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Summary form only given. GaAs(001)/ Fe 40nm/ Ag 2nm epitaxial films were fabricated by MBE technique. The main epitaxial relationship is GaAs(001)/Fe(001)/Ag(001) for the deposition temperature of iron, Tg ⩾ 100°C. From the study of longitudinal magneto-optical Kerr effect, we observed two-step magnetic switching behavior along Fe[l10] and [1-10]. This indicates that these films have a strong crystalline induced biaxial magnetic anisotropy. Interestingly, for Tg ⩽ 1OO°C, the images of atomic force microscopy show that there are many surface defects with height~ lOnm and lateral dimension~ l0Onm on the film surface, as shown in Fig. 1, and the defect density drops rapidly while increasing the Tg. For example, the defect density for Tg= 50°C, 100°C and 200°C is 37, 18 and 0 per μm2.