Because of deep sectarian divisions, the Pentagon report predicted that future political and diplomatic progress in Iraq "may be slow and uneven." The report also noted that new laws must be implemented fairly to avoid heightening sectarian tensions.
Pentagon officials argued that security improvements will provide more opportunities for Iraqi officials to compromise on key pieces of reconciliation legislation.
"Iraqis are taking advantage of some of those opportunities, but there is more they have to do," said a senior Defense official, who spoke at a background briefing but was prohibited by the Defense Department from using his name.
The Pentagon report also repeated a frequent observation that Iran may pose the "greatest long-term threat" to Iraq. Despite an overall decline in attacks on U.S. forces, the report notes, the number of armor-piercing bombs increased in late March and hit an all-time high in April. Many of the weapons are made in Iran, U.S. officials say.
More broadly, the GAO said the Bush administration has not planned adequately for the drawdown of troops sent for last year's buildup. Most of the additional forces are expected to leave Iraq by the end of July.
Although administration officials have spoken about goals for Iraq, they have not specified a new strategy to follow the troop buildup, the GAO said.
The Pentagon said a "joint campaign plan" crafted by the U.S. Embassy and military command in Baghdad provides a broad strategy.
"The joint campaign plan is a living document that is constantly being reviewed and updated based on changing conditions," said the senior Defense official.
As the number of U.S. troops declines, military officials say they hope to shift troops to an "overwatch" role, handing day-to-day responsibility to Iraqi forces.
But the GAO report said that only 10% of Iraqi security forces are capable of conducting operations independently. A senior military official, responding to the GAO report on condition of anonymity, said it understated the abilities of the rapidly growing Iraqi forces.
Austin, speaking via teleconference from Iraq, praised the improved capabilities of the Iraqi military, saying units could plan and lead operations. But Austin made it clear that even with the end of the troop build-up, he is not ready for the U.S. to step back and let Iraqi forces take the overall lead.
"They have improved significantly, but we've been clear about saying that they're not there yet," Austin said.
