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This one I agree with you. I think we need to form the Federal Republic of Iraq. It would be made up of 3 states, the northern state, the central state and the southern state. Baghdad might be the equivalent of DC, a federal capital city.

I would think that Ninawa, Dahuk, Abril, As Sulmaniyah and At Tamim provinces might make up the Northern state. Whether or not we officially could call it Kurdish, that is what it would be. [Keep in mind for this state and the other two, I am guessing about which province belongs where. Ninawa might for example group better with the Central state.

The Central state might be made up of Al Anbar, Salahad, Baghdad and Diyala provinces. This would at least unofficially be the Sunni state.

I am not sure which state Babil province belongs in but lets say for now the Southern state along with An Najaf, Al Qadisiyana, Maysan, Dhi Qar, Al Bassrah and Al Muthanna provinces. Again remember, I am guess which provinces actually group where, but this is clearly the Shia state.

Then the US puts three huge bases in place. One between south of Kurkuk and north of Tikrit. Another south of Baghdad but north of Al Najaf. The third on the outskirts of Baghdad.

They get a bicarmeral legislature. Each state gets 10 Senators and each state gets their share by population of 100 members of the lower body. They have a popularly elected executive and a constitution that is very explicit about INDIVIDUAL rights.

The US stays on these bases except if fighting is about to break out between the various states. The US also focuses on border security so that the Iraqis can have their own internal battles.

The oil fields are in the two states, Northern and Southern where things have been calmer since major combat ended. The US gets 99 years leases on the bases. The US pays only to build its bases and the Iraqi government must use the country's oil money and any money stolen by France, Russia and Germany it recovers to rebuild infrastructure. Each state could have a capital, police force etc, but no army. Only the Federal government would have an army.

Here is a map of Iraq for examining my proposed states:

http://www.lib.utexas.edu/maps/middle_east_and_asia/iraq_wall_full_2003.jpg