More than a year after the fall of Saddam, the US has put forward plans to create a democratic Iraq. Nick Morrison looks at what happens next - and what it means for British troops.

AMONG the many concerns raised over the invasion of Iraq, back in the days when Saddam was still in power and weapons of mass destruction were all the rage, was the lack of an exit strategy. It is all very well to topple the dictator, the worriers said, but what happens next? How do we ensure that we are not drawn into a situation from which it is impossible to extricate ourselves? And, perhaps even worse, how do we ensure the country does not collapse into civil war when our troops depart?

Now, more than a year after Saddam was ousted, George Bush and his trusted ally, Tony Blair, have come up with their answer. In a keynote speech on Monday night, designed to help rid himself of the albatross which threatens his re-election bid, the President said he was committed to creating a democratic Iraq, and set out five "specific steps" to achieve that objective.

The US and the UK have also tabled a draft resolution at the United Nations on plans to transfer power to an interim Iraqi government on June 30. But what will this mean in practice? How will a new government be formed? And does this mean British troops will soon be pulled out of Iraq?

Q What is happening on June 30?

A The Coalition will hand over power to an interim Iraqi government, and the US-UK occupation will formally come to an end. The interim government will be appointed by the Coalition, in consultation with UN envoy Lakhdar Brahimi and Iraqi politicians, and will include a president and two deputy presidents, although the principle role will be that of prime minister.

Q Does this mean British troops will leave Iraq on June 30?

A No. The troops will stay, at the formal request of the interim government, although the plan is that their role will gradually be taken on by Iraq's own security forces.

Q What power will the interim government have?

A Mr Blair is keen to emphasise that it will have "sovereignty" over Iraq, although its actual powers will be limited. It will not be able to change fundamental laws and its control over the country's oil revenues will be restricted, as a budget has already been set.

But at his monthly press conference yesterday, the Prime Minister said that "final political control" of the Coalition forces will rest with the interim government. He said the Iraqi government would have a veto on military action undertaken by Coalition forces, such as the recent US assault on Falluja, although this had yet to be confirmed by the White House last night, and the draft resolution presented to the UN talks of limited Iraqi control over Coalition military operations. Mr Blair also said that "no one can order British troops to do what they don't want to do".

Q What is happening at the UN?

A The US and UK have tabled a draft resolution, setting out how the handover of power will take place. If passed, this resolution would give Coalition troops authorisation to stay, and would also lend international legitimacy to the proposals, helping to alleviate some of the criticism which has been directed at President Bush and Mr Blair for invading Iraq without UN backing.

The resolution seeks to create a "multinational force" (MNF), of US, British and other troops, with a right to use "all necessary means" to maintain order, apparently contradicting Mr Blair's promise that Iraq will have a veto over their actions.

Q What has been the reaction to the draft resolution?

A An early sticking point has been over exactly how much sovereignty the Iraqi interim government will have, particularly where security is concerned. France, a permanent member of the UN Security Council, says the new Iraqi government would not be credible unless it was given real power. Russia and China, also permanent members, say they are studying the resolution, before debate resumes today.

In the Middle East, there is a widespread belief that the resolution, and President Bush's speech, is more about trying to recover support at home than about helping rebuild Iraq, and that it will mean little to ordinary Iraqis who are having to contend with an increasingly violent country.

Q What of President Bush's "five significant steps"?

A These are intended to show that the US is committed to handing over power, and to try and undo some of the damage caused by the US ill-treatment of Iraqi prisoners. These steps, which are largely contained in the UN draft resolution, are: handing over authority to a sovereign Iraqi government; helping establish security and stability in Iraq; rebuilding Iraq's infrastructure; encouraging more international support, and moving towards free elections. Critics have pointed out that only the first of those steps is "specific", and that there is no commitment to a withdrawal of troops.

Q What about Saddam Hussein?

A There are no plans to hand over senior prisoners, including Saddam, to the Iraqis, although Iraqi law will apply in the prisons.

Q Will the interim government have the power to order foreign troops to leave?

A This will be one of the major stumbling blocks, and is still unclear. Mr Blair said yesterday that it would be up to the Iraqi government and its people to decide whether the troops stay or not, but this is not specified in the draft UN resolution, to the dismay of the Iraqi Governing Council, which says it must guarantee their right to ask troops to leave. Council president Ghazi al-Yawar said that although there was a need for the multinational troops to stay in the short-term, they wanted the right to ask them to go if they thought it was in the country's best interests. He also said they wanted control over the revenue from oil sales.

Q How long could British troops be in Iraq?

A Mr Blair says he does not want to be bound by arbitrary deadlines, but Iraq's Defence Minister, who met UK counterpart Geoff Hoon yesterday, says he expected it to be months rather than years. In the only recent precedent, British troops are still in Afghanistan, two-and-half years after the invasion. France wants a time limit set for withdrawing troops, but the draft UN resolution says there will be a review after a year.

Q What will happen to the interim government?

A As its name suggests, it is meant to be only a temporary authority, until elections are held to a National Assembly, in December or January. This Assembly will then choose a transitional government, which will have law-making powers, which will have the responsibility of drawing up a new constitution. This, in turn, will be put to a referendum in autumn next year, with a new, elected government taking power in early 2006.

Q What happens next?

A The US and UK hope the members of the interim government will be named by the end of the month and that the draft resolution will be agreed in time for the D-Day celebrations on June 6.