IRAQ'S RULING SHI'ITE ALLIANCE NOMINATED JAWAD AL-MALIKI AS ITS NEW CANDIDATE FOR PRIME MINISTER ON FRIDAY IN AN EFFORT TO END FOUR MONTHS OF POLITICAL PARALYSIS OVER THE FORMATION OF A NEW GOVERNMENT, ACCORDING TO REUTERS. NO IMMEDIATE REACTION WAS AVAILABLE FROM SUNNI ARAB AND KURDISH PARTIES TO THE NOMINATION OF MALIKI, WHO HAD PREVIOUSLY BEEN SEEN AS AN UNLIKELY CANDIDATE BECAUSE HE WAS WIDELY VIEWED AS A SECTARIAN POLITICIAN. THE UNITED STATES HOPES IRAQI LEADERS WILL FORM A NATIONAL UNITY GOVERNMENT THAT CAN AVERT ANY SLIDE INTO A SECTARIAN CIVIL WAR AND DRAW SUNNI ARAB INSURGENTS INTO THE POLITICAL PROCESS. A SENIOR SHI'ITE ALLIANCE OFFICIAL SAID THE BLOC NOW HAD TO PUT FORWARD MALIKI TO SUNNI AND KURDISH ALLIANCES FOR APPROVAL, HOPEFULLY BEFORE PARLIAMENT CONVENED ON SATURDAY. A TELEVISION STATION RUN BY THE BLOC ALSO SAID MALIKI HAD BEEN NOMINATED. THE SHI'ITE ALLIANCE'S ORIGINAL CHOICE FOR THE JOB, IBRAHIM AL-JAAFARI, SIGNALLED IN A TELEVISED SPEECH ON THURSDAY HE WAS READY TO STEP ASIDE AT THE REQUEST OF THE BLOC AFTER RESISTING WIDESPREAD CALLS FOR HIS RESIGNATION FOR MONTHS. EVEN IF MALIKI, WHO IS CLOSE TO JAAFARI, WINS SUPPORT FROM ALL POLITICAL ALLIANCES, THERE ARE NO GUARANTEES HE WILL MANAGE TO TACKLE THE INSURGENCY, EASE SECTARIAN STRIFE AND RESCUE AN ECONOMY STARVED OF FOREIGN INVESTMENT. --MORE 2152 Local Time 1852 GMT