Iraq to offer amnesty to rebels within days

"We are offering an amnesty definitely, for people who have not committed too many atrocious acts; everybody except murderers, rapists and kidnappers," interim President Ghazi al-Yawar told the Financial Times in an interview.

Last week, Iraq's interim government announced a new security law giving itself wider counter-insurgency powers as well as plans for the temporary amnesty and also the restoration of the death penalty, suspended during the US-led occupation.

"It's good to have a carrot-and-stick approach," Yawar told The Times in an interview.

"We will offer the amnesty first, then we will have this law for executions so there is a menu to chose from. It's up to (the insurgents) to make a smart choice.

"If they sincerely feel that they are sorry for what they have done and they sign an undertaking that it will never happen again we shouldn't ask any questions.

"They killed close friends of mine. If we keep nagging about this, then it will be a circle of blood, and we want to break that circle of blood."

More than 650 US troops have died in combat since the US-led invasion in March last year to oust Saddam Hussein.

Prime Minister Iyad Allawi's interim government, which took over from US-led occupiers on June 28, is heavily dependent on some 160,000 mainly American foreign troops for security while it builds up its fledgling forces.

AFP adds: Militants holding a Filipino truck driver hostage in Iraq have rejected a bid by the Philippines government to buy his freedom, a diplomat who has been monitoring the crisis said yesterday.

The diplomat would not say if the ransom would come directly from the government or another party.

The source said the kidnappers have told Manila through intermediaries that a cash ransom was out of the question. It was unclear how much was offered.