For Iraqis and foreigners who earnestly aspire for a return to stability in the war-ravaged country, the formation of an Iraqi government wholly controlled by the Iraqis themselves serves as an important step.

Thus, the formation of the nation's new interim government on Tuesday, although fraught with obvious signs of compromises between various parties involved, was encouraging.

Hopes are high that the government will work quickly to revive Iraq's sluggish post-war reconstruction.

The newly-declared Iraqi caretaker cabinet will take office on June 30 when the United States has promised to transfer power to Iraqis and last until next year, after which a new transitional government will be elected to run the country.

According to the US post-war arrangement, the interim government will undertake a series of challenging tasks during its limited term, such as taking over partial sovereignty from the US-British forces, constructing the nation's own security force, fighting increasingly rampant terrorism to maintain peace and security, and making preparations for a national election due to be held no later than the end of January next year.

With the formation of the new Iraqi government on Tuesday, the US-controlled Iraqi Governing Council was formally dismissed.

The establishment of an interim government signals a step forward in the country's bumpy reconstruction process, although it will have a nominal rather than decisive role.

With the continued presence of nearly 140,000 American troops and diplomats in the ministries of the new government, significant power will remain in American hands.

American officials said from 110 to 160 American advisers will be layered through Iraq's ministries, in some cases on contracts signed by the occupation authority, extending beyond June 30.

As for "sovereignty," American officials have said decision-making authority over security matters will be shared. But according to a second draft of the resolution the United States and Britain sent to the United Nations Security Council on Iraqi sovereignty, circulated among Council members on Tuesday night, the United States security mandate will extend to December 2005, after a constitution has been approved and a permanent government put in place.

Tough security questions, such as whether Iraqi forces can refuse to join a US military operation, are left for future negotiations.

It's still unclear whether or not the Iraqis can really master their own fate at their own will after the new government is sworn in.

On the declared lists of the ministers of the government, one-third were members of the outgoing US-British controlled Governing Council.

Iyad Allawi, appointed as the prime minister of the new government, has close relations with the United States, to which most of his fellow compatriots have an aversion.

US President George W Bush hailed the formation of the interim government as "one step closer" to democracy.

Bush also said the United States had not involved itself in the creation of the new government and that the government was being given "full sovereignty."

Maybe no one in the world but Bush himself believed his words.

The suicide attack that took place at the "Green Zone" compound where the US-led administration in Baghdad is based almost at the same moment the interim government was nominating candidates could give Bush the best answer.

Besides killing or injuring at least 25 people, the incident has also given a strong hint that the new Iraqi interim government will face an uphill struggle.

(China Daily June 3, 2004)