We know from Iraq's past admissions that it has successfully weaponised not only anthrax, but also other biological agents, including botulinum toxin, aflatoxin and ricin.

But Iraq's research efforts did not stop there. Saddam Hussein has investigated dozens of biological agents causing diseases such as gas gangrene, plague, typhus, tetanus, cholera, camelpox and hemorrhagic fever, and he also has the wherewithal to develop smallpox.

The Iraqi regime has also developed ways to disburse lethal biological agents, widely and discriminately into the water supply, into the air. For example, Iraq had a programme to modify aerial fuel tanks for Mirage jets. This video of an Iraqi test flight obtained by Unscom some years ago shows an Iraqi F-1 Mirage jet aircraft. Note the spray coming from beneath the Mirage; that is 2,000 litres of simulated anthrax that a jet is spraying.

In 1995, an Iraqi military officer, Mujahid Sali Abdul Latif (ph), told inspectors that Iraq intended the spray tanks to be mounted onto a MiG-21 that had been converted into an unmanned aerial vehicle, or a UAV. UAVs outfitted with spray tanks constitute an ideal method for launching a terrorist attack using biological weapons.

Iraq admitted to producing four spray tanks. But to this day, it has provided no credible evidence that they were destroyed, evidence that was required by the international community.

There can be no doubt that Saddam Hussein has biological weapons and the capability to rapidly produce more, many more. And he has the ability to dispense these lethal poisons and diseases in ways that can cause massive death and destruction. If biological weapons seem too terrible to contemplate, chemical weapons are equally chilling.

Unmovic already laid out much of this, and it is documented for all of us to read in Unscom's 1999 report on the subject.

Let me set the stage with three key points that all of us need to keep in mind: First, Saddam Hussein has used these horrific weapons on another country and on his own people. In fact, in the history of chemical warfare, no country has had more battlefield experience with chemical weapons since World War I than Saddam Hussein's Iraq.

Second, as with biological weapons, Saddam Hussein has never accounted for vast amounts of chemical weaponry: 550 artillery shells with mustard, 30,000 empty munitions and enough precursors to increase his stockpile to as much as 500 tons of chemical agents. If we consider just one category of missing weaponry - 6,500 bombs from the Iran-Iraq war - Unmovic says the amount of chemical agent in them would be in the order of 1,000 tons. These quantities of chemical weapons are now unaccounted for.

Dr. Blix has quipped that, quote, "Mustard gas is not (inaudible). You are supposed to know what you did with it."

We believe Saddam Hussein knows what he did with it, and he has not come clean with the international community. We have evidence these weapons existed. What we don't have is evidence from Iraq that they have been destroyed or where they are. That is what we are still waiting for.

Third point, Iraq's record on chemical weapons is replete with lies. It took years for Iraq to finally admit that it had produced four tons of the deadly nerve agent, VX. A single drop of VX on the skin will kill in minutes. Four tons.

The admission only came out after inspectors collected documentation as a result of the defection of Hussein Kamal, Saddam Hussein's late son-in-law. Unscom also gained forensic evidence that Iraq had produced VX and put it into weapons for delivery.

Yet, to this day, Iraq denies it had ever weaponised VX. And on January 27, Unmovic told this council that it has information that conflicts with the Iraqi account of its VX programme.

We know that Iraq has embedded key portions of its illicit chemical weapons infrastructure within its legitimate civilian industry. To all outward appearances, even to experts, the infrastructure looks like an ordinary civilian operation. Illicit and legitimate production can go on simultaneously; or, on a dime, this dual-use infrastructure can turn from clandestine to commercial and then back again.

These inspections would be unlikely, any inspections of such facilities would be unlikely to turn up anything prohibited, especially if there is any warning that the inspections are coming. Call it ingenuous or evil genius, but the Iraqis deliberately designed their chemical weapons programmes to be inspected. It is infrastructure with a built-in ally.

Under the guise of dual-use infrastructure, Iraq has undertaken an effort to reconstitute facilities that were closely associated with its past programme to develop and produce chemical weapons.

For example, Iraq has rebuilt key portions of the Tariq (ph) state establishment. Tariq includes facilities designed specifically for Iraq's chemical weapons programme and employs key figures from past programmes.

That's the production end of Saddam's chemical weapons business. What about the delivery end? I'm going to show you a small part of a chemical complex called al-Moussaid (ph), a site that Iraq has used for at least three years to transship chemical weapons from production facilities out to the field.

In May 2002, our satellites photographed the unusual activity in this picture. Here we see cargo vehicles are again at this transshipment point, and we can see that they are accompanied by a decontamination vehicle associated with biological or chemical weapons activity.

What makes this picture significant is that we have a human source who has corroborated that movement of chemical weapons occurred at this site at that time. So it's not just the photo, and it's not an individual seeing the photo. It's the photo and then the knowledge of an individual being brought together to make the case.

This photograph of the site taken two months later in July shows not only the previous site, which is the figure in the middle at the top with the bulldozer sign near it, it shows that this previous site, as well as all of the other sites around the site, have been fully bulldozed and graded. The topsoil has been removed. The Iraqis literally removed the crust of the earth from large portions of this site in order to conceal chemical weapons evidence that would be there from years of chemical weapons activity.

To support its deadly biological and chemical weapons programmes, Iraq procures needed items from around the world using an extensive clandestine network. What we know comes largely from intercepted communications and human sources who are in a position to know the facts.

Iraq's procurement efforts include equipment that can filter and separate micro-organisms and toxins involved in biological weapons, equipment that can be used to concentrate the agent, growth media that can be used to continue producing anthrax and botulinum toxin, sterilization equipment for laboratories, glass-lined reactors and specialty pumps that can handle corrosive chemical weapons agents and precursors, large amounts of vinyl chloride, a precursor for nerve and blister agents, and other chemicals such as sodium sulfide, an important mustard agent precursor.

Now, of course, Iraq will argue that these items can also be used for legitimate purposes. But if that is true, why do we have to learn about them by intercepting communications and risking the lives of human agents? With Iraq's well documented history on biological and chemical weapons, why should any of us give Iraq the benefit of the doubt? I don't, and I don't think you will either after you hear this next intercept.

Just a few weeks ago, we intercepted communications between two commanders in Iraq's Second Republican Guard Corps. One commander is going to be giving an instruction to the other. You will hear as this unfolds that what he wants to communicate to the other guy, he wants to make sure the other guy hears clearly, to the point of repeating it so that it gets written down and completely understood. Listen.

(BEGIN AUDIO TAPE) Speaking in foreign language.

(END AUDIO TAPE) POWELL: Let's review a few selected items of this conversation. Two officers talking to each other on the radio want to make sure that nothing is misunderstood:

"Remove. Remove."

The expression, the expression, "I got it."

"Nerve agents. Nerve agents. Wherever it comes up."

"Got it."

"Wherever it comes up."

"In the wireless instructions, in the instructions."

"Correction. No. In the wireless instructions."

"Wireless. I got it."

Why does he repeat it that way? Why is he so forceful in making sure this is understood? And why did he focus on wireless instructions? Because the senior officer is concerned that somebody might be listening.

Well, somebody was.

"Nerve agents. Stop talking about it. They are listening to us. Don't give any evidence that we have these horrible agents." Well, we know that they do. And this kind of conversation confirms it.

Our conservative estimate is that Iraq today has a stockpile of between 100 and 500 tons of chemical weapons agent. That is enough agent to fill 16,000 battlefield rockets.

Even the low end of 100 tons of agent would enable Saddam Hussein to cause mass casualties across more than 100 square miles of territory, an area nearly five times the size of Manhattan.

Let me remind you that, of the 122 millimetre chemical warheads, that the UN inspectors found recently, this discovery could very well be, as has been noted, the tip of the submerged iceberg. The question before us, all my friends, is when will we see the rest of the submerged iceberg?

Saddam Hussein has chemical weapons. Saddam Hussein has used such weapons. And Saddam Hussein has no compunction about using them again, against his neighbours and against his own people.

And we have sources who tell us that he recently has authorised his field commanders to use them. He wouldn't be passing out the orders if he didn't have the weapons or the intent to use them.

We also have sources who tell us that, since the 1980s, Saddam's regime has been experimenting on human beings to perfect its biological or chemical weapons.

A source said that 1,600 death row prisoners were transferred in 1995 to a special unit for such experiments. An eyewitness saw prisoners tied down to beds, experiments conducted on them, blood oozing around the victim's mouths and autopsies performed to confirm the effects on the prisoners. Saddam Hussein's humanity - inhumanity has no limits.

Let me turn now to nuclear weapons. We have no indication that Saddam Hussein has ever abandoned his nuclear weapons programme.

On the contrary, we have more than a decade of proof that he remains determined to acquire nuclear weapons.

To fully appreciate the challenge that we face today, remember that, in 1991, the inspectors searched Iraq's primary nuclear weapons facilities for the first time. And they found nothing to conclude that Iraq had a nuclear weapons programme.

But based on defector information in May of 1991, Saddam Hussein's lie was exposed. In truth, Saddam Hussein had a massive clandestine nuclear weapons programme that covered several different techniques to enrich uranium, including electromagnetic isotope separation, gas centrifuge, and gas diffusion. We estimate that this illicit programme cost the Iraqis several billion dollars.

Nonetheless, Iraq continued to tell the IAEA that it had no nuclear weapons programme. If Saddam had not been stopped, Iraq could have produced a nuclear bomb by 1993, years earlier than most worse-case assessments that had been made before the war.

In 1995, as a result of another defector, we find out that, after his invasion of Kuwait, Saddam Hussein had initiated a crash programme to build a crude nuclear weapon in violation of Iraq's UN obligations.

Saddam Hussein already possesses two out of the three key components needed to build a nuclear bomb. He has a cadre of nuclear scientists with the expertise, and he has a bomb design.

Since 1998, his efforts to reconstitute his nuclear programme have been focused on acquiring the third and last component, sufficient fissile material to produce a nuclear explosion. To make the fissile material, he needs to develop an ability to enrich uranium.

Saddam Hussein is determined to get his hands on a nuclear bomb. He is so determined that he has made repeated covert attempts to acquire high-specification aluminum tubes from 11 different countries, even after inspections resumed.

These tubes are controlled by the Nuclear Suppliers Group precisely because they can be used as centrifuges for enriching uranium. By now, just about everyone has heard of these tubes, and we all know that there are differences of opinion. There is controversy about what these tubes are for.

Most US experts think they are intended to serve as rotors in centrifuges used to enrich uranium. Other experts, and the Iraqis themselves, argue that they are really to produce the rocket bodies for a conventional weapon, a multiple rocket launcher.

Let me tell you what is not controversial about these tubes. First, all the experts who have analyzed the tubes in our possession agree that they can be adapted for centrifuge use. Second, Iraq had no business buying them for any purpose. They are banned for Iraq.

I am no expert on centrifuge tubes, but just as an old Army trooper, I can tell you a couple of things: First, it strikes me as quite odd that these tubes are manufactured to a tolerance that far exceeds US requirements for comparable rockets.

Maybe Iraqis just manufacture their conventional weapons to a higher standard than we do, but I don't think so.

Second, we actually have examined tubes from several different batches that were seized clandestinely before they reached Baghdad. What we notice in these different batches is a progression to higher and higher levels of specification, including, in the latest batch, an anodised coating on extremely smooth inner and outer surfaces. Why would they continue refining the specifications, go to all that trouble for something that, if it was a rocket, would soon be blown into shrapnel when it went off? The high tolerance aluminum tubes are only part of the story. We also have intelligence from multiple sources that Iraq is attempting to acquire magnets and high-speed balancing machines; both items can be used in a gas centrifuge programme to enrich uranium.

In 1999 and 2000, Iraqi officials negotiated with firms in Romania, India, Russia and Slovenia for the purchase of a magnet production plant. Iraq wanted the plant to produce magnets weighing 20 to 30 grams. That's the same weight as the magnets used in Iraq's gas centrifuge programme before the Gulf War. This incident linked with the tubes is another indicator of Iraq's attempt to reconstitute its nuclear weapons programme.

Intercepted communications from mid-2000 through last summer show that Iraq front companies sought to buy machines that can be used to balance gas centrifuge rotors. One of these companies also had been involved in a failed effort in 2001 to smuggle aluminum tubes into Iraq.

People will continue to debate this issue, but there is no doubt in my mind, these elicit procurement efforts show that Saddam Hussein is very much focused on putting in place the key missing piece from his nuclear weapons programme, the ability to produce fissile material. He also has been busy trying to maintain the other key parts of his nuclear programme, particularly his cadre of key nuclear scientists.

It is noteworthy that, over the last 18 months, Saddam Hussein has paid increasing personal attention to Iraqi's top nuclear scientists, a group that the governmental-controlled press calls openly, his nuclear mujahedeen. He regularly exhorts them and praises their progress. Progress toward what end? Long ago, the Security Council, this council, required Iraq to halt all nuclear activities of any kind.

Let me talk now about the systems Iraq is developing to deliver weapons of mass destruction, in particular Iraq's ballistic missiles and unmanned aerial vehicles, UAVs.

First, missiles. We all remember that before the Gulf War Saddam Hussein's goal was missiles that flew not just hundreds, but thousands of kilometers. He wanted to strike not only his neighbours, but also nations far beyond his borders.

While inspectors destroyed most of the prohibited ballistic missiles, numerous intelligence reports over the past decade, from sources inside Iraq, indicate that Saddam Hussein retains a covert force of up to a few dozen Scud variant ballistic missiles. These are missiles with a range of 650 to 900 kilometres.

We know from intelligence and Iraq's own admissions that Iraq's alleged permitted ballistic missiles, the al-Samud II (ph) and the al-Fatah (ph), violate the 150-kilometer limit established by this council in Resolution 687. These are prohibited systems.

Unmovic has also reported that Iraq has illegally important 380 SA-2 (ph) rocket engines. These are likely for use in the al-Samud II (ph). Their import was illegal on three counts. Resolution 687 prohibited all military shipments into Iraq. Unscom specifically prohibited use of these engines in surface-to-surface missiles. And finally, as we have just noted, they are for a system that exceeds the 150-kilometer range limit.

Worst of all, some of these engines were acquired as late as December - after this council passed Resolution 1441.

What I want you to know today is that Iraq has programmes that are intended to produce ballistic missiles that fly 1,000 kilometers. One programme is pursuing a liquid fuel missile that would be able to fly more than 1,200 kilometers. And you can see from this map, as well as I can, who will be in danger of these missiles.

As part of this effort, another little piece of evidence, Iraq has built an engine test stand that is larger than anything it has ever had. Notice the dramatic difference in size between the test stand on the left, the old one, and the new one on the right. Note the large exhaust vent. This is where the flame from the engine comes out. The exhaust on the right test stand is five times longer than the one on the left. The one on the left was used for short-range missile. The one on the right is clearly intended for long-range missiles that can fly 1,200 kilometers.

This photograph was taken in April of 2002. Since then, the test stand has been finished and a roof has been put over it so it will be harder for satellites to see what's going on underneath the test stand.

Saddam Hussein's intentions have never changed. He is not developing the missiles for self-defense. These are missiles that Iraq wants in order to project power, to threaten, and to deliver chemical, biological and, if we let him, nuclear warheads.

Now, unmanned aerial vehicles, UAVs.

Iraq has been working on a variety of UAVs for more than a decade. This is just illustrative of what a UAV would look like. This effort has included attempts to modify for unmanned flight the MiG-21 and with greater success an aircraft called the L-29. However, Iraq is now concentrating not on these airplanes, but on developing and testing smaller UAVs, such as this.

UAVs are well suited for dispensing chemical and biological weapons.

There is ample evidence that Iraq has dedicated much effort to developing and testing spray devices that could be adapted for UAVs. And of the little that Saddam Hussein told us about UAVs, he has not told the truth. One of these lies is graphically and indisputably demonstrated by intelligence we collected on June 27, last year.

According to Iraq's December 7 declaration, its UAVs have a range of only 80 kilometers. But we detected one of Iraq's newest UAVs in a test flight that went 500 kilometers nonstop on autopilot in the race track pattern depicted here.

Not only is this test well in excess of the 150 kilometers that the United Nations permits, the test was left out of Iraq's December 7th declaration. The UAV was flown around and around and around in a circle. And so, that its 80 kilometer limit really was 500 kilometers unrefueled and on autopilot, violative of all of its obligations under 1441.

The linkages over the past 10 years between Iraq's UAV programme and biological and chemical warfare agents are of deep concern to us. Iraq could use these small UAVs which have a wingspan of only a few meters to deliver biological agents to its neighbours or if transported, to other countries, including the United States.

My friends, the information I have presented to you about these terrible weapons and about Iraq's continued flaunting of its obligations under Security Council Resolution 1441 links to a subject I now want to spend a little bit of time on. And that has to do with terrorism.

Our concern is not just about these elicit weapons. It's the way that these elicit weapons can be connected to terrorists and terrorist organizations that have no compunction about using such devices against innocent people around the world.

Iraq and terrorism go back decades. Baghdad trains Palestine Liberation Front members in small arms and explosives. Saddam uses the Arab Liberation Front to funnel money to the families of Palestinian suicide bombers in order to prolong the intifada. And it's no secret that Saddam's own intelligence service was involved in dozens of attacks or attempted assassinations in the 1990s.

But what I want to bring to your attention today is the potentially much more sinister nexus between Iraq and the al-Qaida terrorist network, a nexus that combines classic terrorist organisations and modern methods of murder. Iraq today harbours a deadly terrorist network headed by Abu Musab Al-Zarqawi, an associated collaborator of Osama bin Laden and his al-Qaida lieutenants.

Zarqawi, a Palestinian born in Jordan, fought in the Afghan war more than a decade ago. Returning to Afghanistan in 2000, he oversaw a terrorist training camp. One of his specialities and one of the specialities of this camp is poisons. When our coalition ousted the Taliban, the Zarqawi network helped establish another poison and explosive training centre camp. And this camp is located in north-eastern Iraq.

You see a picture of this camp.

The network is teaching its operatives how to produce ricin and other poisons. Let me remind you how ricin works. Less than a pinch - image a pinch of salt - less than a pinch of ricin, eating just this amount in your food, would cause shock followed by circulatory failure. Death comes within 72 hours and there is no antidote, there is no cure. It is fatal.

Those helping to run this camp are Zarqawi lieutenants operating in northern Kurdish areas outside Saddam Hussein's controlled Iraq. But Baghdad has an agent in the most senior levels of the radical organisation, Ansar al-Islam, that controls this corner of Iraq. In 2000 this agent offered al-Qaida safe haven in the region. After we swept al-Qaida from Afghanistan, some of its members accepted this safe haven. They remain there today.

Zarqawi's activities are not confined to this small corner of north-east Iraq. He travelled to Baghdad in May 2002 for medical treatment, staying in the capital of Iraq for two months while he recuperated to fight another day.

During this stay, nearly two dozen extremists converged on Baghdad and established a base of operations there. These al-Qaida affiliates, based in Baghdad, now coordinate the movement of people, money and supplies into and throughout Iraq for his network, and they've now been operating freely in the capital for more than eight months.

Iraqi officials deny accusations of ties with al-Qaida. These denials are simply not credible. Last year an al-Qaida associate bragged that the situation in Iraq was, quote, "good," that Baghdad could be transited quickly.

We know these affiliates are connected to Zarqawi because they remain even today in regular contact with his direct subordinates, including the poison cell plotters, and they are involved in moving more than money and material.

Last year, two suspected al-Qaida operatives were arrested crossing from Iraq into Saudi Arabia. They were linked to associates of the Baghdad cell, and one of them received training in Afghanistan on how to use cyanide. From his terrorist network in Iraq, Zarqawi can direct his network in the Middle East and beyond.

We, in the United States, all of us at the State Department, and the Agency for International Development - we all lost a dear friend with the cold-blooded murder of Mr. Lawrence Foley in Amman, Jordan last October, a despicable act was committed that day. The assassination of an individual whose sole mission was to assist the people of Jordan. The captured assassin says his cell received money and weapons from Zarqawi for that murder.

After the attack, an associate of the assassin left Jordan to go to Iraq to obtain weapons and explosives for further operations. Iraqi officials protest that they are not aware of the whereabouts of Zarqawi or of any of his associates. Again, these protests are not credible. We know of Zarqawi's activities in Baghdad. I described them earlier.

And now let me add one other fact. We asked a friendly security service to approach Baghdad about extraditing Zarqawi and providing information about him and his close associates. This service contacted Iraqi officials twice, and we passed details that should have made it easy to find Zarqawi. The network remains in Baghdad. Zarqawi still remains at large to come and go.

As my colleagues around this table and as the citizens they represent in Europe know, Zarqawi's terrorism is not confined to the Middle East. Zarqawi and his network have plotted terrorist actions against countries, including France, Britain, Spain, Italy, Germany and Russia.

According to detainee Abuwatia (ph), who graduated from Zarqawi's terrorist camp in Afghanistan, tasks at least nine North African extremists from 2001 to travel to Europe to conduct poison and explosive attacks.

Since last year, members of this network have been apprehended in France, Britain, Spain and Italy. By our last count, 116 operatives connected to this global web have been arrested.

The chart you are seeing shows the network in Europe. We know about this European network, and we know about its links to Zarqawi, because the detainee who provided the information about the targets also provided the names of members of the network.

Three of those he identified by name were arrested in France last December. In the apartments of the terrorists, authorities found circuits for explosive devices and a list of ingredients to make toxins.

The detainee who helped piece this together says the plot also targeted Britain. Later evidence, again, proved him right. When the British unearthed a cell there just last month, one British police officer was murdered during the disruption of the cell.

We also know that Zarqawi's colleagues have been active in the Pankisi Gorge, Georgia and in Chechnya, Russia. The plotting to which they are linked is not mere chatter. Members of Zarqawi's network say their goal was to kill Russians with toxins.

We are not surprised that Iraq is harbouring Zarqawi and his subordinates. This understanding builds on decades long experience with respect to ties between Iraq and al-Qaida.

Going back to the early and mid-1990s, when bin Laden was based in Sudan, an al-Qaida source tells us that Saddam and bin Laden reached an understanding that al-Qaida would no longer support activities against Baghdad. Early al-Qaida ties were forged by secret, high-level intelligence service contacts with al-Qaida, secret Iraqi intelligence high-level contacts with al-Qaida.

We know members of both organisations met repeatedly and have met at least eight times at very senior levels since the early 1990s. In 1996, a foreign security service tells us, that bin Laden met with a senior Iraqi intelligence official in Khartoum, and later met the director of the Iraqi intelligence service.

Saddam became more interested as he saw al-Qaida's appalling attacks. A detained al-Qaida member tells us that Saddam was more willing to assist al-Qaida after the 1998 bombings of our embassies in Kenya and Tanzania. Saddam was also impressed by al-Qaida's attacks on the USS Cole in Yemen in October 2000.

Iraqis continued to visit bin Laden in his new home in Afghanistan. A senior defector, one of Saddam's former intelligence chiefs in Europe, says Saddam sent his agents to Afghanistan sometime in the mid-1990s to provide training to al-Qaida members on document forgery.

From the late 1990s until 2001, the Iraqi Embassy in Pakistan played the role of liaison to the al-Qaida organisation.

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