BAGHDAD: The US-led coalition formally transferred sovereignty to an interim Iraqi Government two days earlier than expected yesterday, ending 14 months of occupation.

The handover was done in secret, apparently to forestall feared guerrilla attacks.

Iraq's departing US Administrator Paul Bremer handed a letter to Iraqi leaders to seal the transfer of powers before immediately flying out of the country.

The low-key ceremony was over before it was announced and came as a surprise to ordinary Iraqis. Its hurried and furtive nature appeared to reflect fears that guerrillas could stage a spectacular attack on the scheduled date of June 30.

"This is a historic day," interim Prime Minister Iyad Allawi said. "We feel we are capable of controlling the security situation."

At a second ceremony in the afternoon - this time broadcast live on Iraqi television - the government was sworn in and Allawi urged all Iraqis to stand together against foreign militants now wreaking havoc in the country.

"I call on our people to stand united to expel the foreign terrorists who are killing our children and destroying our country," Allawi said, in comments broadcast around the world.

At the earlier ceremony, which formally transferred sovereignty at 10:26 am (0626 GMT), President Ghazi Yawar hailed "a historic day, a happy day, a day that all Iraqis have been looking forward to."

US officials attending a NATO summit in Istanbul admitted that thwarting a surge in attacks believed planned for the formal June 30 handover was a factor in the decision to advance it to yesterday, which they said Allawi had requested.

Such an attack could have damaged US President George W. Bush, who faces a presidential election in November.

Newly-appointed US Ambassador to Iraq John Negroponte will arrive soon to replace Bremer.

Although Allawi's government will have "sovereignty," according to a UN Security Council resolution earlier this month, there are important constraints on its powers.

It is barred from making long-term policy decisions and will not have control over the more than 160,000 foreign troops who will remain in Iraq.

The Iraqi Government has the right to ask them to leave, but the interim government has made it clear it has no intention of doing so.

Allawi said after the handover that he was committed to holding previously scheduled elections in January.

As part of the handover, ousted leader Saddam Hussein will soon go before an Iraqi judge to be charged and transferred to Iraqi legal custody, but will still be physically held by US-led forces, a military official said. "He will stand in front of an Iraqi judge and he will be handed his indictments," he said.

Agencies via Xinhua

(China Daily 06/29/2004 page1)