The reports were "black propaganda intended to terrify others by passing the blame for (US) crimes on to others," Sahhaf told the Qatar-based satellite television station Al-Jazeera.

"Iraq has been rid of weapons of mass destruction since spring 1992," the minister said, reiterating Baghdad's longstanding denials that it retains any banned military programmes.

"The inspectors have searched everywhere and found nothing," he said in reference to UN arms experts who resumed work in November and who were ordered out of Iraq Monday as a US-led offensive loomed.

US officials, speaking under cover of anonymity, had charged earlier that Iraq was distributing chemical weapons to his most loyal troops after US Secretary of State Colin Powell revealed Washington was set to issue a final ultimatum.

"We have some information that indicates some of these weapons have been given to them," said one official. A second US official also said there were signs chemical munitions were being distributed to Iraqi units.

WAR.WIRE