U.S. Hands Authority To Iraq Two Days Early

As Bremer turned over the document, Baghdad residents went about business as usual. It was not until 30 minutes later that the first news bulletins ricocheted across the capital, startling residents as they saw the news in cafes and office buildings. There was no noticeable celebratory gunfire, which often occurs during memorable moments in Iraq.

The brief ceremony occurred in a nondescript room in Allawi's new office. Other than Bremer, Allawi and Yawar, only three people participated: Chief Justice Mahdi Mahmoud, Deputy Prime Minister Barham Salih and British envoy David Richmond. They sat on chairs upholstered in gold fabric as a dozen aides and a score of journalists stood off to the side.

Bremer noted that Allawi's government, which includes 32 cabinet ministers appointed this month, had taken control of all of Iraq's ministries over the past few weeks. "You have moved very quickly to assume the authority," Bremer said.

The participants then stood and Bremer opened a blue portfolio to read from the document. "The task of the Coalition Provisional Authority will end on the 28th of June, and at this time, the occupation will end and the interim Iraqi government will assume the complete sovereignty on behalf of the Iraqi people," he said. "We welcome the steps of Iraq toward assuming its legitimate role among all free countries of the world."

Bremer said the document was signed by "Paul Bremer, ex-administrator," prompting chuckles from everyone in the room.

Allawi and the other members of his government were sworn in six hours after the handover, in a ceremony attended by several dozen people and televised live. Placing their right hands on a Koran, Allawi, Yawar and the others pledged to uphold a unified and democratic government.

After he took the oath of office, Allawi made an appeal for national unity and said he would invite members of Iraq's disbanded army and Hussein's Baath Party to return to public life. "Baathists who have not taken part in crimes will be rehabilitated," he said. The old army, he said, "is an army of Iraq, not of Saddam. They are our brothers and sons."

Allawi said he would reconstitute elements of the old army to combat the insurgency, which he blamed on outsiders. They are "mercenaries that come into Iraq from different countries to attack the Iraqi people," he said.

"Our dear Iraq is now at a setback, but it is a very temporary setback," he said. "We will rise up after that like mountains, standing up very firm. And we will protect all the people regardless of religion, color or any other consideration, so every Iraqi will have the right to their unified, united Iraq where brotherhood and justice prevail."

Correspondent Doug Struck and special correspondent Khalid Saffar contributed to this report.