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In a statement, the two leaders said their aim was to maintain both the Islamic and the national interest.Indeed, if the scenario in the truce plays out, it should relieve Prime Minister Maliki of a gigantic headache. The Badr Organization is the most powerful Shia militia in Iraq and was headed for open warfare with the Mahdi Army. In effect, the agreement solidifies Maliki's back as he tries to affect reconciliation with the Sunnis. At the moment, he doesn't have to worry about the Shia militias making trouble while he tries to heal the wounds in Iraqi society.
"The agreement is essentially a commitment of honour," a spokesman for Sadr's group Liwa Sumaysim told Agence France-Presse news agency.
"The most important aspect is that it forbids both sides to engage in bloodletting against each other and against Iraqis in general." A spokesman for Mr Hakim's group, Hamid al-Saadi, said:
"Iraq needs deals between factions to enhance and preserve Iraqi unity." The two leaders also say their groups will co-ordinate their media and cultural efforts.
The BBC's Jon Brain in Baghdad says, if successfully implemented, the agreement will resolve one of the many disputes that make it so difficult for Iraq to achieve reconciliation.