BAGHDAD, Iraq (CNN) -- 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.

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.

Iraqi children dress like Santa's elves for the Christmas party.

On a large stage, children dressed in costumes representing Iraq's many ethnic and religious groups -- Kurds, Turkmen, Yazidis, 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 »