Garner to be replaced by former diplomat

Jay Garner, the former general who was appointed Iraq's chief civil administrator, was on his way out last night as it became clear that Washington was dropping him in favour of a former diplomat equally close to the Bush government.

General Garner is likely to leave Iraq within weeks after a decision that he was not up to the delicate political task of coaxing the country towards democracy.

Paul Bremer, the State Department's former head of counter-terrorism, is expected to take charge of the Office of Reconstruction and Humanitarian Affairs.

General Garner's somewhat erratic style on political issues was evident yesterday after he said the "beginning of a nucleus of an Iraqi government" would be in place by mid-May.

In fact about half a dozen former leaders of opposition to Saddam Hussein are expected to be in charge of convening a conference in four weeks' time, which will be designed to agree a transitional government.

Although the change replaces a Pentagon appointee with a State Department person, Mr Bremer is thought to be close to neo-conservatives around the US Defence Secretary Donald Rumsfeld.

This is significant because it suggests continuing support by US administrators here for the Iraqi National Congress headed by Dr Ahmad Chalabi.

The transitional government envisaged in talks by Iraqi politicians could have an interim prime minister and a cabinet of about.25

Opinions differ sharply over whether Mr Chalabi and the INC, has an established base in the country. But it has strong Pentagon support and has become highly pro-active since Dr Chalabi's return to Baghdad last month.