President Bush insisted that the US-led coalition in Iraq was not crumbling and he shrugged off Italy?s decision to begin pulling troops from Iraq by September. ?Quite to the contrary,? Bush said when asked if the coalition was falling apart. ?I think the coalition has been buoyed by the courage of the Iraqi people.? Bush hailed the first meeting of Iraq?s national assembly as a ?bright moment? and said Iraq?s elections, a potential Syrian pullout from Lebanon, and Israel and the Palestinians talking peace could produce change elsewhere in the Middle East.

?I believe those examples will serve as examples for others over time,? he told a White House news conference. ?And that will lead to more peace, and that?s what we want.? The decision by Italian Prime Minister Silvio Berlusconi, a close Bush ally, to start withdrawing Italy?s 3,000 troops from Iraq was a blow to the US-led coalition.

It came after US troops killed an Italian secret service agent and wounded an Italian journalist in what Washington has called a tragic accident that remains under investigation. Bush said he spoke to Berlusconi and the prime minister told him ?any withdrawals would be done in consultation with allies and would be done depending upon the ability of Iraqis to defend themselves.? Bush acknowledged countries with troops in Iraq were anxious to bring them home once Iraqi forces are trained and able to defend themselves against an insurgency that has launched suicide bombings and attacks against coalition forces and the fledgling Iraqi government.

He offered no timetable for the withdrawal of US troops, saying ?Our troops will come home when Iraq is capable of defending herself.? Bush appeared in the White House briefing room almost two years after launching a war with the aim of toppling Saddam Hussein for not giving up weapons of mass destruction.

The weapons were never found and more than 1,500 Americans have been killed in a conflict against an insurgency that critics say has grown because of the US presence.

Bush now sees Iraq as a place where democracy can take root in the Middle East. To that end, he said he was not worried about whether Iraq?s parliament will be able to form a new government, which rival political blocs are squabbling over.

<B>Wholesome process</B>

?It?s a wholesome process and it?s being done in a transparent way. I mean, you?ve got the press corps all over them, watching every move, which is a positive example for others in the region, and that?s important,? he said. Bush repeated Syria must withdraw all troops and expressed particular concern about Syrian intelligence personnel. He said they are ?embedded in a lot of government functions in Lebanon, and there needs to be a complete withdrawal of those services in order for there to be a free election.? State Department spokesman Adam Ereli questioned whether the Syrian intelligence agents were actually leaving Lebanon, saying it was unclear where they were going.

Bush met with Cardinal Nasrallah Boutros Sfeir, spiritual leader of Maronite Catholics in Lebanon, and they discussed their desire for Lebanon to be free of Syrian influence. ?Lebanese of all convictions are alarmed by the continued migration of Christian and Muslim youths due to the lack of job opportunities and the suffocating political conditions at home,? the patriarch said.

Bush sought to clarify a comment he made on Tuesday in which he appeared to leave the door open to the Hizbollah guerrilla group having a political role in Lebanon if it disarmed. Democrats had pointed out Hizbollah was responsible for a bombing that killed more than 200 US servicemen in Beirut in 1983. ?Hizbollah is on the terrorist list for a reason, and remain on the terrorist list for a reason. Our position?s not changed on Hizbollah,? he said.

<B>Steve HOLLAND</B>

ITALY

<B>Silvio Berlusconi backtracks on Iraq withdrawal</B>

■ Italian Prime Minister Silvio Berlusconi on Wednesday appeared to backtrack from his proposal of withdrawing troops from Iraq starting from September, saying the date was only his hope and could be changed. Berlusconi, one of US President George W. Bush?s most vocal supporters, shocked friend and foe on Tuesday when he said Italy would start pulling out its troops in September, adding he was in talks with Britain?s Tony Blair about a total exit. ?There?s never been a fixed date,? Berlusconi told reporters.

?It was only my hope... If it is not possible, it is not possible. The solution should be agreed with the allies.? Berlusconi?s comments came as Bush insisted the US-led coalition in Iraq was not crumbling. ?I think the coalition has been buoyed by the courage of the Iraqi people,? Bush said, adding the Italian prime minister had told him any withdrawals would be in consultation with allies.

Blair on Wednesday said he would not follow Berlusconi?s suit and set a timetable for withdrawal of British troops. Berlusconi is one of Bush?s most fervent European allies and has invested considerable political capital in backing the war in Iraq despite overwhelming opposition at home. His initial announcement on a television chat show delivered a blow to Bush?s coalition but analysts cautioned it did not signal a U-turn in a pro-US foreign policy or retaliation for the killing of an Italian agent in Iraq by US forces.

Rather, it indicated Berlusconi is under pressure on the home front ahead of regional elections next month. ?We are entering an important electoral phase and Berlusconi has understood that most Italians want the soldiers out,? said Sergio Romano, a former ambassador and political commentator. ?He does not want to campaign for the 2006 elections with troops still on the ground in Iraq,? he told Reuters. Berlusconi has brushed off accusations the withdrawal was inspired by electioneering.

Although Italy played no part in the 2003 invasion of Iraq, it dispatched some 3,000 troops following the fall of Baghdad and has the fourth largest foreign contingent there after the United States, Britain and South Korea. Twenty-one Italian soldiers have died in Iraq.

Most Italians opposed the deployment, and public opinion was further soured by the ?friendly fire? shooting of an Italian officer as he escorted a hostage to freedom on March 4. One survey said 70 percent of Italians wanted the troops home. Berlusconi on Tuesday said Italy would ?begin to reduce our contingent even before the end of year, starting in September?.

Nonetheless, prior to Tuesday?s announcement, there had been no indication of any firm date being set for a withdrawal. Berlusconi had said the issue would only be addressed at the end of the year. Foreign Minister Gianfranco Fini told a French magazine on Tuesday there was ?no reason? to pull troops out. Some politicians suggested Berlusconi had made a gaffe during the chat show and plucked a date out of thin air. But veteran commentators were not convinced.

?Nothing that Berlusconi does is unplanned. He is a great communicator and there is a reason behind everything he does,? Italy?s top pollster, Renato Mannheimer, said. ?This will help Berlusconi persuade his supporters to go out and vote,? he told Reuters. Opinion polls have indicated Berlusconi?s centre-right coalition will lose control of some regions in next month?s elections. The outcome of the general election, due in the first half of 2006, is still highly uncertain.

<B>Rachel SANDERSON</B>