The capture of former Iraqi President Saddam Hussein will not automatically lead to dramatic improvement of security in the country,UN Secretary-General Kofi Annan said here Tuesday.

In his remarks to the UN Security Council at an open meeting on his latest report on Iraq,the UN chief said events of the past three days "should remind us that we must remain prudent in our assessment.There is no panacea."

"Iraq is likely to remain a difficult environment,"he told the council,"We should not expect that the end of the occupation and formation of a provisional Iraqi government will automatically bring about an end to insecurity,even though we should expect some improvement."

In his report,Annan said the security environment in Iraq is unlikely to improve in the short to medium term,and could deteriorate further.

The world body will remain a "high-value,high-impact"target for terrorist activity in Iraq for the foreseeable future,it said.

"The acting UN Security Coordinator assessed the current risk to UN personnel in Iraq as falling in the high to critical category,"Annan said,adding he would recommend a range of protective measures to reduce the risk.

The measures,according to the report,would include a "dedicated,highly mobile,cohesive and responsive"armed force,aswell as a preparation and full implementation of enhanced Minimum Operating Safety Standards (MOSS)to include security plans and procedures and significant office and residential building upgrades.

The UN chief has been put under pressure on the issue of staff safety after his Special Representative in Iraq,Sergio de Mello,along with 21of his colleagues,were killed on duties when a deadly bombing grounded the UN headquarters in Baghdad on Aug.19.

Annan has asked former Finnish President Martti Ahtisaari and veterans of many UN missions to form an Independent Panel on the Safety and Security of UN Personnel in Iraq to probe the deadly attack.

The panel said in its report that there was no place in Iraq without risk and that a new security approach was needed in order to ensure staff security in such a high-risk environment.

"It also argued that the UN security management system was in need of drastic reform,especially in the light of the new type of threat faced in Iraq,and potentially elsewhere,"Annan said in his report.

On Nov.4,Annan set up another group headed by Gerald Walzer,former deputy high commissioner for refugees,to review the responsibilities of key individuals in the decision-making processes on security matters prior to the attack.