Fallujah is the biggest flashpoint in the Iraqi uprising, despite a fragile ceasefire which has lasted four days. James Hider, who is embedded with the Marines there, says that hopes of a permanent end to the fighting are slim.

"We are supposed to have a ceasefire here, but this city of 250,000 people, a third of whom have already fled the fighting, is shaken by constant explosions and gunfire.

"It is isolated from the outside world by guerrillas attacking the highway to Baghdad and shooting at helicopters flying in.

"There is still a lot of shooting going on. Nearer the frontlines, the Marines are coming under attack from rocket-propelled grenades, snipers and mortar fire.

"The Marines are still shooting any Iraqi who has a gun, but the situation is not as bad as last week.

"We have heard reports, but not seen any evidence, that a US Apache helicopter crashed and was in flames on the ground outside Fallujah after it was hit by a rocket. As far as we can tell the two crew members were injured but not killed.

"We have also heard reports that a US convoy of 80 vehicles on its way to Najaf has been ambushed and a soldier has been killed.

"That could seriously affect the separate negotiations which are going on at the moment between the Iraqi Governing Council and the Sunni and Shia Muslim militias in Fallujah.

"The negotiations with the Shias are showing some signs of hope, but the negotiations with the Sunnis are not making any headway.

"I spoke to a member of the coalition yesterday and he said that they were entertaining the idea of the Shia militias, supporters of the radical cleric Hojatoleslam Moqtada al-Sadr, just melting away without punitive action being taken by the Marines.

"But the Americans still want to kill or capture Hojatoleslam al-Sadr. As far as they are concerned, they have no choice. There is a warrant out for his arrest from an Iraqi investigating judge relating to the brutal murder of a rival cleric.

"The Americans cannot back down from that. They say that if he wants to stop the bloodshed, he should turn himself in.

"There appears to be little common ground for talks with the Sunnis here. They want the Americans to leave town, but the Marines want the fighters to surrender. With little hope of a breakthrough, both sides are preparing for more fighting.

"Fallujah has become a cause célèbre for both militias. The consensus among the Marines is that the Sunni fighters are hardcore tribesmen who are defending their home territory, while the Shias are more disorganised and are running out of ammunition and food throughout Iraq.

"The Shias who are fighting in Najaf have no real organisation and many of them have been reduced to sleeping on the floors of mosques.

"The Marines have taken heavy casualties, but their morale remains good. They are determined to press ahead and say that if they have to take casualties, they will take them on the offensive.

"The rebels they still face have their backs to the Euphrates and will fight hard, but the Americans are confident they can take the city if necessary."

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