s toward the achievement of milestones on
national reconciliation, security, and governance, the United States
should make clear its willingness to continue training, assistance,
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 constitutional 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 incr