US-LED forces have killed at least 1600 insurgents and detained over 1000 in its offensive on Fallujah, Iraq's minister of state for national security said today.

Kassim Daoud said the Iraqi government was fingerprinting and photographing the dead, most of whom were not carrying identification papers.

"We can say the number of dead exceeds 1600," Mr Daoud said after meeting the mayor of Fallujah.

"The number of detainees last night was 1052. There are detainees of different nationalities taken in the city of Fallujah," he said.

US-led forces launched an offensive against Fallujah eight days ago to root out foreign Islamists and Saddam Hussein loyalists entrenched there.

The US military said it has taken control of Fallujah, 50km west of the capital, but scattered resistance remains.

Residents said they are short of food as power cuts have spoiled frozen supplies and shops were closed. They said taps are running dry and the wounded have been unable to seek medical assistance because of the fighting.

Iraq's government has dismissed reports that civilians in Fallujah are desperately short of supplies.

The government has also dismissed reports that the city was devastated by the attack, saying only 200 out of a total 1700 buildings were damaged.

Most civilians are believed to have fled Fallujah ahead of the offensive, some of them to nearby villages. Mr Daoud said more than 90 per cent had left.

The Iraqi government would compensate residents for damage to their property and was giving food and medical aid to refugees, he said.

It was also working to get a civilian administration back in place and return police to the streets of Fallujah, which US-led troops had not entered for six months.

"We will pay compensation to the Fallujans so they can begin building and repairing immediately," he said.

"There is a fair and immediate financial compensation program for all those whose properties were damaged."

Reuters

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