DUBAI: Arab states seem to be adopting a wait-and-see attitude, and reserving their kudos, after Iraqi leaders cut a deal on Tuesday with the United States and United Nations on a new interim government that will lead the country towards its first elections, next year, in a post-Saddam Hussein era.

While reservations were expressed over whether the interim Iraqi government could lead the occupied country to political independence, Arab leaders, however, were careful to congratulate only the appointed interim president.

Sheikh Ghazi Ojeil Yawar, an influential tribal chief appointed as president in defiance of the United States, called for the United Nations to give Iraq full sovereignty when the US-led occupation authority is wound up on June 30. But the sticking point is still Washington's insistence that 150,000 foreign troops, most of them from the United States, remain in Iraq for the foreseeable future to provide security.

After two days of bitter confrontation, the US government and UN envoy Lakhdar Brahimi finally accepted Mr Yawar in the largely ceremonial role of head of state after their preferred candidate, elder statesman Adnan Pachachi, turned down the job.

In return, the US-appointed Iraqi Governing Council agreed to dissolve itself with immediate effect and accepted a cabinet line-up under Iyad Allawi, who was appointed prime minister.

At the swearing-in ceremony, Mr Yawer said his goal was to make Iraq one nation, "without murderers and criminals". The first cautious reactions to the new Iraqi interim government came from Arab League Secretary-General Amr Moussa, whose organization is meant to embody the 22 Arab states.

Referring to the selection of Mr Yawar as the interim president, Moussa said: "As long as there was consensus of opinion between all those connected with the subject, then Mr Yawar represents the joint will of the Governing Council."

Mr Moussa stopped short of making any comments about the new interim government. When the Iraqi Governing Council was first appointed last July by the US civil administrator in Iraq, Paul Bremer, the Arab League refused to grant it recognition.

But after interventions from the United States and its allies in the league, Iraq's membership was provisionally renewed for a year. Like the Arab League chief, Egyptian President Hosni Mubarak was equally circumspect.

According to the official Middle East News Agency, the Egyptian leader affirmed "Egypt's complete support for his (Yawar's) future plans to underpin the pillars of sovereignty, independence and authentic national governance."

Prime Minister Allawi and his cabinet did not even receive a mention in Mr Mubarak's statement. Similar statements were made in neighbouring Jordan by Foreign Minister Marwan Moashar.

Without naming names, Mr Moashar said: "Jordan will accept whomever the Iraqi people choose to guide them in the right direction to take back their sovereignty." The Jordanian head of state, King Abdullah, who was on his way overseas, did not make any remarks. But the only welcoming voice came from Iran.

"This government may not fulfil all of our expectations, but it is a step forward. We are happy that this government has begun its work," Hassan Rowhani, a cleric who heads the Islamic republic's Supreme National Security Council, told IPS.

The reluctance of many Arab states to openly welcome the new interim Iraqi government stems from the fact that they are unsure of the future role of the United States in the occupied country.

Many Arab leaders are wary the interim government will have limited authority to steer the country towards National Assembly elections, scheduled at the end of January 2005, given the interference of the United States in every aspect of post-Saddam Iraq - from security to politics.

"The reality here is that Iraq is still under US occupation. Washington still calls the shots and continues to push to have its way," said an Arab League official in Cairo who asked not be named. -Dawn/The Inter Press News Service.