HIGHLIGHTS: Israel Sees Attack on Iraq a Way out of Palestinian Intifadha, Uprising against Occupation||Iraqi Opposition to Set up Recruitment Centres: Report|Two More Arrested over Iraqi Berlin Embassy Incident|| STORY: Iraq, strengthened by growing worldwide support against a US offensive, forged ahead with plans to resist the United States, announcing a diplomatic charm offensive.

Vice President Taha Yassin Ramadan sounded the rallying call, mixed with a warning that Arab countries face dangers too if the United States seeks to overthrow the Bagdad regime.

"In a few days, emissaries of President Saddam Hussein will be sent to all Arab countries to update their leaders on the real situation," Ramadan said.

Saudi Arabia and Kuwait, who openly embraced the United States to save them from Iraqi forces in 1991, came in for special mention by the vice president.

"We are confident that they understand the American threats against Iraq are against the whole Arab nation and confirm the intentions of the US-Zionist administration to attack the capacities of the nation, be it in Iraq, in Saudi Arabia, in Egypt, in Syria or elsewhere," he told al-Ittihad weekly.

Ramadan said Iraq "hopes for more" from Saudi Arabia, noting that Riyadh's position "is moving towards the rejection of any attack against Iraq as several Saudi leaders have said on more than one occasion."

Baghdad's ties with Riyadh, broken since the 1991 Gulf War, are warming.

The first Saudi Arabian trade fair to be held in Iraq since Baghdad invaded Kuwait in 1990 is to open on September 9. A big Saudi trade delegation is expected and major Saudi firms will attend, the official al-Ittihad weekly said.

Rapprochement began at an Arab summit last March as it did with Kuwait, and has been bolstered by Saudi Arabia's steadfast refusal to countenance a US-led attack on Iraq from its soil.

Ramadan said Thursday that Baghdad would be ready to restore ties when Riyadh decided the time was right. Iraq was also looking to continue to mend fences with Kuwait, he added.

Foreign ministers of the six Gulf Arab states, who have individually all expressed opposition to a new war on Iraq, are to meet on September 2-3 to study the US threats.

The Gulf Cooperation Council (GCC) has already expressed its opposition to an attack on Iraq, citing the negative repercussions on the entire region. Iraq has also been bolstered by the opposition of several European countries, notably Germany.

Israel Seeking a Way out of Intifadha

However, the vice president had harsh words for Israel, accusing it of pushing the United States to attack as a way out of the Palestinian uprising or intifada.

Israeli Prime Minister Ariel Sharon urged Washington during a meeting with US officials in Tel Aviv not to delay in attacking the Iraqi regime, the daily Haaretz said last week.

Bush has come under fire, even by supporters of military action against Iraq, for failing to make his case to the US public and US allies.

Adding to Bush's Predicament

Adding to Bush's predicament, Russia renewed demands Saturday that any US military strike be put to the UN Security Council.

Russia is sending a top delegation to Washington in September to argue against military strikes and has demanded firm proof from the United States that Baghdad was stocking up on weapons of mass destruction.

The Kremlin also played down recent reports of a 40-billion-dollar economic cooperation plan linking Baghdad with Moscow, that had spurred concern in Washington.

Turkey, a key US ally from where US warplanes fly to monitor and bomb Iraq almost daily, has also agreed to work for a long-term economic cooperation pact with Baghdad, and is strongly opposed to any military operation against Baghdad.

Iraqi opposition to set up recruitment centres: report

The Iraqi opposition is planning to open recruitment centres in London, Washington and several Arab cities to sign up volunteers to help topple President Saddam Hussein, British newspapers reported.

The Daily Telegraph said they would try to sign up people to fight alongside US forces in any military operation to oust Saddam. The Times said the opposition headquarters would be based in London.

Former Iraqi officers in exile gathered in London last month and announced the formation of a war council to topple the Iraqi leader, amid intense speculation that Washington will take military action against Baghdad.

The newspapers reported claims by General Tawfiq al-Yassiri, spokesman of the 15-member war council, that the group was inundated with offers after announcing its formation in mid-July.

He said he was expecting thousands of volunteers to fight, the papers said.

Two more arrested over Iraqi Berlin embassy incident

Two men suspected of abetting a group who temporarily seized hostages in the Iraqi embassy in Berlin have been arrested in the northern port city of Hamburg, police said.

The news magazine Der Spiegel says in its latest issue that one of the two men arrested had been identified as Abu Qasi A., an Iraqi businessman who had been living in Germany for 25 years and considered a top official of the group calling itself the Democratic Iraqi Opposition of Germany, which claimed responsibility for the embassy incident.

While confirming the press reports that the men had been arrested, police declined to give details.

Five members of the little-known Iraqi opposition group stormed the embassy and held the charge d'affaires hostage for five hours. German police ended the incident without bloodshed.

The Iraqi charge d'affaires, Shamil Mohammed, who was treated for shock after the incident along with an embassy staff member, claimed later the hostage-takers were being given orders from abroad by cellular phone, and accused "Washington, Tel Aviv or London" of being at the other end of the line.

He told a newspaper the embassy takeover was intended "to discredit the good German policy" on Iraq.

Chancellor Gerhard Schroeder has warned against a US-led attack on Baghdad and ruled out German military participation in such a war.

PHOTO CAPTION

Chief U.N. arms inspector Hans Blix, pictured with U.N. Secretary-General Kofi Annan in March, was quoted in a German newspaper on August 24 as saying Iraq could avoid military conflict by allowing his inspection team in. REUTERS/Peter Morgan