While careful not to imply that the split would hamper the coalition war effort or damage the long-term goal of returning Iraq to the Iraqi people, the officials said it was complicating plans to set up a functioning interim authority quickly.

And the officials, speaking to AFP on condition of anonymity, said traditional inter-agency rivalries had been exacerbated by uncertainty of the situation on the ground as the war rages on.

"All this stuff has become a hugely complicated and a bitterly fought thing," said one senior official.

"There is quite a lot of unhappiness between State and Defense right now, no question about it."

At issue is not only the composition of the planned US occupation government that will rule in the short term, but also the make-up of the Iraqi Interim Authority (IIA) that will follow and a possible role for the United Nations, the officials said.

The second is potentially the most divisive, as Defense Secretary Donald Rumsfeld has suggested the immediate creation of an IIA, at least in the south, that would draw heavily from the ranks of the exiled Iraqi opposition.

Secretary of State Colin Powell, joined by the intelligence community, fears that this would instantly alienate the indigenous population as well as ruin efforts to repair badly damaged ties with Europe and the Arab world, they said.

Rumsfeld's suggestion -- in which he argued that the exiles are better equipped to govern because of their experience living in the West, according to officials familiar with the proposal -- was delivered to the White House on Wednesday.

At the time, Powell was in Europe attempting to build support from anti-war Europe by pledging an "important" coordination role for the United Nations and others in the transition.

The officials said Powell was angered when he learned of Rumsfeld's plan and that on his way back to Washington on Thursday he called the National Security Council (NSC) to argue against it.

"Powell got pretty grumpy on the way home yesterday about these ideas," the official said. "He is really leaning on the NSC to try to tamp them down."

The State Department has always opposed the creation of a provisional government comprised of Iraqi exiles and a senior White House official said Friday that Powell's argument may have worked to some extent.

"The establishment, and the timing for the establishment, of an IIA, depends on the realities on the ground," the official said, adding that an interim authority could be formed before the war is over.

"One thing that is a non-starter is starting up an IIA or a provisional government composed of only Iraqi exiles," the official said.

In terms of the US occupation government, Rumsfeld and his Pentagon planners envision an administration dominated by the military with minimal input from the civilian side while Powell, wary of the international reaction, wants a less-uniformed presence, officials said.

"I wouldn't say there's a private war going on between State and the Pentagon on this, but it's become more of a battle than a skirmish," said a second senior official.

The officials acknowledged that what had begun as a relatively minor bureaucratic struggle over control of aid distribution had grown in recent days as troops continued their advance on Baghdad.

With the aid hurdle apparently overcome, sites were set on the formation of the new governing structure which sparked the latest series of recriminations, they said.

The Pentagon has placed on hold the appointments of several current and former diplomats to serve on the team of retired general Jay Garner, the man designated by Rumsfeld to run the civilian side of the occupation government, the officials said.

"It's the old complaint about the State Department 'Arabists'," said one official, referring to long-standing accusations from conservatives that US diplomats handling the Middle East are biased in favor of Arab states.

Among those on hold are former envoys Robin Raphel, who served in Tunisia, Kenton Keith, who served in Qatar, and Barbara Bodine, who served in Yemen, the officials said, confirming accounts in several US newspapers.

SPACE.WIRE