Somber analysis of Iraq's future

STUDY GROUP MEETS WITH BUSH MONDAY

By Frank Davies MediaNews Washington Bureau

WASHINGTON - The situation in Iraq is ``even worse than we thought,'' with key Iraqi leaders showing no willingness to compromise to avoid increasing violence, said Leon Panetta, a member of the high-powered advisory group that will recommend new options for the war.

The Iraq Study Group, including Panetta, plans to meet with President Bush and his national security team Monday at the White House, and gather more data on the war through briefings and interviews next week. Panetta was chief of staff in the Clinton White House.

The blue-ribbon group, headed by former Secretary of State James Baker and ex-Rep. Lee Hamilton of Indiana, plans to make recommendations to the Bush administration and Congress next month on new ways to handle the war. Members said they wanted to wait until after the election, to remove a debate about Iraq from campaign pressures.