US gives Iraqis more powers

President Bush admits the coalition faces security problems

A governing council giving Iraqis a say in the running of their country is in the final stages of being set up.

The council is expected to have between 20 and 30 members and will be consulted on all major issues.

But while it will have powers to name ministers, the Americans will still have the final say on any decision affecting the country.

One of the men who will sit on the new governing body, Mahdi al Hafez, told the BBC its inaugural meeting would be held in Baghdad on Sunday.

He is the deputy leader of the independent democratic bloc headed by a former Iraqi foreign minister, Adnan Pachachi.

It will be the first Iraqi executive body to begin functioning since Saddam Hussein's regime was toppled by US-led forces in May.

In a further shift, the US military has announced it is gradually handing over policing in the flashpoint city of Falluja, west of Baghdad, to Iraqi police.

It comes days after US President George W Bush acknowledged coalition forces faced problems with security in the country.

The BBC's James Reynolds in Baghdad says the establishment of a governing council is an important political moment for the country.

We asked [the Americans] to leave and they did so... I hope the attacks will stop in this city Mayor of Falluja

It is expected to be made up of a small majority of Shia Muslims - a marked shift for a country traditionally led by the minority Sunnis - and more internal Iraqi politicians than those who have returned from exile.

The council, apparently chosen by consensus, will be consulted by the Americans on all major issues and its suggestions will be considered with "favourable intent".

Although the real power still rests with the US, those setting up the council hope it will convince the Iraqi people that they are getting a chance to govern their country, says our correspondent.

The council is also seen as paving the way for the writing of a new constitution and the staging of democratic elections.

Instability

On Friday, the US pulled some of its troops out of a police station in Falluja.

It came a day after Iraqi police officers held a rally threatening to resign unless US forces left, following rocket-propelled grenade attacks on the police station and mayor's office.

US forces have met hostility in Falluja

The mayor of Falluja, Taha Bedewi, said: "The Americans were inside the mayor's office building to protect us but now we have told them that the police can handle the issue.

"We asked them to leave and they did so... I hope the attacks will stop in this city."

But US Colonel Joseph Disalvo said on Saturday no comprehensive retreat from the city was planned, just a gradual withdrawal as more Iraqi police officers are trained and equipped.

"We have reduced our presence (at the police station) just a little bit, just as planned. By less than 10%," he said.

"Does that mean we are going to decrease the total amount of coalition military police in the Falluja area? No. We will just have them focus on different areas."

The latest moves follow a spate of attacks on coalition troops by resistance fighters in the country.

General Tommy Franks, who until recently was at the helm of US-led forces in Iraq, said attacks on US soldiers were occurring at a rate of 10 to 25 a day.

More than 30 have been killed in attacks since the war was declared over.

US President George W Bush admitted recently the troops faced problems.

"There is no question that we have got a security issue in Iraq and we've got to deal with it person by person - we're going to have to remain tough," he said.