LONDON, Dec 6: British Prime Minister Tony Blair conceded on Wednesday that the war in Iraq is not being won, before heading for Washington to discuss a crunch new report on options for the war-scared country.

But the British leader, who is to hold talks with US President George W.

Bush on Thursday, insisted Iraq can be salvaged -- albeit as part of a wider Middle East strategy centred on the Israel-Palestinian conflict.

Blair was asked if he shared the assessment of US Defence Secretary designate Robert Gates, who told a confirmation hearing Tuesday that the US was not winning the war.

“Of course, in July I said myself that the situation in Baghdad with sectarian killing was appalling and that the bloodshed was appalling,” Mr Blair told lawmakers in London, shortly before his departure for Washington.

“What is important however is ... that we do go on to succeed in the mission that we have set ourselves,” he added.

Mr Blair will also meet congressional leaders in Washington.

The report of the Iraq Study Group, co-chaired by former US secretary of state James Baker and published on Wednesday, warned bluntly that Iraq's plight is “grave and deteriorating,” and said most combat troops could be withdrawn by early 2008.

Downplaying suggestions that Mr Blair's talks will be dominated by the report, his spokesman said the timing of the visit was just a “happy coincidence.” The “report is an independent report and therefore it's a matter for them (the Americans) to talk about,” he said, adding: “The prime minister did give evidence last month and we briefed on the evidence at the time.” Both Mr Blair and President Bush have faced a growing wave of opposition and calls for a withdrawal from Iraq.

Mr Bush last week dismissed speculation that he was planning a pull-out. “This business about a graceful exit just simply has no realism to it whatsoever,” he said after talks in Jordan with Iraqi Prime Minister Nuri al-Maliki.

But Blair's government -- which has some 7,100 troops in southern Iraq -- said recently it hoped to hand over control to Iraqi forces early next year, leading to a reduction of troop levels by thousands.

Blair reiterated on Wednesday that the key strategic priorities for Iraq were to build up the country's army and support its government, while seeking a wider solution in the region.—AFP