US acts to win over Iraqi cleric on handover

The United States acted to smooth over a dispute with Iraq's top Shi'ite Muslim cleric today, saying it may agree to some changes…

The United States acted to smooth over a dispute with Iraq's top Shi'ite Muslim cleric today, saying it may agree to some changes to its plan for a handover of power to Iraqis.

Turkey's powerful military warned a federation in neighbouring Iraq based on ethnic lines - meaning Kurdish autonomy - would be bloody, as Iraq's US Governor Mr Paul Bremer was set to meet President George W. Bush.

Washington said it was eager for the United Nations to return to Iraq to help with the planned handover by July, in a shift reflecting US concern about growing Iraqi opposition, particularly among the majority Shi'ites, to its plan.

"We are continuing to work within that (handover) framework and obviously there are discussions about ways to refine or improve that agreement," said White House spokesman Mr Scott McClellan. He declined to say what changes might be made.

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Iraq's most senior Shi'ite cleric, Ayatollah Ali al-Sistani, has refused to support the US plan for regional caucuses to select a transitional assembly which will pick an interim government for sovereignty by July.

He has demanded direct elections, but Mr Bremer says there is not enough time to organise them due to lack of electoral registers and laws.