A defiant President Saddam Hussein said Thursday he was not scared by U.S. threats to topple him and said those who attack Iraq will be digging their own graves. His 22-minute televised speech to the nation was high on rhetoric but Washington branded it irrelevant and the United Nations said it gave no rise to optimism that Iraq would admit U.N. arms inspectors, seen as key to avoiding a possible war.

As it was broadcast, thousands of Iraqis clad in military fatigues and clutching assault rifles paraded in Baghdad, denouncing the United States and vowing to defend Saddam to the death.

Washington, which defeated Saddam once before in the Gulf War, said the speech contained nothing new.

"(It is) bluster from an internationally isolated dictator, demonstrative yet again that his regime shows no intention to live up to its obligations under U.N. Security Council resolutions," State Department spokesman Philip Reeker said.

Bush has called Saddam a threat to peace and seeks a "regime change" in Baghdad.

NO INITIATIVE OVER ARMS INSPECTORS

Saddam made no new offers on his dispute with the United States and the United Nations on letting arms inspectors back into the country to look for weapons of mass destruction.

UN Secretary General, Kofi Annan said he saw no sign in the speech of a shift in Iraq's refusal to readmit inspectors and no cause for optimism unless there were "unforeseen developments."

"I don't see any change in attitude," Annan said.

He said he had received no response from the Iraqis to a letter he wrote two days ago telling Baghdad it had to send a formal invitation for U.N. inspectors to return to Baghdad before further substantive talks could be held on arms issues.

PHOTO CAPTION

Iraqi President Saddam Hussein is seen delivering an address to the nation on Iraqi TV August 8, 2002. Hussein said Thursday that he was not frightened by threats from the United States and his country was ready to repel any attack. Speaking on the anniversary of the end of the Iran-Iraq war, Saddam also called on the United Nations Security Council to answer a series of questions recently posed by Baghdad. (Reuters TV/Reuters)