easing domestic prices for refined petroleum
products and sell imported fuel at market prices.

RECOMMENDATION 24: The contemplated completion dates of the end of
2006 or early 2007 for some milestones may not be realistic. These
should be completed by the first quarter of 2007.

RECOMMENDATION 25: These milestones are a good start. The United
States should consult closely with the Iraqi government and develop
additional milestones in three areas: national reconciliation,
security, and improving government services affecting the daily lives
of Iraqis. As with the current milestones, these additional milestones
should be tied to calendar dates to the fullest extent possible.

2. National Reconciliation

National reconciliation is essential to reduce further violence and
maintain the unity of Iraq.

U.S. forces can help provide stability for a time to enable Iraqi
leaders to negotiate political solutions, but they cannot stop the
violence--or even contain it--if there is no underlying political
agreement among Iraqis about the future of their country.

The Iraqi government must send a clear signal to Sunnis that there is
a place for them in national life. The government needs to act now, to
give a signal of hope. Unless Sunnis believe they can get a fair deal
in Iraq through the political process, there is no prospect that the
insurgency will end. To strike this fair deal, the Iraqi government
and the Iraqi people must address several issues that are critical to
the success of national reconciliation and thus to the future of Iraq.

Steps for Iraq to Take on Behalf of National Reconciliation

RECOMMENDATION 26: Constitution review. Review of the constitution is
essential to national reconciliation and should be pursued on an
urgent basis. The United Nations has expertise in this field, and
should play a role in this process.

RECOMMENDATION 27: De-Baathification. Political reconciliation
requires the reintegration of Baathists and Arab nationalists into
national life, with the leading figures of Saddam Hussein's regime
excluded. The United States should encourage the return of qualified
Iraqi professionals--Sunni or Shia, nationalist or ex-Baathist, Kurd
or Turkmen or Christian or Arab--into the government.

RECOMMENDATION 28: Oil revenue sharing. Oil revenues should accrue to
the central government and be shared on the basis of population. No
formula that gives control over revenues from future field