Divided Iraqi South Posing New Obstacles

Since late March, Sadr has been in Najaf and the nearby city of Kufa, taking refuge among the holiest shrines in Shiite Islam. His Mahdi Army has fired on U.S. forces from inside shrines and mosques there and in Karbala, according to military spokesmen.

The fighting has spurred many residents of those cities to flee in increasing numbers. Many who have stayed are angry not only at the effect the violence has had on the local economy but by the peril it places on the Shiite shrines. Anti-Sadr demonstrations have sprung up -- and been broken up by the Mahdi Army.

The Supreme Council for the Islamic Revolution in Iraq also has a presence in Najaf and an armed wing, known as the Badr Brigades. Sadr has warned the council's militia not to be drawn into a fight against him and said Saturday that forming a local brigade including his men was a requirement for any political settlement.

"The Mahdi Army is composed of Iraqis, so it's normal that some of its men will join the new brigade, as long as the force is independent and the occupation forces don't interfere in forming it," said Qays Khazali, Sadr's spokesman in Najaf. "I think people will accept this idea. I talk to people here and I see they like the idea. It's a lot better to solve the problem in this way."

U.S. military officials have suggested publicly that once the Mahdi Army has disbanded, its members could join such a force, even though they are avowed enemies of the occupation. But Khazali said the United States has rejected the idea, and negotiations over whether it could be formed have stopped for the moment.

"Najaf has political stakeholders, tribal sheiks and a very organized moderate religious element," Hertling said in downplaying the possibility of forming the brigade. He said sending in a battalion of the Iraqi Civil Defense Corps, one of several security forces being assembled and trained by the Americans, would "better address the requirements needed in this situation."

The improvised agreement that ended the Marines' month-long siege of Fallujah established a local militia to patrol the city, led by Iraqi generals who served under Hussein. But while bringing a measure of peace to the city, the Fallujah Brigade also embittered many Iraqis and some inside the U.S. occupation authority for the message it seemed to send. Shiites, in particular, were stunned by the sight of Hussein's former generals in olive-green uniforms wielding power a year after U.S. officials dissolved the army.

There are also signs that it may not be providing the security its leaders promised. At least two Marines were killed last week near Fallujah in roadside ambushes.

Special correspondent Omar Fekeiki contributed to this article.