The U.S. government must make clear that it expects action by the Iraqi government to make substantial progress toward these milestones.

Such a message can be sent only at the level of our national leaders, and only in person, during direct consultation.

As President Bush's meeting with Prime Minister Maliki in Amman, Jordan demonstrates, it is important for the President to remain in close and frequent contact with the Iraqi leadership. There is no subst.i.tute for sustained dialogue at the highest levels of government.

During these high-level exchanges, the United States should lay out an agenda for continued support to help Iraq achieve milestones, as well as underscoring the consequences if Iraq does not act. It should be unambiguous that continued U.S. political, military, and economic support for Iraq depends on the Iraqi government's demonstrating political will and making substantial progress toward the achievement of milestones on national reconciliation, security, and governance.

The transfer of command and control over Iraqi security forces units from the United States to Iraq should be influenced by Iraq's performance on milestones.

The United States should also signal that it is seeking broad international support for Iraq on behalf of achieving these milestones. The United States can begin to shape a positive climate for its diplomatic efforts, internationally and within Iraq, through public statements by President Bush that reject the notion that the United States seeks to control Iraq's oil, or seeks permanent military bases within Iraq. However, the United States could consider a request from Iraq for temporary bases.

RECOMMENDATION 19: The President and the leadership of his national security team should remain in close and frequent contact with the Iraqi leadership. These contacts must convey a clear message: there must be action by the Iraqi government to make substantial progress toward the achievement of milestones. In public diplomacy, the President should convey as much detail as possible about the substance of these exchanges in order to keep the American people, the Iraqi people, and the countries in the region well informed.

RECOMMENDATION 20: If the Iraqi government demonstrates political will and makes substantial progress toward the achievement of milestones on national reconciliation, security, and governance, the United States should make clear its willingness to continue training, a.s.sistance, and support for Iraq's security forces, and to continue political, military, and economic support for the Iraqi government. As Iraq becomes more capable of governing, defending, and sustaining itself, the U.S. military and civilian presence in Iraq can be reduced.

RECOMMENDATION 21: If the Iraqi government does not make substantial progress toward the achievement of milestones on national reconciliation, security, and governance, the United States should reduce its political, military, or economic support for the Iraqi government.

RECOMMENDATION 22: The President should state that the United States does not seek permanent military bases in Iraq. If the Iraqi government were to request a temporary base or bases, then the U.S.

government could consider that request as it would in the case of any other government.

RECOMMENDATION 23: The President should restate that the United States does not seek to control Iraq's oil.

Milestones for Iraq

The government of Iraq understands that dramatic steps are necessary to avert a downward spiral and make progress. Prime Minister Maliki has worked closely in consultation with the United States and has put forward the following milestones in the key areas of national reconciliation, security and governance:

NATIONAL RECONCILIATION

By the end of 2006-early 2007:

Approval of the Provincial Election Law and setting an election date

Approval of the Petroleum Law

Approval of the De-Baathification Law

Approval of the Militia Law

By March 2007:

A referendum on const.i.tutional amendments (if it is necessary)

By May 2007:

Completion of Militia Law implementation

Approval of amnesty agreement

Completion of reconciliation efforts

By June 2007:

Provincial elections

SECURITY (pending joint U.S.-Iraqi review)

By the end of 2006:

Iraqi increase of 2007 security spending over 2006 levels

By April 2007:

Iraqi control of the Army

By September 2007:

Iraqi control of provinces

By December 2007:

Iraqi security self-reliance (with U.S. support)

GOVERNANCE

By the end of 2006:

The Central Bank of Iraq will raise interest rates to 20 percent and appreciate the Iraqi dinar by 10 percent to combat accelerating inflation.

Iraq will continue increasing domestic prices for refined petroleum products and sell imported fuel at market prices.

RECOMMENDATION 24: The contemplated completion dates of the end of 2006 or early 2007 for some milestones may not be realistic. These should be completed by the first quarter of 2007.

RECOMMENDATION 25: These milestones are a good start. The United States should consult closely with the Iraqi government and develop additional milestones in three areas: national reconciliation, security, and improving government services affecting the daily lives of Iraqis. As with the current milestones, these additional milestones should be tied to calendar dates to the fullest extent possible.

2. National Reconciliation

National reconciliation is essential to reduce further violence and maintain the unity of Iraq.