More from Reuters on the situation in Iraq.

BAGHDAD, July 21 (Reuters) - Iraqi leaders have all but given up on holding the country together and, just two months after forming a national unity government, talk in private of "black days" of civil war ahead.

Signalling a dramatic abandonment of the U.S.-backed project for Iraq, there is even talk among them of pre-empting the worst bloodshed by agreeing to an east-west division of Baghdad into Shi'ite and Sunni Muslim zones, senior officials told Reuters.

Tens of thousands have already fled homes on either side.

"Iraq as a political project is finished," one senior government official said -- anonymously because the coalition under Prime Minister Nuri al-Maliki remains committed in public to the U.S.-sponsored constitution that preserves Iraq's unity.

One highly placed source even spoke of busying himself on government projects, despite a sense of their futility, only as a way to fight his growing depression over his nation's future.

"The parties have moved to Plan B," the senior official said, saying Sunni, ethnic Kurdish and majority Shi'ite blocs were looking at ways to divide power and resources and to solve the conundrum of Baghdad's mixed population of seven million.

"There is serious talk of Baghdad being divided into east and west," he said. "We are extremely worried."

Tragically, Iraq is fragmenting into seperate sectarian mini-states as tens of thousands of people flee for their lives. Historically, this sort of division has been a key precursor to all out civil war. Once it starts, it's almost impossible to stop.

And most of the mainstream media, with a few notable exceptions, don't even seem to have noticed.

Tags: News, Iraq