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THE Iraqi Government will announce a sweeping peace plan as early as Sunday in a last-ditch effort to end the Sunni insurgency that has taken the country to the brink of civil war.
The 28-point package for national reconciliation will offer Iraqi resistance groups inclusion in the political process and an amnesty for their prisoners if they renounce violence and lay down their arms, The Times can reveal.

The Government will promise a finite, UN-approved timeline for the withdrawal of all foreign troops from Iraq; a halt to US operations against insurgent strongholds; an end to human rights violations, including those by coalition troops; and compensation for victims of attacks by terrorists or Iraqi and coalition forces.

It will pledge to take action against Shia militias and death squads. It will also offer to review the process of “de-Baathification” and financial compensation for the thousands of Sunnis who were purged from senior jobs in the Armed Forces and Civil Service after the fall of Saddam Hussein.

The deal, which has been seen by The Times, aims to divide Iraqi insurgents from foreign fighters linked to al-Qaeda. It builds on months of secret talks involving Jalal al-Talabani, the Iraqi President, Zalmay Khalilzad, the US Ambassador, and seven Sunni insurgent groups.

Mr al-Talabani told The Times that after a “summit” in Baghdad about a month ago the groups made clear their willingness to commence talks with the Iraqi Government, although he was awaiting a formal response.

But one big potential obstacle is whether the US would be willing to grant an amnesty to insurgents who have killed US soldiers but who are not members of extreme groups such as al-Qaeda. The Bush Administration is thought to be split on the issue.