ANNEX TO THE LAW FOR THE ADMINISTRATION OF IRAQ IN THE TRANSITIONAL PERIOD

On the basis of Article 2(1)B of the Law of Administration for the State of Iraq in the Transitional Period, the Governing Council decided in its session of 1/6/2004 to issue this Annex.

Section One: Formation of the Iraqi Interim Government

The Iraqi Interim Government, formed on the basis of wide-scale consultations with all segments of Iraqi society, and consisting of individuals known for their ability and integrity, will assume sovereign authority for governing Iraq no later than 30 June 2004. The Interim Government will administer Iraq’s affairs, in particular by providing for the welfare and security of the Iraqi people, promoting reconstruction and economic development, and preparing for and holding national elections by 31 December 2004, if possible, and, in any case, no later than 31 January 2005. The Government, as an interim government, will refrain from taking any actions affecting Iraq’s destiny beyond the limited interim period. Such actions should be reserved to future governments democratically elected by the Iraqi people. The members of the Interim Government will swear a legal oath in front of the Head of the highest judicial authority in Iraq. The Interim Government will dissolve upon the formation of the Iraqi Transitional Government following national elections.

Section Two: Institutions and Powers of the Iraqi Interim Government

The Interim Government will operate under the Law of Administration for the State of Iraq for the Transitional Period. It will consist of the Presidency of the State (comprised of a President and two Deputy Presidents); a Council of Ministers, including a Prime Minister; an Interim National Council and the Judicial Authority. Except for the purposes of Chapter Nine of this Law or as otherwise specified herein, references to the Iraqi Transitional Government and its institutions and officials in this Law will apply to the Interim Government and its institutions and officials. The Interim Government will at all times respect obligations related to the transitional period and the fundamental principles and rights of the Iraqi people as set forth in this Law. The institutions of the Kurdistan Regional Government, the governorates and the municipalities will function in accordance with this Law.

The Council of Ministers with the unanimous approval of the Presidency, may issue orders with the force of law that will remain in effect until rescinded or amended by future Iraqi governments. The Council of Ministers will have the authorities granted to the National Assembly in this Law related to appointments, the use of the Iraqi Armed Forces, and approval of international agreements. The Interim Government will represent Iraq in its external relations, but its powers in concluding international agreements will not extend beyond Iraq’s diplomatic relations, international loans and assistance, and Iraq’s sovereign debt. The appointment of Supreme Court members must be unanimously confirmed by the Presidency Council of the Iraqi Transitional Government within ninety days after its assumption of authority.

Section Three: The Interim National Council

Members of the Interim National Council will be chosen by a National Conference that will meet in Baghdad during the month of July 2004. The Conference will be organized by a High Commission, which will include members of the Governing Council without other governmental positions, representatives from the regions and governorates, and other distinguished Iraqis known for their capability and integrity. The Interim National Council itself will be comprised of 100 members, and will include members of the Governing Council mentioned above.

The Interim National Council will meet periodically to promote constructive dialogue and create national consensus, and to advise the Presidency Council and Council of Ministers. It will have the authority to monitor the implementation of laws, to follow up the work of the executive bodies, to appoint replacements to the Presidency Council in cases of resignation or death, to interpellate the Prime Minister and Council of Ministers, and to veto executive orders by a 2/3 majority vote of its members within 10 days of being informed of such orders which have been approved by the Presidency Council. The Interim National Council will also have the right to approve the 2005 Iraqi national budget proposed by the Council of Ministers, and to set its Internal Regulations.