Security forces killed two snipers in Fadhil and two suspected insurgents who tried to mingle with the crowed in the mixed neighborhood of Zafraniyah, police said.

In one neighborhood, security forces and Shiite militias were seen exchanging gunfire with unseen assailants. Gunfire echoed in the streets as people ran for cover.

The government had deployed thousands of troops and banned private vehicles from the streets to prevent attacks during the two-day commemoration marking the death in 799 of Imam Moussa ibn Jaafar al-Kadhim, one of 12 Shiite saints.

Tens of thousands of Shiites participated in the religious procession Sunday, chanting Islamic slogans and wearing white shrouds to symbolize their willingness to die for Islam.

"We heed your call, Oh Imam!" the pilgrims sang, beating their chest and flagellating themselves with steel chains in a traditional Shiite expression of grief.

A security cordon was thrown around golden-domed shrine where the imam is buried, and all pilgrims were frisked before entering. Troops posted on rooftops closely watched the devout who waved the green flag of Islam and banners of their tribes in vibrant colors.

Last year, the government said about 1,000 people died during the Imam Kadhim commemoration when rumors of suicide bombers triggered a mass stampede on a bridge across the Tigris River. It was the biggest single day death toll since the U.S.-led invasion in March 2003.

Shiites were prevented from mustering huge crowds at religious ceremonies during Saddam Hussein's Sunni-dominated regime. But since Saddam's ouster in 2003, Shiite politicians and religious leaders have encouraged huge turnouts as a demonstration of the majority sect's power.

The ceremonies are taking place during a major U.S.-Iraqi security operation aimed at curbing Sunni-Shiite violence, which threatens the stability of the new government of national unity. Nearly 12,000 U.S. and Iraqi troop reinforcements are coming in to take control of this city of 6 million people neighborhood by neighborhood.

A gas cylinder exploded at 10:40 a.m. (0640 GMT) in the Eurasia section of Cherkizovsky market in Sirenevy Bulvar district.

Nine people died and 25 more were injured in the explosion, a police spokesman told the Interfax news agency.

Medical assistance is being given to the wounded.

"The explosion occurred at around 10:30 a.m., at 2 Sirenevy Boulevard [eastern Moscow]," a police source told the RIA-Novosti news agency. "Then the fire broke out," he added.

Fire brigades and rescuers arrived at the scene.

The Emergency Ministry said the blast occurred after a hand-made explosive device went off at the market.

Some reports said two blasts had been registered at the market, the first having occurred at 10:01, the second followed fifteen minutes later. The blasts caused the market roof to collapse, the ministry said.

"The two military leaders discussed the plan of interaction between the land forces of the two countries in 2007, with focus on joint exercises," a Russian Defense Ministry release said after the Army Chief's talks with General Baluyevsky.

Joint development of new weapon systems and training of Indian military personnel in Russia's defense institutions were also discussed during General Singh's parleys with the Chief of the General Staff of the Russian Armed Forces.

Singh arrived in Moscow Sunday on a week-long visit at the invitation of his Russian counterpart Colonel General Alexei Maslov.

This is his first visit to Russia as the Army Chief and is seen as part of New Delhi's efforts to allay Moscow's concerns over growing Indo-U.S. bonhomie in the defense sector.

The leader of the pro-Russian Party of Regions who was confirmed as prime minister earlier this month visited Russia's Black Sea resort of Sochi earlier this week, where he met with Russian President Vladimir Putin and Prime Minister Mikhail Fradkov.

Talks focused on reaching a deal with Russia over natural gas supplies - a pressing task for Yanukovich, who raised expectations that his warmer links with Moscow might help secure concessions. The Sochi meeting ended with no significant breakthroughs, and Yanukovich described the talks as "rather difficult."

Russia strongly supported Yanukovich's fraud-marred bid to win Ukraine's presidency in 2004, and his return as prime minister was welcomed in Russia as a way to balance Ukraine's pro-Western president, Viktor Yushchenko, who has wanted to move Ukraine into NATO and the European Union.

Ukrainian media reported Saturday that Yanukovich flew to Moscow on Friday and planned to return Saturday evening. Yanukovich's office canceled the premier's meetings Friday and Saturday in Kiev, citing scheduling changes.

In the past month, Yanukovich has publicly drifted from his party's earlier pro-Russian pronouncements, pledging that the president's foreign policy initiatives would remain unchanged.

After returning from the Sochi meeting, Yanukovich spoke by telephone with U.S. Secretary of State Condoleezza Rice, who encouraged further cooperation with the United States, Yanukovich's office said.

Yanukovich has said he also hopes to visit Brussels and Washington.

The agreement, a copy of which was obtained by AFP ahead of publication in French daily Le Figaro, followed talks by European Union ministers in London, where an alleged plot to bomb US-bound airliners was foiled last week.

Britain and France pledged to cooperate to prevent "radicalisation and recruitment" of potential terrorists and to ensure that their police and judiciaries work efficiently to stop terrorists finding refuge in Europe after committing attacks.

One concrete proposal in the text is to step up research for technology to detect liquid explosives, which the suspected plotters were allegedly planning to smuggle on board airliners and detonate in midflight.

The ministers' text said, however, that they did not wish to give the impression that the Islamic world was being targeted by the measures. Most of those arrested over last week's alleged plot were of Pakistani origin.

Reid said after Wednesday's talks with his EU counterparts that terrorism was "a persistent and very real threat across Europe".

At the talks, the European Commission promised to introduce a series of measures to strengthen airport security, boost cross-border intelligence sharing and tighten controls on explosives.

BAE might handle the maintenance and upgrading of the fighter jets, but the newspaper reported that Saudi Arabia is keen for local companies to do the work.

The Saudi finance ministry is authorising the initial payment on the agreement, which could come as early as next week. Upon receiving the payment, BAE would have to make an announcement to the London Stock Exchange.

The agreement is also a boost for the other three countries -- Germany, Italy and Spain -- building the jets, though the Financial Times quoted Scott Babka, an aerospace analyst at investment bank Morgan Stanley, as saying BAE would be the biggest benefactor because it will be the "prime contractor".

The Times reported on Monday that the sale could be announced as early as this week.

"You are here in the name of the occupier not in the name of Iraq. My name is known to Iraqis and to the world," Saddam declared, speaking clearly and in a strong voice.

He introduced himself as "Saddam Hussein, the President of the Republic of Iraq and the commander-in-chief of the Mujahedeen (the Iraqi armed forces)".

Defiant Saddam

But when the time came to enter a plea, Saddam refused, and the judge ordered a plea of "innocent" to be entered into the record.

One of Saddam's co-defendants is his cousin, Ali Hassan al-Majid, known as "Chemical Ali" because of poisonous gas attacks he is alleged to have been behind.

The former president, already awaiting a verdict in another trial on charges of killing 148 Shia Muslim men and boys, is likely to challenge the legitimacy of the special tribunal by saying it was created under US occupation.

The seven defendants face charges for their role in military offensives codenamed Anfal - the Spoils of War - after the title of a chapter of the Koran.

Iraqi forces are accused of launching mustard gas and nerve agent attacks in the Anfal campaign, seen as one of the most potent symbols of Kurdish suffering under Saddam.

Grave charges

All seven accused face charges of war crimes and crimes against humanity for the seven-month onslaught. Saddam and Majid also face the more serious charge of genocide, which carries the death penalty.

Many villages were razed and hundreds of thousands of people were displaced or killed during the attacks.

Saddam and his co-accused are likely to argue that their crackdown was justified because Kurdish rebels and their leaders had committed treason by forming alliances with Iran.

US and Iraqi officials had hoped the first trial against Saddam, for the killings of Shia members in the town of Dujail after an attempt on his life there, would lead to swift justice.

But the trial has been marred by the killings of three defence lawyers and the loss of the original chief judge, who resigned to protest at what he said was government interference.

"The issue of suspension ... is not on the agenda of the Islamic Republic of Iran," Hamid Reza Asefi told reporters in his weekly press conference.

He also reiterated Iran's rejection to a UN Security Council resolution that demands suspension of its uranium enrichment by Aug. 31.

"The resolution has no legal validity and is unacceptable for the Islamic Republic," he said.

The Security Council adopted the resolution on July 31, urging Tehran to "suspend all enrichment-related and reprocessing activities, including research and development" by Aug. 31 or face possible sanctions.

Asefi said Iran was in the final stages of reviewing the package.

"The package has various dimensions, so our response will also be multi-dimensional," he said.

Also on Sunday, UN Secretary-General Kofi Annan appealed to Iran for a positive response to the package of incentives offered by six countries -- Britain, China, France, Germany, Russia and the United States.

"I appeal to the government of Iran to seize this historic opportunity. Iran's reply will, I trust, be positive and that this will be the foundation for a final, negotiated settlement," Annan said in a statement.

Annan said that progress on the Iranian nuclear issue was essential for regional and global stability.

"In a time of acute crisis in the Middle East, I believe that progress on the nuclear issue is essential for the stability not only of the region, but the international system itself," he said.

"It is time to take steps in the right direction. I am convinced that a way is now open for setting a milestone for international non-proliferation efforts," he said.

The incentive package includes promises that the United States and Europe will provide civilian nuclear technology and that Washington will join direct talks with Iran in exchange of Iran's suspension of uranium enrichment.

Iran has said that the package is an "acceptable basis" for a compromise. Asefi said part of the package was "convincing" but there were ambiguities that needed to be clarified through talks.

Earlier, Iran's state-run television reported that the military test-fired 10 surface-to-surface Saegheh missiles on Sunday, a day after large-scale military exercises began across the country.

The White House blasted Iran's move as "show of military force" and said it "serves to remind us of the dangers of its nuclear ambitions."

Iran insists that its nuclear program only has the peaceful aim of generating electricity.

- Fiasco I: Five years after Bush ordered Afghanistan invaded and proclaimed "total victory," U.S. and allied forces are fighting a losing war against Afghan resistance groups. Afghan heroin exports are up 90%. The U.S. just quietly deployed thousands more troops to Afghanistan to hunt Osama bin Laden and Ayman al-Zawahiri in a desperate attempt to save Republicans from getting clobbered in November midterm elections.

- Fiasco II: "Mission accomplished" in Iraq. Bush's war in Iraq is clearly lost, but few dare admit it. The U.S. has spent $300 billion on Afghanistan and Iraq, with nothing to show but bloody chaos, deficits, body bags, and growing hatred of America. The Bush/Dick Cheney "liberation" of Iraq has now cost more than the Vietnam War.

- Fiasco III: The White House had the CIA and Pentagon spend tens of millions bribing Somali warlords to fight Islamist reformers trying to bring law and order to their strife-ravaged nation. The Islamists whipped CIA-backed warlords and ran them out of Somalia. Following this defeat, the U.S. is now urging ally Ethiopia -- shades of Lebanon -- to invade Somalia, thus raising the threat of a wider war between Somalia, Ethiopia, and Eritrea. Good work, Mr. President.

- Fiasco IV: Bush and Vice President Cheney egged Israel into the hugely destructive but militarily fruitless war in Lebanon over the past month, in what many view as the first part of their long-nurtured plan to militarily crush Hezbollah, Syria and Iran. They did there best to thwart world efforts to halt the conflict.

To Washington and London's shock and awe, Hezbollah, Iran, and Syria emerged the war's victors. Hezbollah is now the Muslim world's new hero after battling Israel's mighty armed forces to a humiliating draw.

Hezbollah's victory put the kibosh on the Bush/Cheney Holy Land crusade.

No sooner had bombing stopped last week than Hezbollah bulldozers were busy clearing rubble, and Hezbollah social workers resettling refugees. Perhaps Bush should ask Hezbollah to take over rebuilding New Orleans.

Israelis have now turned from fighting Arabs to furious finger-pointing. Politicians and generals are blaming each other for the Lebanon debacle that killed 118 Israeli soldiers and 41 Israeli civilians, cost at least $1 billion, ruined the summer tourist trade, and, after a burst of initial sympathy, brought worldwide condemnation. And no captured soldiers -- the war's supposed objective -- have been yet returned.

Still, a swap of Israeli prisoners for Lebanese and Palestinian ones remains likely, as this column predicted at the war's beginning. The killing of 1,000 Lebanese civilians, a million Lebanese and Israelis made refugees, and billions in wanton destruction, could all have been avoided.

Routine Skirmish

By turning a routine skirmish into a big war, Israel's PM Ehud Olmert showed he had no more grasp of military affairs than those other amateur warlords, Bush, Cheney and British PM Tony Blair.

Even Washington hawks are wondering if invading Iran may not be such a cakewalk as they envision. Iran's Revolutionary Guards helped train and arm Hezbollah's fighters.

America was the big loser in the Lebanon war. From Morocco to Indonesia, each night some 1.5 billion Muslims watched the carnage in Lebanon on TV and most blamed America. Even the poorest shepherd in Uzbekistan heard that the U.S. was airlifting the precision bombs and deadly cluster munitions to Israel that wound up killing hundreds of Lebanese.

Any hope of damping down the Islamic world's surging hatred of the U.S., Britain, and Israel (and now Canada, thanks to the federal government's pro-Israel stance) was killed in Lebanon.

Even the interestingly-timed airport hysteria in London over claims of liquid bomb plots failed to divert attention from the latest egregious U.S.-British Mideast policy disaster.

The "war president" has become the fiasco president. The White House should stop listening to bogus military advice from neocon couch commandos who thirst for Muslim blood, and start listening to experienced Pentagon officers who understand the meaning and cost of war.