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The choice of Iyad Allawi, closely linked to the CIA and formerly to MI6, as the Prime Minister of Iraq from 30 June will make it difficult for the US and Britain to persuade the rest of the world that he is capable of leading an independent government.
He is the person through whom the controversial claim was channelled that Iraqi weapons of mass destruction could be operational in 45 minutes.
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The handwritten memo, a copy of which has been obtained exclusively by the Telegraph, is dated July 1, 2001 and provides a short resume of a three-day "work programme" Atta had undertaken at Abu Nidal's base in Baghdad.
In the memo, Habbush reports that Atta "displayed extraordinary effort" and demonstrated his ability to lead the team that would be "responsible for attacking the targets that we have agreed to destroy".
The second part of the memo, which is headed "Niger Shipment", contains a report about an unspecified shipment - believed to be uranium - that it says has been transported to Iraq via Libya and Syria.
Although Iraqi officials refused to disclose how and where they had obtained the document, Dr Ayad Allawi, a member of Iraq's ruling seven-man Presidential Committee, said the document was genuine.
"We are uncovering evidence all the time of Saddam's involvement with al-Qaeda," he said. "But this is the most compelling piece of evidence that we have found so far. It shows that not only did Saddam have contacts with al-Qaeda, he had contact with those responsible for the September 11 attacks."
Although Atta is believed to have been resident in Florida in the summer of 2001, he is known to have used more than a dozen aliases, and intelligence experts believe he could easily have slipped out of the US to visit Iraq.
(link thanks to Lisa)