US forces, backed by Iraqi troops, kicked off an all-out offensive on Iraq's rebel-held city of Fallujah Monday evening just after Iraq's interim Prime Minister Iyad Allawi signaled the green light to US-Iraqi forces to neutralize insurgents in Fallujah.

A state of emergency has been imposed over most of Iraq with curfew in Fallujah and Ramadi Monday evening.

Speaking to reporters earlier in the day, Allawi announced that a curfew to be imposed on Fallujah would start from 6:00PM (15:00 GMT).

"Time for a peaceful solution to Fallujah has passed. We are determined to clear Fallujah from terrorists," said the iron-handed prime minister, adding that Iraqi forces killed 38 rebels during the takeover of a main hospital believed to be taken by insurgents as a fighting position.

Allawi said that Iraq's borders with Syria and Jordan would be closed and Baghdad's international airport be shut down for 48 hours.

"Once again, we have seen more criminal acts committed by these terrorists who continue to use Fallujah as a base for their operations ... We have no option but to take necessary measures to protect the Iraqi people from these killers and liberate Fallujah," he said.

On the military front, Fallujah is encircled by up to 20,000 US and Iraqi troops as US warplanes and artillery pounded the city, known as "the capital of resistance," when battles continued between US-Iraqi forces and fighters bent on defending the city.

Early on Monday, US-Iraqi forces stormed the western districts of Fallujah, 50 km west of Baghdad, and seized the main city hospital and two key bridges over the Euphrates River.

As usual, it is civilians who suffered.

"We received 15 bodies and 25 wounded in the latest US bombardment on the city," medical sources in the substituted hospital in one of mosques of the city, told Xinhua.

People have been fleeing to nearby villages, while about 30,000 are believed to remain in Fallujah, home to about 300,000.

Sources from Mujahadeen Council in the city said that fighters had shot down three unmanned reconnaissance planes and two helicopters and also destroyed a tank and an armored vehicle.

Loud speakers on mosques and moving cars also announced that 108national guards have surrendered to Fallujah fighters.

Loud speakers also trumpeted the fighters had captured 36 US soldiers in the industrial zone in eastern Fallujah.

Insurgents have been seen moving confidently around the city with many prepared to die for their cause. The Americans say about 2,500 insurgents are still holed up in the city.

But some people claim that the insurgents will simply melt away.

As proved by skirmishes on the western edge of the city early Monday, the Americans had to fight into Fallujah every step of their way.

What lies ahead of US-Iraqi troops could be street battle usually favored by those who are already dug in.

"The fighting is not going to be a walk in the park," one US soldier spoke the matter of truth.

(Xinhua News Agency November 9, 2004)