Bush policy in Iraq 'not working': U.S. panel

"There is no path that can guarantee success, but the prospects can be improved," the commission said after its review of a war that has taken the lives of more than 2,900 U.S. troops and disturbed the American public.

It also said the U.S. focus on Iraq has "necessarily diverted attention from Afghanistan" and added a troop withdrawal could allow the U.S. to bolster its contribution to NATO's Afghan mission, which includes more than 2,000 Canadian soldiers fighting the Taliban.

"It is critical for the United States to provide additional political, economic and military support for Afghanistan, including resources that might become available as combat forces are moved from Iraq," the report said.

10 U.S. soldiers killed

The study group's report came as 10 U.S. soldiers were killed Wednesday in four separate incidents in Iraq, the U.S. military said without giving further details.

The panel made 79 recommendations to address the situation that the report warns could have dire consequences, both at home and abroad.

The full commission, comprising veteran policy-makers from both political parties and led by Hamilton and former secretary of state James Baker, presented the report to Bush at 7 a.m. ET after eight months of studying the Iraq crisis.

Bush, who had been briefed on the report a day earlier, acknowledged Wednesday that the report "gives a very tough assessment" of the situation in Iraq.

"It is a report that brings some really very interesting proposals, and we will take every proposal seriously and we will act in a timely fashion."

Report 'not binding': Baker

It is unclear how many of the panel's recommendations Bush will adopt.

"It doesn't bind anyone," Baker said of the report. "It doesn't bind anyone on Capitol Hill and it doesn't bind the president."

In Washington, the CBC's Henry Champ said the study group is aware that appealing to the voters through the media is the best way to put pressure on the White House to enact the recommendations.

The White House accuses Syria and Iran of bankrolling terrorism and stirring up violence in the region. The United States has had no diplomatic ties to Iran for nearly three decades, and pulled its ambassador from Syria last year.

Following the presentation to the president, the group briefed Iraqi Prime Minister Nouri al-Maliki and his team via secure video conference from the White House.

Report paints grim picture

The report painted a grim picture of Iraq nearly four years after U.S. forces toppled Saddam Hussein. During that time, the U.S. government has spent about $400 billion US in Iraq, it says.

It calls for the creation of an Iraq support group including "all of Iraq's neighbours … and key states in and outside the region" including the United Nations Security Council, the European Union, as well as Egypt, Syria and Iran.

There is a strong wish within the Iraqi government to engage Syria and Iran to stabilize the region, said Ned Parker, a reporter for the Times of London in Baghdad.

"In general, Iraqi officials are welcoming negotiations," Parker told CBC News on Wednesday.

But he added the government is leery over what role other countries such as Saudi Arabia, Jordan and Turkey would play in Iraq because it is uncertain what preconditions those countries would bring to talks.

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