KUWAIT CITY, AUG. 11 (SATURDAY) -- The following dispatch has been received from a Washington Post correspondent.

Occupied but not conquered, Kuwait City today is a mixture of stubborn resistance and defiance by its native population, and fear bordering on panic among the Westerners and other expatriates held hostage here by Iraq.

Nine days after its tanks and troops invaded, food is still available, but people are aware the supplies are likely to dwindle fast. Many people also have no way of getting cash, since most banks are still closed. For several days now, there has been little troop or tank presence in the city, with the bulk of Iraqi President Saddam Hussein's army massed south of here, closer to the border with Saudi Arabia.

Within the city, Iraqi troops are stationed at key government installations and most hotels. Along the Arabian Gulf Street corniche, tanks are placed beside the beach with turrets facing the sea and antiaircraft guns facing the city.

There are very few checkpoints in the city. Even British and U.S. passport holders are not being harassed. At these checkpoints and on the whole, Iraqi troops have been courteous and friendly to everyone, including Kuwaitis. For the most part, they appear to be disciplined troops.

Iraqi civilians, seen arriving in convoys of cars and buses on Aug. 4, are starting to set up a civilian administration. Wednesday, Thursday and Friday they called for everyone to return to work. Those who do not, they said, should consider themselves fired.

All Kuwaitis queried said they would refuse to go to work. The response of the large expatriate community in Kuwait, which does most of the work in the country, is not yet clear. Many Filipinos, Egyptians and Pakistanis are trying to leave the country.

Western embassies, in addition to trying to calm their panicked nationals, are now faced with an Iraqi demand -- conveyed Thursday afternoon -- that they must shut down and report to Baghdad by Aug. 24. Several embassies contacted said they do not know how they are going to respond to this demand.

Outside the 7 p.m.-to-7 a.m. curfew, people are allowed to travel freely around town. Telephone and telex lines have not been able to make international connections since early on Aug. 3, the day after the invasion. In some neighborhoods, even local calls are not possible. The U.S. Embassy lost its phones on Aug. 3, but electricity and water are operating and gasoline stations are still open.

From the beginning of the invasion, Iraqi troops and tanks have stayed away from the U.S. Embassy, apparently having specific orders not to go near it.

For several nights this week, Kuwaitis went to their rooftops in a number of neighborhoods and precisely at midnight began shouting "Allahu Akhbar" -- God is Greatest -- and then slogans against the occupation. The outcries lasted 15 minutes.

By far the bravest displays of resistance have been the daily demonstrations begun Sunday, Aug. 5, by women in several neighborhoods including Rumaithiya, Jabiriyah, Mushrif and Sabah Salim.

They gather in the late afternoon. Most of the time the women, including teenagers, wear black chadors. Carrying pictures of the emir and crown prince as well as posters demanding Iraq's withdrawal, they walk down the main roads for about an hour. The marches have drawn increasing numbers, starting with about 60 women and growing to 300 to 400.

In recent days, Iraqi troops have been taking a more aggressive response to these demonstrations -- firing into the air and then at the women. Various sources have reported several injuries during these demonstrations. One Kuwaiti source said four persons, including a 16-year-old girl, died of injuries received during a demonstration in Jabiriya on Aug. 8, but this could not be confirmed.Mixed Treatment of Westerners

In the first few days after the invasion, selected Westerners were picked up by Iraqi forces as a deliberate policy -- 35 British military advisers taken from their compound, for example, and Americans taken from oil facilities and hotels. While this was going on, however, other Westerners, including Americans, were not bothered by Iraqi troops. Pickup of Westerners appeared to have stopped several days ago.

The situation for Westerners, however, took a drastic turn for the worse on Thursday when the Iraqi liaison with Western diplomats here informed them that:Citizens of the United States, Canada, West Europe and Australia would not be allowed to leave Kuwait;Diplomats of all embassies here must report to Baghdad by Aug. 24. Those who wish to leave the country must then submit a list of names and they would be informed within a week of who could leave;Embassies here should do nothing other than ensure the protection of their nationals. If Iraq thought an embassy was protecting anyone not of its own nationality, Iraqi troops would feel free to enter the embassy.

Said a Western source on learning this: "It's clear we're faced with a hostage situation bigger than any previous one."

There are many Americans living in the U.S. Embassy compound, which includes homes and embassy offices. Hundreds of others are still scattered in apartments throughout the city. They have organized themselves in groups to maintain contact, secure food and fuel and get messages from the U.S. Embassy.

But many of them are suffering, at best, from cabin fever, and, at worst, from nightmares and terror. One woman, standing in a friend's kitchen, broke into tears speaking of the possibility of a gas attack by Iraqi forces.

Meanwhile, the only way most of them get news is from CNN, via satellite dishes in their buildings.

There was a brief moment of deep concern when the "rumor" spread Aug. 9 that President Bush was going on vacation. One American burst into our apartment and asked if that had been reported on CNN. On being told no, he called a friend to say it appeared to be just "a nasty rumor. We certainly don't want Dan Quayle in charge for two weeks!"

The perception has now set in that, indeed, it may be a long haul before the Americans and other Westerners here are allowed to travel out.Fear Among Non-Westerners

The panic and fear also have spread throughout the non-Western expatriate communities here. There are long lines outside the Indian and Pakistani embassies. But the situation appears to be the worst at the Philippine embassy where, according to staff there, 3,000 Filipinos are now living in the embassy's two buildings.

People are crammed inside, along the stairs, on the roof, and in the basement. They are also camped outside in vans, buses and cars. Washing hangs outside the windows. One can barely move inside the main building.

Many of the Filipinos are domestic workers, whose Kuwaiti employers fled or sent them to the embassy for protection. A few worked for members of the royal family. They said they and their employers were awakened Aug. 2 by the sound of fighting. "They panicked," one maid said of her employers. She said they fled in cars about 10 a.m. without packing anything.

An embassy official said many of the Filipinos said they have no money. He said he helped them get food on the first few days, "when there were about 300 people" there. But now food is scarce. Those interviewed said they are pooling what money they have to go and buy food, or friends are bringing it to them.

The Filipino women, having heard of rapes of compatriots by Iraqi troops, are terribly frightened. One Filipino said Iraqi soldiers came into the house where he lived with other Filipinos, stole their money and raped two of the women. I could not find these women. I did interview one woman who said she was ordered to undress by an Iraqi, but was saved when a friend came into the room.

Several of the Filipinos also said that about five Iraqi troops entered the embassy itself, apparently looking for someone. "I don't feel safe even here," said one Filipino inside the embassy, adding that on Aug. 8 a convoy of 23 buses and cars with Filipinos tried to leave Kuwait to Saudi Arabia, but were turned back.

Until the Aug. 8 declaration by Iraq that it had annexed Kuwait, no Iraqi civilian or military officials were made available to Western diplomats for discussions. The first contact was made that afternoon, when Abdel Jabar Ghani was presented to them as their liaison -- although the real negotiations on the fate of Westerners are taking place in Baghdad. Ghani is Iraq's former ambassador to Kuwait, but now he is a general and wears a military uniform. He is described as a close associate of Saddam.

Iraqis dressed in civilian clothes began pouring into Kuwait on Aug. 4. Two witnesses described one convoy that entered that day as having 200 to 300 cars and buses. There are already Iraqi taxis driving around town, and Iraqi police cars.

Employees of Al Qabas, the leading government-controlled Kuwaiti newspaper, were called at home and told to report for work. One Kuwaiti source said Kuwaiti employees have refused to go in, but some Palestinians and Egyptians have gone to work. He said that earlier in the week when he visited Al Qabas, the Iraqis had shut down all news agency wires except the official Iraq News Agency.

The Iraqi presence has also instilled great fear of speaking freely on the phone, as people are now assuming they are being tapped.

"Now everyone is afraid to speak and I hate that," said one Egyptian working here. "You don't know who is Iraqi and who is Kuwaiti because everyone is wearing a shirt and trousers," he added, referring to the fact that many Kuwaitis have doffed their traditional dishdashas in order not to draw attention to themselves. Kuwaiti Response and Resistance

On Aug. 5, three days after the invasion, 11 young Kuwaitis met in a room of the sort that most Kuwaiti homes have where men gather to discuss politics. They were all friends and had been active in the pro-democracy movement before the invasion. They trailed in bleary-eyed for lack of sleep, with three days' growth of beard. The mood in the room was angry, sullen and shocked.

Like most Kuwaitis, they never dreamed Saddam would go so far to get his way. "I still can't believe it," said one 22-year-old Kuwaiti. Also like most Kuwaitis, they had organized to resist the Iraqi occupation, saying they would never accept rule by Baghdad. "It's Hitler invading Poland," said another.

It is clear that Kuwaitis who remain behind here are opposing their occupiers. It also appears that so far there are several centers of opposition, working independently of each other. These include: members of the royal family still here and in hiding, some military people, the mosques, the pro-democracy movement, women on their own who appear to be spontaneously doing what they can to show their resistance.

There also has been armed resistance, which is hard to quantify, but clearly there.

The evidence of feelings has included Kuwaiti flags draped on fences and road signs, or hoisted on the roofs of homes. Photographs of the emir and crown prince have been taped to store windows, bank doors, school walls -- and they are not always ripped down.

In some neighborhoods heavily populated by native Kuwaitis, such as Rawda and Rumaithiya, anti-Iraqi graffiti have been spray-painted on walls: "Down with occupation!" "Yes to a constitutional Kuwait!" and "Death to Saddam Hussein and his Barbarian Armies!"

On the evening of Aug. 7, shortly before dusk, I saw a young boy standing on a car roof driven by a family member. He was using spray paint to black out street signs so Iraqi troops could not find their way.

A demonstration I witnessed on Aug. 6 in Rumaithiya drew about 60 women. No Iraqi troops appeared. "We don't want Iraq, we don't want Saddam. We want Jabir and Saad" -- the emir and crown prince -- said one woman as she walked down the middle of Nasser Mubarak Street.

"All women of Kuwait are resenting this {invasion}. They are protesting this," said another.

Pamphlets have been distributed, sometimes in English, by fax to Western embassies here. One, written in English, spoke of Saddam Hussein in harsh words: "Do not be fooled by Saddam's Arabism and his love to democracy. . . . What Saddam did? What a Republic he built!!! It is based on terror, kidnapping and killing."

The Kuwaiti opposition also has begun to publish a newsletter, four pages, called Samood Eshab, or Popular Resistance. So far, it has come out twice.

To show their resistance, Kuwaitis also have said they will refuse to go to work, except for essential services such as at hospitals. "We don't want people to go to work because then everything would be normal. We don't want the country to be normal," said one U.S.-educated Kuwaiti.

I asked this person, a Shiite Moslem, about Shiite feelings. He said he is refusing to leave Kuwait. "That is what the Iraqis want," he said. "We don't want to take credit as Shiites for staying here. We want to take credit as Kuwaitis that we are staying."

In an interview, a 29-year-old member of the royal family said that "most of the second generation of the family are . . . still in Kuwait" and, like him, in hiding. He said they are in contact with each other and with some military people are organizing armed resistance, mostly hit-and-run ambushes of solitary Iraqi soldiers or small groups. There have been reports of Iraqi soldiers shot but it has not been possible to confirm them.

"We are trying to do what we can. Time is on our side," he said. "They are here. . . . We want to confuse them like they confused us the first few days. We were confused."

He said another tactic is to make "propaganda to the Iraqi soldiers themselves, to say what they are doing is wrong."

Clearly the wealthy Kuwaitis have lost much already. If the occupation and annexation are not reversed, all their financial assets will be lost. "Everyone is shocked," said an industrial engineer, who has U.S. citizenship because his Kuwaiti father married an American. "But many of them still have not realized what has happened. There are so many millionaires here -- and now, they have nothing."

But even among poor Kuwaitis, the anti-Iraqi feelings are strong. In the home of one such family today, Aug. 11, a 24-year-old man said his family was against the occupation "because we are all one family, Kuwaitis." His 29-year-old sister brought out from a bedroom one of her anti-occupation works: a home-made Kuwaiti flag with tiny cut-outs of Kuwait pasted on it -- the official seal and crown prince's picture.

Asked whether anybody in the family had gone to work that day, the sister replied: "Who would they work for? The Iraqis? We don't want them. When the Sabahs {the ruling family} come home, we will go to work." A small girl in the house said she listened to Kuwait Radio "every day. It comes from Saudi Arabia."

In another home of a well-known wealthy Kuwaiti family, the feelings were the same. But in an indicaton of the fears pervading the city, the family had been sleeping on the first floor of their home, keeping most of the lights out at night, and while I was there, they removed their family name from the front of the house.

Many other prominent Kuwaitis who are not members of the royal family have also gone into hiding, their telephones unanswered.

Armed resistance by civilians began Aug. 3, the day after the invasion, as small arms were distributed to various sites for pickup by civilians. The arms apparently came from military stores or armories so far hidden from Iraqis.

At one civilian facility, I saw a stockpile of small arms amassed in a guardhouse by the back door. While there, we saw a harried Kuwaiti load up his Mercedes with arms to take to the neighborhood of Kaifan.

Civilian or loyalist resistance remained strong for most of Aug. 3 in Kaifan. Another source said armed Kuwaiti men were controlling part of the neighborhood. Iraqis later came in with tanks in response.

In another neighborhood where the local police station remained in the control of Kuwaiti police for several days after the invasion, arms were also distributed to Kuwaiti civilians.

The Kuwaitis thus have put up more resistance than anyone expected -- both militarily the first day and, since then, politically. Their will has clearly not yet been broken. But also, they are helped by the fact that in most of the city, Iraqi troops are absent or present in light numbers. In addition, the Iraqi security apparatus, as of today, Aug. 11, has not yet made its full presence felt. Most foreign observers expect this will happen once the Iraqis are more firmly in political control. Kuwaitis' Hopes for the Future

Despite the unanimous demand among all these Kuwaitis that the royal family must return, it is already evident that if that happens, Kuwait will still never be the same again.

"I've already told the royal family," said the Shiite Kuwaiti, "that we, as Kuwaitis are going to collect money to rebuild" the burned royal Dasman Palace. "We are going to rebuild the whole damage to prove to them that we are one family and one unit."

"But, we want parliament back," he added.

"We believe that if we had freedom here in journalism the people would have had time to make decisions when {the Iraqis} had 100,000 troops on the border and they didn't publish it. That's the worst thing. Then people could have had time to get food and soldiers would have had time to get ready to defend themselves.

"We have to say one thing to the emir if he comes back. We want democracy here and we want parliament back."

"Kuwait will never be the same again," said another Kuwaiti. "The royal family's legitimacy and image is not the same. We want them back, but we will ask them, 'Why didn't you do this, and this.' "

Several Kuwaitis said they had been told by military people that although they wanted to fight, their top officers had fled and they were left without direction. "I have seen a lot of military people during these days," said one Kuwaiti, "and they have bitter feelings. They wanted to fight, but they had no commanders."

In another indication Kuwait cannot return to what it was even if Iraq leaves, there has been a range of feelings, not all of it sympathetic to Kuwaitis, among its large foreign communities, especially Palestinians.

The Palestinians are clearly divided in their sentiments. Many are pro-Iraqi and enthusiastic about the intervention. Typical of this view was a 54-year-old Health Ministry worker who has been here 13 years. "I hope to God Iraq wins," he said, because "Saddam wants to solve the problem in Palestine."

But others who had lived here longer or were born here declared they were with the Kuwaitis. A 33-year-old nurse, who came here at the age of 4, said he does not believe that Iraq's presence in Kuwait will help Palestinians "because maybe Iraq came here only to take Kuwait, not to help people."

Said a Palestinian woman: "Maybe now the Kuwaitis will understand us better. They are always blaming us, asking us why did we leave our country. Let's see how many Kuwaitis stay here."

The Egyptians appear clearly in favor of the Kuwaitis. But other expatriates -- bitter over how they are treated by wealthy Kuwaitis who restricted their stay here; refused to let them have their dependents, except under certain circumstances; and never gave them citizenship, no matter how long they lived here -- are not so sympathetic. Said one Sri Lankan: "I think this {the Iraqi invasion} is God's punishment. God gave these people a lot of money, but they didn't help the poor people. There is one set of rules for Kuwaitis and one for other people. God is telling them something."

The Lebanese typically are taking their "second catastrophe" with humor and an eye on dollars. "It's the second time it has happened to me," said one hotel worker. "First in Lebanon and now with the Kuwaiti dinar. He had nearly $18,000 deposited in Kuwaiti banks and the Kuwaiti dinar is now equivalent to an Iraqi dinar, a huge drop in value.