HIGHLIGHTS: UN Welcomes Iraqi Overtures But U.S. Rejects them as Ploy to Avoid Military Strikes||U.S. and British Planes Bomb Military Facility in Southern Iraq||Bush Reviews Military Options||Israel Begins Producing Smallpox Vaccine in Anticipation of an Iraqi or Palestinian Resistance Attack|| STORY: Iraq has made its second offer in less than a week to open its weapons systems to the world, overtures guardedly welcomed by the United Nations but rejected by Washington as a ploy to avoid U.S. military strikes.

Iraqi parliamentary speaker Sadoun Hammadi on Monday invited U.S. lawmakers and experts of their choice to visit Iraq for three weeks to search sites or facilities where they suspect weapons of mass destruction are hidden.

Hammadi's invitation follows last week's offer from Iraqi Foreign Minister Naji Sabri to let chief U.N. weapons inspector Hans Blix visit Iraq for technical talks that could lead to inspections resuming.

Both offers have been dismissed by Washington. President Bush has warned Baghdad to comply with U.N. resolutions concerning weapons inspections or face unspecified consequences. U.S. officials say visits by lawmakers would not satisfy the president's demand for rigorous inspections in Iraq.

But U.N. Secretary-General Kofi Annan told reporters Monday that Blix could accept Baghdad's invitation if Saddam Hussein lets weapons inspectors return. The inspectors left Iraq in December 1998 ahead of U.S. airstrikes.

"We have very clear requirements and if Iraq were to honor them I think the invitation can be considered," said Annan.

A 1999 Security Council resolution requires U.N. weapons inspectors to visit Iraq and then determine what questions Iraq must still answer about its chemical, biological, nuclear and missile programs.

Toppling Hussein is a U.S. policy goal, and Baghdad's invitations come amid speculation of a U.S. war against Iraq. However, Bush administration officials say that to date no decision has been made to strike Iraq.

U.S. & BRITISH PLANES BOMB MILITARY FACILITY IN SOUTHERN IRAQ

U.S. and British planes armed with precision-guided missiles bombed an Iraqi military command and control facility in southern Iraq, a U.S. Central Command statement said.

The US Central Command said it was still assessing the damage done by the air strike, which was carried out at around 0600 GMT at a military site in Nukhayb, 190 kilometers (120 miles) southwest of Baghdad.

Iraq later confirmed the attack, and reported no injuries.

"Formations of enemy planes, coming from Kuwaiti air space, bombed civilian installations in the Nukhayb region," an Iraqi military spokesman was quoted as telling the official INA news agency.

The spokesman said the military responded with anti-aircraft and surface-to-air missiles, and claimed the planes fled "to their bases in Saudi Arabia and Kuwait."

BUSH REVIEWS MILITARY OPTIONS

Also Monday, U.S. President George W. Bush reviewed the Pentagon's latest scenario for attacking Iraq with the general who oversaw the war in Afghanistan and with other key advisers at the White House.

There was no indication, however, that a final decision on how Bush will follow through on his goal of "regime change" in Baghdad was imminent.

Gen. Tommy Franks, who would command any invasion of Iraq, has been refining the Pentagon's strategy and offering updates to the National Security Council over the past few weeks.

Bush has raised the threat of a military assault to depose the Iraqi leader but also said other tactics would also be considered.

ISRAEL BEGINS PRODUCING SMALLPOX VACCINE IN ANTICIPATION OF AN IRAQI ATTACK

Israel has meanwhile begun producing the smallpox vaccine in preparation for a possible biological attack by Iraq if Baghdad were to retaliate for an American strike.

Enough vaccines have been produced for Israel's entire population of about 6.6 million people but the government has yet to make a decision to begin immunizations.

Israeli officials said it would take Israel a few days to vaccinate the population.

PHOTO CAPTION

Members of Iraq's ruling Ba'ath party, who have been undergoing national militia training, carry rifles during a military parade in Baghdad, Monday, Aug. 5, 2002, amid rising speculation of a U.S. military attack on Iraq. (AP Photo/Jassim Mohamme