'Ethnic tensions in Kirkuk have escalated after Arabs were offered payments to leave the strategic Iraqi city before a referendum that is expected to approve its incorporation into Kurdish territory.
Kirkuk's oil wealth makes the city of 700,000 one of Iraq's greatest strategic prizes. Well before the fall of Saddam Hussein, Kurds declared their intention to claim a city they describe as their "Jerusalem".
Iraqi Arab residents of the oil-rich northern Iraqi city of Kirkuk shout slogans as they demonstrate against a decision to relocate them
According to Iraq's new constitution, Kirkuk is one of three disputed areas that must hold a referendum by the end of this year on joining the northern provinces run by the autonomous Kurdistan Reg-ional Government and its own security forces.'
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/02/09/wirq109.xml