The U.S.-British draft endorses the formation of a sovereign interim Iraqi government but doesn't spell out its powers.

On Thursday's press conference, Chinese Foreign Ministry Spokesman Liu Jianchao clearly stated China's stance on the draft resolution.

He says China supports the UN to pass such a resolution, and holds it's necessary to send a multinational force to Iraq after the June 30th transfer of sovereignty back to Iraq. The resolution should specify the mandate and time limit of such a force, and the Iraqi people's opinions should be respected.

Reports say China has suggested some major changes to the draft resolution submitted by the US and Britain. One proposal supported by Russia, France and Germany, would give the interim government control of the Iraqi army and police force and require the multinational force to consult with the interim government in respect of military actions, except for cases of self-defence.

China has also suggested the interim government be given the right to decide whether the multinational force remains in the country, and limit its mandate to next January, when elections are scheduled to be held.

China thinks the interim government of Iraq should exercise full sovereignty, in the political, economic, security, judicial and diplomatic areas, including the power to control and dispose all the natural and economic resources, sign economic cooperation agreements and contracts, and enjoy judicial independence and the power to administer prisons in Iraq.

In another development, according to Liu Jianchao, China is considering reducing its debts on Iraq.

He says China has contacted and consulted with relevant countries on Iraq's debt to China. China will consider reducing Iraq's debts to the Chinese government and its debts to Chinese companies. He says China is currently discussing the issue with related parities.

Liu Wei, CRI News.