Iraq would aim its first missile at Israel and fight with chemical and biological weapons if war broke out in the Persian Gulf, PLO leader Yasser Arafat was quoted as saying in a Tunisian newspaper Monday.

The independent al-Sabah, which has strong ties with Arafat's Palestine Liberation Organization, said he made the remarks to a closed meeting of PLO leaders and officials in Tunis on Friday.Arafat, closely allied to Iraqi President Saddam Hussein, saw the Iraqi leader in Baghdad earlier in the week.

Iraq, which has threatened to strike Israel with chemical weapons if the Jewish state attacked any Arab country, has large stocks of chemical weapons and has been accused by the West of developing biological weapons.