By Claudia Parsons

UNITED NATIONS, July 20 (Reuters) - The time has come to "define more clearly" the future status of U.S.-led forces in Iraq, but it will take time to build up Iraqi security forces, Baghdad's Deputy Prime Minister Barham Salih said on Friday.

Salih was making an interim report to the United Nations on the International Compact for Iraq, which sets out benchmarks for the Iraqi government in return for debt relief and other international support.

U.S. President George W. Bush's administration is under growing pressure from the Democratic-led Congress to start withdrawing troops amid relentless violence and slow progress on the political front.

In a speech by video link to the United Nations from Baghdad, Salih said: "The status of coalition forces in Iraq is cause for debate among Iraqis."

"We recognize and appreciate the immense contribution that the coalition forces have made to empowering the people of Iraq and overcoming tyranny," he said.

"But the time has come, for both the United States and the Iraqi government, to define more clearly the status of the coalition forces in Iraq in the context of our partnership in the battle against terrorism and deterring regional predators."

He reiterated, however, that for the U.S.-led troops to leave Iraq before Iraqi troops can take over security would cause "a disaster for Iraq and the region."

"We need time and space," he said. "We need sustained support from the international community."

U.N. Undersecretary General Ibrahim Gambari said the interim report on the Compact had shown the government was making progress, but more was needed, especially on security.

"The international community also need to do more in terms of honoring our own commitments," Gambari said.

Some $30 billion in debt relief and aid were pledged at a U.N.-run meeting in May in Sharm El-Sheikh, Egypt. But Gambari said it was too early to give the current state of play.

The Paris Club of rich nations has written off $100 billion of Iraq's debt, most of it dating from former President Saddam Hussein's war against Iran in the 1980s. Iraqi officials have estimated the remaining debt at more than $50 billion.

Iraq is said to owe Saudi Arabia more than $17 billion but no immediate relief has been offered. Kuwait is owed about $15 billion, Russia $13 billion and Bulgaria $4 billion.

AlertNet news is provided by