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Globe and Mail Update with wire services

150-500 Iraqi troops killed in battle, U.S. says
U.S. army forces allegedly killed between 150 and 500 Iraqi troops Tuesday in a fierce fight after coming under attack near the central Iraqi city of An Najaf, a senior Defense official said. No U.S. casualties were reported, although the official cautioned that few details were immediately available and early reports from the battlefield are not always completely reliable. Elements of the 7th Cavalry Regiment were east of An Najaf when they suddenly came under fire from rocket-propelled grenades, the official said. The Iraqis were on foot and it was not clear whether they were from regular army units, paramilitary forces or the Republican Guard.

Chemical plant benign, military says
U.S. military investigators have found no evidence that weapons have been made in recent years at a suspected chemical plant secured by U.S. troops in southern Iraq, a senior defence official said Tuesday. Before the war, American intelligence agencies had identified the site in the town of Najaf as a possible part of Iraq's alleged chemical weapons program, the official said, speaking on condition he not be identified. Indications then were that the plant had not been used for banned weapons activities since 1998, the official said.

Two British soldiers killed by 'friendly fire'
Two British soldiers were killed in a "friendly fire" incident near Basra in southern Iraq, a British military commander said Tuesday. In a statement issued through the Ministry of Defence in London, Colonel Chris Vernon said the two men died when their Challenger II tank was mistakenly targeted by another Challenger crew on Monday evening. The families of the two men have been informed, the ministry said. It did not release their names.

Uprising reported in Basra
Early indications suggest a popular uprising by locals opposed to Saddam Hussein might have started in the southern Iraqi city of Basra, news agencies reported. "There are early indications that just might be started and we will be very keen to capitalize on it," Major General Peter Wall, the British chief of staff at Central Command battle headquarters, was quoted by Reuters News Agency as saying. "We don't know what has spurred them, we don't know the scale of it. We don't know where it will take us," he said. "We aren't seeing anything, we're just hearing reports that there are people who are appearing on the streets in significant numbers and who are essentially being less compliant with the regime than they are normally." Iraq's information minister has denied the reports of an uprising in Iraq's second city of Basra, a Shiite stronghold.

Senate slashes Bush tax cut
The Senate unexpectedly reversed itself Tuesday, voting to slash more than half of President George W. Bush's proposed $726-billion (U.S.) tax cut and dealing a blow to the keystone of his economic recovery plan. A week after refusing to do so, senators voted 51-48 to reduce the tax reduction's price tag to $350-billion through 2013. Mr. Bush has said his plan — which would eliminate taxes on corporate dividends and reduce income taxes — is needed to create jobs, boost investment and spur the slumbering economy. The timing could hardly have been worse for the President, with the White House having just sent a request for $74.7-billion as a down payment for war in Iraq. The bulk of Mr. Bush's spending request, $62.6-billion, will support U.S. troops both in Iraq and other operations related to the broader war on terrorism in the next six months, the White House said. The rest of the money will go to humanitarian assistance in Iraq, other foreign aid and homeland defence programs in the United States.

Saudis suggest peace proposal
Saudi Arabia has contacted the United States and Iraq with a peace proposal, the kingdom's foreign minister told reporters Tuesday. He said he was awaiting a response. Foreign Minister Saud al-Faisal, announced the proposal at a news conference but did not describe it in any detail. “Both sides know now what this war is going to bring them,” he said. “Perhaps this is a good time instead of continuing on the line that will only add to the boiling situation in the Middle East and create hatreds that perhaps will remain for a long time, that this is a good time to stop, take a breather, see what diplomacy can bring about.”

U.S. jet fires on U.S. missile battery
In an apparent friendly-fire incident, a U.S. F-16 fired on a U.S.missile site in Iraq after the battery's radar locked on the jet, the U.S. Central Command said Tuesday. No U.S. casualties were reported.

The attack Monday was the war's second involving Patriot batteries apparently failing to distinguish between friendly and hostile targets. On Saturday, a U.S. Patriot missile battery shot down a Royal Air Force Tornado GR4 near the Kuwaiti border, killing the two crew members. Lieutenant Mark Kitchens said the strike was under investigation “to ensure the future safety of the Patriot crew and aircrew.”

Iraq denies Russian military aid
Iraq denied Tuesday that Russia gave it military equipment and also said it had killed at least eight invading troops and downed three U.S. helicopters.

"Russia never gave us anything and we didn't ask for anything. Iraq has not received anything of what the U.S. and Britain say from Russia," Iraqi Information Minister Mohammed Saeed al-Sahaf told a news conference.

On Monday, U.S. President George Bush complained to Russian President Vladimir Putin that Russian companies had sold banned military hardware to Iraq. Concerns included equipment to jam satellite positioning, night-vision goggles and anti-tank guided missiles.

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