HURRICANE GUSTAV, which it was feared would cause major damage as it hit the city of New Orleans on the eastern coast of the US, was downgraded to a category one hurricane after making landfall on Monday.
Around two million people fled the Gulf Coast as Gustav approached and only 10,000 were believed to have stayed in New Orleans, after many homes and towns were destroyed in the Caribbean as heavy floods hit the Bahamas, Cuba and Puerto Rico. At least 19 people were also killed on the island of Haiti.
There were fears that the levees that collapsed under the force of Katrina in 2005 could have been susceptible again and that a storm surge of between three and four metres could be possible later, experts warned.
Waves splashed over floodwalls containing the New Orleans Industrial Canal while 15cm of water gather in some streets near the canal.
The US Army Corps of Engineers said the levees had not been breached and city pumps were able to keep up with the flooding.
On Wednesday, the mayor of New Orleans, Ray Nagin, said that residents could start returning on Thursday, but warned that some areas were still without power, the sewage system was damaged and hospitals were working with only skeleton crews.
A National Guard official said the Department of Defence had authorised up to 50,000 troops to help with rescue, clean-up and the possibility of looting.
The threat of hurricane Gustav forced the oil industry from Texas to New Orleans to shut down many offshore platforms and refineries.
