotiations now with Kurdish parties in northern Iraq "so that no-one comes under the illusion that the latest threats against Iraq have pushed the leadership to talk about dialogue."

Two main Kurdish parties, the Kurdish Democratic Party and the Patriotic Union of Kurdistan, have controlled most of northern Iraq since the US, Britain and France declared it a haven for the Kurdish minority