TODAY is the "moment of truth" for Saddam Hussein and the United Nations, George Bush and Tony Blair warned last night.

Following talks with Spanish premier Jose Maria Aznar in the Azores, the Prime Minister and US President gave the UN a final day to issue the Iraqi dictator with a clear ultimatum to surrender his weapons of mass destruction.

Mr Bush said: "Tomorrow is a moment of truth for the world."

"Tomorrow is the day that we will determine whether or not diplomacy can work."

Asked whether he meant today was the last day the fresh resolution could be voted on before the diplomatic window closed, said: "That is what I'm saying."

With war now looking inevitable, Saddam Hussein warned last night that if Iraq were attacked, it would take the war anywhere in the world "wherever there is sky, land or water".

The Iraqi president's threat was made during a meeting with military commanders and his remarks were carried by the official Iraqi News Agency.

Mr Blair said there would be a final round of crisis talks to help break the impasse between Britain, the US and Spain on the one side and anti-war countries such as France and Russia.

He said now was the time to make a final appeal for "a unified message on behalf of the international community" that authorises force if Saddam "continues to defy the will of the international community" as set out in UN resolution 1441.

"But we are in the final stages because after 12 years of failing to disarm him, now is the time when we have to decide," warned Mr Blair.

The Prime Minister said: "It's important for the international community at this time to give a strong and unified message, and I have to say that I really believe that had we given that strong message some time ago, Saddam might have realised that the games had to stop."

He added that a situation where "we go back for endless discussions" would not be acceptable.

Mr Blair said the international community had a responsibility to uphold the will of the UN set out in resolution 1441 last November.

The Prime Minister, his voice breaking, added: "For four-and-a-half months now we have worked hard to get Saddam to cooperate fully, unconditionally, as that resolution demanded.

"The truth is that without a credible ultimatum, authorising force in the event of non-compliance, then more discussion is just more delay - with Saddam remaining, armed with weapons of mass destruction, and continuing a brutal, murderous regime in Iraq."

In a sign that the the US and Britain now expect military action to happen, the president spoke of post-conflict Iraq.

If military force was required, the leaders would seek new Security Council resolutions to help rebuild Iraq after conflict, he pledged.

French President Jacques Chirac, who last week promised to veto any new resolution before the Security Council, said yesterday he was willing to accept a 30-day deadline for Iraq to disarm - provided the move was endorsed by the chief UN weapons inspectors.

He claimed the inspectors still believed it was possible to disarm Saddam peacefully.

Foreign Secretary Jack Straw, responding to his remarks, said: "The only chance of persuading Saddam Hussein to make the strategic choice to disarm is by setting out specific tests of cooperation, with a short deadline, backed by the threat of force.

"Simply offering Saddam more and more time is precisely what he wants. The current process is not achieving significant progress, but minor concessions calculated to win more time."

Liberal Democrat leader Charles Kennedy said Mr Blair was making "a fundamental mistake" by backing the US policy.

"When the Prime Minister speaks of the situation being tragic, the real tragedy is the undermining of the United Nations," he said.

"Resolution 1441 was unanimous precisely because it lay down an agreed weapons inspection programme in an attempt to disarm Iraq peacefully.

"It is a serious error for the President to pull the plug on the process and it's a fundamental mistake for our Prime Minister to support it."

Thousands refuse to give up on peace

THOUSANDS of anti-war protestors took to the streets at the weekend, in a last-ditch bid to avert a conflict in the Gulf.

With war against Iraq probably only days away, about 5,000 people turned out for a march in York, ending at the Minster. A further 1,500 gathered in Times Square, Newcastle, to protest against the build-up for war.

In Darlington peace campaigners staged a candlelit vigil in the market place last night.