Britain to cut Iraq force to 5,500 in 2007-Blair

LONDON, Feb 21 (Reuters) Prime Minister Tony Blair said today that Britain would reduce its troop levels in Iraq by 1,600 over coming months, but its soldiers would stay in the country into 2008 as long as they were wanted.

''The actual reduction in forces will be from the present 7,100 -- itself down from over 9,000 two years ago and 40,000 at the time of the conflict -- to roughly 5,500,'' Blair told parliament.

''The UK military presence will continue into 2008, for as long as we are wanted and have a job to do,'' he said.

The planned withdrawal comes as British troops hand over responsibility for security in Iraq's southeastern region to Iraqi forces.

It coincides with a surge of U S forces in Baghdad in a bid to quell a violent insurgency there.

Blair said the reduction in British troop levels would not mean a ''diminution of our combat capability''.

British forces will take up a support and training role and most would be located at Basra air base, he said.

Some troops would remain at Basra Palace until the Iraqis were also able to take over that site, but these could be reduced in time.

''Over time ... we will be able to draw down further, possibly to below 5,000 once the Basra Palace site has been transferred to the Iraqis in late summer,'' he said.

REUTERS PDM HT1845