http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20061213\ACQDJON200612130508DOWJONESDJONLINE000460.htm&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.na

   US Military's No. 2 In Iraq Says Jobs, Services May Be Key

BAGHDAD (AP)--The U.S.' outgoing No. 2 commander in Iraq has said that 
curbing unemployment and improving services would help reduce the 
violence in the country, warning that military muscle can't win the war 
alone.

Lt. Gen. Peter Chiarelli, in the last days of a second Iraq tour, also 
drew a picture of daunting challenges facing the U.S. military in Iraq 
as it strives to keep up with a constantly changing enemy whose 
knowledge of the terrain and culture give it an edge over the Americans.

At times during his farewell news conference Tuesday, Chiarelli - in 
charge of day-to-day combat operations throughout Iraq - sounded 
exasperated, almost despairing, over what he said were misperceptions 
that U.S. forces were fighting a conventional war or that they can 
achieve victory without improvements on other fronts.

"I know everybody wants us to charge on out there and make everything 
OK," he said. "But you cannot if you don't get those other things 
moving. I don't know why it's so hard to get people to understand that," 
he said, alluding to the need to create jobs and improve services in Iraq.

"I also get frustrated at times that everybody compares us to other 
conflicts we have fought, like somehow there is a defined enemy out 
there, a group of individuals that if you can just go out and either 
kill, capture or put in jail or do whatever, everything will be all 
right," he said. "I don't believe that, I don't believe that."

"There is no doubt in my mind that the soldiers, sailors, airmen and 
Marines that we are bringing over here are trained for the fight at 
their hands. Is it tough? Yeah, it's really tough, it's very tough," he 
said.

Chiarelli's assessment of the U.S. military's predicament in Iraq came 
as President George W. Bush was continuing efforts to formulate a new 
approach for Iraq following the release last week of a report by a 
bipartisan committee that described the situation here as "grave."

"We don't have to drive unemployment down to 4% like in the United 
States, that's not what I am talking about. We don't have to have 24 
hours of electricity in Baghdad," he said. "But if we can increase the 
power in Baghdad back to 12 hours a day, it would be huge."

With reduced unemployment and fewer power cuts, he said, "I think we 
will see things here change in ways that are hard to believe right now 
when you see the level of violence out there."

Chiarelli's notion that the fight against the Sunni-led insurgency and 
efforts to disband Shiite militias would have a better chance of success 
if the use of force went hand-in-hand with stepped up economic activity 
is not new.

The U.S. military has tried this, without much success, from as early as 
2003 - a time when many were upbeat about Iraq's future after the ouster 
of Saddam Hussein, with foreign aid money flowing in and a free-market 
economy swiftly taking hold after decades of state control and crippling 
U.N. sanctions.

For its part, the U.S. military has given out hundreds of contracts to 
local firms to repair schools and overhaul medical facilities, power 
transformers and roads. But with widespread corruption, mismanagement 
and relentless insurgent attacks, little has changed on the ground.

Nearly four years after Saddam's ouster, Iraq's economic woes are 
staggering.

Unemployment is thought to be anywhere between 20% and 60%, inflation 
above 50% and more than 1.5 million Iraqis, mostly professionals, have 
fled abroad, according to the Iraq Study Group report and U.N. figures. 
Lengthy power cuts are routine, fuel shortages are chronic and health 
care is close to collapse.

"Putting young men and middle-aged men to work will have a tremendous 
impact on this level of violence we are seeing in and around Baghdad and 
in other provinces," Chiarelli said.

He said that because of military sweeps, life is returning to normal in 
some areas of the capital, including the mainly Sunni districts of Dora 
and Amariyah.

"People are out, about, walking around, markets are open, fruit stands 
are open and commerce is bustling," he said.

Residents of Dora say the area has been quiet in recent weeks, but that 
they are too afraid to leave their homes after dark and that a Shiite 
enclave in the district is frequently shelled by mortars fired from 
Sunni areas. Amariyah is quieter, but bodies of apparent victims of 
sectarian violence are found there almost daily, according to residents.

Violence in Baghdad districts often goes in cycles, with turbulent areas 
becoming quiet during and immediately after large-scale 
counterinsurgency operations -only to flare up again when the focus of 
the U.S. forces and their Iraqi allies shifts elsewhere.

   (END) Dow Jones Newswires
   12-13-060508ET

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