US President George W. Bush yesterday used declassified intelligence about Al-Qaida chief Osama bin Laden to defend his Iraq war policy.

During a commencement address at the Coast Guard Academy, New London, Connecticut, Bush mentioned declassified intelligence that said bin Laden discussed sending a top lieutenant in 2005 to Iraq to set up a base from which to launch attacks in the United States.

"There's a reason bin Laden sent one of his most experienced paramilitary leaders to Iraq," he said.

"He believes that if Al-Qaida can drive us out, they can establish Iraq as a new terrorist sanctuary," Bush added.

The president's address coincided with a push by Democrats in Congress to force an end to the U.S. military presence in the region.

So far this month, 81 US military personnel have died in the Iraq war, bringing the total to 3,432.

Bush vetoed a war-spending bill last month that included a timetable for withdrawing troops from Iraq.

But timetables have been dropped from revised war-spending legislation, substituting benchmarks with consequences for Iraqi leaders.

Both Republicans and Democrats claimed victory Wednesday as the revised war spending legislation moved forward.