BAGHDAD, Nov 5 (Reuters) - Britain will start accepting applications for refuge and financial assistance from Iraqi translators and others who have worked with British forces in Iraq, the British military said on Monday.

With Britain drawing down the number of its troops in Iraq, the treatment of interpreters who have worked for British forces in mainly Shi'ite southern Iraq has become a sensitive issue after several were hunted down and killed by militants.

Iraqi staff must have worked with the military or British civilian mission for at least 12 months and have been in their jobs between Jan. 1, 2005, and Aug. 8, 2007, a statement, in Arabic, said on Monday.

In the past Iraqi staff were not given asylum in Britain but Prime Minister Gordon Brown ordered a review of that policy in August. Washington is under similar pressure to help the hundreds of Iraqi interpreters working with U.S. forces and consular officials.

On Oct. 30, British Foreign Secretary David Miliband announced details about assistance for Iraqi staff, including 600 places for staff and dependents under existing refugee resettlement programmes for Iraqis in third countries.

Financial assistance packages would also be available, offering one month's salary for every two months they worked, as well as additional sums for dependents.

Around 90 Iraqi interpreters were working alongside 5,000 British troops earlier this year before Britain announced plans to reduce its contingent in Iraq. Brown has since announced plans to halve Britain's force to 2,500 by spring next year.

Britain sent 45,000 troops during the U.S.-led invasion to topple Saddam Hussein in 2003 and kept 7,000-8,000 troops in Iraq for most of the next four years.

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