Baghdad - A refugee camp in Iraq home to an Iranian opposition party has been transferred from US control to Iraqi authorities, Iraqi Radio reported on Monday.

Camp Ashraf was originally set up during the Iran-Iraq war to give shelter to opponents of the regime of Ayatollah Khomeini.

Following the US invasion of Iraq in 2003, the US military has been responsible for protecting the group in the face of Sunni-Shia sectarian violence throughout Iraq.

Iraqi army forces officially received from the Multi-National Force (MNF) responsibilities to protect the Ashraf camp on Sunday.

The camp, 60 kilometers north of Baghdad, is the official headquarters of the People's Mujahedin of Iran, the largest Iranian opposition group.

Iraqi politicians are divided over the move.

A member of the Shiite Unified Iraqi Coalition's Solidarity Bloc on Monday described the handover of the camp as "a step in the right direction" to rectify relations with Iraq's neighbours.

"The government should take similar steps with all countries because Iraq needs to establish good neighbourly relations with all and to move away from the tensions created by the former regime," Voices of Iraq news agency quoted Member of Parliament Qays al-Aameri al-Aameri as saying.

However, the leader of the Sunni Iraqi National Dialogue Front, Saleh al-Motlaq, described the handover as a great loss to Iraq and a victory for the Iranian regime, which according to him is seeking to eliminate the organization.

The unarmed residents of the camp fear becoming the target of Iranian-sponsored aggression, violence and slaughter.

They also fear being expelled by the Iraqi authorities.

Demonstrations were held worldwide in support of the 3,500 Iranian dissidents in Ashraf.

Families and supporters of Ashraf residents demonstrated in front of the UN headquarters in Geneva earlier in August to press for guarantees of safety for the camp's inhabitants.

Ali al-Dabbagh, spokesman for the Iraqi government, said on Monday his country would deal with the organization's members in a humanitarian way and in accordance with international law.

Al-Dabbagh also ruled out driving members of the People's Mujahedin of Iran out of Iraq.

However, al-Dabbagh said that the government "encourages the organization members to leave Iraq for countries that would accept them as asylum seekers or to voluntarily return to Iran."

Al-Dabbagh warned against "illegal practices or meetings conducted by the organization or any other political factions at Ashraf camp." (dpa)