COALITION forces were today examining an alleged chemical weapons plant found by troops 90 miles south of Baghdad.

Troops were attempting to locate two British soldiers missing in action in southern Iraq after the bloodiest day of the war.

But Iraqi President Saddam Hussein today promised his people victory, claiming the coalition attack had brought "weapons of mass destruction" to his country.

This morning, troops were examining "sites of interest" following reports that US forces may have found Iraqi weapons of mass destruction.

A Jerusalem Post reporter "embedded" with a 3rd US Infantry unit said the alleged chemical weapons site had been discovered in the city of Najaf. US officials confirmed the find of the suspected chemical facility and experts were trying to determine whether it was involved in making banned weapons.

Meanwhile, the hunt is on for two British soldiers who went missing near Basra yesterday as US and British forces encountered their stiffest resistance of the war so far - and suffered their biggest losses.

Twelve US soldiers were missing, presumed captured by Iraqis in an ambush on an army supply convoy at Nasiriyah, Allied Central Command in Qatar said.

Five were paraded on Iraqi TV, prompting outrage in the US and UK. Footage of what appeared to be dead US soldiers was also screened.

The march to Baghdad also left as many as nine US Marines dead in the fighting near Nasiriyah, a southern city far from the forward positions of the allied force

Lieutenant General John Abizaid of US Central Command said a fake surrender near Nasiriyah, a crossing point over the Euphrates River north west of Basra, set off the "sharpest engagement of the war thus far".

Gen Abizaid described television footage of US dead and prisoners of war aired by the Arabic Al-Jazeera network as "disgusting".

The Ministry of Defence confirmed this morning that two soldiers - the first British soldiers reported missing in action - have not been seen since an attack on British vehicles in southern Iraq yesterday.

A spokesman said: "There are two British soldiers missing following an attack on British vehicles in south Iraq. Efforts are being made to find them and recover them. Further information will be given when available."

The spokesman said they were being deliberately vague about the suspected location of the men for safety and operational reasons. Their families have been informed.

Today, Iraqi leader Saddam Hussein told his country that British and Americans were the "enemies of humanity and God" and promised his people victory. In a broadcast on Iraqi state television, which voice experts have confirmed was the Iraqi President, the dictator paid tribute to the work of the Iraqi forces.

Saddam said: "All the infidels will be defeated. This time, the enemy forces are in trouble in our land.

"Victory will be ours soon. Iraqis will strike the necks as God has commanded you."

He praised his forces as "heroes of humanity and God".

Describing the coalition attack as "weapons of mass destruction", he added; "God has promised us victory, I have told the people of Basra: 'Be patient brothers, victory is close'."

It was not clear whether the images were pre-recorded.

Last night London and Washington condemned the pictures of the US POWs as a gross violation of the Geneva Convention, which protects the rights of prisoners of war.

The mother of one of the POWs said she was praying for his rescue.

Anecita Hudson, whose 23-year-old army specialist son Joseph was shown yesterday on Arab satellite station Al-Jazeera, said after watching the TV footage: "He looked so scared."

Mrs Hudson, of Alamogordo, New Mexico, said: "I'm just praying that the other people (in the military) will get him out of there."

Meanwhile, heavy bombardment continued in the Iraqi capital Baghdad overnight in what were reported as the fiercest strikes since the "shock and awe" campaign began on Friday.

The explosions, shortly after midnight, hit a Ministry of Planning building within the Old Palace and a presidential compound hit in earlier attacks.

During the night, two giant B-52 bombers were seen leaving the base at RAF Fairford, Gloucestershire, thought to be destined for Baghdad.

With US forces now within 100 miles of the Iraqi capital, and with a number of airfields in the west of the country under the control of allied special forces, there was mounting speculation that a ground attack on the Iraqi capital could come soon.

Although US leaders declared the invasion on target, despite the bloody setbacks on the third day of the campaign, any expectation that Iraqi defenders would simply melt away was gone.

* In the picture: A wounded US marine is carried to a waiting ambulance.