More than 4,000 Shia Muslims staged an anti-American protest in Baghdad. The demonstrators converged on the Palestine Hotel - the main hotel housing international media - and demanded the release of one of their leaders, Sheikh Muhammad al-Fartusi. "No to colonialism," they chanted, while thousands more Shias poured into the city of Karbala for a pilgrimage, which was banned for years by the ousted regime of Saddam Hussein.

US military officials have not confirmed the reported arrest of Sheikh Fartusi by US forces.

Religious Leaders Call for Unity of Shia & Sunna Muslims

Addressing the faithful at Abu Hanifa mosque in Baghdad on Friday, Mullah Ahmed Al Kubaisi called on Muslims of Shiite and Sunni faiths to unite. Tens of thousands of protesters demanded on Friday that the United States get out of Iraq.

Demonstrators poured out of Friday prayers in Baghdad mosques chanting anti-American slogans and calling for an Islamic state to replace Saddam's toppled government.

Meanwhile, tensions have also risen in the eastern city of Kut, near the Iranian border, where US marines are trying to dislodge a Shia leader who has taken over the city hall.

Correspondents in Kut say a group of 50 leading citizens, including a judge, teachers and lawyers, are protesting against US policies and urging the Americans to back the Shia leader, Syed Abbas.

The marines, acting in the belief that they are the legitimate authority, have seized cars and computers, which belonged to the former regime - actions that can only strengthen support for Abbas, according to the sources.

Talabani Objects to a Foreign-led Administration in Iraq

And in the north, a Kurdish leader, Jalal Talabani, said he objected to any "foreigner" leading an administration for Iraq.

"This government has to be a coalition, an interim one, and an Iraqi one," he said.

Only Ahmed Chalabi, leader of a political grouping backed by some elements within the US Government, has called for US troops to remain in Iraq for up to two years until elections can be held.

The leader of the Iraqi National Congress (INC) also insisted that there was no religious figure waiting to take power in Iraq.

In Other Developments:

· Western journalists visit a cemetery near Abu Ghraib prison on the outskirts of Baghdad, where almost 1,000 political prisoners are said to have been buried after execution

· The US military says its special forces have found a large cache of weapons in 40 bunkers near the northern city of Kirkuk - including 50 hand-held surface-to-air missiles, rocket-launchers and artillery rounds

· US Defence Secretary Donald Rumsfeld says he believes there is little likelihood of America establishing a permanent military presence in the new Iraq

· The US refuses to recognize Mohamed Mohsen al-Zubaidi as the new governor of Baghdad - Mr. Zubaidi claims he was elected by a broad-based grouping

PHOTO CAPTION

Iraqi religious leaders shout slogans during an anti-U.S. protest in front of the Palestine hotel in Baghdad, April 21, 2003. Photo by Jerry Lampen/Reuters