Brown sees Iraqi control of Basra within two months

BAGHDAD (Reuters) - British Prime Minister Gordon Brown said on Tuesday he expects Iraqi authorities to take control of Basra province within two months and the number of British troops there to drop to 4,500 by the end of the year.

"I believe that by the end of the year British troops can be reduced to 4,500," Brown told reporters during a visit to Baghdad. "That releases 1,000 of our troops and hopefully they will be home by Christmas."

Brown's first trip as prime minister to Iraq comes before he makes a key statement on Iraq to parliament next week.

Britain had 5,500 troops in Basra before 500 British soldiers withdrew from a palace in the city of Basra to a vast airbase on its outskirts in early September. The total number has since fallen to about 5,250.

The withdrawal from Basra palace ended the British presence in the southern city, where troops had been stationed since the U.S.-led invasion in 2003.

"I believe that within the next two months we can move to provincial Iraqi control, that is Iraqis taking responsibility for their own security," Brown said.

That would complete the transfer of power in all four southern provinces for which Britain was once responsible.

Basra has enormous strategic importance as the hub for Iraq's vital oil exports that account for 90 percent of its revenue and a centre of imports and exports throughout the Gulf.

As speculation grows in Britain that Brown is considering an early election, news that more British troops will be returning soon could be a further boost for a prime minister who is already enjoying a strong lead in the opinion polls.

The decision by Brown's predecessor Tony Blair to join the invasion of Iraq in 2003 was deeply unpopular in Britain and his ruling Labour Party, and ultimately led to him being hounded from power after a decade in office.

Since taking over in June, Brown has sought to draw a line under Blair's rule and there has been growing speculation he wants to pull more troops from Iraq, perhaps as a precursor to holding a snap election.