President Bush, offering new justification for war in Iraq, said Wednesday that "ending this direct and growing threat" from Saddam Hussein would pave way for peace in the Middle East and inspire democracy throughout the Arab world. While saying the Iraqi regime still has time to avoid war, Bush told conservative backers that U.S. troops are ready for battle and spoke at some length about his plans for Iraq once Saddam is gone.

The address came at the end of a day marked by intense diplomatic activity, as Bush struggled to find votes in favor of a war-making resolution at the United Nations Security Council. The United States, Britain and Spain need nine votes and no vetoes to pass the measure.

In the Bush Vision for the Middle East Ousting Saddam is a Prerequisite for a Settlement of the Arab-Israeli Conflict

Answering critics who say war would destabilize the region, Bush predicted there would be a "new stage for Middle East peace" once Saddam loses power.

Iraq would no longer threaten to dominate the region with weapons of mass destruction, Bush said, and he accused Saddam of financing Palestinian Resistance bombers, a charge Iraq has denied.

"A liberated Iraq can show the power of freedom to transform that vital region, by bringing hope and progress to the lives of millions," Bush said.

Neither he nor his advisers explained why the Middle East peace process made no major advances while Saddam was contained in the 1990s. He did not mention other nations tied to unrest in the Middle East, such as Iran, but said removing Saddam would give other regimes "clear warning that support for terror will not be tolerated."

Bush reiterated his demand that Palestinians curb terrorism but also urged the new Israeli government to end construction of settlements. "As progress is made toward peace, settlement activity in the occupied territories must end," Bush said.

He said Saddam's removal will give both sides a chance to bury their differences in a more stable environment.

Evidence of Bush Gaining Ground at UN Security Council

There was some evidence that Bush was gaining ground at the United Nations, including signals that Mexico would back the resolution. But new obstacles emerged, including a plan by Canada to reconcile bitter differences between Bush's position and a French-Russian-German proposal to continue weapons inspections until at least July.

Russian President Vladimir Putin told reporters in Moscow, "We are not ready to fight, and we think that is a bad solution."

Even so, U.S. officials said intense negotiations to stave off a veto from Russia yielded some results.

Saddam is trying to convince U.N. nations that he is complying with their anti-arms resolutions, despite what the United States says is ample evidence that he is not. In a rare interview with an American journalist, Saddam dismissed U.S. efforts to encourage his exile.

"We will die here," Saddam told CBS' Dan Rather.

US MILITARY TO CONTROL POST-SADDAM IRAQ

"We will remain in Iraq as long as necessary, and not a day more," Bush told the American Enterprise Institute think tank, where Vice President Dick Cheney's wife, Lynne, has been a senior fellow.

A senior administration official, speaking on condition of anonymity, said the U.S. military will control Iraq in the short term after Saddam's removal. Troops will maintain security, protect Iraq's oil fields, ensure that other nations respect Iraq's existing borders and find and destroy weapons of mass destruction.

A civilian administrator will eventually take over the work of engaging Iraqis in the formation of a democratic government. The transition would last months, not weeks, the official said, adding that a more precise estimate won't be possible until it is clear how Iraq weathered an attack.

The official said the administrator would not necessarily be an American.

US Diplomatic Charm Offensive

While State Department officials fanned out across the world to press Bush's case, the president met with Azerbaijan leader Geidar Aliev. The country, 250 miles northeast of Iraq, has backed U.S. calls for Saddam's disarmament.

Bush spoke by telephone with Prime Minister Peter Medgyessy of Hungary and Canadian Prime Minister Jean Chretien.

Canada proposed giving Iraq until the end of March to complete a list of remaining disarmament tasks identified by U.N. weapons inspectors.

Rejecting the plan, State Department spokesman Richard Boucher said it "only procrastinates on a decision we all should be prepared to take."

Other Key Developments Concerning Iraq

*_ A Russian lawmaker said he doesn't believe Moscow would veto the U.S.-backed resolution. Mikhail Margelov, chairman of the foreign affairs committee in Russia's upper house, also said a secretive mission to Baghdad by former Foreign Minister Yevgeny Primakov was intended to deliver a "strong message" to Saddam Hussein that he must cooperate with inspectors.

*_ The Pentagon and other agencies may need more than DLRS 100 billion to take on Saddam, rebuild Iraq and continue the worldwide fight against terrorism, officials said.

*_ President Bush said Saddam could be tried for war crimes if the United States goes to war with Iraq. He also called Saddam "a master of disguise and delay," mocking the Iraqi leader for disclosing some weapons that he had previously denied having.

*_ Iraqi police deployed around key installations in Baghdad's first major drill for wartime defense.

*_ Chief U.N. weapons inspector Hans Blix said although Iraq has stepped up efforts to clarify outstanding issues, its recent letters about its weapons programs do not represent "full cooperation or a breakthrough."

*_ Britain's House of Commons backed Prime Minister Tony Blair's determination to disarm Iraq, voting 434-124 to support his handling of the crisis.

*_ A long-delayed conference of Iraqi opposition groups convened in Kurdish-run northern Iraq with special U.S. envoy Zalmay Khalilzad saying America will be a partner in establishing democracy in Iraq.

*_ An Islamic activist detonated a bomb at a military checkpoint in the northeastern Iraqi city of Halabja, killing himself and three other people, Kurdish officials said.

*_ U.S. warplanes bombed two military communications sites in southern Iraq, the U.S. military said, the fourth American strike on Iraq in two days.

*_ U.S. Gen. Tommy Franks said allied forces would not be able to assure the safety of civilians who position themselves as human shields in Iraq.

*_ Patriot missiles and two AWACS surveillance aircraft arrived in Turkey, the first NATO equipment deployed to defend the alliance member against a possible attack from neighboring Iraq.

PHOTO CAPTION

President Bush delivers remarks at the American Enterprise Institute Annual Dinner Wednesday, Feb. 26, 2003 in Washington. (AP Photo/Pablo Martinez