BAGHDAD, Nov 6 (AFP) - Iraq's Prime Minister Iyad Allawi told insurgents in the city of Fallujah that time was running out for them as UN Secretary General Kofi Annan warned against an expected US-led assault on the rebel bastion.
"The window really is closing for a peaceful settlement," he said Friday after meeting European Union leaders in Brussels. "The insurgents and terrorists are still operating there.
"We hope they will come to their senses or we will bring them to justice. We will get the terrorists," he said, vowing to bring security to the whole of Iraq.
US President George W. Bush welcomed aid promised by the European Union for Iraq's elections in January, following telephone talks with Dutch Prime Minister Jan Peter Balkenende, whose country is the current holder of the EU's rotating presidency.
Bush "expressed his intention to work with the European Union, building on our shared values and interests, to promote development and progress, defeat terrorists, and encourage freedom and democracy around the world," said White House spokesman Scott McClellan after the talks.
"The United States especially welcomes the EU's reaffirmation today of its commitment to assist in the emergence of a stable, secure and democratic Iraq," said McClellan in a statement.
Refering to EU pledges to give financial and personnel support for Iraq's elections and training of security forces, the spokesman said "These steps are all important investments in Iraq's future.
"We look forward to working with the EU, the Iraqi government and the Iraqi people to ensure continued progress in the economic, social and political reconstruction of Iraq."
Annan, a vocal critic of the war, warned the United States, Britain and Iraq in a letter that an assault on Fallujah could undermine the January elections, diplomats said Friday.
A western diplomat familiar with the correspondence who asked not to be identified said all three nations were "furious" about the letter, which, according to diplomats, also warned that an attack could alienate some Iraqis.
The warning came as seven British and US soldiers were killed in attacks over the previous 24 hours, and American warplanes stepped up air strikes on rebel positions in the city.
A US soldier was killed and five wounded Friday when they came under fire at a base outside Fallujah, said the American military.
British Prime Minister Tony Blair faced anger over the deaths which occurred just days after a controversial redeployment into a dangerous US-run sector of the war-torn country.
A US soldier was also killed and one wounded when their vehicle hit a roadside bomb north of Baghdad on Thursday night.
But amid the violence there was a glimmer of good news with the release of a Nepalese kidnapped with an American and Filipino five days ago was released, and Beirut said two Lebanese held hostage in Iraq for more than a month were back home.
A Filipino hostage was also reportedly freed, according to media reports, though Philippine embassy officials in Baghdad had no confirmation.
Still, many expect violence to increase in the war-ravaged country following Bush's re-election Tuesday.
But flushed with victory, Bush declared Thursday that Iraq was on the "path to stability" and appeared ready to try and repair frayed relations with allies who had clashed with him over his Iraq policies.
"Whatever our past disagreements, we share a common enemy. I'll continue to reach out to our friends and allies ... to defeat the terrorists and to encourage freedom and democracy as alternatives to tyranny and terror," he said.
Allawi sounded a conciliatory tone ahead of Iraqi national elections expected to be held in January, appealing to Europe to overcome bitter divisions caused by the US-led war.
"History is history, past is past. We need to start afresh and open a new chapter," said the interim prime minister, who has pledged to crush pockets of resistance before the national polls.
But he said Friday the decision by a number of European countries to pull their troops out of Iraq invited a rise in "terrorism".
"Iraq is facing a big challenge. The decrease of multinational forces would affect adversely the situation in Iraq, would encourage terrorism, would encourage terrorists," Allawi said.
Both the US and Iraqi officials believe Fallujah has served as staging post for some of the most gruesome attacks throughout the country and are determined to retake it from the grip of rebels ahead of the elections.
In a continuing barrage on the rebel bastion, US warplanes launched five air strikes against suspected insurgent positions in Fallujah.
Between 4:40 pm (1340 GMT) Thursday and 1:10 am Friday, planes supporting US marines on the ground destroyed suspected rebel fortifications and a weapons cache there, the military said.
Thousands of residents have fled Fallujah since an air campaign began during the summer in the hunt for Islamic militant Abu Musab al-Zarqawi and his followers, who the military believes are using the city as a base.
In the latest civilian casualties, two children were killed and four of their siblings wounded when mortar rounds crashed onto their house overnight in a town northeast of Baghdad, a relative said on Friday.
The target was believed to be a nearby police station in Moqdadiyah.
11/06/2004 01:53 GMT - AFP