Historic day for Iraq as power is handed over

The US-led coalition formally transferred sovereignty to the interim Iraqi government in Baghdad on Monday as NATO leaders opened a summit in Istanbul,Turkey.

The low-key ceremony was held in the heavily-fortified Green Zone in Baghdad, two days ahead of the original schedule, aimed at wrong-footing insurgents who threatened to torpedo the handover process, sources said.

US civil administrator for Iraq Paul Bremer handed over legal documents to Allawi at about 10:30 a.m. (0630 GMT).

"This is a historic day," Allawi said at the ceremony. "We feel we are capable of controlling the security situation."

He vowed that there will be "no turning back" in the process to build a "free and democratic" Iraq following the power handover.

Iraqi President Ghazi al-Yawar said the day was "a happy day" that "all Iraqis have been looking forward to."

Bremer said he will "leave Iraq confident in the future and confident in the ability of the (Iraqi) government to meet the challenges of the future."

Bremer also handed Allawi and al-Yawar a letter from US President George W. Bush, requesting a resumption of diplomatic relations between the two countries which were frozen in 1990 after then Iraqi president Saddam Hussein invaded neighboring Kuwait.

Bremer is scheduled to leave Iraq on Monday, said coalition officials on condition of anonymity.

Meanwhile, Allawi said the interim government will announce new legal measures "today or tomorrow."

The handover was proceeded amid a series of bloody attacks and kidnapping of foreign hostages aimed at disrupting the transfer.

"We pleased that we are ahead of schedule. This gives Prime Minister Allawi more leverage and strengthens his hand to deal with the threats inside his country," said a senior US official who was attending the NATO summit in Istanbul.

Washington believes that Allawi's interim government is "fully capable and prepared to lead their country," the official said.

"We believe it is a key success to be ahead of schedule," he said, adding that the early handover would help deprive insurgents of a set date to focus upon.

The interim government has from now on shouldered the responsibility of rebuilding Iraq and will try its best to reintegrate the war-torn country into the international community at an early date, Iraqi Foreign Minister Hoshyar Zebari told reporters in Istanbul following the power transfer.

He added that Saddam Hussein will be handed over to Iraqis for trial sometime in the future.

Iraqi PM says elections to be held in January

"The Iraqi government is determined to go ahead with elections on Jan. 2 of next year and we insist on that," Allawi told reporters in Baghdad after a forwarded power transfer from the US-led coalition to his interim government.

Last week, media reports quoted Allawi as saying insecurity in Iraq might force the elections to be delayed to February or March of 2005.

Sovereignty was formally transferred to the Iraqi interim government after US civil administrator for Iraq Paul Bremer handed legal documents to Iraqi Prime Minister Iyad Allawi in a low-profile ceremony held in the former's office in the heavily-fortified headquarters, or the "Green Zone" at about 10:30 a.m. local time (0630 GMT).

The power transfer was brought forward two days before the original schedule in an attempt to surprise insurgents intent on disrupting the handover process.