Negotiators see Iraq government ready this week

BAGHDAD, May 16 (Reuters) Iraqi Prime Minister-designate Nuri al-Maliki is putting final touches to his new government and may be able to announce it as early as Thursday, four days ahead of a constitutional deadline, negotiators today said.

Disputes within the dominant Shi'ite Alliance and between the country's sectarian factions have hitherto hampered efforts to form a unity government, which the United States hopes will be able to put an end to daily bloodshed.

''The government is in its final form now. Maliki will absolutely meet the constitutional deadline and will announce the government before it,'' said Dhafir al-Ani, spokesman of the Sunni Accordance Front.

''Nobody wants him to fail. Even those who oppose the political process will not put obstacles,'' he added.

Several senior negotiators said they expected the Shi'ite leader to unveil a full cabinet shortly, most likely on Thursday.

Among sticking points are a dispute over the Health Ministry between Sunnis and radical Shi'ite cleric Moqtada al-Sadr and uncertainty over the key Interior and Defence Ministry posts.

Maliki could choose to leave those posts vacant, but negotiators said it seemed that may not be necessary.

''With all this going on, I think the government will be ready soon,'' said a senior Shi'ite negotiator.

''When I say soon I mean probably in the next 48 hours.'' HEALTH MINISTRY Sadr's movement, one of the three big elements of the Alliance, has made veiled threats of boycotting the government altogether if the Health Ministry is taken away from them.

''We will not give up the Health Ministry for anything,'' said Riyad al-Nuri, a political aide to Sadr.

While they have agreed that the job should go to someone from the Sunni Accordance Front, fellow Shi'ite parties are also keen not to have Sadr's people walk out of the negotiations.

Such disputes have become familiar since Maliki began assembling Iraq's first full-term government since US-led forces toppled Saddam Hussein in 2003.

Yesterday the small but influential Fadhila party said it would not take part in the future cabinet. The group criticised what it called US interference. Alliance sources said the Fadhila party was angry at losing the crucial Oil Ministry job.

The Alliance has nominated nuclear scientist Hussain al-Sharistani for the oil post but Fadhila wanted it for one of its members, possibly current Oil Minister Hashem al-Hashemi.

Shi'ite sources said among strong candidates for the Interior Ministry is Ahmad Chalabi, a deputy prime minister in the outgoing government. A secular Shi'ite who failed to win a seat in December after running outside the Alliance, Chalabi was a Pentagon favourite when in exile but fell out with Washington.

Current Interior Minister Bayan Jabor, a Shi'ite accused by Sunni leaders of running death squads, could become finance minister, the Shi'ite sources added.

Reuters SY GC2120