The mujahideen declare victory over the US in Fallujah. (Hat tip: mpax.)

FALLUJA, Iraq (Reuters) - Soldiers of the old Iraqi army led by one of Saddam Hussein’s generals patrolled the city of Falluja on Saturday, a year after George W. Bush declared the U.S. “mission accomplished” in ousting the Iraqi regime.

Cries of “victory over the Americans” echoed from minarets and guerrilla gunmen celebrated in the streets under the green banner of Islam and Saddam-era Iraqi flags. Thousands who had fled a month of heavy fighting streamed back to their homes after U.S. Marines pulled back from their siege positions.

Mired in a confrontation that spilled blood on both sides and outraged Iraqi and Arab opinion, U.S. commanders withdrew to more distant positions on Friday. Security was entrusted to local police and a new force of ex-soldiers under General Jasim Mohamed Saleh, formerly of Saddam’s feared Republican Guard.

U.S. commanders call it an experiment that may be reversed.

But some Iraqis, impatient with an occupation that brought them pictures this week of U.S. and British troops abusing detainees, may well believe they are seeing a military debacle, albeit of an enemy with still massive firepower in reserve.

Americans, deciding whether to re-elect President Bush in November, may also wonder where the Iraq venture is taking them after the bloodiest month for U.S. troops since the war began.

“The city’s defenders are celebrating,” yelled one man as a group of gunmen in civilian clothes raised green banners and rifles aloft on a street to acclaim the “defeat” of the Marines.

A uniformed member of General Saleh’s 1,000-strong force, dubbed the Falluja Brigade by Marines, looked on. He smiled.

On foot and in civilian four-wheel-drive vehicles, this force began patrolling the streets of the Sunni Muslim city, which was among those most loyal to Saddam.

“God has given this town victory over the Americans,” wailed a message from one mosque. “This victory came by the acts of the brave Mujahideen of Falluja who vanquished the American troops.”