WASHINGTON (AP) - The White House yesterday played down a government report which said the war in Iraq is providing an important training ground and recruitment center for Islamic terrorists.

"This is a speculative report about things that could happen in the world," press secretary Scott McClellan told reporters on Air Force One as President George W Bush travelled to Florida for an education speech.

Bush has frequently described Iraq as the central front in the war on terror, and has said the United States wants to confront terrorists overseas rather than at home.

"The report confirms that we have the right strategy for winning the war on terrorism," McClellan said.

Asked about the finding that the war had created a breeding ground for terrorists, he said, "That's assuming that terrorists would just be sitting around and doing nothing if we weren't staying on the offensive."

The report was released Thursday by the National Intelligence Council, the CIA director's think tank.

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