The United States has moved quickly to reassure Turkey on Kirkuk taken by Kurdish 'peshmerga' fighters Thursday and seem to be preparing to negotiate the surrender of Mosul after Iraqi defenders offered to give up the fight if their conditions were met. The northern Iraqi city of Kirkuk has fallen to advancing Kurdish fighters. But even before the Kurds could savour victory, neighbouring Turkey expressed deep concern over the unexpected advance of Kurdish "peshmerga" fighters reiterating its position that their permanent presence in the oil-rich city would not be acceptable.

Journalists reporting from the city described the situation as chaotic as Kurdish soldiers claimed they were in control of the entire city with only a few pockets of resistance.

The city's fall to Kurdish guerillas triggered immediate concerns in neighbouring Turkey which fears a resurgent Kurdish nationalism would revive separatist agitation in its southeast. Ankara believes that Iraqi Kurd control of Kirkuk may provide the financial basis for a future independent Kurdish state.

Turkish foreign minister Abdullah Gul said earlier that Turkey was watching events in northern Iraq closely. "Whatever is necessary will be done," he said.

Turkey has a large armoured force near the Iraqi border and has repeatedly said that it would enter Iraqi territory if its interests were threatened.

In Washington White House spokesman Ari Fleischer tried to allay Turkish concerns by saying US forces "will be in control of Kirkuk."

Keeping in view the response that it could evoke from Turkey, the Kurds had earlier pledged not to enter Kirkuk without the consent of US-led forces operating in the region.

U.S. to Try to Negotiate Mosul Surrender

U.S.-led forces meanwhile, planned to meet Friday with representatives from Mosul - the largest city in northern Iraq - to try to negotiate surrender.

Kurdish military leaders said remnants of Saddam Hussein's forces had offered to surrender if they were granted amnesty and if coalition bombing stopped.

Lt. Col. Robert Waltemeyer, commander of a U.S. Special Forces unit to the north near Dohuk, said a meeting would take place Friday morning.

PHOTO CAPTION

Kurdish fighters celebrate after sweeping unopposed into the strategic city of Khanaqin on the Iranian border in northern Iraq, and joining with U.S. forces Thursday, April 10, 2003. (AP PHOTO/Kevin Frayer)