Developments in Iraq on Monday:

- Iraqi Prime Minister Ayad Allawi announced plans to extend a cash-for-weapons program for Shiite fighters in Baghdad's Sadr City to cities nationwide in an attempt to disarm Iraq.

- Iraqi government officials and commanders of the U.S.-led military coalition killed a proposal by Saudi Arabia for a Muslim peacekeeping force in Iraq, the White House said, citing concerns over who would be in charge.

- The U.S. military said no decision had been made on whether to discipline Army reservists who refused a supply mission last week, despite statements from their relatives that the soldiers would be discharged.

- The city of Fallujah's chief negotiator in peace talks with the government was released from U.S. custody and ruled out any quick resumption of talks. Sheik Khaled al-Jumeili was detained Friday a day after the talks broke down over the government's demand that the city hand over terrorist leader Abu Musab al-Zarqawi, who Fallujah's clerics claim isn't there.

- Allawi said his government was still extending an "olive branch" to Fallujah but added that "we shall not be lenient in regard to the question of maintaining security and granting security to every Iraqi."

- The British government said it would be failing an important ally if it refused to redeploy British troops closer to Baghdad and free up American soldiers for anti-insurgent operations.

- Iraq's interior minister said al-Zarqawi is not his government's major concern. He said a more serious problem was a "conspiracy" to undermine the country's unity.

- In Baghdad, a car bomb exploded late Sunday near a police patrol in the Jadiriyah district, killing six people, including three police officers, and wounding 26 others. The blast hit a cafe near the Australian Embassy, although there were no Australian casualties.

- In Mosul, a car bomb detonated Sunday morning on a bridge, killing five Iraqis and wounding 15 others, the U.S. military said. Another car bomber Monday hit a civilian convoy, killing one and wounding four others.

- The U.S. military said a man suspected of being a financier for insurgent operations was detained near Tikrit and was taken in for questioning.

- A patrol from the 1st Infantry Division's 3rd Brigade discovered a huge weapons cache at a home in Salman Pak, south of Baghdad, and detained six suspects. The cache included 450 anti-tank mines, 300 grenades, 35 rocket-propelled grenades, as well as mortar shells and primers.

- Al-Jazeera television broadcast a video by a militant group that claimed to kill two Macedonian men it accused of spying for the United States. The videotape, from the Islamic Army in Iraq, said the men were captured outside an American base in Iraq.

- A headless body was found in the Tigris river, close to Balad north of Baghdad, witnesses said. The body is suspected to be that of an Iraqi driver who carried supplies to an American military base, said witness Abbas Mahmoud said.

- A militant group, Ansar al-Sunnah group, claimed responsibility for the ambush and killing of nine Iraqi policemen on Saturday as they returned from a training course in Jordan, according to a Web statement.