Negotiations between Iraqi government officials and the office of Shia cleric Moqtada al-Sadr broke down on 2 September 2004, derailed by a single unresolved condition: whether coalition forces could move freely inside Sadr City.

Sadr's delegation sought a commitment that US and coalition troops would stay in their bases, entering the district only for reconstruction work or at the Iraqi government's direct request. The government rejected that condition and suspended the talks.

Every other issue had reportedly been settled. The proposed arrangement called for the Mehdi Army to surrender heavy weapons while both sides released detainees. Collection points were to be set up throughout Sadr City, with cash payments for fighters who turned in arms; personal weapons were excluded from the deal's scope.

Earlier that morning, US troops in tanks and Humvees had broadcast loudspeaker appeals for the Mehdi Army to hand over rocket-propelled grenades and mortars. The ceasefire declared earlier that week remained in effect, though no fighters were seen surrendering weapons.

Sadr City residents were skeptical any handover would be genuine, citing the recent Najaf standoff, in which militia fighters stored weapons in private homes and safe houses rather than turning them over.

Historical summary. TurkishPress restated this AFP wire report, first published in September 2004, in its own words.