ABU DHABI, UNITED ARAB EMIRATES - The United Arab Emirates canceled billions of dollars of Iraqi debt Sunday and moved to restore a full diplomatic mission in Baghdad, evidence of Iraq's improved security and growing acceptance of its Shiite-led government.

The Abu Dhabi government announced the debt relief and the naming of a new UAE ambassador to Baghdad shortly after Iraqi Prime Minister Nouri al-Maliki began a visit to the wealthy Gulf nation.

The news was sure to bolster al-Maliki's government, which has been urging Iraq's Sunni Arab neighbors to forgive loans taken during Saddam Hussein's regime and restore diplomatic relations.

Al-Maliki, who has been in office since May 2006, thanked the UAE for the debt cancellation, telling a meeting with local businessmen that it was a "swift and courageous" decision.

The Emirates' official news agency, WAM, quoted the country's president, Sheik Khalifa bin Zayed Al Nahyan, as saying he hoped canceling the debt would lighten Iraqis' "economic burden." He also urged Iraqis to unite behind al-Maliki's government.

WAM said the debt was $4 billion, not including interest.

Iraq has been appealing for relief of at least $67 billion in foreign debt -- owed mostly to Arab nations that have been reluctant to forgive Iraq's belligerence during Saddam Hussein's regime.

In addition, the U.N. Compensation Commission says $28 billion remains to be paid for Iraq's 1990 invasion of Kuwait. Iraq now gives 5 percent of its oil revenue to meet the compensation claims.

SECURITY PACT: Iraqi Interior Minister Jawad al-Bolani said Sunday that the U.S. has presented Iraq with a proposed list of military facilities Washington wants to maintain control of as part of negotiations between the countries on a long-term security agreement.

Al-Bolani said the timing for how long the U.S. would control each facility would be based on the security situation in each area.