Defiant Saddam Hussein rejected war crimes and genocide charges at his first court appearance yesterday in Iraq, saying: "The real criminal is Bush."

Asked to identify himself, the toppled tyrant declared: "I am Saddam Hussein, the President of Iraq."

He told the judge to call him President out of respect for the "will of the people".

And the former dictator insisted he was right to send troops into Kuwait because it was part of Iraq - calling Kuwaitis "dogs".

Saddam, 67, was a far cry from the dirty and dishevelled old man last seen after he was prised from a hole in the ground by US troops in December.

Seven broad charges were levelled against Saddam during the 30-minute hearing in a former palace close to Baghdad airport.

They range from the 1974 execution of religious leaders to the gassing of Kurds in Halabja in 1988 and the 1990 Kuwait invasion. Specific charges will be filed later.

The lengthy legal process, expected to take years to complete, could well result in the death penalty.

However, in an astonishing performance, the man who ruled Iraq with an iron grip for three decades refused to be cowed.

Saddam condemned the hearing, rejecting its legitimacy and declaring: "This is all theatre."

He also refused to sign the charge sheet without lawyers present. Asked if he could afford a lawyer, he replied: "The Americans say I have millions hidden in Switzerland. How can I not have the money to pay for one?"

It was the subject of Kuwait, a key charge against him, that caused the former tyrant the greatest agitation.

Saddam claimed he had been protected by Iraqi law, asking: "Where is this law upon which you are conducting investigations?"

The invasion was carried out "for the Iraqi people" he said, before being rebuked by the judge for referring to Kuwaitis as "dogs".

Saddam appeared thin but smartly dressed in a pinstripe jacket, white shirt, black trousers and shoes.

His salt and pepper beard - which had grown long and wild from months on run when he was finally picked up - was neatly trimmed.

He was flown to the area by helicopter then driven to the court amid tight security in an armoured bus escorted by four heavily armed military vehicles and an ambulance.

Saddam was brought into the court in chains, flanked by two Iraqi prison guards with others stationed close by.

However, he was unfettered during the hearing, making notes on yellow paper, gesturing confidently at the judge and sometimes waving a pen to make his point.

He was then taken back to jail while the charges were read out one-by-one against him and the 11 other accused.

These include former Deputy Prime Minister Tariq Aziz and Ali Hassan al-Majid, known as "Chemical Ali" for his role in poison gas attacks.

The dozen senior Ba'athists were formally transferred from US to Iraqi custody on Wednesday following the handover of power.

Members of the UK's Iraqi and Kurdish communities gave a jubilant response to Saddam Hussein's appearance in court.

Hashim Ali, of the Iraqi Community Association, which represents some of the 250,000 Iraqis in the UK, hailed it as a "great moment in Iraqi history".

He said: "It is a great moment for all victims of his regime and for the families of those victims. No wrong-doer is above the law."

Prime Minister Tony Blair's official spokesman said: "The important thing is that the Iraqi people have seen a transparent judicial process begin.

"They know what Saddam did, Saddam knows what he did, and what is important is that a judicial process is taken forward in a way that was never possible while he was in power."

The method of trial and possible death penalty were matters for the Iraqi authorities, the spokesman said.

"We have to recognise that Iraq now is a sovereign country. It therefore will do things its way," he said.