By Angus McDowall and Raya Jalabi BEIRUT/ERBIL (Reuters) - Islamic State's self-proclaimed caliphate was on the verge of final defeat on Friday, with Syrian government forces capturing its last major city on one side of the border and Iraqi forces taking its last substantial town on the other. The losses on either side of the frontier appear to reduce the caliphate that once ruled over millions of people to a single Syrian border town, a village on a bank of the Euphrates in Iraq and some patches of nearby desert. Iraq's Prime Minister Haidar Abadi announced that government forces had captured al-Qaim, the border town where the Euphrates spills from Syria into Iraq.
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