Deal reached in Najaf after Kufa carnage

Iraq's most revered Shiite leader persuaded a rebel cleric yesterday to accept a deal ending a three-week uprising in Najaf, after returning to the city amid bloody clashes that killed at least 74 people.

"Moqtada Al Sadr agreed to the initiative of his eminence Grand Ayatollah Ali Al Sistani," Hamed Al Khafaf told reporters at a news conference outside the house where Al Sistani was staying.

The plan calls for Najaf and Kufa to be declared weapons-free cities, for all foreign forces to withdraw from Najaf and leave security to the police, and for the government to compensate those harmed by the fighting.

Earlier yesterday, Al Sistani entered Najaf in a huge convoy of vehicles, with thousands lining the streets along the route, for talks with Al Sadr.

Police said Al Sadr, whose fighters have been holed up in the sacred Imam Ali mosque and battling US and Iraqi forces in the alleys outside, agreed to the "very positive" deal to end fighting that has killed hundreds, driven oil prices to record highs and undermined the authority of Prime Minister Eyad Allawi.

Earlier, a 24-hour ceasefire was declared in the city as soon as Al Sistani arrived on the orders of Allawi.

The start of peace talks marked a deadly day in Najaf's twin city of Kufa, where 74 people were killed and 376 wounded in a mortar attack on the main mosque and shooting at a march, the health ministry said.

Television pictures showed dozens of wounded men lying in pools of blood around Kufa mosque.

In Najaf, where tens of thousands of Shiites had converged, at least 15 Al Sistani supporters were shot dead and 65 wounded when gunmen opened fire at police who were trying to control a crowd, prompting police to shoot back, witnesses said.

"We answered the call of Al Sistani who ordered us to follow to Najaf to break the siege... It's the end of the siege," said one demonstrator, Kazem Hamid.

Al Sistani's large, ragged convoy was greeted by thousands of people and escorted by police and national guard patrol vehicles on the long 400km journey north from Basra.

Behind the vehicles containing the Ayatollah and his aides, more than 1,000 cars, pick-up trucks, taxis and buses were packed with supporters of all ages, waving banners and pictures of Al Sistani.