The Secretary-General is extremely concerned at the widespread fighting that has broken out in Iraq over the last several days, especially in the holy city of Najaf. He is particularly troubled by the high toll of dead and wounded, including civilian casualties.

The Secretary-General believes that, in such a situation, force should be a last resort. He calls for every effort to be made, even at this late hour, to work out a ceasefire and peaceful solution.

The United Nations is helping with the preparations for the National Conference, due to begin in mid-August. In the Secretary-General's view, the Conference can be an important step in a peaceful and inclusive political transition, by promoting national reconciliation and dialogue. The United Nations is ready to extend its facilitating role to the current crisis, if this would be helpful.

Meanwhile, Prime Minister Allawi's offer today of a limited amnesty and wider participation in the political process are steps in the right direction.