***

★ Over 300 Iraqi soldiers killed in Khafji: Allies.

★ 500 Iraqi soldiers

taken prisoner.

★ Over 100 Iraqi tanks knocked out.

★ Battles on Saudi territory a turning point : Iraq

★ Iraq downs 20 'air targets' on Friday. ***

Iraq said Friday the troops who attacked the Saudi border town of Khaljl this week had withdrawn to their positions inside Kuwait, report agencies.

A military communique, carried on Iraqi radio, said, "the units completed their withdrawal to their original positions from which they advanced towards Khaljl on the night of January 30.31."

It was Baghdad's first offi-cial word on allied reports that Khafji had been cleared of Iraqi forces.

A British military spokesman said on Friday that more than 300 Iraq! soldiers died in fighting around Khaljl, and the US military said more than 500 had been taken Prisoner. Iraqi armoured columns struck across the border from Kuwait on Tuesday night and early Wednesday, seized the town some five km (three miles) inside Saodi Arafotar and held It uotll Thursday.

BrKteb spoisesrean Niall Irving sakJ Soudl troops had succeeded la Hearing Khaljl af Iraqi forces except perhaps for The odd sniper Of so".

The Allied command re girded the Kholji MtaHc a* a Clear military disaster' for I Iraq. Irving said

Arcordlag to earlier Benter reports: AlHcd Bombers tried ' lo stop a new armoured thrust into Saudi Arabia Friday after Irauj* tanks tugged neross the , border for a fifth time and fought a pilchsd batik with US Marine*.

Hundred* of pkmes. including American B 52 bombers and British sod French Jaguar*, pounded Iraqi troops and tank*.

Wc*icm reporters tn Btigh d.xl saw six US Cruise missile* flying over the etty Friday and

I were taken by Iraqi officials to see damage in two residential ania.

Meanwhite US President George Bush, meantime, made a me rale-boosting tour of US military installations, leHtng a cheering Marine ba Sc crowd that the sacrifices of US troops "•rill end the nightmare of Iraq s brutal occupations' of KtimtH.

A report* from Nten*la Iraqi radio on Friday threatened world Kaders heading the muiUnationai alliance and said eaplurud pitots should be treated a* srar crMnnl*