US Pressures Kurds As new Deadline On Iraq Charter Looms

Sharp differences remain on federalism, the role of Islam and sharing of oil wealth, some of the key planks of the first post-Saddam Hussein charter which is now due to be put to parliament on Monday after an August 15 deadline was missed.

"We have a problem here... there is one group who wants a 21st century constitution and there is another group who wants a seventh century constitution," said one source closely involved in the negotiations.

"Unfortunately, America is looking at both the groups with the same eye. They just want the draft to be ready on time."

The Kurds, who also want their de facto autonomous northern region to include the oil centre of Kirkuk, have been demanding first rights to the oil produced there.

Last week, negotiators proposed one formula for distributing Iraq's vast oil wealth whereby each oil-producing region would take a small percentage for itself, with the rest transferred to Baghdad for national distribution.

An exact arrangement is still to be worked out and the Kurds are pushing for maximum gains.

Iraq's constitution, dogged by differences between the disparate ethnic groups, is seen as key to the country's political transition and possible early withdrawal of US-led troops.

It is due to go to a referendum in October ahead of new elections in December.

Sources close to the negotiations said US ambassador Zalmay Khalilzad, who attended meetings until late Saturday, has asked the Kurds to soften their stand on oil as well as their demand for self-determination.

"The US is pressuring the Kurds to give up these two demands," said one source.

Kurdish leaders on Saturday offered to compromise on self-determination.

They had been keen for language to be included in the charter giving them the right to self-determination, which would effectively allow them to secede from Iraq at some point in the future.

The United States on Saturday dropped its opposition to enshrining Islam as "the" main source of legislation and not just "a" main source -- a move aimed at pleasing the majority Shiites.

Washington is determined to see the date met after the first deadline was missed last Monday, fearing that any delay in the political process will benefit Sunni Arab insurgents.

The Kurds have rejected moves to make Islam as "the" main source of law, saying it would harm women's rights and Iraq's secular tradition.