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From Keith Porter, for About.com

Iraq Reclaims Sovereignty

Thursday January 1, 2009
U.S. forces and a statue of Saddam Hussien in Iraq

2003: U.S. forces and
a statue of Saddam
Hussien in Iraq
Photo: Getty/Khuzaie

The start of 2009 marks a big change for the American role in Iraq. While midnight rang in January 1, a small ceremony played out inside a former Saddam Hussein palace in Baghdad. The United States handed over control of Iraqi airspace and the Green Zone to the government of Iraqi Prime Minister Nouri al-Maliki under the terms of the new "status of forces" agreement between the two countries.

The Washington Post wrote:

"On January 1, we are going to control this," Adnan Karim, 22, an Iraqi soldier manning a checkpoint at one of the entrances to the Green Zone, said, beaming. "The U.S. will be here just as observers. It's a matter of pride."
In honor of these developments, Al-Maliki says he will propose January 1 as a national holiday to commemorate "Sovereignty Day."

More:

Update: Just days after the above ceremony, the United States opened its new embassy in Baghdad. According to this report from Foreign Policy Passport, the new embassy is 6 times larger than the United Nations complex in New York... and 10 times larger than the (now) second largest U.S. embassy (which is in Beijing).
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