IRAQ - Aug 15 - Mortars Mark Opening Of Political Conference.

Interior Ministry says insurgents fire mortars at a meeting attended by 1,300 delegates, where leaders gather to pick an interim national assembly, killing at least two people in a grim reminder of the country's tortured path toward democracy. Casting a further shadow over the gathering, Shiite militiamen fought fierce battles with US and Iraqi forces in the holy city of Najaf after the collapse of peace talks aimed at ending fighting that has killed hundreds. Three mortar bombs hit a taxi and bus station on the edge of the fortified Green Zone in Baghdad, a few hundred metres away from the conference centre, also wounding 17 others. The three-day conference, was not affected, although delegates were startled as the explosions rattled windows. The brazen mortar attack, despite curfews around the zone, checkpoints and blocked streets illustrates Baghdad's nightmarish security as politicians and religious leaders try to plot the country's stuttering road to democracy. Officials said two people were killed and 17 hurt. In Najaf, numerous blasts hit militia positions near the city's holy sites, but it was not immediately clear if US and Iraqi forces had begun an all-out offensive against Mehdi Army loyal to radical Shiite Muslim theologian Muqtada Al Sadr. One shell landed near the outer wall of the sacred Imam Ali Mosque, killing one man, a Reuters witness said. The 11-day uprising in Najaf has spread to seven other Shiite cities in southern and central Iraq and threatened to undermine the authority of interim PM Iyad Allawi.

Raising the stakes, Sadr vows to fight to the death. Thousands of protesters from other parts of southern Iraq have streamed to Najaf and joined Sadr in the mosque, promising to act as human shields should an attack on the holiest Shiite Islamic site take place. The interim government has said only local forces would enter the shrine. Police in Najaf threatened to arrest journalists unless they left the city. Though the Najaf police chief said the move was for the reporters' safety, many local journalists feared the aim was to impose a news blackout in the city. A police lieutenant said: "I have an order that all journalists must leave Najaf now, anyone who does not leave will be arrested". Speaking at the conference in Baghdad, Allawi said Iraq needed to push on trying to create democracy after decades of brutal rule under former dictator Saddam. In opening remarks, Allawi said; "Your presence here today is the biggest challenge to the forces of darkness that want to tear this country apart. This is not the end of the road, it is the first step on the way to democracy". The political and religious leaders gathered for the conference in Baghdad will choose a 100-member assembly, or national council, to oversee the interim government until elections are held in January. The conference has been beset by boycotts from key players such as Sadr and the Muslim Theologians Association, an influential grouping of Sunni religious leaders. Some Shiite leaders threatened to withdraw from the conference because of the fighting in Najaf. The conference was due to open in late July but was delayed after the UN demanded more time for preparations. Some delegates taking part have accused the government of stacking the slate with Allawi supporters. The political parties in power now have the overwhelming majority of delegates. "They left no room for independents", said Mohammad Bahr Al Uloum, a leading Shiite theologian and a former president of the now defunct IGC.

Officials have insisted that problems getting the political conference off the ground would not mean January's landmark elections would also be delayed, even though the spectre of violence hangs over the polls. The conference brings together delegates from across Iraq, attempting to represent the country's political parties, non-governmental groups and religious and tribal bodies. Once chosen, the national council will have the power to veto legislation with a two-thirds majority, approve 2005 budget, and appoint a new PM or president should either resign or die in office. In other attacks on coalition troops, insurgents killed US soldier in Baghdad in a roadside bomb blast Aug 15. A Ukrainian soldier was killed by a mine south of Baghdad. A Dutch soldier was killed and five others were wounded Aug 14 in an attack in southern Iraq. About 2,000 US servicemen and 1,800 Iraqi security men are deployed around Najaf, a city of 600,000 south of Baghdad.