Kuala Lumpur: In a balancing act, non-aligned (NAM) foreign ministers on dropped a demand by key Arab states to describe a possible US military action in Iraq as "aggression" but urged Baghdad to comply with UN Security Council resolution to disarm.

A draft declaration on Iraq hammered out after two days of intense wrangling, said Iraq must disarm and assure the world in a peaceful way that weapons of mass destruction are eliminated in that country.

The document to be placed for consideration of the two-day summit from February 24 noted with grave concern the precarious and rapidly deteriorating situation arising from the looming threat of war against Iraq.

It warned that war would have "far-reaching political, economic and humanitarian consequences for all countries of the world".

The Arab members had earlier insisted that the draft take into account the threat of unilateral action against Iraq.

Outlining the Indian position, Prime Minister Atal Behari Vajpayee told reporters that the 114-member grouping should put pressure on Washington to accept the UN route for a peaceful solution to the escalating crisis.

He said "war should be avoided and a solution to the Iraq crisis found through the UN Security Council.

PTI