"Baghdad's defeat stands today as a symbol for the region. If the United States invaded any other Arab country, I can bet you that people would display the same sentiment of relief," sighed Mahmud, the owner of a clothing shop.

He was speaking as television images beamed round the world of Iraqis celebrating the demise of their longtime leader, some dancing on a ruined statue of Saddam pulled off its pedestal by US troops in the centre of Baghdad.

"This is not to say we like America and its policy here, but Arabs are just sick and tired of their oppresive governments and Iraqis showed today they can at last breathe again," he added.

But his colleague Mohammed, like many in Gaza, said Palestinians would mourn Saddam even if he was a despot to his own people.

"Iraqis were surely oppressed, but to us Saddam will stay a hero because he was the only Arab leader who resisted the United States and Israel," he explained.

"The United States is the greatest enemy of Islam and their presence in the region is simply unacceptable," he said.

Mohammed and Mahmud said the toppling of Saddam would affect the Palestinian-Israeli conflict, although, in their minds, not in any significant and durable way.

"The United States will pressure Israel to go back to the negotiating table and find a temporary solution to the conflict. (US President George W.) Bush cannot afford to anger Arab countries that supported him in this war," said Mahmud.

"But as in the case of the (1993) Oslo accords that came after the first Gulf war (over Kuwait), the agreement won't be durable," said Mohammed.

Zuheir, a pharmacist, explained that a true peace agreement between the Palestinians and Israel was not in the making because "force doesn't bring peace."

"Israel is only interested in controlling the Palestinians by force. There cannot be more than a symbolic agreement that is bound to fail," he said.

Sahwa, who was shopping for make-up, could not hide her deep disappointment.

"This is a tragedy for us in Palestine, Saddam was good to us and we were hoping at least half of the Iraqi population would resist occupation."

Ali, the cosmetics shop owner, said Iraqis may have "rejoiced today, but they just don't know what awaits them tomorrow."

"We Palestinians know what occupation means: Iraqis danced today, they will feel sorry tomorrow when they wake up and realize America is after their oil and wants to control the whole Middle East," he warned.

Hassan and Samir, sitting in their respective hardware store, vowed not to take down the poster of Saddam displayed on the iron shutters.

"His picture is here to stay because Saddam was the only one to stand by our side," said Hassam.

Samir, glued to his television screen, was visibly moved and angry, "the Iraqis are plain ignorant!" he shrieked.

"Don't they know that Saddam was better than the rest? I will proudly keep his picture in my store," he said.

Saddam's popularity soared in the Palestinian territories during the uprising against Israeli occupation that erupted in late September 2000.

The Iraqi leader handed out millions of dollars in total to families of suicide bombers who blew themselves up in Israel.

And during the 1991 Gulf War, as many as 39 Iraqi Scud missiles hit Israel to the joy of many in the Palestinian territories, occupied since the 1967 Arab-Israeli war.

Tens of thousands of Palestinians have marched in protest against the US-British war against Saddam.

SPACE.WIRE