Bush urges Iraqi leaders to put aside differences

WASHINGTON, Apr 10 (Reuters) President George W. Bush today urged Iraqi leaders to put aside their differences and form a unity government, saying further delay would increase the risk that insurgents will stop the country's progress.

Bush also urged other Arab countries to show greater support for the effort to transform Iraq into a democracy.

''Arab leaders need to recognize that the choice in Iraq is between democracy and terrorism and there is no middle ground,'' he said. ''Success of Iraqi democracy is in their vital interests.'' Bush and other administration officials have been pressing Iraqi leaders to form a unity government but there has been a stalemate since the December elections with Kurdish and Sunni leaders pressing Iraq's powerful Shi'ite Alliance to drop Ibrahim al-Jaafari as its choice for prime minister. Sectarian violence has sparked concerns of a civil war.

''Iraq's leaders need to rise to the moment, to put aside their personal agendas and take charge of their destiny,'' Bush said in a speech at The Paul H. Nitze School of Advanced International Studies at The Johns Hopkins University.

Delaying the formation of a government creates a vacuum that ''terrorists'' can exploit and slow down progress, Bush said.

Bush did not threaten to withdraw U.S. troops if Iraqis do not come up with a government, as some U.S. politicians recommend that he do.

He said Americans and Iraqis have sacrificed much for the goal of a democracy Iraq, and ''Americans and Iraqis alike are waiting and watching to see what this sacrifice will produce, and we both expect results.'' ''The longer Iraq's delay in forming a unity government, the greater the risk that the terrorists and former regime elements will succeed in their efforts to foment division, and to stop the progress of Iraq democracy,'' he said.

Bush predicted that Iraqi forces would be in control of more territory than coalition forces by the end of this year.

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