Bush hails Iraq progress

By Tabassum Zakaria and Matt Spetalnick

MANAMA (Reuters) - President George W. Bush said on Saturday that America's new strategy had reversed Iraq's descent into mayhem and the United States was on track to complete the withdrawal of 20,000 troops by mid-year.

After talks at a base in the Kuwaiti desert with his military commander in Iraq, General David Petraeus, and the U.S. ambassador in Baghdad, Ryan Crocker, Bush said security gains in Iraq "are allowing some U.S. forces to return home".

He added: "Any additional reduction will be based on the recommendation of General Petraeus, and those recommendations will be based entirely on the conditions on the ground in Iraq."

Bush conceded that until last year, "our strategy simply wasn't working", with Iraq riven by sectarian violence and al Qaeda militants strengthening their grip in many areas. He said the new strategy, involving a troop buildup and a focus on counter-insurgency warfare, was turning things around.

Bush later flew to Bahrain, a close U.S. ally which hosts the U.S. Fifth Fleet, where he was greeted by King Hamad bin Isa al-Khalifa.

Bush praised the king for Bahrain's efforts on democratic reforms, citing the holding of elections and that a woman was elected to the parliament. "Bahrain's reforms are making your nation stronger, you're showing strong leadership, you're showing the way forward to other nations," Bush said.

About 200 demonstrators gathered near the U.S. embassy in the capital Manama, carrying anti-U.S. placards and some chanting slogans against the ruling family. "State terrorism - Made in USA," read one placard.

In Kuwait, Bush said: "Iraq is now a different place from one year ago. Much hard work remains, but levels of violence are significantly reduced. Hope is returning to Baghdad, and hope is returning to towns and villages throughout the country."