GEORGE W. Bush, facing a dramatic surge of chaotic violence in Iraq, yesterday sought to buttress failing domestic support for the conflict that has killed almost 2000 Americans.

The US President warned there would be a rise in terrorist attacks in Iraq before next month's vote on a new constitution, but he insisted he had the situation in hand.

"Our troops are ready," he said, as the US troop commitment looked set to exceed 150,000 in coming months.

"See, the Iraqis want to be free. They proved that last January, when over 8million citizens, in the face of violence and threats, voted.

"The terrorists are going to fail this time, but we can expect they'll do everything in their power to try to stop the march of freedom."

Mr Bush's remarks in the Rose Garden of the White House came two days after Iraqi and US forces announced they had killed Abdullah Abu Azzam, claimed by Washington to be al-Qa'ida's No2 leader in Iraq.

Mr Bush spoke after a meeting with General George Casey, the top commander in Iraq, and General John Abizaid, the chief of US central command. The President said he had dispatched the two generals to Capitol Hill to brief congressmen on the war on terrorism and operations in Iraq.

"The support of Congress for our troops and our mission is important and Americans need to know about the gains we have made in recent weeks and months. They need to know the way we're adapting our tactics, and the way we're changing our strategies to meet the needs on the ground," Mr Bush said.

Mr Bush cited as evidence the killing of Abu Azzam, the increasing numbers of Iraqi troops capable of guarding cities, and the blocking of a main route for foreign terrorists coming into Iraq from Syria.

But the President's remarks came during a week in which the insurgency reached new heights of violence, and the respected International Crisis Group warned Iraq was heading for civil war and partition.

Gunmen yesterday machine-gunned workers at a Shi'ite bakery and fired at a minibus carrying football stadium employees in Baghdad, killing a total of four people and wounding eight, the Interior Ministry said.

CNN also reported that the bodies of 31 people had been found shot, execution-style, in recent days. Most were shot once in the head with their hands tied, and many may have been tortured, police said.

In Samarra, several hundred residents were fleeing their homes in fear that US and Iraqi forces would launch an offensive against insurgents there, according to the UN Office for the

Co-ordination of Humanitarian Affairs.

On Wednesday, what was understood to be the first female suicide bomber of the conflict blew herself up outside an Iraqi army recruiting centre, killing at least six people and wounding 30. Al-Qa'ida claimed responsibility for the blast.

The US President is facing declining public support for the war, which has claimed the lives of at least 1925 US lives.

An anti-war demonstration in Washington on the weekend drew an estimated 100,000 to the capital and polls show Mr Bush's approval rating is at the lowest point of his presidency. National polls have shown a majority of Americans now believe the war was a mistake. In an AP-Ipsos poll this month, only 37per cent approved of or leaned towards approval of how Mr Bush has handled the situation in Iraq. Strong disapproval outweighed strong approval by two to one, 46per cent to 22 per cent.

And the administration's standing took a further battering yesterday when it emerged that, almost a year after Congress demanded action, the Pentagon had still not reimbursed soldiers for body armour they bought to better protect themselves while serving in Iraq.

Insurgent attacks have escalated ahead of an October 15 referendum on a new constitution that has raised fears of a bloody sectarian split between Iraq's Shi'ite Muslim majority and the disaffected Sunni minority.

There are about 147,000 US troops in Iraq. Although US officials say they cannot forecast how many they will have in Iraq in coming months, extensions announced on Friday appeared to indicate that the number would exceed 150,000.