Navy Adm. William J. Fallon yesterday relinquished command of U.S. Pacific forces at Camp Smith as he prepares to lead the U.S. Central Command and the wars in Iraq and Afghanistan.

Fallon relinquished the Pacific Command to Air Force Lt. Gen. Daniel P. Leaf, deputy commander at Camp Smith, who will serve as acting Pacific commander while Adm. Timothy J. Keating awaits Senate confirmation for the job.

Fallon told a small crowd of mostly staff and family that the United States faces a vicious enemy in terrorism. But he said the nation would prevail so long as Americans are willing to serve.

"We are in a struggle today in our world with a certain group of folks who really don't like the way in which we live our lives," Fallon said.

"They don't like the idea that people have choices. They want to decide who does what in the world," he said. "That's not the foundation of our country, nor is it the desire of most people in our world."

The Pacific Command did not admit news people to the ceremony but gave out a DVD of it afterward.

In a recent interview with The Advertiser, Fallon likened Iraq to a burning house in a region of dry timber.

"This place is on fire, major conflagration. Burning down. Implications for the neighborhood," he said.

Fallon said the bloodshed in Iraq must be stanched very soon. If not, it will be hard to change perceptions here and in Iraq about the unpopular war, and to salvage the U.S. effort.

But Fallon emphasized that to stabilize Iraq, more time, effort and patience will be needed by the United States, particularly with a new counterinsurgency strategy being implemented.

Fallon, 62, led the Pacific Command for two years and is credited with building better military ties with China in an effort to improve communication and reduce the chance of a misunderstanding leading to a conflict.

Keating, his replacement, told a Senate confirmation panel last week that conflict with China over security in the region remains a possibility.

Keating said that if confirmed, he would engage in joint military exercises "of some sophistication and frequency" with the Chinese to try to ease tensions with the superpower, which is building up its armed forces.

"If we ensure they are aware of our capabilities, our intent, I think that would go a long way to defusing a potential strike across the Straits of Taiwan," Keating said.

Keating, 58, who is head of the U.S. Northern Command and the North American Aerospace Defense Command, is expected to take over the Pacific Command by the end of the month.

Reach William Cole at wcole@honoluluadvertiser.com.