BAGHDAD, Iraq (AP) -- The U.S.-led coalition transferred
sovereignty to an interim Iraqi government two days early today in
a surprise move that apparently caught insurgents off guard,
averting a feared campaign of attacks to sabotage the historic step
toward self-rule. Legal documents transferring sovereignty were
handed over by U.S. governor L. Paul Bremer to chief justice Midhat
al-Mahmood in a small ceremony in the heavily guarded Green Zone.
Bremer took charge in Iraq about a year ago.

"This is a historical day, a day that all Iraqis have been
looking forward to," said Iraqi President Ghazi Al-Yawer. "This is
a day we are going to take our country back into the international
forum."

Militants had conducted a campaign of car bombings, kidnappings
and other violence that killed hundreds of Iraqis in recent weeks
and was designed to disrupt the transfer, announced by the Bush
administration late last year. Initially, the Americans were
thought to have planned for about one more year of occupation.

"Iraqis are happy inside, but their happiness is marred by fear
and melancholy," said artist Qassim al-Sabti. "Of course I feel I'm
still occupied. You can't find anywhere in the world people who
would accept occupation. America these days, is like death. Nobody
can escape from it."

Two hours after the ceremony Bremer left Iraq on a U.S. Air
Force C-130, said Robert Tappan, an official of the former
coalition occupation authority. Bremer was accompanied by coalition
spokesman Dan Senor and close members of his staff. Bremer's
destination was not given, but an aide said he was "going
home."

The new interim government was sworn in six hours after the
handover ceremony, which Western governments largely hailed as a
necessary next step. The Arab world voiced cautious optimism, but
maintained calls for the U.S. military to leave the country
quickly.

Interim Prime Minister Iyad Allawi delivered a sweeping speech
sketching out some of his goals for the country, urging people not
to be afraid of the "outlaws" fighting against "Islam and Muslims,"
assuring them that "God is with us."

"I warn the forces of terror once again," he said. "We will not
forget who stood with us and against us in this crisis."

Members of Allawi's Cabinet each stepped forward to place their
right hand on the Quran and pledged to accept their new duties with
sincerity and impartiality. Behind them, a bank of Iraqi flags
lined the podium.

"Before us is a challenge and a burden and we ask God almighty
to give us the patience and guide us to take this country whose
people deserves all goodness," said President Ghazi al-Yawer after
taking his oath. "May God protect Iraq and its citizens."

Although Iraqis are now supposed to be in charge, American
security officers prevented reporters from talking with willing
Iraqi ministers after the swearing-in ceremony, hustling
journalists away even after the new government officials had
stopped to chat with them.

Several staffers from the Pentagon's Office of Strategic
Communications are now serving as media advisers to Allawi.

The NATO alliance quickly said it would begin training the Iraqi
military, which faces a daunting task in putting down the growing
insurgency threatening the country.

President Bush marked the transfer with a whispered comment and
a handshake with British Prime Minister Tony Blair, gathered with
world leaders around a table at a NATO summit in Istanbul,
Turkey.

Stealing a glance at his watch to make sure the transfer had
occurred, Bush put his hand over his mouth to guard his remarks,
leaned toward Blair and then reached out to shake hands. Defense
Secretary Donald Rumsfeld, a row behind the president, beamed.

Bush was briefed Sunday that the Allawi government was ready to
take power early.

The early transfer had been under discussion between Allawi and
U.S. officials for at least a week, a senior administration
official said, speaking on condition of anonymity.

Bremer's last moments in Iraq were spent in a meeting with Lt.
Gen. Ricardo Sanchez, the top American commander in the
country.

Although the interim government will have full sovereignty, it
will operate under major restrictions

The interim government will only hold power seven months until,
as directed by a United Nations Security Council resolution, there
must be elections "in no case later than" Jan. 31. The Americans
will still hold responsibility for security. And the interim
government will not be able to amend the interim constitution. That
document outlines many civil liberties guarantees that would make
problematic a declaration of emergency.

As Iraq's highest authority, Bremer had issued more than 100
orders and regulations, many of them Western-style laws governing
everything from bankruptcy and traffic, to restrictions on child
labor and copying movies.