War on terror is far from over, US president says in his first State of the Union address; Bush's approval drives domestic agenda

GEORGE W Bush last night focused on winning the war on terrorism,homeland defence, and reviving the US economy in his first State ofthe Union address.

The US president sought to cash in on his record high approvalratings, which followed his being thrust into the role of wartimeleader after the September 11 attacks, by delivering a morecontentious domestic agenda.

The financial collapse of Enron, the energy company that was thebiggest financial backer of the Bush 2000 presidential campaign,cast a shadow over the address.

Mr Bush made it clear that the fight against terrorism was farfrom over and said it would extend well beyond the borders ofAfghanistan.

With Hamid Karzai, Afghanistan's interim leader, in the audience,the president said US national security staff had learned that up to100,000 people, trained as killers in the camps of Afghanistan, werenow spread throughout the world in more than 60 different countries.

Mr Bush spoke of new opportunities in foreign relations due tothe co-operation in the anti-terror war. He said the US was workingwith Russia, China and India in ways it never had "to extend peaceand prosperity".

Mr Bush has already proposed adding nearly (pounds) 35.7bn to theUS Defence Department budget, the largest increase in militaryspending in 20 years.

Outlining details of the post-Afghanistan stage of the war, thepresident said US troops and intelligence officers could be deployedin countries around the world to hunt down the terrorists trained byOsama bin Laden's network who threatened the US "from every cornerof the globe".

He reaffirmed the desire of the US to prevent countries fromobtaining and selling weapons of mass destruction, specificallynaming North Korea, Iran and Iraq.

Mr Bush unveiled plans to double homeland security budgets -including spending on military, intelligence, border security andlocal "first responders" such as police officers and firefighters -to (pounds) 27.1bn. He proposed homeland defence could be improvedthrough the enlistment of volunteers in a national serviceprogramme.

The entire 435-seat House of Representatives and 34 seats of the100-member US Senate are up for election in November, setting thestage for battles over budget deficits and Mr Bush's domesticinitiatives such as his tax-cutting economic plan.

In spite of difficulties posed by election-year politics, Mr Bushstaked out an aggressive agenda to his congressional audience andused the speech to seek a new prescription drug benefit for theelderly covered by Medicare, greater reliance on private healthplans, and looser regulation of the health care industry.

A tax credit for private school tuition and school supplies wasamong other proposals made.

The president wants (pounds) 135bn for the changes, less than theCongress has suggested it is willing to pay.

Mr Bush did not mention Enron by name but he called for stricteraccounting and corporate disclosure in the wake of the collapse ofthe giant Texas-based energy company - the biggest failure incorporate history.

The White House is preparing for a court battle with Congressover the refusal of Dick Cheney, vice president, to turn overdocuments detailing any involvement by Enron and other firms indeveloping the administration's energy policy.

Enron and its longtime auditor, Andersen, are being investigatedby at least eight congressional committees and the US Securities andExchange Commission, as well as a criminal probe by the US JusticeDepartment.

Democrats argue that the sluggish economy in the US, and thepresident's tax cuts, have already put tensions on a federal budgetthat will operate under a deficit for the first time in four years.

An ABC News-Washington Post poll yesterday said 83% of Americansapproved of Bush's performance, down from a record 92% in October.

The popularity has helped to lift support for Republicans to a 50-43 margin over Democrats among voters asked which party's candidatethey would vote for in the upcoming November elections.

Mr Bush was looking for an overseas audience for his address bymaking online translations available in Arabic, French, Spanish,Mandarin and in Portuguese. The translated texts were posted on theUS State Department's internet web site yesterday at www.state.govor www.whitehouse.gov.

America's children also had their own State of the Union messagefrom Mr Bush.

In a special message posted on the White House's internet site,he said: "I particularly want you to understand that the war we arefighting against terrorism is about your future, and our country."