Richard Butler, who heads the UN Special Commission, left Iraq on Tuesday, saying the government was refusing further disarmament talks throwing into uncertainty the future of the UN programme to eliminate Iraq's arsenal of mass destruction.

The Iraqi News Agency reported that Saddam, during a meeting of his top advisers, approved measures aimed at ending the sanctions. INA said the measures would be announced soon but did not say what they were.

Butler said the impasse stemmed from Deputy Prime Minister Tariq Aziz's demand that Iraq be given a clean bill of health on its weaponry.

``I told him that I cannot fulfil your demand because I don't have the evidence,'' Butler said after flying into Bahrain en route to New York. After I said that to him, Aziz replied, then we can't talk any further.'''

Butlersaid he would brief the UN Security Council about the impasse tomorrow.

Butler's political adviser, Gustavo Zlauvinen, said Aziz also refused to accept a proposal to speed up the pace of weapons inspections. The talks were getting nowhere,'' he said.

Zlauvinen said much more work must be done to get a clearer picture of Iraq's weapons capability.

Until UN inspectors certify that Iraq is free of weapons of mass destruction, the UN Security Council will not lift economic sanctions imposed after Iraq's 1990 invasion of Kuwait, which led to the Gulf war.

In Washington, White House spokesman P J Crowley said Saddam should not hope for an end to the sanctions until Iraq complies with its obligations.

State Department spokesman James P Rubin said Saddam had ``shot himself in the foot'' by mishandling a chance to end economic sanctions. Iraq has only harmed itself,'' Rubin said.

Iraq's latest stand threatens to bring to a halt the UN Commission's seven-year search for illegal weapons, a mission oftendisrupted by confrontations between Iraqi and UN officials.

In New York, UN Secretary-General Kofi Annan said the next step could be determined only after Butler's report to the Security Council.

Iraq's charge d'affaires at the United Nations, Said Hasan, said it would be impossible to follow the proposed accelerated schedule now that talks have broken down.

However, the Iraqi news agency quoted Butler as saying before he departed that the impasse should not be blown out of proportion.

``It is imperative not to overdramatise the situation,'' he was quoted as saying. I will refrain from using the word crisis.''

Still, experts believe the Iraq-UN relationship can only suffer.

Confrontation is looming, definitely,'' Tim Trevan, who served on the UN inspection team from 1992 to 1995, said on BBC radio.

``My concern is perhaps that the will of the international community has dissipated,'' he said.

New missile to defend Muslim world

Tehran: A new medium-range missile that Iran tested lastmonth is meant to defend the Muslim world and other oppressed countries, a senior military commander has said.

Brig Gen Mohammad Bagher Qalibaf's comments on Tuesday are the first time that Iran has indicated a religious motive for developing the Shahab-3 missile, whose range of 1,300 kms makes it capable of hitting Israel and US troops stationed in Saudi Arabia.

Iran is staunchly opposed to any peace with Israel and calls for its annihilation. It also backs guerrilla groups fighting Israeli troops in South Lebanon.

Qalibaf is the commander of the air wing of the Islamic Revolutionary Guard Corps, a separate force in the military with a strength of about 120,000 men.