Iraqis blame Clinton for their pain: Sarah Helm in Baghdad finds a people squeezed from all sides

IN THE small hours of yesterday morning, the trail of Iraqis struggling across the Jordanian-Iraqi border smiled with relief when they heard reports that President Saddam Hussein had pulled back his troops.

'There will be no war. No war. The troops have pulled back and now Clinton must listen to us at last,' they said, clambering into their cars laden down with emergency supplies.

Through the darkness, the Iraqi President also smiled as he peered down over the border from a giant poster. For a moment, it seemed the latest crisis was over. Iraqis were convinced that their President had their best interests at heart and that his troop deployment was just a clever threat which would push the United States into allowing the crippling UN sanctions to be eased.

Hours later, in the Issa market in central Baghdad, the mood had changed dramatically. President Bill Clinton's rejection of President Saddam's claims of withdrawal, promising to continue the US build-up, was greeted with anger. 'Clinton is a liar. Why will he not believe our president?' screamed Lejat Kadum, a mother of seven. 'For three years we have suffered. We have no medicine. I have not even aspirin for my children. I have no money for food. We have obeyed all the UN resolutions and now Clinton shows he just wants to kill us all.'

As the threat of renewed conflict with the US has escalated, the people of Iraq reacted at first with confusion and fear, but yesterday the mood turned volatile. They talked only of the cruelty of sanctions and their hunger, while evidence of dilapidation lay all around. Broken pipes poured untreated sewage into the Tigris and lack of spare parts has crippled industry.

The booty claimed from Kuwait has long since been used up and mothers pick out tomatoes and aubergines in the market, unable to afford fish or meat.

The people here appear to have no fear of Mr Clinton's B52 bombers. 'We are all prepared to fight again to smash the Americans,' said Bassim Kassim, a stallholder who fought in Kuwait and is one of the many young men in Baghdad who have signed up in recent days to join new volunteer militias.

Two weeks ago Iraq nearly halved the food rations which, when first imposed in the wake of sanctions, provided for 60 per cent of essential needs. Now the flour ration has been cut from 9kg (about 20lb) a month to 6kg and rice from 3kg to 1.5kg. The cut has led to protests and looting in towns outside Baghdad.

'Saddam is playing a risky game not only with the US but with his own people,' said one diplomat. Although humanitarian supplies are allowed under sanctions, Iraq has no money to buy them.

Many diplomats, like the ordinary people, are convinced that the US still believes its policy could topple President Saddam. But there is no evidence that his position in Iraq is being weakened, rather he is stepping up suppression of dissent. To halt the sudden rise in army desertions, decrees have been passed ordering deserters' ears to be cut off. Random checkpoints are reportedly in place throughout the country - also to catch deserters. If the UN sanctions committee does not give ground this week, diplomats have warned that President Saddam's next move may be to cease co- operation with UN arms monitors, giving the US further cause for military escalation.