The Group of Eight countries have urged the United States to transfer real power to Iraqis by the end of June, including the authority to influence US military decisions.
At the end of a meeting in Washington on Friday, France said Washington had to give up control over local forces while Italy said a new Iraqi government had to have a say over US-occupation troop's tactics.
In a nod to Iraqi authority, Secretary of State Colin Powell said the United States would withdraw its troops if the interim government made such an unlikely demand.
The US-led occupation authority plans to handover power to an interim Iraqi administration on 30 June.
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