UN envoy Lakhdar Brahimi feels it is possible to set up an interim government in Iraq by the end of May despite the continuing violence. Speaking at the UN Security Council, Brahimi on Tuesday said the interim government set up in May-end would have one month to prepare themselves for assuming power on 30 June - the deadline for the US-led occupation authority to transfer power to Iraqis. "Though it will certainly not be easy, we do believe that it shall be possible to identify by the end of May a group of people respected and acceptable to Iraqis across the country, to form this caretaker government," Brahimi said. Brahimi proposed the dissolution of the current US-appointed Iraqi Governing Council. He argued for the appointment of non-partisan experts to the interim government instead. He said it was important that members of the caretaker government shunned partisanship. To this end, "it is best if the members of the caretaker government, including the interim president, vice presidents and prime minister, were to choose not to stand for elections," Brahimi said. The interim government is expected to oversee Iraqi general elections in January 2005. Brahimi proposed organising a national conference of at least 1000 people to allow Iraqis to communicate with each other for the first time in three decades. This conference would elect a "consultative council" to provide advice to the government and receive reports from ministers. The UN envoy also warned the occupation forces that an armed confrontation with resistance fighters in Falluja would lead to major bloodshed and long-lasting consequences. "The Coalition Provisional Authority is well aware that, unless this standoff is brought to a resolution through peaceful means, there is great risk of a very bloody confrontation," Brahimi said. "A viable political process is no panacea, but it is a powerful contribution factor to security," he stressed. **Spanish troops out of Iraq by May 27, says PM*** It is official - Spain's new Prime Minister has announced all of his troops will be out of Iraq by May 27. Jose Luis Rodriguez Zapatero has addressed parliament on his withdrawal plans. Earlier he said the 1400 troops would leave if the UN had not taken command in Iraq by the end of June. He told parliament the troops would now leave earlier because it is already certain there will not be a speedy UN resolution on the issue. Spanish troops have already started packing up. They have left the holy city of Najaf for their main base at Diwaniya. US soldiers earlier moved into the city to replace the 200 Spanish troops who have been stationed there. **PHOTO CAPTION*** U.N. envoy Lakhdar Brahimi is seen upon arrival at the Elysee Palace for talks with French President Jacques Chirac, April 24. (Charles Platiau/Reuters)