US reviewing pay package for Iraqi army

Meanwhile US President George W. Bush touted Saddam Hussein's ouster as part of a "year of accomplishment," but made no mention of the unfound weapons of mass destruction on which the war was predicated.

The US military commander in Iraq, Lieutenant General Ricardo Sanchez, told reporters that the Iraqi troops' mass walkout was caused by unhappiness among married soldiers who said they could not support their families on a monthly wage of 60 dollars.

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Sanchez also said that despite a string of recent fatalities, attacks on coalition soldiers had fallen to "around 20" per day.

"We have achieved a significant decrease in attacks," he said.

In November, which proved to be the deadliest month for US soldiers in Iraq, the number of daily attacks surpassed 35 and hit 55 on one occasion.