Saddam Hussein is set to defy a United Nations demand to destroy illegal missiles.

In an extract from an interview with Dan Rather of CBS News, the Iraqi leader said he would keep the al-Samoud II missiles which Hans Blix, the chief UN weapons inspector, has demanded be destroyed.

"We do not have missiles that go beyond the proscribed range," said the Iraqi leader.

He also implied that Iraq would continue to develop its arsenal.

"Iraq is allowed to prepare proper missiles and we are committed to that," he said.