Israeli Prime Minister Ariel Sharon said on Tuesday that Israel was trying to verify a report that the Iraqi leader "wants to hide chemical and biological weapons that were smuggled into Syria".

The Syrian Foreign Ministry dismissed the charge on Wednesday, saying it was intended "to divert attention from the chemical, nuclear and biological arsenal that Israel possesses".

Israel is widely believed to have nuclear weapons capability.

Unsubstantiated claim

Mr Sharon emphasised in his remarks to Israel's Channel Two television station that the allegation had not been verified.

In 1991, during the Gulf War, Iraq put planes in neighbouring Iran.

The aggressors use flimsy pretexts and fabrications, totally alien to the truth, despite the fact that Iraq has co-operated, and continues to co-operate, with the United Nations and the Security Council Saddam Hussein's Christmas message

But an unnamed analyst quoted in the Israeli daily the Jerusalem Post said it was unlikely that the Iraqi leader had smuggled any of his alleged arsenal into Syria.

The analyst said any leader would be reluctant to lose control of weapons, especially to a country whose reliability is not guaranteed.

Syria sided with the US against Iraq in 1991 and voted in favour of the November's tough UN Security Council resolution requiring Iraq to allow weapons inspectors into the country.

Defiant

On Tuesday Saddam Hussein, used a Christmas message to warn the United States that Iraq was ready to fight a holy war.

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In his Christmas message, read out on Iraqi state television, he accused the United States of warmongering.

He said the Iraqi people were ready to "deter aggression" by following "the road of Jihad (holy war) and struggle".

The United States and Britain have dismissed as inadequate the Iraqi weapons declaration handed over on 7 December.

The United States has deployed 65,000 troops to the Gulf and 50,000 more are due to arrive in January. Washington has threatened to disarm Iraq by force if necessary.