Bush expects war bill compromise

Bush expects war bill compromise
'We'll work through something we can all live with'

President Bush said Thursday he's optimistic compromise will be reached with Congress on an Iraq spending bill.

"I think we'll get a deal. We'll work through something we can all live with," Bush said in a Rose Garden news conference with outgoing British Prime Minister Tony Blair.

For his part, Blair, the staunchest of U.S. allies on Iraq, predicted that Britain would continue to stand side by side with the United States after he leaves office. He said he did not regret his decision to join Bush in supporting the war in Iraq and "I believe that we will remain a staunch and steadfast ally in the fight against terrorism."

This is a breaking news update. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP)—Focusing on Iraq at their final White House meeting, President Bush and outgoing Prime Minister Tony Blair participated in a secure video conference Thursday with U.S. and British officials in Baghdad for an update on security, economic and political issues.

The president took the prime minister to the Situation Room in the basement of the White House for the hour-long briefing from Gen. David Petraeus, the top U.S. commander in Iraq, U.S. Ambassador Ryan Crocker and their British counterparts.

Blair, stepping down as prime minister on June 27, had spent the night at the White House, a mark of the special relationship he has with Bush. Many believe that friendship tarnished the legacy of the once- popular British leader. Blair stayed in the Queen's Bedroom that was used by Winston Churchill during the former British leader's frequent World War II-era visits to Washington.

Bush and Blair had breakfast in the residence and walked together to the Oval Office. The prime minister met with his staff on the patio outside while the president received his daily intelligence briefing at his desk.

The British leader's visit was designed to honor the long-term Bush- Blair partnership and was expected to produce no major results. The two men planned to hold a joint news conference later Thursday.

Blair's White House visit was one of a series of meetings with foreign leaders during a carefully choreographed exit after his announcement last week that he would step down.

"I think the visit is more sentimental and social than substantive," said Henry Catto, a U.S. ambassador to London under former President Bush and current chairman of the Atlantic Council of the United States.

As Blair prepares to step aside for his likely successor, Gordon Brown, he has a limited ability to reach substantial policy decisions in talks with Bush. His standing at home has been severely undermined by the unpopularity of the Iraq war and a perception that his steadfast support of Bush's policies has not produced reciprocal results for Britain. Britain is by far the largest non-U.S. contributor of forces to the war.

"It has been a significant part of Blair's undoing that he was seen as being so close and unquestionably loyal to Bush," said Adam Ward, executive director of the Washington office of the International Institute for Strategic Studies, a London-based think tank.

Blair's tenure has been otherwise highly regarded because he has overseen a period of prosperity at home and success in the Northern Ireland peace talks.

The Bush-Blair talks may focus on negotiations between the United States and European countries leading to the Group of Eight gathering of major industrialized countries in Germany early next month, where Blair will make one of his last appearances on the world stage.

German Chancellor Angela Merkel, who is hosting the G-8 meeting, has made clear that she was looking for the Bush administration to move toward greater cooperation with other countries in fighting global warming. So far, administration officials have resisted.

"My guess is that Blair will push quite hard to get some kind of progress on climate change for the G-8," said Daniel Benjamin, director of the Center on the United States and Europe at the Brookings Institution.

As Bush looks for new allies among European leaders during the last years of his own term, divergence on global warming is likely to remain a theme. Both Merkel and Nicolas Sarkozy, sworn in as president of France on Wednesday, have made a priority of the issue.

While Bush has seen some warming with Germany and France, Blair's departure creates some uncertainty in relations between London and Washington.

Brown, now Britain's chancellor of the exchequer, has made few of his foreign policy positions clear, and he is not expected to cultivate a friendship with Bush in the way that Blair has. Some analysts said Blair may carry a message to the White House that his successor will continue Britain's long tradition of partnership with the United States.