Iraq puts off federal debate as civil war fears grow

Iraqi lawmakers again put off a divisive debate on federalism that was set for Tuesday after a fresh wave of violence.

Iraqi lawmakers again put off a divisive debate on federalism that was set for Tuesday after a fresh wave of violence killed over 50 people and prompted a warning from the United Nations that Iraq was descending into civil war.

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In some of his bluntest remarks on Iraq, UN Secretary-General Kofi Annan told an international conference on Monday: "If current patterns of alienation and violence persist much longer, there is a grave danger that the Iraqi state will break down, possibly in the midst of full-scale civil war."

His remarks came on a day, which saw a bout of car bombs, shootings and sectarian killings across Iraq ahead of the holy month of Ramadan, when US officials are expecting an increase of violence by Al-Qaeda and other Sunni militant groups. Ramadan starts next week.

On Tuesday, a car bomb near a factory to fill gas canisters in southern Baghdad killed two people and wounded 24 others.

Shi'ite, Sunni and Kurdish legislators agreed late on Monday to again put off the debate on federalism some Iraqis fear could unleash more bloodshed and break up the country.

Some Shi'ite leaders want to create a Shi'ite region in the oil-rich south, modelled on the Kurdish region in the north.

Minority Sunnis, dominant under Saddam and now the core of the rebellion, fear federalism will break up Iraq and cut them off from its oilfields in the north and south. They want constitutional amendments that guarantees revenue-sharing.

After marathon discussions, leaders agreed to set up parliamentary commissions to deal with both issues at once.

"We have agreed not to present the bill to parliament on Tuesday and allow more time for discussion," a senior Shi'ite source told the agency at the end of a meeting. However, parliament will reconvene on Tuesday.