KUWAIT, AUG. 19 -- The following report was filed by Reuter correspondent Hamza Hendawi after escaping from Iraqi-occupied Kuwait on Sunday. He was one of the last international correspondents to leave the city.

To deter looters, Iraqi occupation forces hung the body of an executed lieutenant colonel from a crane and left it on display outside Kuwait's municipal headquarters.

Around the unnamed Iraqi officer's neck they hung a placard: "He stole the money of the people."

Beneath the dangling corpse, the colonel's booty was set up in a pickup truck -- clothes, television sets and other electrical goods.

This scene last Thursday demonstrated the tough measures Baghdad is adopting to restore order after its Aug. 2 invasion and to get Kuwait back to work.

Despite the introduction of summary trial and execution for looters, the Iraqis are still struggling to gain full control of Kuwait.

The glittering shopping malls of this once super-rich city have been pillaged. According to Kuwaitis and other witnesses, many of the looters were residents -- Asian and Arab workers who made up the country's labor force.

There have been cases of servants looting their employers' homes.

Although residents report instances of looting by Iraqi soldiers, the troops are largely disciplined. In my local supermarket, they line up quietly, never jumping the line, only too happy that their once despised Iraqi dinar has now been declared the same value as Kuwait's.

There have been reports of rape, but no suggestion that it is systematic or widespread.

The officers are clearly living comfortably; they took over the seafront chalets of Kuwait's elite for their billets. Some are wearing the finer quality uniforms of the Kuwaiti army.

Air conditioning is still working and water is available. Supermarket shelves are emptying, in part because residents have been engaged in large-scale hoarding, but staples such as milk and bread are not yet in short supply.

Small pockets of Kuwaiti resistance remain. On Saturday, 16 days after the invasion, bursts of sniper fire could still be heard.

Diplomats say the Iraqis could crush the opposition, but to do so would probably require massive deployment, which would draw troops away from the front line on the Saudi border.

Kuwaitis have mostly defied back-to-work orders. Banks and offices are still shut. Kuwaiti anger and bitterness are also directed at Palestinians because of PLO leader Yasser Arafat's sympathy for Baghdad.

At night, the Kuwaiti flag and photos of the exiled emir appear on walls and lampposts.

Propaganda of a different sort -- Iraqi -- went up on the wall of a British Embassy building. "Saddam Hussein is leader of all Arabs," it said.

Large-scale movements of troops continue to and from the border. On the highway to Saudi Arabia on Sunday, an Iraqi armored division was on the move north with some 40 tanks.