Bush salutes Kosovo independence

Kosovo's declaration met protests in Belgrade and in parts of Kosovo

US President George W Bush has said history will prove the independence of Kosovo to be justified.

In a speech in Tanzania, Mr Bush said the US would soon establish full diplomatic relations with Kosovo.

Serbia earlier withdrew its envoy to Washington in protest. It says Kosovo's declaration of independence on Sunday violates international law.

The UN Security Council is divided over how to respond to Kosovo's move, and it has failed to agree any action.

Russia and China supported Serbian President Boris Tadic when he made an impassioned appeal to the Council at Tuesday's meeting.

But Britain's representative said that with no prospect of agreement between Belgrade and Pristina the only way forward was supervised independence for Kosovo.

Britain, France, Germany and Italy have all recognised the new state but others have not.

'Peace'

In his speech, Mr Bush said there was "a disagreement but we believe as many other nations do that history will prove this to be the correct move".

The president, who was speaking during a tour of Africa, said the US supported Kosovo's independence because "we believe it will bring peace".

Earlier, in a letter to Kosovo's President Fatmir Sejdiu, Mr Bush offered friendship to Kosovo, and said he supported "your embrace of multi-ethnicity as a principle of good governance".

On Monday, the Serbian parliament passed a resolution condemning Kosovo's declaration of independence.

KOSOVO PROFILE Population about two million Majority ethnic Albanian; 10% Serb Under UN control since Nato drove out Serb forces in 1999 2,000-strong EU staff to take over from UN after independence Nato to stay to provide security

The resolution also formally annulled the acts of the government in Pristina, saying Belgrade's sovereignty over Kosovo was guaranteed by the UN and international law.

In a separate move, Serbia recalled its ambassadors to the US, France and Turkey because those countries had recognised Kosovo's independence.

Serbian Prime Minister Vojislav Kostunica has threatened to withdraw envoys from other countries which backed the territory's secession.

At a meeting in Brussels, the European Union set aside differences over the recognition of Kosovo's independence, by stressing that the breakaway Serbian province was not a precedent for separatists elsewhere.

All 27 EU foreign ministers agreed to leave recognition up to each member state.

Spain and several other member states have withheld recognition because of concerns about separatist movements within their own borders.

Protest rallies

Serbia's interior ministry has filed criminal charges against Kosovo Albanian leaders instrumental in proclaiming independence, accusing them of proclaiming a "false state" on Serbian territory.

In Belgrade, about 10,000 students marched in protest at the independence declaration, and Serb enclaves inside Kosovo also saw big anti-independence rallies.

In Kosovo's divided city of Mitrovica, three cars were damaged in Tuesday's grenade attack near the office of the Organisation for Security and Co-operation in Europe.

The incident was the latest in a string of hand-grenade attacks on property of international missions in Kosovo and government offices.

Serbian security forces were driven out of Kosovo in 1999 after a Nato bombing campaign aimed at halting the violent repression of ethnic Albanian separatists.

The province has been under UN administration and Nato protection since then.

Bush addresses US economy fears

Mr Bush also warned Iran over its nuclear plans

President George W Bush has admitted US economic growth is slowing, but in his final State of the Union address urged Americans to have long-term confidence.

The president acknowledged that the US was facing "uncertainty".

A $150bn (£76bn) stimulus plan negotiated with Congress would help, he said, and must be passed soon.

Mr Bush also said his troop "surge" in Iraq was succeeding after a long and costly war, and that al-Qaeda was "on the run" and would be defeated.

He called on Iran's leaders to cease their "support for terror abroad", although he said the US respected the country's people.

Democratic House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid said that while they agreed with Mr Bush on the need for a bipartisan approach, he "offered little more than the status quo".

"At a time when our economy is on shaky ground and our leadership around the world is eroding, the status quo won't do," they said in a joint statement.

Oil dependence

Mr Bush acknowledged that the US was "undergoing a period of economic uncertainty", but sought to reassure the nation.

"At kitchen tables across our country, there is concern about our economic future," he said.

But, he added: "In the long run, Americans can be confident about our economic growth."

Mr Bush urged Congress not to expand the economic stimulus package beyond what had been agreed, or risk derailing it. He also urged lawmakers to make his tax cuts permanent.

Echoing a theme of his 2006 address, when he spoke of the US being "addicted to oil", Mr Bush spoke about the importance of US energy independence.

"Our security, our prosperity and our environment all require reducing our dependence on oil," he said.

Mr Bush also urged Tehran to suspend its nuclear enrichment programme and "come clean" about its intentions.

He continued: "But above all, know this: America will confront those who threaten our troops, we will stand by our allies, and we will protect our vital interests in the Gulf."

'American response'

On Iraq, Mr Bush acknowledged that the "enemy is still dangerous and more work remains" to be done.

But he praised the work of American and Iraqi forces in achieving "results few of us could have imagined just one year ago", and assured Americans that al-Qaeda "will be defeated".

He urged Congress to "meet its responsibilities to these brave men and women by fully funding our troops".

Mr Bush said that as a result of progress in Iraq and a transition of operations to Iraqi forces, more than 20,000 troops would be returning to the US in the coming months.

Mr Bush said 20,000 troops would be withdrawn in the coming months

In the official Democratic reply to the president's speech, Kansas Governor Kathleen Sebelius said: "In this time, normally reserved for the partisan response, I hope to offer you something more: an American response.

"There is a chance, Mr President, in the next 357 days, to get real results and give the American people renewed optimism that their challenges are the top priority."

But the leading Democratic presidential candidates, Senators Barack Obama and Hillary Clinton, took much tougher lines.

Mr Obama said Mr Bush's speech was full of empty rhetoric, and criticised his "failed politics and policies of the past".

Mrs Clinton said Mr Bush had only offered "more of the same: a frustrating commitment to the same failed policies".

The two rival Democrats have been fighting a bitter campaign for the candidacy, and although they sat only metres away from each other in Senate for the address, they did not speak.

At one point, Mrs Clinton reached across to shake the hand of Senator Edward Kennedy, who hours earlier had endorsed Mr Obama.

As she did so, Mr Obama turned his back.

Republican candidate Senator John McCain stayed in Florida ahead of his party's primary in the state on Tuesday.

Lame duck?

The State of the Union address is expected to be Mr Bush's last before he leaves office in January 2009, although he does have the right to deliver one more immediately before he goes.

According to Gallup polls of approval ratings around the time of the State of the Union addresses, this is the worst year for Mr Bush since his presidency began.

The BBC's James Coomarasamy in Washington says Mr Bush's speech was overall more businesslike than inspirational, perhaps more reflective of a more realistic president - aware that some of his policy goals would now remain elusive but determined that others would not.