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Your Pentagon:

Sectarian violence is spreading in Iraq and the security problems have become more complex than at any time since the U.S. invasion in 2003, the Pentagon said Friday.

In a notably gloomy report to Congress, the Pentagon said illegal militias have become more entrenched, especially in Baghdad neighborhoods where they are seen as providers of both security and basic social services.

The report described a rising tide of sectarian violence, fed in part by interference from neighboring Iran and Syria and driven by a "vocal minority" of religious extremists who oppose the idea of a democratic Iraq.

Death squads targeting mainly Iraqi civilians are a growing problem, heightening the risk of civil war, it said.

"Death squads and terrorists are locked in mutually reinforcing cycles of sectarian strife," the report said, adding that the Sunni-led insurgency "remains potent and viable" even as it is overshadowed by the sect-on-sect killing.

"Conditions that could lead to civil war exist in Iraq, specifically in and around Baghdad, and concern about civil war within the Iraqi civilian population has increased in recent months," the report said. It is the latest in a series of quarterly reports required by Congress to assess economic, political and security progress.

Your President:

Now these enemies have launched a new effort. They have embarked on a bloody campaign of sectarian violence, which they hope will plunge Iraq into a civil war. The outbreak of sectarian violence was encouraged by the terrorist Zarqawi, al Qaeda's man in Iraq who called for an "all-out war" on Iraqi Shia. The Shia community resisted the impulse to seek revenge for a while. But after this February bombing of the Shia Golden Dome Mosque in Samarra, extremist groups mobilized and sectarian death squads formed on the streets of Baghdad and other areas. Our Ambassador reports that thousands of Iraqis were murdered in Baghdad last month, and large numbers of them were victims of sectarian violence.

This cruelty and carnage has led some to question whether Iraq has descended into civil war. Our commanders and our diplomats on the ground in Iraq believe that's not the case. They report that only a small number of Iraqis are engaged in sectarian violence, while the overwhelming majority want peace and a normal life in a unified country. Iraqi leaders from all backgrounds remember the elections that brought them to power, in which 12 million Iraqis defied the car bombers and killers to claim, "We want to be free."

[...]

Recently, we also launched a major new campaign to end the security crisis in Baghdad. Side by side, Iraqi and American forces are conducting operations in the city's most violent areas to disrupt al Qaeda, to capture enemy fighters, crack down on IED makers, and break up the death squads. These forces are helping Iraq's national police force undergo retraining to better enforce law in Baghdad. And these forces are supporting the Iraqi government as it provides reconstruction assistance.

The Baghdad Security Plan is still in its early stages. We cannot expect immediate success. Yet, the initial results are encouraging. According to one military report, a Sunni man in a diverse Baghdad neighborhood said this about the Shia soldiers on patrol: "Their image has changed. Now you feel they're there to protect you." Over the coming weeks and months, the operation will expand throughout Baghdad. until Iraq's democratic government is in full control of its capital. The work is difficult and dangerous, but the Iraqi government and their forces are determined to reclaim their country. And the United States is determined to help them succeed. (Applause.)