"I suppose you would have to say that the regime controls large sections of Baghdad," Deputy Defense Secretary Paul Wolfowitz told Fox News.

General Peter Pace, vice chairman of the Joint Chiefs of Staff, said, however, that US-led forces surrounded the Iraqi capital.

"There is a significant military force all around the city of Baghdad," he told CNN.

"We do control highways in and outside the city. We have the capability to stop, interdict and attack any Iraqi forces that might try to either escape or engage our forces," Pace said.

He said US troop advances into Baghdad notably aimed at giving the Iraqi forces" the opportunity to see we are equally effective in and around the city as we already were in the battlefield."

He said that in the raids the US-led forces destroyed "all of the enemy vehicles and personnel with whom they came in contact."

Pace urged Iraqi commanders to lay down their weapons.

"We prefer that the leaders of the Iraqi armed forces do the honorable thing: stop fighting for a regime that does not deserve your loyalty. Surrender your forces and give yourselves and your troops an opportunity to be a part of Iraq's future and not a part of Iraq's past."

Wolfowitz touted the advances US troops have made thus far a little more than two weeks into the war.

"Already we've made enormous progress, and our troops are outside of Baghdad (and) control Baghdad International Airport," he said.

"The feared Republican Guard have suffered enormous losses, and it's clear where the end is," said Wolfowitz.

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