Victory is still an option in Iraq. America, a country of 300 millionpeople with a GDP of $12 trillion and more than 1 million soldiers and Marines, has the resources to stabilize Iraq, a state the size of California with a population of 25 million and a GDP under $100 billion. America must use its resources skillfully and decisively to help build a successful democratically elected, sovereign government in Iraq.

Victory in Iraq is vital to America’s security. Defeat will likely lead to regional conflict, humanitarian catastrophe, and increased global terrorism.

Iraq has reached a critical point. The strategy of relying on a political process to eliminate the insurgency has failed. Rising sectarian violence threatens to break America’s will to fight. This violence will destroy the Iraqi government, armed forces, and people if it is not rapidly controlled.

Victory in Iraq is still possible at an acceptable level of effort. We must adopt a new approach to the war and implement it quickly and decisively.

Our strategic goal in Iraq remains the same: A unified democratic federal Iraq that can govern itself, defend itself, and sustain itself, and is an ally in the War on Terror.

While our strategic goal requires a long-term relationship with Iraq, we are at a new phase in the effort and must sharpen the objectives we believe are achievable in the next 12-18 months.

The objectives in this new phase are:

1. Defeat al-Qaida and its supporters and ensure that no terrorist safe havenexists in Iraq.
2. Support Iraqi efforts to quell sectarian violence in Baghdad andregain control over the capital.
3. Ensure the territorial integrity of Iraq and counter/limit destructive Iranian and Syrian activity in Iraq.
4. Help safeguard democracy in Iraq by encouraging strong democratic institutions impartially serving all Iraqis and preventing the return of the forces of tyranny.
5. Foster the conditions for Iraqi national reconciliation but withthe Iraqi Government clearly in the lead.
6. Continue to strengthen Iraqi Security Forces and accelerate the transition of security responsibility to the Iraqi Government.
7. Encourage an expanding Iraqi economy including by helping Iraq maintain and expand its export of oil to support Iraqi development.
8. Promote support for Iraq from its neighbors, the region, and theinternational community.

The President's New Iraq Strategy is rooted in six fundamental elements:

1. Let the Iraqis lead;
2. Help Iraqis protect the population;
3. Isolate extremists;
4. Create space for political progress;
5. Diversify political and economic efforts; and
6. Situate the strategy in a regional approach.