WASHINGTON, Jan 26: Facing the deadliest day for American forces since the invasion of Iraq 22 months ago, President George Bush acknowledged on Wednesday that heavy US military casualties there were depressing his people.

"The story today is going to be very discouraging to the American people. I understand that. We value life. We weep and mourn when soldiers lose their life," Mr Bush said at his first news conference of the year.

Mr Bush said that despite the high number of US troops dying in battle, the United States could not run away from its long-term aim of spreading freedom. "But it is the long-term objective that is vital, and that is to spread freedom," Mr Bush emphasized.

If not for the sacrifices of the American troops, he said, "the Middle East will continue to be a caldron of resentment, hate, (a) recruiting ground for those who have this vision of the world that is the exact opposite of ours".

Responding to a remark that Americans were becoming increasingly concerned by the immense US human and financial resources being poured into Iraq, Mr Bush said: "It is the decision which we make today that can affect how people live 30, 40 or 50 years from now."

Mr Bush defended the Iraqi mission, saying the United States was "making progress" in helping that country develop democracy. "In the long term, our children and grandchildren will benefit from a free Iraq," he said. Mr Bush also stressed that American troop levels in Iraq would be maintained until the local military was capable of defending their nation.

"In terms of troop levels, obviously we're going to have a troop level necessary to complete the mission, and that mission is to enable Iraq to defend itself from terrorists - home grown or terrorists that come in from outside the country," Mr Bush said. He said it was necessary to establish "a good chain of command, from top to bottom" within the Iraqi military.

'GRAND MOMENT': President George Bush predicted that weekend elections in Iraq would be a "grand moment" in the country's history. Mr Bush said US forces in the country "will complete the mission as quickly as possible", but would not say when the roughly 150,000 US soldiers would start going home.