The Vatican's top foreign affairs official hailed the transfer of power to an Iraqi provisional government, saying Iraq "can only be governed and understood by its own people."

Archbishop Giovanni Lajolo, an assistant secretary of state, said the success of the Iraqi government will depend largely on its ability to ensure political freedom, restore basic services and crack down on "cowardly acts" of terrorism.

The stakes in Iraq are high, he said, because the outcome "could determine the development of democracy in the whole region."

Archbishop Lajolo made the comments in an interview with Catholic News Service June 28. The same day, the United States handed over sovereignty to an interim Iraqi government headed by Prime Minister Iyad Allawi, formally ending a 14-month occupation two days ahead of schedule.

"The formal transfer of power is of great importance," Archbishop Lajolo said.

"The Iraqis are a people who are proud of their autonomy; they have technical expertise, professionals and managers of high caliber. What's more, a country so rich in history and complex in its composition only can be governed and understood by its own people," he said.

The archbishop said the handover should help convince many countries --- including those that opposed the war --- to provide aid for Iraqi reconstruction.

"A full recovery of sovereignty on the part of the interim government will allow that large part of the international community, which did not approve the coalition's military involvement in Iraq, to respond positively to requests for assistance which will be made by the Iraqi government," he said.

But a "simple ceremony" will not be enough to ensure the success of the transition, Archbishop Lajolo said. The interim government starts with some handicaps, including the lack of grass-roots support, he said.

"The government will need to ensure that the political parties in the country are given the possibility --- with adequate freedom --- of participating in the running of the nation," he said.

The government will also need to make certain that Iraqi national forces under its own control and the coalition forces "achieve a tight control of its territory, in order to ensure security," the archbishop said.

"The effectiveness of the government's action would be very limited if the cowardly acts of blind and cruel terrorism, which have already caused so much innocent blood to be shed in that region, are not stopped," he said.

Many observers expect the interim government to enact emergency laws to deal with the increasing number of bombings and other attacks that have occurred throughout the country, killing hundreds of people.

Archbishop Lajolo said that at the same time the government needs to use all its available resources to restore basic services such as electrical power, water, health services, schools and employment.

The archbishop said the Vatican recognizes that the process of building peace and democracy in Iraq will be "long, complex and full of obstacles."

"The Iraqi people are emerging from 30 years of dictatorship and, one could say, they have never experienced democracy," he said.

"The Holy See, however, is confident that the international community will continue to sustain and follow this delicate and decisive stage in the life of the Iraqi people, fully aware that its outcome could determine the development of democracy in the whole region," he said.

Archbishop Lajolo said the role of the United Nations is important for a positive outcome in Iraq. He noted that a recent Security Council resolution foresees a leading U.N. role organizing a national Iraqi dialogue in July, national elections next year and the writing of a national constitution.

In a broader sense, he said, a greater U.N. presence in Iraq would ensure much wider international involvement.

"This involvement is becoming more necessary, given the complexity of the processes already under way and the need for human and economic resources which no one country can provide," he said.

He praised the recent announcement of U.N. Secretary-General Kofi Annan to appoint a personal representative to Iraq, saying this should be hailed as a "courageous act of great responsibility."

Archbishop Lajolo said the Catholic community in Iraq is deeply involved with the rebuilding effort and is "eager to place its professional skills and competence at the service of a new Iraq."

He said that Christians, who have lived in Iraq since ancient times, are not asking for privileges but simply want to be able to keep contributing to the growth of their nation, while enjoying universally recognized freedoms and rights.

Likewise, he said, the Vatican will continue to offer its help toward the rebuilding of Iraq -- either by proposing advice to the international community on the course to be taken, or by providing material assistance to the Iraqi people through Caritas and other Catholic agencies.

He said Iraq's new authorities can count on the full collaboration of the Catholic hierarchy and on Archbishop Fernando Filoni, the papal nuncio who remained in Iraq through the war to bear witness to the pope's concern for the Iraqi people.

In Baghdad, the head of Chaldean Catholics, Patriarch Emmanuel-Karim Delly, said the handover marked a turning point for the country.

"We're pleased at this transfer of power to its legitimate proprietors, the Iraqi people. They want to govern the country by themselves and are capable of doing so," he told Asianews, a Rome-based news agency run by the Pontifical Institute for Foreign Missions.

"It's a day of celebration and a memorable day. All Iraqis are happy. There are certainly some violent people who will create problems, but we hope sooner or later they will be convinced that all this is for the good of the Iraqi people," he said.

The patriarch thanked those who have given assistance to Iraq, and said the country would continue to need "the support of all the nations of the world and the United Nations." He asked for continued prayers for the future of his country and its people.

---CNS