Christians , Arab Muslims not defined as Sunni or Shiite -- hold their hands aloft and sing `` We are building Iraq ! '' Two young boys , a mini-policeman and a mini-soldier sporting painted-on mustaches , march stiffly and salute . Watch the celebration in Baghdad '' Even before I can ask Interior Ministry spokesman Major-General Abdul Karim Khalaf a question , he greets me with a big smile . `` All Iraqis are Christian today ! '' he says . Khalaf says sectarian and ethnic violence killed thousands of Iraqis . `` Now that we have crossed that hurdle and destroyed the incubators of terrorism , '' he says , `` and the security situation is good , we have to go back and strengthen community ties . '' In spite of his claim , the spokesman is surrounded by heavy security . Yet this celebration shows that the security situation in Baghdad is improving . Many of the people attending the Christmas celebration appear to be Muslims , with women wearing head scarves . Suad Mahmoud , holding her 16-month-old daughter , Sara , tells me she is indeed Muslim , but she 's very happy to
BAGHDAD , Iraq -LRB- CNN -RRB- -- From a distance , it looks like an apparition : a huge multi-colored hot-air balloon floating in the Baghdad sky , bearing a large poster of Jesus Christ . Below it , an Iraqi flag . Santa and his helpers stand under palm trees at Baghdad 's first public Christmas festival . Welcome to the first-ever public Christmas celebration in Baghdad , held Saturday and sponsored by the Iraqi Interior Ministry . Once thought to be infiltrated by death squads , the Ministry now is trying to root out sectarian violence -- as well as improve its P.R. image . The event takes place in a public park in eastern Baghdad , ringed with security checkpoints . Interior Ministry forces deployed on surrounding rooftops peer down at the scene : a Christmas tree decorated with ornaments and tinsel ; a red-costumed Santa Claus waving to the crowd , an Iraqi flag draped over his shoulders ; a red-and-black-uniformed military band playing stirring martial music , not Christmas carols . On a large stage , children dressed in costumes representing Iraq 's many ethnic and religious groups -- Kurds , Turkmen , Yazidis ,