US troops launch crackdown on Saddam loyalists

US troops in Iraq launched a massive crackdown on Saddam Hussein loyalists today as they hunted those blamed for a number of deadly attacks against American soldiers.

The operation just north of Baghdad came a day after attackers used rocket-propelled grenades against US troops in the capital, killing one paratrooper and wounding another.

US Central Command said 397 suspects had been arrested so far near the town of Balad, about 40 miles north of Baghdad. A large quantity of arms and ammunition was also seized.

US officials said the operation involved “air assault teams, ground attack squads, raid teams, river patrol boats” and the US air force.

Dozens of soldiers and Iraqis have been killed or wounded in daily skirmishes, including at least 10 US troops killed in the past two weeks, even though the main fighting in the US-led war that toppled Saddam has ended. Saddam’s fate remains a mystery.

Joseph Collins, deputy US assistant secretary of defence for stability operations, said stabilising Iraq has proved “tougher and more complex” than had been expected.

He blamed recent attacks on US forces on “die-hard” Baathists, terrorists, common criminals, disgruntled former Republic Guard commandos and foreign fighters who entered Iraq during the war and are now acting like “guest worker” holy warriors.

The attacks have hampered efforts to restore security and begin the massive task of rebuilding the country after 10 years of United Nations-imposed sanctions and the war.

The top American civil administrator, Paul Bremer, said the task of resurrecting the economy will begin with €85m in repairs to roads and buildings.

A severe shortage of Iraqi dinars has led the US-supervised Iraqi central bank to start printing millions of new 250 dinar notes.

“This seems to be the best solution even though it does involve printing a currency with Saddam’s face on it,” Bremer said. “It’s not a joy.”