Bush Lauds Formation Of Unity Government In Iraq

WASHINGTON (Dow Jones)–President George W. Bush Monday called the establishment of a unity government in Iraq a “watershed” achievement, but warned that days of “challenge and loss” still lay ahead.

“Iraqis are determined to chart their own future, and now they have the leadership to do it, and this unity government deserves American support, and they will have it,” Bush said in a speech in Chicago to the National Restaurant Association.

Iraq’s new national unity government was sworn in on Saturday.

“We can expect the violence to continue but something fundamental changed this weekend,” Bush said, noting that a constitutional democracy now exists in the heart of the Middle East.

Bush also told the restaurant group that the U.S. economy is “strong and growing.” And he repeated his goals for immigration reform, saying a “safe, orderly and fair” system is essential.

Before Bush’s speech, the White House confirmed that U.K. Prime Minister Tony Blair will meet with the president this week in Washington to discuss Iraq.

Blair, who like Bush is battling sagging domestic popularity, traveled to Baghdad Monday to meet with Iraqi Prime Minister Nouri al-Maliki. After the meeting, Blair told reporters foreign forces will leave Iraq only when the violent insurgency there ends. The U.K. has 8,000 troops in Iraq, and no official timetable for their removal.

Bush, in his remarks in Chicago, acknowledged that “setbacks and missteps” have been made in Iraq, but didn’t touch on the potential drawdown of forces.

“The government is still a work in progress. And overcoming longstanding divisions will take time,” the president said.

“The new Iraqi government does not change America’s objectives or our commitment, but it will change how we achieve those objectives and how we honor our commitment. And as the new Iraqi government grows in confidence and capability, America will play an increasingly supporting role.”

Answering audience questions after his address, Bush was asked if there’s a growing distrust between the American people and government, as suggested by opinion polls.

“There’s an unease in America now, and the reason why is we’re at war,” the president said. He repeated his commitment in the fight in Iraq, saying he believes in the cause and the strategy. If he didn’t, he said, U.S. troops would not still be in the country.

Responding to other questions, Bush defended his administration’s tax-cut agenda, repeated his hopes of making healthcare more consumer friendly, and expressed the need to become less dependent on Middle East oil “as soon as possible.”

“The faster we’re off oil the better off we’re going to be,” he said, reiterating his support for nuclear power, ethanol and an expansion of refining capacity.

By Henry J. Pulizzi, Dow Jones Newswires