Soldiers were at the forefront of the Basra assault

A troop from the Queen's Dragoon Guards - known as the Welsh Cavalry - gave their support to the Royal Marines' Juliet Company as they entered the palace at dawn on Monday.

The capture of the palace - which was empty of people - was the culmination of the operation begun on Sunday to take control of the city.

The palace complex was reported to be filled with opulent buildings as well as a swimming pool and yacht moorings.

Soldiers from the Welsh Cavalry, who were at the forefront of the latest push into Basra, reported a friendly reception from the people in the city.

Lt John Whelan said: "It was amazing. It was like VE Day.

The locals said that all the regular army soldiers had left and any Feyadeen or Hizbollah they would deal with themselves Lt John Whelan

"We stopped at junctions and had about 400 or 500 people round the vehicles.

"We gave them some food and then when we drove off they tried running after us until they could no longer keep up.

"They were all very friendly."

There were also reports that local people have started taking revenge on people involved with Saddam's regime.

Captain Alex Boissard said: "People are killing the police who are on the street corners.

"It started a few days ago. There are also reports that they are hunting Ba'ath Party officials in their building.

"This has been going on ever since they realised that the British were already in Basra."

'Fallen'

Lt Whelan added: "There were no soldiers around at all yesterday - at least not in military kit.

"The locals said that all the regular army soldiers had left and any Feyadeen or Hizbollah they would deal with themselves."

Major Henry Sugden, in charge of C Squadron, Queen's Dragoon Guards, said troops had had an easier passage through the town than expected.

""Rather than fighting all the way up there, we just drove up.

"It means Basra has completely fallen. The Shias have been out saying they will kill any Feyadeen they see.

"My reading is that the locals know that there is no coordinated regime structure within Basra, which is why they have come out so positively in support of us and why they are so determined to settle old scores and hunt down the Feyadeen."

However, coalition forces have not gained complete control of Basra.

Forces heading for the the old part of the city were encountering Iraqi forces giving resistance to the incursion.

The old city, which is full of narrow streets, is thought likely to prove a more difficult area for British troops to take.