Thursday, May 29, 2008

STOCKHOLM (AFP)--U.N. chief Ban Ki-moon Thursday hailed the progress made in Iraq, insisting that the war-torn country could become "a free, secure, stable and prosperous nation," with international help.

"Iraq is stepping back from the abyss that we feared most," Ban told delegates from around 100 governments and international organizations gathered on the outskirts of the Swedish capital for a one-day conference.

He went on to caution however that "the situation remains fragile."

"The Iraqi people continue to suffer from acts of terrorism, sectarian violence and criminality. Many endure forced displacement and human rights violations. Essential services are still sorely lacking," he said.

Up to 600 delegates were at the conference, being hosted by Ban and Iraqi Prime Minister Nouri al-Maliki and attended by among others U.S. Secretary of State Condoleezza Rice.

It is the first follow-up meeting since the International Compact with Iraq, a five-year peace and economic development plan, was adopted at a May 2007 international conference at the Egyptian Red Sea resort of Sharm el-Sheikh.

At that meeting senior officials from more than 60 countries and organizations promised to cancel $30 billion of Iraqi debt.

"Much has been accomplished since then," Ban said.

"If I were asked to use one word to describe the situation in Iraq today, I would choose the word 'hope'," he said.

"Notable progress has been made in all three pillars of the compact - in the security, political and economic fields, despite the challenges," he said.

"For this, Prime Minister al-Maliki, his government, and the people of Iraq deserve our commendation," he added.

While the security situation had improved greatly, Ban insisted it was "essential to keep building professional security forces that are trusted by all Iraqi communities, capable of taking over security responsibilities in an impartial and non-sectarian manner, while respecting human rights and the laws of the land."

Success had also been made in the political sphere, Ban said, citing the passage of the Justice and Reconciliation Law, the Amnesty Law, the Provincial Powers Law and the 2008 budget.

"I encourage Iraqi leaders to maintain this positive momentum, and finalize as soon as possible other pending laws that are critical to national reconciliation," he said.

If Iraq is to achieve lasting peace, it will also be essential for the country to create "an inclusive dialogue," he said.

"This means building further on interaction with groups that are outside the political process, but willing to renounce violence and enter into dialogue," he said.

On an economic level, there was also reason for hope for Iraq, the U.N. chief said, pointing out that the country had rich natural resources and that Baghdad had "made great strides in meeting (International Monetary Fund) commitments."

The situation remained dire however for the many citizens lacking clean water and sanitation, electricity, fuel, health care and education, as well as for the vast numbers of external and internal refugees.

"The international community has an obligation to assist them. But I am also hopeful that the government of Iraq will consider ways of spending more of its own resources to improve the lives of its people," he said.

"The U.N. is committed to supporting Iraq in this mission."

(END) Dow Jones Newswires

29-05-08 0920GMT