HIGHLIGHTS: Russia Plays Down Significance of Iraq Economic Deal||Bush's Republican Party Split over Attack on Iraq||Iraqi Press Urges Arabs to Unite & Repel U.S. Crusade|| STORY: The Iraqi parliament unanimously approved President Saddam Hussein's uncontested candidacy for another seven-year term which is to be put to a referendum set for October 15.

In a show of hands Monday, the 250-member house rubber-stamped the recommendation of the Revolution Command Council, Iraq's senior ruling body, which on Thursday nominated Saddam, who has been president since 1979.

Under the constitution the command council puts forwards a candidate for the presidency of the Iraqi republic who is then approved by the 250-member parliament and popular referendum.

Saddam officially won the first such referendum in 1995 with 99.96 percent of the vote, ruling uncontested over a country which has been bled by UN sanctions in force since 1990 when Iraq invaded Kuwait.

The 65-year-old head of the Revolution Command Council, is general secretary of the ruling Baath party, head of state, prime minister and commander-in-chief of the armed forces.

RUSSIA PLAYS DOWN SIGNIFICANCE OF IRAQ ECONOMIC DEAL

Russia played down the significance of a 40-billion-dollar economic pact with Iraq that comes amid US plans to unseat President Saddam Hussein's regime.

An unnamed source in the Russian foreign ministry told the Interfax news agency that work on the Iraqi agreement had gone on for several years and did not break any international treaties.

It was the first Russian confirmation that any such pact was being discussed with Iraq.

The agreement is called "the long-term program for the development of trade, business, industry, scientific and technological cooperation between Russia and Iraq," the news agency quoted the ministry source as saying Monday.

"Russia is not violating the sanctions regime against Iraq in any way and will strictly adhere to its international commitments," the source said.

Interfax quoted an unnamed Iraqi official in Moscow as saying that the trade program will be implemented over a period that "stretches over at least 10 years."

Iraq's ambassador to Moscow, Abbas Khalaf, had told AFP that the two sides were discussing a five-year agreement.

BUSH'S REPUBLICAN PARTY SPLITI OVER ATTACK ON IRAQ

Republicans have expressed growing concern over potential US military action in Iraq, echoing reservations of key US allies about President George W. Bush's aim of toppling Saddam Hussein.

Former secretary of state Henry Kissinger told NBC television Sunday that the Bush administration would have to put the question to the American people, and "compare the existing dangers today to an attack on Israel or Saudi Arabia in five years if we do not do anything."

White House communications director Dan Bartlett insisted that Bush has not yet decided to invade Iraq, but warned that Saddam's quest to obtain weapons of mass destruction "is a danger that we must confront."

General Norman Schwarzkopf, who led the US military operation against Iraq in 1990 under Bush's father George Bush, stressed that the views of Middle Eastern and European allies -- who mostly caution against immediate military action -- must also be taken into account.

But former Reagan administration defense official Richard Perle, who heads a Pentagon advisory board, said the situation in Iraq is different from a decade ago.

"We are not talking about a massive invasion along the lines of (the Gulf War in) 1991. We're talking about a much more modest effort in which the United States would assist Iraqis in freeing their country from this scourge that they've had to live with," Perle told ABC.

Republican Senator Dick Lugar also expressed doubts about US readiness for any military action, particularly as resources were already committed to the front lines of the campaign in Afghanistan.

Democrats are nervously watching the growing national debate, fearful that it could shift attention away from the economic issues that now dominate their agenda as the country prepares for midterm congressional and gubernatorial elections.

IRAQI PRESS URGES ARABS TO UNITE & REPEL U.S. CRUSADE

Arab countries must unite and support Iraq against the "crusade" that the United States is planning to overthrow President Saddam Hussein, the ruling Baath party newspaper warned.

"The Arabs and Muslims should not behave like ostrichs when they face danger ... they must be united and shoulder their responsibilities against this crusade," Ath-Thawra said Monday.

Babel newspaper, run by Saddam's elder son, Uday, called on UN Secretary General Kofi Annan to agree to Iraq's new offer of talks about a possible return of weapons inspectors and "avoid global catastrophe".

"We still believe that Kofi Annan has an opportunity to review his position and thus help to avoid a global catastrophe from which not even the Americans will be sheltered," the tabloid said.

As the United States threatens to launch military action claiming Baghdad is again developing weapons of mass destruction, Annan has asked Iraq if it is prepared to implement fully and without conditions UN security council resolutions.

Baghdad has invited the world body's chief weapons inspector to discuss new inspections and urged the United Nations to continue dialogue.

PHOTO CAPTION

Iraqi shoppers walk near a large picture of Saddam Hussein in the Friday market in Baghdad August 16, 2002. In a show of defiance towards the United States, Iraq's parliament unanimously backed on Monday the nomination of President Saddam Hussein to run unopposed for another seven-year term in office. REUTERS/Faleh Kheiber
- Aug 19 6:01 AM ET