Britain hands back Basra

With a handshake and a signature, the General who entered Basra with an invading army four-and-a-half years ago transferred full control of the city and its surrounding province to the Iraqis.

Major General Graham Binns paid tribute the "bravery far beyond the call of duty" of the UK troops who have lost 174 of their number in Britain's most contentious military venture of modern times.

On a day of symbolism, the handover took place in the departure lounge of Basra Airport.

Meanwhile inside the city which British troops have not entered since their withdrawal from Saddam Hussein's former palace three-and-a-half months ago, Iraqis paraded and celebrated what they called an "historic day".

The handover of control of security in the province is the biggest landmark yet on the path to full British withdrawal from Iraq. It comes at a time when extra forces may be needed in Afghanistan.

The move clears the way for British troop numbers in the country to be slashed to just 2,500 by next spring. Foreign Secretary David Miliband who attended the ceremony, indicated that a decision on any future drawdown would then have to be made.

The active British combat role, which began when George Bush and Tony Blair launched the Iraq War in 2003, now formally takes a back seat to one of training homegrown security forces.

Under a new so-called "overwatch" role, UK troops will only be involved in military intervention if they are invited.

"We will continue to train security forces ... but we are guests in your country and we will act accordingly, our help will continue to be one of assistance, not interference," Maj Gen Binns told local leaders at the ceremony.