US aircraft dropped leaflets on the rebellious Iraqi city of Falluja on Tuesday, warning residents they would lose $102 million in rebuilding funds if they did not halt attacks and allow US troops to enter freely. After fierce fighting in April in which hundreds of Iraqis were killed, American forces withdrew from Falluja and handed over responsibility for security to an Iraqi brigade.
Critics say the move has turned Falluja into a safe haven for insurgents and put the city under the control of guerrillas.
"If the security situation does not improve you will lose $102 million, which is already allocated and approved. This amount of money will be transferred to peaceful and open towns," the leaflet said.
"We ask the citizens of Falluja ... to make way for multinational forces to start the rebuilding of Falluja, and to make way for American forces to move freely in the city and make real estimates for construction."
Since US-led forces ousted Saddam Hussein 15 months ago, the city west of Baghdad has been a hotbed of anti-American violence. On March 31, four American security guards were killed and their bodies burned in images that shocked the world.
US warplanes have launched several air strikes on the city in recent weeks, targeting its most wanted man in Iraq, Jordanian militant and suspected al Qaeda ally Abu Musab al-Zarqawi.
American troops are still based near Falluja.
The leaflets said one project that Falluja could lose was a $35 million water treatment upgrade.
"Our fight is not with the honest citizens of Falluja, but with those who want to destroy the future of Falluja and those who are doing this for their own benefits," added the leaflet.
Washington has allocated $18.4 billion for rebuilding across Iraq, but the country's precarious security has prevented large amounts of that money from being disbursed.