President Bush led Memorial Day tributes to fallen troops yesterday as it emerged that two more US soldiers had been killed in Iraq, bringing the total to 103 so far this month.

As America observed its equivalent of Britain’s Remembrance Sunday, two Republican loyalists on Capitol Hill appeared to confirm that the White House is looking seriously at cutting the number of combat forces in Iraq early next year — by up to 50,000 — whatever the result of Mr Bush’s current “surge” strategy.

The withdrawal option, which if pursued would probably come after General David Petraeus’s crucial report to Congress by September, would involve focusing a reduced US force on fighting al-Qaeda in Iraq, and the training of Iraqi security forces.

The prospect reflects a growing realisation within the Administration that time is running out before Mr Bush faces a definitive revolt over the war.

The plan was a central recommendation of last year’s Iraq Study Group report — as was a diplomatic push with Iran and Syria.

Last week Robert Gates, the US Defence Secretary, said that the Pentagon was looking at a new approach as it awaited the report by General Petraeus, the US ground commander. Mr Gates described a transition towards a role that would “train, equip, continue to go after al-Qaeda and provide support”. He added: “That kind of role would involve fewer forces than we have now.”

Jeff Sessions, a Republican member of the Senate Armed Services Committee, said on CBS that General Petraeus’s report would provide a chance to scale back US troops. “By September . . . I think most people in Congress believe, unless something extraordinary occurs, that we should be on a move to draw those surge numbers down.”

Senator Mitch McConnell, said: “The handwriting is on the wall that we are going in a different direction . . . and I expect the President to lead it.”

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