HIGHLIGHTS: New Resolution Would Set Short Deadline & Threatens Use of Force if Baghdad Does Not Comply||Bush Renews Stern Warning Urging UN to 'Show Some Backbone' & Stressing Readiness to Go it Alone|| Blair's Promised Dossier to Reveal So-called 'Baghdad-Qaeda Link' as well as 'Worrying Activity' at Sites of 3 Former Plants Producing Chemical Weapons||Action against Iraq Possible January: Berlusconi|| STORY: Under pressure from Arab nations to allow U.N. weapons inspectors back, Iraq's foreign minister said late Saturday he hoped the crisis could be resolved without a new U.N. resolution that could threaten serious consequences.

Naji Sabri's arrival in New York on Friday for the U.N. General Assembly annual debate set off meetings between Arab ministers and Secretary-General Kofi Annan in an attempt to head off a U.S.-led war against Iraq.

In a speech to the 190-nation world body on Thursday, President Bush demanded that the United Nations act to send the inspectors back and get Iraq to obey all Security Council resolutions, warning America will go it alone if necessary.

To back his policy, the United States is pursuing a new U.N. resolution that would set a short deadline for a resumption of inspections and threaten action if Iraq does not comply.

Asked whether the crisis could be resolved without a new resolution, Sabri said: "We hope so."

Diplomatic sources said Arab ministers were pressuring Sabri to act quickly and allow inspectors back under existing council resolutions which have no deadline - and do not threaten force.

Egypt's Foreign Minister Ahmed Maher also raised the prospect of an end to the crisis without the need for a new resolution.

Maher said he could detect "signs of flexibility" in Iraq's position.

Arab nations want to solve the Iraq crisis peacefully and there is "a sense of urgency," but he cautioned "it's not a matter that can be solved in one evening or one day."

Arab League ministers said Sabri told them Saturday that Iraq was ready to let the inspectors return but not before certain conditions were met. Bush has ruled out any conditions.

Annan told the Arab ministers to push Iraq to let inspectors back to avert war.

"We meet at a critical time as governments are discussing war and peace," Annan said. "Every effort must be made to avoid another conflict."

Bush renewed his stern warning at his Camp David retreat on Saturday, saying the United States is willing to take Iraq on alone if the United Nations fails to "show some backbone" by confronting Saddam. "Enough is enough," Bush said.

Secretary of State Colin Powell met council members this week to garner support for a tough resolution, and will return to the world body on Monday to resume his diplomatic effort.

BLAIR'S PROMISED DOSSIER TO REVEAL SO-CALLED IRAQ-QAEDA LINK AS WELL AS 'WORRYING ACTIVITY' AT SITES OF 3 FORMER PLANTS PRODUCING CHEMICAL WEAPON'S

British Prime Minister Tony Blair's promised dossier on Iraq is to reveal that Saddam Hussein trained some of Osama bin Laden's key lieutenants, The Sunday Telegraph reported.

The dossier is also expected to disclose that the Iraqi leader has reconstructed three plants to manufacture biological and chemical weapons, it said.

Blair, facing opposition from within his own Labour Party over going to war with Iraq without U.N. backing, has recalled parliament to discuss the issue later this month and promised to publish a dossier detailing evidence against Saddam Hussein.

The Sunday Telegraph said a draft version of the dossier contains detailed information on how two alleged leading al Qaeda members, Abu Zubair and Rafid Fatah, underwent training in Iraq and are still linked to the Baghdad government.

It said Abu Zubair was an Iraqi intelligence officer trained in using terror against the Kurds in Northern Iraq. Rafid Fatah also worked with him against the Kurds, the paper added.

They were then said to have joined ranks with Osama bin Laden.

On reports that Saddam Hussein has reconstructed three weapons plants, the paper said evidence was based on "worrying activity" captured by American satellite photographs.

One security official, quoted by the Sunday Telegraph, said the photos "clearly show very worrying activity of rebuilding work at these plants which we already knew were being used for developing chemical and biological weapons. That is what Saddam is doing again."

'ACTION AGAINST IRAQ POSSIBLE IN JANUARY': BERLUSCONI

Italian Prime Minister Silvio Berlusconi met President Bush on Saturday and predicted afterward that action might be taken against Iraq in early 2003 if Baghdad continued to bar U.N. arms inspectors.

It was the clearest indication yet from a world leader on the timetable for any move against Baghdad, but Berlusconi said he was sure Iraqi President Saddam Hussein would eventually bow to United Nations' demands rather than face attack.

Although he declined to discuss what precise steps might be taken against Saddam, Berlusconi said it was clear the United States was ready to use force.

The Bush administration is pushing the United Nations to issue a tough new resolution in the coming weeks aimed at forcing Baghdad to comply with previous pledges to open up its weapons' program to outside inspectors.

PHOTO CAPTION

Iraqi Deputy Prime Minister Tariq Aziz drinks a cup of water during a press conference in Baghdad, Saturday, Sept. 14, 2002. Iraq opposes the return of U.N. weapons inspectors and said President Bush's speech to the United Nations was "full of lies," Aziz said .(AP Photo/Amr Nabi