Analysis - By Jim Lobe


WASHINGTON, Jun 1 (IPS) - Fourteen months after reaching the zenith of their
influence on U.S. foreign policy with the invasion of Iraq, neo-conservatives
appear to have fallen entirely out of favour, both within the administration of
President George W Bush and in Baghdad itself.

The signs of their defeat at the hands of both reality and the so-called
''realists'', who are headed within the administration by Secretary of State
Colin Powell, are virtually everywhere but were probably best marked by the
cover of 'Newsweek' magazine last week, which depicted the framed photograph of
the neo-cons' favourite Iraqi, Ahmad Chalabi, which had been shattered during a
joint police-U.S. military raid on his headquarters in Baghdad. 'Bush's Mr.
Wrong' was the title of the feature article.

The victory of the realists, who also include the uniformed military and the
Central Intelligence Agency (CIA), appeared complete Monday with the unveiling
of the interim Iraqi government to which an as-yet undefined sovereignty is to
be transferred from the U.S.-led occupation authorities Jun. 30.

Not only was Chalabi's arch-rival-in-exile, Iyad Allawi, approved by the Iraqi
Governing Council (IGC) as prime minister, but neither Chalabi nor any of his
closest IGC associates, especially Finance Minister Kamel al-Gailani -- who is
accused of handing over much of Iraq's banking system to Chalabi during his
tenure -- made it into the final line-up.

http://www.ipsnews.net/interna.asp?idnews=23986

Walt