Oct. 21 (Bloomberg) -- U.S. Marines clashed with Iraqi rebels outside Fallujah today, exchanging rocket and small-arms fire with rebels inside the insurgent stronghold, the U.S. military said in a statement e-mailed from Iraq.

Insurgents within the city began firing guns, mortars and rocket-propelled grenades at Marines outside the western Iraqi city at about 5 p.m. local time, the statement from the 1st Marine Expeditionary Force said. Marines responded with ground fire and air strikes, according to the statement. No mention was made of casualties.

``It's part of the ongoing effort to free the people of Fallujah of insurgents,'' said Sergeant Salju Thomas, a U.S. military spokesman, by telephone from Baghdad.

Today's clash comes as U.S. commanders in Iraq prepare to deploy extra soldiers for potential combat in Fallujah, a move made possible by the British military's agreement today to cover for U.S. forces in more peaceful portions of the country.

U.S. and Iraqi forces have been targeting rebel safe houses and weapons caches inside the city, which they say harbors al Qaeda-linked terrorist Abu Musab al-Zarqawi.

The U.S. has said rebel-infiltrated cities in the so-called Sunni Triangle such as Fallujah, as well as Samarra and Ramadi, must be brought under control before elections scheduled for January. The three cities are dominated by Sunni Muslims, a minority in a country that is about 60 percent Shiite Muslim.

Disarming Rebels

The Iraqi interim government earlier this month created a national program that pays insurgents to hand in their arms and abandon the fight against multinational forces.

``The important thing is that they stick to the sovereignty of the law, disband illegal armed organizations and hand over heavy and medium weapons,'' Prime Minister Ayad Allawi said today in northern Iraq's Mosul, according to a Reuters news service pool report e-mailed by the U.S. military.

About 850 British troops in southern Iraq will be shifted to areas now controlled by U.S. forces, under the decision Prime Minister Tony Blair's government. Britain has about 8,500 troops in Iraq.

``This deployment is a vital part of the process of creating the right conditions for the Iraqi elections to take place,'' Defense Secretary Geoff Hoon told Parliament in London.

Iraqi Foreign Minister Hoshyar Zebari said yesterday that more United Nations election workers are needed to ensure the January vote is seen as legitimate, according to the Associated Press.

``It is unfortunate that the contribution and participation of UN employees in this process is not up to expectations,'' he said, according to AP.

The UN evacuated all international workers from Iraq after the Aug. 19, 2003, bombing of its Baghdad headquarters, which killed 22 staff members. The UN has about 35 workers, largely in Baghdad, and has directed efforts by Iraqi nationals from outside the country.

To contact the reporter on this story: Demian McLean in Washington at dmclean8@bloomberg.net.

Last Updated: October 21, 2004 15:20 EDT