Military

DATE=8/27/04

TYPE=CORRESPONDENT REPORT

TITLE=IRAQ WRAP (L-ONLY)

NUMBER=2-318539

BYLINE=LAURIE KASSMAN

DATELINE=WASHINGTON

INTERNET=

HEADER: Najaf Calm as Peace Deal Implemented

INTRO: Calm reigned in Najaf Friday, as Shi'ite militants abandoned the holy Imam Ali shrine in accordance with a peace deal brokered by Iraq's top Shi'ite cleric Ayatollah Ali al-Sistani. The agreement ended a three-week uprising by radical cleric Moqtada al-Sadr. But violence persists in northern Iraq. And Italy mourns the execution of an Italian hostage in Iraq. Correspondent Laurie Kassman wraps up the day's developments.

TEXT: /// CHANTING ///

Fighters loyal to firebrand cleric Moqtada al-Sadr walked peacefully out of Najaf's holy shrine Friday, ending a three-week standoff with Iraqi and U.S. forces.

///PRAYERS AND FADE ///

For the first time in three weeks, traditional Friday prayers were held without the staccato of gunfire in the background.

In a peace deal brokered late Thursday, the militants agreed to lay down their weapons and hand the keys of the mosque to Grand Ayatollah Sistani.

Iraqi police will take over security of the holy city. U.S. forces are to withdraw from Najaf. Iraq's interim government has agreed to compensate victims of the fighting.

/// ARABIC AND FADE ///

Najaf residents express cautious optimism the peace agreement will hold, and are now looking at how to repair the city and resume their daily routines. Much of the city center has been badly damaged by the gun battles and bombings.

The calm of Najaf on Friday contrasted sharply with other parts of Iraq.

U.S. warplanes bombed the western city of Fallujah, which is considered an insurgent stronghold. Eight suspects were detained in Baghdad in connection with two grenade attacks in the city center. And, in the northern city of Mosul, several Iraqi civilians and an American soldier were wounded when a bomb exploded near a U.S. convoy.

In other news, Italians on Friday mourned the death of journalist Enzo Baldoni who was executed by his Iraqi kidnappers. The militants had threatened to kill him if Italy did not withdraw its troops.

Foreign Minister Franco Frattini calls the assassination a brutal tragedy, but says his country remains committed to its military presence in Iraq.

/// FRATTINI ACT ///

"Italy is and will remain firmly committed toward peace and democracy and stability in Iraq. So, we will stay there, because the new government legitimated by the United Nations and led by Prime Minister (Iyad) Allawi asked us to remain there, and we will remain there."

/// END ACT ///

Elsewhere in Europe, French President Jacques Chirac has invited Iraq's interim president for talks next month. France had refused to participate in the U.S.-led war in Iraq, but now wants to talk about cooperation with Iraqi authorities in security training and general reconstruction efforts. (SIGNED)

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