HIGHLIGHTS: U.S. Threatens to Block UN Inspectors Going Back to Iraq Unless UN Security Council Issues New Resolution on Iraq||Bush Asks Congress for a Free Hand Against Saddam||Saddam Raises Spectre of Denying Inspectors Access to Eight Presidential Palaces||Blix Says Inspectors Could be in Iraq by Mid-October & Work Could Begin in Two Months after That||Saddam Denies Link to Sept. 11 Attacks Suggested in Bush Draft Resolution to Congress Describing it as Pretext to Justify Destruction of Iraq||U.S. Courts Russia, China & France for Support on New UN Resolution||Senate Majority Leader, Daschle, Describes Draft Resolution presented to Congress by Bush as 'Too Broad'||U.S. Top Military Officers Gather for 2-Day Meeting in Kuwait||German Cabinet Minister Compares Bush's Stance on Iraq to Tactics Used by Adolf Hitler|| STORY: The American Secretary of State, Colin Powell, has said the United States will find ways to stop weapons inspectors going back to Iraq unless there is a new United Nations Security Council resolution on the issue.

Addressing a Congressional committee, Mr Powell said the Security Council must spell out to Iraq the serious consequences if it fails to co-operate with the inspectors.

Political observers say the US is in effect giving an ultimatum to the Security Council.

Meanwhile, President Bush on Thursday urged the U.S. Congress to authorize military action against Iraq, warning the United Nations Washington was prepared to go it alone, as Saddam Hussein accused Bush of lying to gain control of Middle East oil.

In a draft resolution entitled "To authorize the use of United States Armed Forces against Iraq," Bush asked Congress for approval to use "all means he determines to be appropriate including force" and restated his goal of Saddam's ouster which some nations said raised the specter of a second Gulf War.

Despite U.S. lawmakers' concerns about the wording they expected to be able to negotiate with the White House to work out a broad bipartisan resolution that could pass fairly quickly, perhaps within the next two weeks.

With a rift between members of the U.N. Security Council over Iraq's surprise offer to readmit arms inspectors slowing action on a tough new U.N. resolution against Iraq, Bush laid down a clear marker and expressed his growing impatience.

"The United Nations Security Council must work with the United States and Britain and other concerned parties to send a clear message that we expect Saddam to disarm, and if the United Nations Security Council won't deal with the problem, the United States and some of its friends will," Bush said, hardening up a previous implicit threat of unilateral action.

World oil prices see-sawed on Thursday. Prices jumped on Bush's statement on the use of force then slipped after Russia expressed confidence in weapons inspectors carrying out their duties. Brent crude ended eight cents up at dlrs 28.40 a barrel.

Iraq's Foreign Minister Naji Sabri on Thursday read out a message to the 190-member U.N. General Assembly in which Saddam attacked the Bush administration for trying to link Iraq to the Sept. 11 attacks and denied Iraq had nuclear, chemical and biological weapons.

Saddam also appeared to qualify Baghdad's announcement that U.N. inspections could resume "without conditions" by saying inspectors must respect Baghdad's "sovereignty and security," a suggestion that could mean some areas, like presidential palace grounds, would again be treated differently than other areas.

Chief U.N. inspector Hans Blix told a closed council meeting he expected to send an advance party of disarmament experts to Baghdad on Oct. 15 after discussions two weeks earlier in Vienna on practical arrangements needed for their admission.

He said, according to papers given to the council, work could start within two months after that.


SADDAM REJECTS SEPT. 11 LINK & DASCHLE SASYS DRAFT RESOLUTION TO CONGRESS 'TOO BROAD'

Saddam accused Bush of wielding an "American propaganda machine" that spewed out "lies, distortion and falsehood" aimed at inciting the U.S. public against Iraq.

His speech was dismissed by White House spokesman Ari Fleischer, who said Iraq had "engaged in additional deceptions and showed no willingness to change attitude or behavior."

Trying to draw a link between Iraq and last year's Sept. 11 attacks, the Bush draft resolution to Congress said members of al Qaeda are known to be in Iraq and that the attacks "underscored the gravity of the threat that Iraq will transfer weapons of mass destruction to international terrorist organizations."

"I'm inclined to vote for a resolution that authorizes a necessary response. It hasn't been written yet," said Senate Majority Leader Tom Daschle, who like many Democrats expressed concern that the resolution was too broad.

U.S. COURTING RUSSIA, FRANCE & CHINA FOR SUPPORT ON NEW UN RESOLUTION

Facing anti-war sentiments, the United States and Britain worked on a U.N. resolution setting timetables for arms inspections in Iraq and declaring Baghdad in "material breach" of a dozen U.N. Security Council measures.

But a senior Western envoy said a document was not expected to emerge until next week while the two allies sought at least partial agreement from Russia, France and China, who hold veto power in the 15-member council.

Russia opposes any resolution before U.N. weapons inspectors are back on the ground after Iraq's decision on Monday to let them return without conditions. France has reservations, depending on the text.

China is expected to abstain on any measure that hints of war. But its U.N. Ambassador Wang Yingfan said on Thursday unity in the council was important.

US TOP MILITARY OFFICERS GATHER IN KUWAIT FOR A 2-DAY MEETING

As the U.S. drumbeat of war grew louder, America's top military officers in charge of operations in the Middle East gathered in Kuwait on Thursday for a two-day meeting.

The commanders' conference is chaired by U.S. Army General Tommy Franks, who heads U.S. Central Command (CENTCOM). CENTCOM's region includes the oil-rich Gulf and Afghanistan. .

The Kuwait meeting assembles heads of CENTCOM's arms, including the Navy, Air Force, Marines and special operations.

Like other states in the region, Kuwait has hosted U.S. forces since the Gulf War, which ended Iraq's occupation of Kuwait.

MILITARY BUILD UP CONTINUES

The United States has been sending heavy equipment and ammunition to Kuwait for several weeks but both American and Kuwaiti officials say it is part of a training program including German and Czech anti-chemical warfare units.

Defense sources told Reuters U.S. troop numbers, including ground forces, in Kuwait have not increased.

American air power alone could not wipe out Iraq's secretive and deeply buried arms programs and any U.S. attack to do so would require ground troops, Defense Secretary Rumsfeld told Congress.

Other countries in the region were nervous. "If there is military action against Iraq, even if Turkey does not want to join that action, when it happens Turkey will be affected by that action," Turkish Prime Minister Bulent Ecevit said.

In a developing sideshow, the White House expressed outrage that Germany's justice minister compared Bush's stance on Iraq to the tactics used by Nazi dictator Adolf Hitler.

PHOTO CAPTION

President Bush speaks to guests at the Republican Governors Association fall reception in Washington, Sept. 19, 2002. Bush warned today that the U.N. Security Council must deal with Iraq or the United States and its allies would act alone. He also asked Congress to authorize a military strike against Iraq and the ouster of President Saddam Hussein. Photo by Kevin Lamarque/Reute