With five hours of intensive clashes continuing, two US Abrams tanks rolled out of the northern entrance of the presidential palace compound and took up position on the adjacent Al-Jumhuriya bridge.

That sparked the first exchange of fire between US forces and Iraqis holed up on the east bank of the Tigris.

Warplanes raided the massive complex which lies on the west bank of the Tigris river at least twice after fighting inside the compound broke out just before 5:00 a.m. (0100 GMT).

And for the first time, a US air force A10 "tank killer" plane also attacked Saddam's main palace in the capital and the symbol of his 24-year iron-fist rule over the country.

The A10 swooped twice to fire at very low altitude on the northern entrance of the compound and on the planning ministry, just outside the northern gate of the sprawling complex.

It returned to open fire a third time on an area beyond the planning ministry, apparently on a road leading to the information ministry.

The A10 released decoy flares against missiles as it rose in the sky after each pass.

The exchanges of fire moved progressively along the river bank, northward toward the al-Jumhuriya (Republic) bridge where battles were taking place at the compound's northern gates.

In Washington, a US official said warplanes Monday bombed a building in Baghdad where intelligence information indicated that Iraqi leaders including Saddam Hussein and his sons may have been staying.

The official, who spoke on condition of anonymity, could not say whether the Iraqi leaders were killed in Monday's attack.

A building was hit in Baghdad's al-Mansur district where intelligence information indicated that Saddam, Uday and Qussay may have been.

A US Central Command spokesman in Qatar said four satellite-guided Joint Direct Attack Munition (JDAM) bombs were dropped.

"We confirm that a target of the (Iraqi) regime was hit very hard," the spokesman said.

"Obviously we hope that some part of the leadership was taken out of action, but we don't know at this point who might have been there at the time the ordnance arrived," said the anonymous official in Washington.

In Baghdad, witnesses reported that at least 14 civilians were killed when a bomb crashed into the al-Mansur residential area.

The explosion left a crater eight meters (26 feet) deep and 15 meters wide and destroyed four houses at about 3 pm local time (1100 GMT).

Rubble lay strewn over the sidewalk, notably in front of the al-Sa'ah restaurant where Saddam made a defiant public appearance Friday after US troops captured Saddam International Airport southwest of the capital.

Monday's strike marked the second time US forces sought to "decapitate" the Iraqi leadership based on intelligence.

On the war's opening night on March 20, US F-117 stealth fighters struck a Baghdad compound where Saddam and several senior members of his inner circle were believed to be gathered.

US intelligence concluded however that the elusive Iraqi leader had survived.

In Baghdad, dark smoke was billowing Tuesday into the sky from several areas within the palace compound, mainly near the planning ministry, on a roundabout leading to the administrative neighborhood where the ministries of information and foreign affairs are located.

An explosion was also heard in the area of the al-Rashid hotel, a landmark in Baghdad, which was believed to have been taken by US troops and around which intensive battles raged on Monday.

The palace clashes erupted after a series of loud explosions followed by intense exchanges of gunfire in the compound, which left a huge fire burning, engulfing vegetation in the grounds.

The Qatar-based Arabic television news network Al-Jazeera said a US missile hit its Baghdad offices Tuesday wounding a cameraman and leaving a correspondent missing.

Rival satellite station Abu Dhabi TV announced its Baghdad bureau had also been hit Tuesday in a live report showing a camera position under attack.

On Monday, US forces stormed into the heart of Baghdad with tanks and troops, raiding three of Saddam Hussein's presidential palaces while fierce battles raged across the battered Iraqi capital.

At least two Abrams tanks, two Bradley armoured vehicles, one military jeep as well as US marines in full combat gear have been seen inside the palace, which has been pounded repeatedly since the US-led coalition launched the war on March 20 to topple Saddam Hussein.

All rights reserved. Copyright 2003 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.

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