Sadr proposes peace deal

Sadr's supporters have been rising up against the US-led occupying forces in south and central Iraq. America has insisted that it will kill or capture Sadr and destroy his militia.

Extra troops have been moved to the outskirts of Najaf, where the cleric is thought to be hiding in a mosque.

The envoy, who met Sadr yesterday, is due to meet the Iraqi Governing Council members later today before presenting the proposals to American officials.

Gen Richard Myers, the chairman of the American joint chiefs of staff, has warned that violence in Iraq could escalate if Sadr is captured. However, he told a news conference that he believed the upsurge would be shortlived.

Junichiro Koizumi, the Japanese prime minister, has insisted that he will not give into demands from the group holding three Japanese hostages.

The kidnappers are demanding the withdrawal of 550 troops from the southern Iraq.

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