Rice in Iraq, violence surges after Sadr threat

By Sue Pleming

BAGHDAD (Reuters) - Secretary of State Condoleezza Rice backed Iraq's crackdown on militias in a visit on Sunday to Baghdad, where the worst fighting in weeks killed 23 after Shi'ite cleric Moqtada al-Sadr threatened all-out war.

Rockets blasted the fortified Green Zone compound where Rice met Prime Minister Nuri al-Maliki and other officials and praised their month-old campaign against Sadr's followers.

She had harsh words for the reclusive cleric, who on the eve of Rice's visit vowed "open war" if the crackdown continues. Sadr has not appeared in public in Iraq in nearly a year.

"He is still living in Iran. I guess it's all out war for anybody but him," Rice told reporters. "His followers can go to their death and he will still be in Iran."

Sadr's reply came in a statement sent to reporters, condemning Rice's visit and saying the government should not admit such "occupier terrorists into our pure land".

The U.S. military described a night of gunbattles and helicopter missile strikes that killed 23 fighters in east Baghdad's Sadr City slum and other militia strongholds.

"I would say it's been the hottest night in a couple of weeks," spokesman Lieutenant-Colonel Steven Stover said.

Rice said she supported what she called a new political "centre" that has backed Maliki's anti-militia campaign.

"It is indeed a moment of opportunity in Iraq thanks to the courageous decisions taken by the prime minister and a unified Iraqi leadership," Rice said in brief televised remarks with President Jalal Talabani after they held talks.

A rebellion by Sadr's Mehdi Army militia -- whose tens of thousands of black-masked fighters control the streets in many Shi'ite areas -- could abruptly end a period of lower violence at a time when some U.S. forces are starting to leave Iraq.

Mehdi Army fighters, who have bristled at past truces, could barely hide their glee at the prospect of open conflict.

"We are very happy and eager. We are waiting for the end of the ceasefire," a street commander in Sadr City who goes by the name Abu Hassan told Reuters.

Ordinary residents of the slum say they have been living in constant terror for weeks as nightly battles between Sadr fighters and U.S. and Iraqi forces killed and wounded hundreds.

"The bombing and shooting, it reminds me of the 1991 Gulf War," said student Bashar Mehdi. "I saw a man with his daughter get shot by a sniper. The man was killed and we had to carry the daughter to the hospital."

Rice told reporters she did not know how seriously to take Sadr's threat of war, released in a statement on his website.