As Iraq's Governing Council put aside differences on Monday to forge an interim constitution, a series of interviews was aired across the United States in which German Chancellor Gerhard Schröder ruled out sending German peacekeeping troops to Iraq once a new Iraqi government is installed.

The first steps to the formation of an interim constitution were taken in the early hours of Monday morning when the 25-member Council ended hours of heated debate to eventually strike a deal.

Although it was 24 hours after a deadline to do so had passed, the council put aside divisions over the role of Islam, quotas for women in government and Kurdish demands for autonomy. The document will be officially signed on Wednesday.

German troops will not police Iraq, says Schröder

If the process continues, the constitution will form a key foundation in Washington's plans to hand sovereignty back to Iraqis by June 30. But even if that results in an autonomous government running Iraq, German troops will not be part of any mission to keep the peace as the fledgling leadership begins the difficult task of reuniting the country.

When asked if Germany would contribute troops to a stabilizing force in Iraq, Schröder told the ABC News network's "This Week'' program, "Our resources are completely dedicated now to Afghanistan and in the Balkans, and therefore we are saying no.''

"We also are saying no to that question because there's no majority for that issue in the German parliament. That has something to do with the past, and I think that we would be overstretching if we did that,'' he added.

Germany would not block NATO deployment

In a separate interview in the Washington Post, Schröder said Germany would not send troops to Iraq even as part of a NATO-led force.

"If such a situation evolved, Germany would not place any hurdles in the path of NATO,'' the chancellor told the newspaper. "Nevertheless, we would not be involved ourselves militarily.''

Schröder's comments were being widely reported stateside as U.S. officials were praising the efforts of the Governing Council.

"This is a major achievement, only a day late, which I think is terrific," said U.S. Secretary of State Colin Powell.

British Prime Minister Tony Blair welcomed the deal as a "significant foundation stone," according to a statement from a Downing Street spokesman.

Chancellor reiterates U.N. support

Despite the chancellor's refusal to commit the Bundeswehr to any peacekeeping duties, he did reaffirm German support for United Nations involvement in transferring power within Iraq.

Schröder told "This Week'' host George Stephanopoulos that "the question simply is, how, and in what structure, should sovereignty be transferred to the Iraqis themselves, and what role the United Nations is going to play in this time."

There are still no details as yet as to what form the government will take when the United States hands the power back to Iraqis. A senior coalition official said discussions on the next phase of structuring the government would start "after a pause for breath."

Differences despite recent success

After a seemingly successful visit to Washington last week, many expected news to soon break of renewed German-U.S. cooperation on Iraq.

While the leaders both admitted that they had "buried the hatchet'' over their differences of opinion regarding the war, there may still be a distinct difference of opinion regarding the policing of the unstable country when the U.S. relinquishes power.

The United States is still hoping to persuade the United Nations to return to Iraq to aid the transition process and for the international community to commit armed forces as part of a stabilizing force.

Germany, however, is staying with its position of having nothing militarily to do with a situation brought about by an invasion it opposed, despite Gerhard Schröder stating that he and President Bush "have a common interest to see that Iraq becomes stable and democratic.''