Bush launches high-level overhaul of Iraq team

WASHINGTON, Jan 5 (Reuters) US President George W Bush launched a high-level overhaul on Friday of his Iraq team before outlining a shift in course in the unpopular war next week, nominating a new deputy secretary of state and intelligence director.

In a White House ceremony, Bush announced retired Navy Admiral Mike McConnell will replace John Negroponte as national intelligence director so that Negroponte, whose four-decade diplomatic career has included ambassadorial assignments to Iraq and the United Nations, can take over the No 2 position at the State Department.

They are the first names announced in a deep shuffle of Bush's diplomatic and military team as he prepares to detail a long-awaited change in course in Iraq sometime next week, possibly on Wednesday.

Facing a Democratic-controlled Congress deeply concerned about his handling of the war, Bush is contemplating what could be a short-term increase of up to 20,000 US troops to try to restore stability to Baghdad, but is facing opposition from some lawmakers and military officials.

The nominations of both Negroponte and McConnell require US Senate confirmation, which seemed likely although some senators grumbled that Negroponte's departure after less than two years on the job would set back efforts to reform US spy agencies after the Sept. 11 attacks.

''Each of them will do good work in their new positions. And it is vital they take up their new responsibilities promptly,'' Bush said.

More personnel changes were to be announced today.

The Pentagon was set to announce that Bush will nominate Adm William Fallon to replace Gen. John Abizaid as the head of US Central Command, which is in charge of US military operations in Iraq and Afghanistan, a US official said.

And Lt Gen David Petraeus will become the top ground commander in Iraq, replacing Gen. George Casey, the official said.

The military changes reflect a major shift in the leadership of those handling the Iraq war. Casey, who will be leaving his post a few months earlier than previously envisioned, has been wary of sending more troops into Iraq.

Petraeus has been instrumental in leading efforts to train Iraqi troops.

Fallon's choice raised some eyebrows in Washington because it would put a Navy official in charge of ground wars in Iraq and Afghanistan.

Another announcement coming soon was that Zalmay Khalilzad, the US ambassador to Iraq, will be nominated to be the next US ambassador to the United Nations, US officials said.

He will fill the vacancy left by John Bolton, who was never able to achieve full Senate backing and departed late last year.

The ambassador in Pakistan, Ryan Crocker, will be nominated to take over in Iraq from Khalilzad.

Negroponte's return to the State Department presaged an increase in US diplomatic activity in West Asia, with Secretary of State Condoleezza Rice expected to travel to the region days after Bush's prime-time address to the nation.

''John Negroponte's broad experience, sound judgment and expertise on Iraq and the war on terror make him a superb choice as deputy secretary of state,'' Bush said.

While Bush is to announce a complete overhaul of his Iraq policy, including economic and political components, the possibility of a troop increase has gained the most attention.

Despite a divide on the issue, Bush in recent days has hinted a preference for increasing troop strength by saying he wanted to help Iraqis gain control of the security situation there.

''One thing is for certain, I will want to make sure that the mission is clear and specific and can be accomplished,'' Bush said yesterday when asked about a troop increase.

REUTERS PB KN2205