The terrorists want civil war. Al-Qaida is attacking Shiites. The Shiite militias are taking revenge on the Sunnis. And the Sunnis are become more extremist, with some joining al-Qaida.

I consider the modernization of the Middle East the central challenge of our time. This region behaves as if it were disturbed, if you'll excuse the clinical expression.

Iran is undertaking a massive effort to expand its influence in southern Iraq. At the same time, that influence decreases the more the political process in Iraq progresses.

Nation building is our central task, both in Afghanistan and in Iraq. And states, nations can't just be built with military power. Despite all difficulties, it's very inspiring to see how the Kurds, the Arab Sunnis and the Shiites are coming together here, how they're jointly defining the basis on which their state is to be built, the political course this state will pursue and who is to receive which cabinet positions.

Americans have eliminated Iran's worst enemies, the Taliban in Afghanistan and Saddam [Hussein]. I occasionally threatened my Iranian counterpart in Kabul that one day I would send him a big bill for what we did. But, seriously, Iran is pursuing a dual strategy in Iraq. On the one hand, the Iranians, after decades of hostility, are now interested in good relations. On the other hand, they want to keep the country weak and dominate the region.

In my job I do my best to look forward.

The national unity government will need to implement a program that brings all Iraqis together, builds a happy future for the people of Iraq, and gets Iraq to stand on its own feet.