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As federal parliament prepared Tuesday to debate Australian participation in a war in Iraq, Saddam Hussein delivered a strong warning that it would pay a heavy price in blood if it joined a US-led attack.

Through his envoy in Canberra, Saad Al Samarai, the Iraqi President said he was closely watching Australia, was aware of public opinion in the country and Australia would suffer large casualties if it went to war against Iraq.

Al Samarai, just back from Baghdad, said Saddam was aware of the standoff between Prime Minister John Howard's government, which supports the US campaign to disarm Iraq, and the Labor opposition, which opposes any unilateral military action.

"He's watching the information and he's well aware about public opinion and Australian people in general," Al Samarai told reporters in Canberra. "He is watching you and me."

He said there was much sadness in Iraq that Australia was taking this stand in support of the United States which he said wanted to control the region and the oil. Diplomacy was still the answer, he said.

"There will only be casualties from your side and our side, big casualties and let me ask why?" he said.

Iraq was cooperating closely with UN weapons inspectors, but even the chief UN inspector Hans Blix was under "horrible pressure from the American side," Al Samarai claimed.

Australia and Britain are the only countries so far to join the United States in formally deploying troops to the Gulf as pressure builds on Saddam to comply with UN demands to fully disclose Iraq's weapons of mass destruction.

Howard, facing a furious backlash over his support for the US campaign, is planning a whirlwind diplomatic tour during which he will meet US, UN and British leaders amid final deliberations next week over multilateral backing for a war.

He said Monday that he would press Australia's case for united global action to disarm Iraq through a second UN resolution authorising a military response.

A new poll published Tuesday by The Australian newspaper meantime showed 76 percent of Australians oppose Australian participation in unilateral military action while 57 percent would support a UN-sanctioned war.

However, an international poll of 39 countries released Tuesday by the Gallup organisation has also showed that Australia as the country most in favour of military action against Iraq.

The survey said 68 percent of Australians backed military action against Iraq, with 56 percent in favour only if it had UN backing and 12 percent supporting unilateral action by the United States and its allies.

In Australia, levels of support for war outstripped even the United States, where the poll showed 67 percent supported military action, the Gallup poll showed.

In Canberra, peace activists staged several rallies Tuesday as MPs arrived for the first day of the new parliamentary session.

Some activists attempted to inflate a giant hot-air balloon to fly over Parliament House bearing the words Give Peace A Chance, but the effort fell flat as the wind failed.

The parliamentary question time was cancelled Tuesday to allow for a full debate on Iraq in which Howard will make a lengthy statement to explain his position and the opposition will respond. 

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