Iraq's interim government said on Friday it welcomed a proposal by rebel Shi'ite cleric Moqtada al-Sadr's militia to disarm, and said it would meet at least some of the demands made by Sadr as part of any deal. 

"The government welcomes the announcement by Sadr that his militia will disband, hand over their weapons, respect the authority and the unity of the state and abide by the rule of law in Iraq," said a statement issued in the name of Kassim Daoud, Iraq's national security adviser and chief negotiator.

"Unlike the old regime, this government will abide by its pledges to afford equal and fair treatment to all as well as to offer amnesty to those who have not committed crimes against the Iraqi people," the statement said.

If a deal were to be struck with the Mehdi Army, not just in Sadr City, but in other Shi'ite flashpoints around the country, it could go some way in stabilizing the country ahead of elections due in January, although the Sunni-led insurgency remains a severe problem in central and northern Iraq.

The announcement came in response to an offer made by Sadr's top aide in a televised address on Thursday.

In a broadcast on al-Arabiya television, aide Ali Smeism said the militia, known as the Mehdi Army, would disarm if Sadr's aides were freed from US detention, if US forces stopped "persecuting" the Mehdi Army and reparations were paid.

Sadr, via his aides, has also demanded financial assistance in the rebuilding of Sadr City, a huge Shi'ite slum district of Baghdad where the Mehdi Army have a strong presence and where there have been recent nightly clashes with US forces.

US military and civilian officials have identified 20 to 30 towns and cities in Iraq that must be pacified before nationwide elections can be held in January, the New York Times reported on Friday.

Air strike kills 11

A US air raid, aimed at foreign fighters led by Abu Musab al-Zarqawi, killed 11 people and wounded 17 after a wedding party in the rebel-held Iraqi city of Falluja on Friday, residents and doctors said.

The US military said a "precision strike" hit a safe-house used by associates of the Jordanian Islamist militant in northwest Falluja at 1:15 AM on Friday.

Rescuers dug bodies from rubble with their hands after the raid on the house where residents said a wedding party had just taken place. They said the groom died and the bride was wounded.

"Credible intelligence sources confirmed Zarqawi leaders were meeting at the safe-house at the time of the strike," a US military statement said.

British hostage killed

A militant group led by al-Zarqawi killed British hostage Kenneth Bigley in Iraq, Abu Dhabi Television said on Friday, quoting "informed" sources in Iraq.

The 62-year-old engineer was kidnapped in Baghdad on September 16 by the Tawhid and Jihad Group that has also beheaded two American hostages who were seized along with the Briton.

"We have learned from informed sources in the Iraqi capital that the kidnappers of Kenneth Bigley have killed him," an Abu Dhabi newscaster said.

Asked to comment on the report, Bigley's brother Paul said in London: "I have heard nothing at all. I have been optimistic and remain optimistic. I am praying this news is not true."

Iraqi Interior Ministry officials in Baghdad said they had no information on the report.

A British Embassy spokeswoman said: "I cannot confirm it."

The kidnappers had demanded US-led forces in Iraq release women prisoners in Iraqi jails to spare Bigley's life. Last week, Bigley appealed to British Prime Minister Tony Blair to meet the captor's demands to save his life.

Blair has said his government will not negotiate with the hostage takers.

Several groups and individuals have tried to negotiate Bigley's release. This week, Libyan leader Muammar Gaddafi appealed to the kidnappers to free him.

(China Daily October 9, 2004)