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DATE=1/25/99 TYPE=CORRESPONDENT REPORT NUMBER=2-244626 TITLE=IRAQ / MONDAY MISSLE / S&L / UPDATE BYLINE=JIM RANDLE DATELINE=WASHINGTON CONTENT= VOICED AT: INTRO: IRAQ'S NEWS AGENCY SAYS A U-S OR BRITISH MISSILE STRUCK A CROWED MARKET IN THE SOUTHERN CITY, BASRA, KILLING AND INJURING CIVILIANS. A U-S MILITARY OFFICIAL SAYS COALITION PLANES FIRED AT A SURFACE-TO-AIR MISSILE SITE NORTH OF THE CITY. BRITISH OFFICIALS REPORTEDLY DENY THEIR PLANES WERE INVOLVED IN ANY ATTACK. V-O-A'S JIM RANDLE REPORTS FROM WASHINGTON. TEXT: LIEUTENANT COLONEL JODY SPENCER OF THE U-S CENTRAL COMMAND SAYS COALITION PLANES PATROLLING THE SOUTHERN NO-FLY ZONE ATTACKED A S-A-3 SURFACE-TO-AIR MISSILE SITE NORTH OF BASRA. SHE SAYS EXPERTS ARE STILL ASSESSING THE DAMAGE, BUT SHE SAYS U-S PLANES NEVER DELIBERATELY TARGET CIVILIANS. A REPORT FROM IRAQ'S OFFICIAL NEWS AGENCY SAYS A MISSILE LAUNCHED BY BRITISH OR AMERICAN FORCES STUCK ABOUT 9:30 MONDAY MORNING (0630 GMT), AND THAT CHILDREN AND WOMEN WERE AMONG THE CASUALTIES. THE AGENCY SAYS CIVIL DEFENSE VEHICLES RUSHED TO THE AREA TO AID THE INJURED. IT IS THE THIRD SUCCESSIVE DAY OF CONFRONTATIONS OVER IRAQ. SATURDAY AND SUNDAY, IRAQI AIR DEFENSES AND ALLIED PLANES FOUGHT EACH OTHER FOR CONTROL OF IRAQI AIR SPACE. IRAQI GUNS AND RADAR TARGETED U-S WARPLANES, WHICH RESPONDED WITH BOMBS AND MISSILES. /// REST OPTIONAL /// BASRA IS PART OF THE SOUTHERN NO-FLY ZONE SET UP TO PROTECT SHIITE MUSLIMS WHO ROSE UP AGAINST THE GOVERNMENT OF IRAQI PRESIDENT SADDAM HUSSEIN AFTER THE 1991 GULF WAR. A SIMILAR ZONE WAS CREATED BY WESTERN ALLIES IN IRAQ'S NORTH, TO PROTECT REBELLIOUS KURDS. U-N SECURITY COUNCIL RESOLUTIONS ORDERED BAGHDAD TO STOP ATTACKING THE KURDS AND SHI'ITES OR THREATENING IRAQ'S NEIGHBORS. WASHINGTON AND LONDON SAY THIS GIVES THEM THE LEGAL BASIS TO BAN IRAQI PLANES FROM ABOUT 60 PERCENT OF IRAQI AIR SPACE. BAGHDAD CALLS THE NO-FLY ZONES OUTRAGEOUS AND ILLEGAL AND HAS BEEN CHALLENGING COALITION PLANES PATROLLING THEM MORE AND MORE OFTEN. (SIGNED). NEB / WD / WD 25-Jan-99 6:57 AM EST (1157 UTC) NNNN Source: Voice of America .