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US President Bush's Iraq policies are not working, the bipartisan Iraq Study Group concluded Wednesday in its long-awaited report.

It recommends to the Bush administration launching new diplomatic initiative across the Middle-East and shifting most US troops in Iraq to non-combat roles by early 2008, although it stops short of providing a timetable for withdrawal.

At a news conference to release the report, former Rep. Lee Hamilton, co-chair of the ISG said, "The current approach is not working and the ability of the United States to influence events is diminishing," adding that "many Americans are understandably dissatisfied."

Hamilton was echoed by former Secretary of State James A. Baker III, also an ISG co-chair, who said US President George W. Bush's "stay the course" strategy is no longer viable. However, he did state that no "magic bullet" exists for solving the Iraq crisis. 

"No course of action in Iraq (is) guaranteed to stop a slide toward chaos. Yet, in our view, not all options have been exhausted," said Hamilton.

It was further announced that the illustrious panel forewarned of US costs spiraling to over US$1 trillion.

"The situation in Iraq is grave and deteriorating," the report begins with. "Our most important recommendations call for new and enhanced diplomatic and political efforts in Iraq and the region, and a change in the primary mission of US forces in Iraq that will enable the United States to begin to move its combat forces out of Iraq responsibly."

On the military side, the report said that "the primary mission of US forces in Iraq should evolve to one of supporting the Iraqi army, which would take over primary responsibility for combat operations."

"By the first quarter of 2008, subject to expected developments in the security situation on the ground, all combat brigades not necessary for force protection could be out of Iraq. At that time, US combat forces in Iraq could be deployed only in units embedded with Iraqi forces," it said.

On the diplomatic front, the report recommends the Bush administration "immediately launch a new diplomatic offensive to build an international consensus for stability in Iraq and the region," which should "include every country that has an interest in avoiding a chaotic Iraq, including all of Iraq's neighbors."

Direct talks with Iran and Syria to stabilize Iraq are desirable in the ISG's eyes as it called for a renewed and sustained commitment by the United States to a comprehensive Arab-Israeli peace on all fronts: Lebanon, Syria and a two-state solution for Israel and Palestine.

The report suggests the new diplomatic approach "should be launched before December 31, 2006."

Both recommendations -- shifting combat roles and launching diplomatic initiatives—were stated as "equally important and reinforce one another."

Saying "the situation in Iraq is grave and deteriorating," the report bluntly warned that the US mission in Iraq will fail should the Bush administration and the Democratic Congress not come together to deal with declining national support for the war.

"What we recommend demands a tremendous amount of political will and cooperation between the executive and legislative branches of the US government," it stressed.

"Foreign policy is doomed to failure -- as is any action in Iraq -- if not supported by a broad, sustained consensus," said the report.

In all, it said all its 79 recommendations listed in the 160-page report offer "a new way forward for the United States in Iraq and the region," and "need to be implemented in a coordinated fashion."

The report comes as Bush faces mounting pressure to make major adjustments to Iraq policy, as his Republican Party still reels from its defeat in last month's midterm elections.

The congressionally-commissioned Iraq Study Group was formed in March and comprises 10 political heavyweights from both parties, with the sole mission to advise the Bush administration on Iraq policy.

(Xinhua News Agency December 7, 2006)