Most of the shops in central Baghdad were closed, but hundreds of civil servants gathered around nearby public administration buildings, seeking news on when they could start again and where they would be paid.

"The Americans told us to come back Tuesday," said a women outside the Baghdad city hall, which was guarded by US troops.

Little damage appeared to have been done to the building, contrary to most other administration offices, looted and burnt after the collapse of Saddam Hussein's regime on April 9.

In the electricity authority offices on Saadoun street, employees wrote down their names and jobs on registers kept by the janitor at the entrance.

"The director (of the authority) told me to take down the names of those who come so that we can restart work," said Souheil Mohammed.

An employee, Hassan Mustafa, said he also put down his name in hope of receiving his pay for April, which he would like to receive in dollars.

He said the call broadcast on the US-led coalition radio for people to go back to work spread by word of mouth, along with news that the 2.5 million civil servants would be paid from confiscated Iraqi funds in US banks, ferried to Baghdad on American planes.

Despite a few explosions heard from time to time around the city, the security situation appeared far better than a week ago.

Buses were crowded and it took nearly an hour to get through the jams in central Baghdad where traffic police also returned to work.

Most of the shops open in the centre and other neighbourhoods of the five-million-strong capital were groceries, bakeries, teashops and barbers. A lot of trade was done on the sidewalks for fear of vandals and looters.

"I just came to check on my souvenir shop," said Ali Hassan. "I won't open, I don't think many will come to buy, the risk is not worth it."

Thousands of people milled about in Shorjah, Baghdad's largest grains and food market.

"It's close to normal," said a trader, explaining that the market was open for the duration of the US-led war on Iraq, but activity dropped after the fall of Baghdad to US troops.

In the Qazimiya suburb, northwest of Baghdad, the gold souk around the holy Muslim Shiite shrine of Imam al-Kazem was closed. But it was business as usual for kebab shops and vegetables stalls.

SPACE.WIRE