"A free Iraq will be in their nations' benefit. It will make the world more peaceful and more secure," Bush told reporters as he wrapped up a two-year commemoration of the September 11, 2001 attacks.

Bush said Secretary of State Colin Powell would embark on a weekend European trip to promote a new, US-backed UN resolution aimed at winning more global support for Iraq reconstruction.

Powell was to meet in Geneva on Saturday with UN Secretary General Kofi Annan and the foreign ministers of France, Britain, China and Russia, who, with the United States, make up the permanent members of the UN Security Council.

"The key thing for the United Nations resolution is that it will hopefully encourage other nations to participate. And I think other nations have an obligation to participate," said the president.

Chirac made his remarks as he met with Spanish Prime Minister Jose Maria Aznar in Spain in an attempt to bridge differences over the war, which had split their two countries and the rest of Europe.

"Today we are a long way from being in a situation where France could participate militarily in Iraq," Chirac said.

Aznar said clear initiatives were now required to guarantee "security and stability in Iraq."

"There is no point going on about the past. Our positions are well known," said Aznar. The international community must "push for a wider consensus," he said.

Anti-US violence meanwhile escalated in Iraq, with a 90-minute firefight west of the flashpoint town of Fallujah.

Several US troops were wounded after a convoy broke down. At least three other soldiers were hurt elsewhere in the latest upsurge of resistance.

Sixty-eight US soldiers have been killed in attacks blamed on forces loyal to ousted president Saddam Hussein since Bush declared the end of major combat operations on May 1. Another 80 have died in accidents or non-combat incidents.

"This is all about September 11 and there are a lot of terrorists in this country and we're making it difficult for them and in the long run. This will make a difference," Specialist Jerry Dillon said at Baghdad Airport.

But other soldiers at a dawn memorial service organized by the 8,000 members of the 1st Armored Division were not convinced they were doing much good since Saddam's ouster in April.

"Right now I'd like to be home," said Sergeant Brian Sparks, standing guard outside the airport gates. "These people are not terrorists, so where's the significance about being here?"

Gunfire resounded for more than an hour in the town of Khaldiyah, 30 km west of Fallujah, after masked gunmen attacked the stalled US convoy with rockets.

There were reports of injuries but the US military said it had no immediate confirmation of the incident near Fallujah, a Sunni Muslim bastion 50 km west of Baghdad.

Three US soldiers were wounded in attacks in the northern Iraqi city of Mosul and near Fallujah.

Two were hurt when two rocket-propelled grenades (RPGs) slammed into a hotel in Mosul, and the third was wounded as his military vehicle drove over an explosive device on the highway linking Baghdad and Fallujah.