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By Susannah Price
BBC correspondent in New York
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Kofi Annan reported to the Security Council after a UN team visited Iraq
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United Nations Secretary-General Kofi Annan says Iraq could have elections within the year - if Iraqis can agree on how they should be held.
But, he told the UN Security Council, many obstacles remain to agreement.
Amongst these are the questions of how to transfer sovereignty by the end of June and establish a framework for elections.
The US and Iraq's interim governors say they want elections to be held by 2005, after agreement on a new constitution.
Mr Annan's report follows a visit to Iraq by a UN fact-finding mission.
The UN secretary-general said elections could be held in Iraq by the end of the year, but certain conditions had to be fulfilled.
Mr Annan said there needed to be an agreement on the framework for the polls, including the method of voter registration and what electoral system would be used.
After that, the preparations for the general election would take at least eight months.
'Up to Iraqis'
The UN mission which went to Iraq was told there could be a political agreement by May this year.
Mr Annan also warned that an improved security environment was a precondition for elections.
The UN team, which was asked to go to Iraq by Washington, found wide agreement there should be direct national elections and that the end of the June deadline for the transfer of power should be respected.
However, the secretary-general's report still gives no recommendations on the transitional process.
It says the coalition accepts that its plans to hold caucus-style meetings are alien to Iraqis.
However, Mr Annan only outlined alternatives, such as extending the life of the existing Governing Council, enlarging this body or holding a national conference.
The secretary-general stressed it was up to the Iraqis themselves to decide on the way forward.