Colin Powell endorses Obama

(CNN) -- Former Secretary of State Colin Powell announced Sunday that he will be voting for Sen. Barack Obama, citing the Democrat's "ability to inspire" and the "inclusive nature of his campaign."

Former Secretary of State Colin Powell says he is voting for Barack Obama.

"I think he is a transformational figure, he is a new generation coming onto the world stage, onto the American stage, and for that reason I'll be voting for Sen. Barack Obama," Powell said on NBC's "Meet the Press."

Powell said he was concerned about what he characterized as a recent negative turn of Republican candidate Sen. John McCain's campaign, such as the campaign's attempts to tie Obama to former 1960s radical Bill Ayers.

"I think that's inappropriate. I understand what politics is about -- I know how you can go after one another, and that's good. But I think this goes too far, and I think it has made the McCain campaign look a little narrow. It's not what the American people are looking for," he said.

Powell, a retired U.S. general and a Republican, was once seen as a possible presidential candidate himself.

Powell said he has some concerns about the direction of the Republican Party, adding that it has "moved more to the right than I would like to see it."

In regard to the financial crisis, which Powell called the candidates' "final exam," Powell said McCain appeared unsteady in dealing with it, while Obama had excelled in handling the situation.

"Obama displayed a steadiness, an intellectual curiosity, a depth of knowledge," Powell said.

"He has met the standard of being a successful president, being an exceptional president," he said.

Obama praised Powell at a campaign event in Fayetteville, North Carolina, on Sunday, calling him "a great soldier, a great statesman, and a great American."

"I have been honored to have the benefit of his wisdom and counsel from time to time over the last few years, but today, I am beyond honored and deeply humbled to have the support of General Colin Powell," Obama said.

Obama called Powell earlier Sunday and thanked him for his endorsement, communications director Robert Gibbs said.

In their 10-minute conversation, Obama said he looked forward to taking advantage of Powell's advice in the next two weeks and hopefully over the next four years, Gibbs said.

During the campaign, Powell has met with both candidates and said he has a lot of respect for McCain. He said Sunday that he thinks both candidates are qualified to be president.

"It isn't easy for me to disappoint Sen. McCain in the way that I have this morning, and I regret that," Powell said.

Speaking on Fox News Sunday, McCain said he respects and admires Powell, and the announcement "doesn't come as a surprise."

"I'm also very pleased to have the endorsement of four former secretaries of state -- Secretaries [Henry] Kissinger, [James] Baker, [Lawrence] Eagleburger, and [Alexander] Haig -- and I'm proud to have the endorsement of well over 200 retired Army generals and admirals," McCain said.

Powell served as Secretary of State under President Bush from 2001 to 2005.

The possibility of a Powell endorsement has been rumored for several months.

On August 13, Powell's office denied a report on Fox News by commentator Bill Kristol that Powell had decided to publicly back Obama at the Democratic National Convention.

Powell himself brushed off queries on any potential presidential nod but told ABC News in August that he would not be going to Denver, Colorado, for the convention.

Back in February, Powell told CNN's Wolf Blitzer that he was weighing an endorsement of a Democratic or independent candidate.

Powell has offered praise for Obama, calling him an "exciting person on the political stage."

"He has energized a lot of people in America," said Powell. "He has energized a lot of people around the world. And so I think he is worth listening to and seeing what he stands for."

The former general, who has largely steered clear of politics since leaving the Bush administration, noted that the next president will need to work to restore America's standing in the world.

BAGHDAD, Iraq (CNN) -- U.S. troops or contractors who commit "major and premeditated murders" in Iraq while off-duty and outside U.S. facilities would fall under Iraqi jurisdiction, according to a copy of a draft U.S.-Iraq agreement obtained by CNN.

Shiite demonstrators protest a proposed U.S.-Iraqi security pact Saturday in Baghdad.

All other crimes -- including murders committed inside U.S. facilities or by on-duty forces -- would fall under American jurisdiction, according to the draft, which would govern U.S. troops' presence in Iraq.

The issue of whether U.S. troops would remain immune from Iraqi prosecution has been a sticky one for negotiators crafting the Status of Forces Agreement draft, which Iraqi lawmakers are reviewing. The United States had preferred its troops and contractors retain immunity.

The draft also calls for U.S. troops to be out of Iraqi cities by July 30, 2009, and out of the country entirely by December 31, 2011. The agreement allows for an earlier withdrawal or an extension of the U.S. forces' stay in Iraq, by agreement of both parties.

It also allows the Iraqi government to "request from the United States government to leave certain forces for training and for support purposes for the Iraqi forces."

The governments have been trying to get a deal before December 31, when a U.N. mandate authorizing the U.S. troop presence in Iraq expires.

Iraq's ruling Shiite parliamentary bloc said Sunday it needs more time before it can approve the draft.

The United Iraqi Alliance bloc found several "points" in the draft that "need more time for discussion, dialogue and amendments [to] some of its articles," according to the Supreme Islamic Council of Iraq, the most powerful party in the bloc.

It was unclear what specific "points" the parliamentary bloc was questioning.

Thousands of people marched in central Baghdad on Saturday to protest the draft U.S.-Iraqi security agreement. The political party of Iraqi cleric Muqtada al-Sadr called for the rally. Watch marchers protest the agreement »

Baghdad had sought the power to arrest and try Americans accused of crimes that are not related to official military operations, plus jurisdiction over troops and contractors who commit grave mistakes in the course of their duties.

The United Iraqi Alliance on Sunday night discussed the draft, which was presented by Iraqi Prime Minister Nuri al-Maliki, whose Dawa Party is also a member of the ruling bloc.

Iraq's Political Council for National Security needs to approve the draft before al-Maliki sends it to his cabinet. The council includes the leaders of various political blocs -- including the United Iraqi Alliance -- as well as Iraq's president, prime minister, vice presidents, and speaker of parliament.

If the cabinet passes the draft by a two-thirds majority, al-Maliki will submit it to the Iraqi parliament for approval.

A senior Bush administration official said last week that the U.S. is examining "contingencies" in case the Iraqi government is unable to sell the status-of-forces deal to the country's various factions.

If Iraq does not approve the deal, fallback options include "a new U.N. Security Council resolution legally authorizing the extension of the U.S. footprint" or an "informal agreement between the United States and the Iraqis," the official told CNN last week.

The official spoke on condition of anonymity because of the sensitivity of the discussions.

Other points covered in the draft agreement include Iraqi ownership of "all the buildings, facilities and structures that cannot be transported and are connected to the ground" and used by American forces. Such facilities will be returned to Iraq when the agreement expires, it says.

Further, the agreement requires the United States to immediately return to Iraq any "historic or cultural site" it discovers at facilities it is using.

The agreement allows the United States to use whatever defensive systems it deems necessary in areas under its control. Yet it bars "systems of weapons of mass destruction (chemical, nuclear, radiological, biological weapons and waste related to these weapons)."

The United States is to transfer control of Iraqi airspace to Iraq when the agreement goes into effect, although Iraq can ask for assistance for airspace control and surveillance.

The agreement also covers environmental issues; the comings and goings of troops in and out of Iraq; movement of vehicles, planes and ships; and the movement of equipment in and out of Iraq.

Secretary of State Condoleezza Rice is lobbying Iraqi leaders to pass the draft text of the agreement by the end of the year, State Department spokesman Sean McCormack said last week.