Karzai sworn in as Afghan leader; vows to fight graft

U.S. Secretary of State Hillary Clinton and Pakistan President Asif Ali Zardari were among dignitaries attending the ceremony in an ornate hall in Karzai's sprawling Kabul palace.

Outside, the capital was all but a ghost town, with police shutting down all streets and ordering citizens to stay home.

In the south, where the Taliban-led insurgency is at its deadliest since the war began eight years ago, a suicide bomber wearing a vest packed with explosives killed 10 civilians in a crowded market and a car bomb killed two U.S. soldiers.

Karzai, 51, called for reconciliation with enemies and proposed a “loya jirga,” a traditional grand assembly, which under Afghanistan's constitution can take precedence over all government institutions, including the presidency itself.

“We welcome those who are not affiliated with any terrorist organizations and whose hands are not red with Afghans' blood,” he said. He described corruption as a menace to the state, and promised measures to fight it.

His inauguration for his second five-year term comes against the backdrop of an ever more-deadly Taliban insurgency, doubts over his legitimacy after the tainted election, and demands from Western donors he address rampant corruption and mismanagement.

In an apparent nod to the demands of his Western backers, Karzai pledged to appoint “competent and professional” ministers.

The speech received positive reviews from the West.

British Foreign Secretary David Miliband said it showed Karzai understood the demands being made on him.

“When you've been re-elected, it's delivery time and I think that's what came through in President Karzai's speech,” Miliband said. “It's a very challenging country to govern but you've got a very strong, substantial statement today.”

European Union special envoy to Afghanistan and Pakistan Ettore Sequi called the speech “a very good statement which reflected the right priorities the right way.”

“Let's encourage and support the president and we shall have opportunities to see how that program will be translated into reality,” he told Reuters. The first test would be Karzai's choice of cabinet ministers, expected soon, he said.

Not all were so impressed. In his speech, Karzai offered a job to his election foe Abdullah Abdullah, calling him his “brother.” Abdullah told Reuters he had no plans to accept.

“It's more of the same,” Abdullah said. “He has spoken in these terms -- in terms of bringing changes and reform, and fighting corruption, and bringing security and reconciliation -- for the last eight years, and the situation has worsened.”

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