BAGHDAD - The U.S. formally transferred control of the Green Zone to Iraqi authorities Thursday in a pair of ceremonies that also handed back Saddam Hussein's former palace. Iraq's prime minister said he will propose making Jan. 1 a holiday marking the restoration of sovereignty. Under the new security agreement between Washington and Baghdad to replace a U.N. mandate for foreign troops in Iraq, the Iraqi government also now has control of American troops' actions and of the country's airspace.
The moves came amid a dramatic fall in violence over the past year. However, insurgents still stage daily attacks and could try to expand the fight now that U.S. troops cannot take unilateral action.
By PATRICK QUINN Associated Press Writer
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