HERE'S THE COMPLETE QUOTE FROM MORRELL ABOUT SOUTHERN IRAQ

Q I was wondering if you can comment on Basra, specifically Basra in the wake of the British withdrawal there. I mean, is this -- is security there a concern for the U.S.?

MR. MORRELL: Sure.

Q You know, to what extent are we concerned about an escalation of power struggles in that -- (inaudible)? And also, is there any -- obviously, U.S. forces are stretched pretty thin.

Is there any talk of sending some folks down that way?

MR. MORRELL: Well, I'm not up to date on what exactly the sort of -- I forget what they call it -- sort of force geometry, what the adjustments would be when and if the British withdraw their forces from the south, but I assume that when they do we'll have to adjust accordingly.

Are we concerned about the situation in Basra? Absolutely. It is a place where you have a variety of different Shi'a groups competing to control the resources down there and what business there is down there. So it's a -- it is a little bit unlike the sectarian conflicts you see further north because there is sort of inter- sectarian strife. And what the motivation really looks like -- when I was there, as it was described to me -- is that these are sort of almost Mafioso kind of situations where people are trying to carve up the pie and who controls the money-making businesses and ventures down there. But it's ugly and it's a problem, and we are concerned about it. And hopefully the British will continue to work hard on it, and when and if they leave, undoubtedly we'll have to deal with it as well.