"These are decisions and milestones and benchmarks that any sovereign nation has to establish by themselves," Defense Department spokesman Bryan Whitman said on Tuesday. "They will determine the consequences of achieving them or not achieving them. It's not up to the coalition or the United States."

Officials said the U.S. plan, which did not rule out a troop increase, would be draft and launched before 2007. They said a key element of the plan was the cooperation of such Arab states as Jordan, Saudi Arabia and the United Arab Emirates to persuade Sunnis to end their insurgency.

The Iraqi military and security forces have exceeded 300,000 troops, Middle East Newsline reported. Officials said six out of the 10 Iraq Army divisions were forward deployed while 30 out of the 36 Iraqi brigades were in the lead -- supported by the U.S. military.

Officials said a key benchmark would be the transfer of security responsibility from the United States to Iraq for 16 of the 18 provinces in the country. Over the last three months, the Baghdad government has assumed responsibility for two southern provinces -- Muthanna and Dhi Qar.

"They are planning to pass over the other 16," Defense Secretary Donald Rumsfeld said. "The question is, 'When do you think that might happen? When do you think the Iraqis may be able to assume those responsibilities?'"

"What they are doing is just having a discussion about how they see the way ahead over the rest of this year and next year," Rumsfeld added.

Officials said the most difficult challenge for the government of Prime Minister Nouri Al Maliki, in office about five months, would be the reconciliation process in Iraq. They said the U.S. military and administration have concluded that progress in the insurgency war was hampered by the continuing strife between Sunnis and Shi'ites.

"Resolution of the militia issue will require an integrated political-military effort. And, we are working with the government of Iraq to do that," Casey said.

The U.S. general said that since the Iraqi elections in December 2005, the conflict has evolved "from what was an insurgency against us, to a struggle for the division of political and economic power among the Iraqis." Casey said Al Qaida as well as Iran and Syria have further exacerbated tension although he said the border with Syria has come under U.S. control.

"Both Iran and Syria continue to be decidedly unhelpful by providing support to the different extremist and terrorist groups operating inside Iraq," Casey said.

Officials said the Iraqi government has not been threatened with penalties if it fails to meet the U.S. goals. But they said Al Maliki would come under increasing pressure over the next few months to take significant steps to help end the insurgency war.

Under the administration plan, the Baghdad government would be issued with targets every month or two. Officials said some targets could be met early while others would be delayed.

U.S. ambassador Zalmay Khalilzad said Iraqi tribal, religious and political leaders across Baghdad would be pressed to stop sectarian violence. At the same time, Khalilzad said, Iraqi leaders would draft a national compact to unite ethnic groups, guarantee democratic rights and divide oil profits.

Another facet of the Iraq stability plan was meant to address militias and death squads, as well, Khalilzad said. He said provincial elections would also be scheduled.

"Despite the difficult challenges we face, success in Iraq is possible and can be achieved on a realistic timetable," Khalilzad said. "Iraqi leaders have agreed to a timeline for making the hard decisions needed to resolve these issues."

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