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Many Iraqis in British-controlled Basra welcomed news Tony Blair was sending troops home, although some voiced fears it was premature.
Basra, a Shiite city that sits on one of the world's largest oil reserves, has seen relative stability in light of the sectarian violence and insurgency gripping central Iraq.
But tension between Shiite parties vying for power in Iraq's second-largest city has bubbled under the surface.
Since late last year British troops have been conducting a major security sweep called Operation Sinbad, aimed at purging the police of militia infiltration, cracking down on militants in general and winning the trust of residents.
Sadrists - loyal to radical young cleric Moqtada al-Sadr - are believed to have infiltrated the security forces in the city.
As part of the operation, British forces cleared Basra's serious crimes unit on December 25 and blew up the building with explosives after intelligence had suggested "rogue" officers were about to execute prisoners.
Residents say Basra has been calm for weeks after a spate of assassinations in 2006.
Salam al-Maliki, a senior official in the Sadrist bloc, which has long opposed a foreign presence in Iraq, said any violence in the city would cease once the foreign troops have left.
"The militias and militant groups in these areas only fired their weapons at the occupier and when they go, all of the violence here will end," he said.
Nour Abdul-Muttalib, a 29-year-old teacher, said she was happy the British were leaving.
"They were occupiers and they should have left long ago. They are not welcome in this city."
Zayneb Riyadh, a 19-year-old student, said she would be happy to see the British troops leave.
"Iraqi forces are capable of providing security and protecting the city."
But Jaafar Saleem, a 38-year-old businessman in the city, said foreign troops were still needed as backup to aid Iraqis.
"They should only withdraw from inside the city because our forces still need their support. I think their exit will produce lawlessness in the city," he said.
University student Ali Radhi, 30, also said it was premature for British and other foreign forces to leave Iraq.
"The invasion of Iraq was a mistake and leaving today without security, stability and rule of law will be a bigger mistake."
- REUTERS