IRAQ U.S. hammers Fallujah after leaders refuse to turn over terrorist

The U.S. was shelling the city and warning insurgents on loudspeakers.
BAGHDAD, Iraq (AP) -- U.S. warplanes pounded the insurgent stronghold of Fallujah today, a day after the city's leaders suspended peace talks and rejected the Iraqi government's demands to turn over terror mastermind Abu Musab al-Zarqawi.
Al-Zarqawi's Tawhid and Jihad group has claimed responsibility for Thursday's twin bombings inside Baghdad's heavily guarded Green Zone -- home to U.S. officials and the Iraqi leadership -- which killed six people, including three American civilians. A fourth American was missing and presumed dead.
Two Iraqis were killed, at least one of them a suicide bomber. The identity of the other wasn't known. The group's claim, which could not be verified, was posted on a Web site known for its Islamic contents.
Ability to penetrate
Thursday's bold, unprecedented attack, which witnesses and a senior Iraqi official said was carried out by suicide bombers, dramatized the militants' ability to penetrate the heart of the U.S.-Iraqi leadership even as authorities step up military operations to suppress Sunni Muslim insurgents in other parts of the country.
Jets and artillery hammered Fallujah through the night in an apparent effort to quash terrorists suspected of planning attacks timed with the Muslim holy month of Ramadan, which begins today.
The U.S. believes al-Zarqawi and his terrorist group are based in Fallujah. Last year, the Ramadan period saw a surge in violence.
Marines fighting
Maj. Francis Piccoli, spokesman for the 1st Marine Expeditionary Force, told The Associated Press that two Marine battalions were fighting to "disrupt the capabilities of the anti-Iraqi forces." He would not say if the attacks, which began Thursday afternoon, were the start of a major offensive to wrest control of Fallujah from the insurgents for good.
"The operations were designed to target the large terrorist element operating in the area of Fallujah. This element has been planning to use the holy month of Ramadan for attacks," the U.S. command said in a statement.
Three people were killed and seven others wounded during the night, according to Dr. Rafi'a Hiyad of Fallujah General Hospital. On Thursday, the hospital said at least five people were killed and 16 wounded.
Intensive shelling
Late Thursday, Fallujah residents reported the most intensive shelling since U.S. forces began attacks aimed at al-Zarqawi's network. One resident said U.S. forces were using loudspeakers in the west of the city to urge Fallujah fighters to lay down their arms "because we are going to push into Fallujah."
U.S. planes continued to fly overhead today but the town remained quiet, residents said.
Negotiations break down
Iraqi leaders have been in negotiations to restore government control to Fallujah, which fell under the domination of clerics and their armed mujahedeen followers after the end of the three-week Marine siege last April.
Iraqi Prime Minister Ayad Allawi warned Wednesday that Fallujah must surrender al-Zarqawi and other foreign fighters or face military action. Talks then broke down Thursday when city representatives rejected the "impossible condition" since even the Americans were unable to catch al-Zarqawi, said Abu Asaad, spokesman for the mujahedeen council of Fallujah.
Also today, a car bomb exploded near a police station in southwest Baghdad, killing one person and wounding at least 11, Interior Ministry and hospital officials said.