The bipartisan Iraq Study Group (ISG) issued on Wednesday the highly-anticipated report that recommends major changes in the Bush administration's Iraq policy, which it says is "not working."

US President George W. Bush speaks during a meeting with Iraq Study Group members including former secretary of state James A. Baker(R) and former chairman of the House International Relations Committee Lee Hamilton in the Cabinet Room of the White House in Washington, DC. December 6, 2006. (Xinhua Photo)

U.S. President George W. Bush (C) shakes hands with Co-Chairman and former Secretary of State James Baker (R) while Co-Chairman after receiving the official report of the Iraq Study Group in the Cabinet Room of the White House in Washington December 6, 2006. (Xinhua Photo)

It recommends the Bush administration to launch new diplomatic initiative in Mideast and shift most U.S. troops in Iraq to noncombat roles by early 2008, though stopping of a timetable for withdrawal.

At a news conference to release the bipartisan group's long-awaited 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."

"Many Americans are understandably dissatisfied," he said.

Hamilton was echoed by former Secretary of State James A. BakerIII, also an ISG co-chair, who said U.S. President George W. Bush's "stay the course" strategy is not viable any longer.

But he cautioned that there is no "magic bullet" to solve the Iraq dilemma.

"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.

He also said the high-level panel concluded the U.S. costs "could well rise over a 1 trillion U.S. dollars."

"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 U.S. forces in Iraq that will enable the United States to begin to move its combat forces out of Iraq responsibly," it said.

On the military side, the report said, "the primary mission of U.S. 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,U.S. 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 to "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."

It called for direct talks with Iran and Syria to stabilize Iraq, and said there needs to be 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."

It said the two recommendations -- shifting combat roles and launching diplomatic initiatives-- are "equally important and reinforce one another."

Saying "the situation in Iraq is grave and deteriorating," the report bluntly warned that the U.S. mission in Iraq will fail unless the Bush administration and the newly elected Congress controlled by Democrats come together to deal with the declining support for the war within the United States.

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

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

In all, it said its all 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 came out at a time when Bush is under growing pressure to make major adjustment to Iraq policy, in the aftermathof his Republican Party's 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.

Editor: Donald