Bush Rewards Rice for Loyalty to His Cause

President George Bush yesterday named his foreign policy tutor and trusted confidante, Condoleezza Rice, as America's envoy to the world, signalling that his second administration would remain fixed on the global war on terror and regime change in the Middle East.

With the promotion of Ms Rice, 50, from national security adviser to secretary of state, Mr Bush rids his administration of its last dissenting voice in Colin Powell, enabling it to project a united front on foreign policy. "During the last four years I've relied on her counsel, benefited from her great experience, and appreciated her sound and steady judgment," Mr Bush said.

Ms Rice's deputy and close ally, Stephen Hadley, 57, was named as her replacement as national security adviser. Mr Hadley, who has served under the Reagan and first Bush administrations, admitted he had allowed wrong information about Iraq's weapons of mass destruction to appear in Mr Bush's 2003 state of the union address.

Mr Bush sketched out his foreign policy ambitions for a second term: confronting outlaw regimes and nuclear proliferators, breaking up terror networks, and regime change. "The United States has undertaken a great calling of history to aid the forces of reform and freedom in the broader Middle East so that that region can grow in hope," he said.

Ms Rice signalled she would live up to her reputation as a Bush family loyalist. "Under your leadership, America is fighting and winning the war on terror," she said.

However, there was a fear even within Republican circles that the White House was too willing to sacrifice diplomatic expertise and management skills for personal loyalty.

Several Washington analysts said yesterday that Ms Rice's strongest qualification for the job was her close friendship with Mr Bush. The warmth of that relationship was on display yesterday, with Ms Rice close to tears as Mr Bush welcomed her to the post.

Some argued that, despite her academic record - Ms Rice is an expert on the former Soviet Union - and her long service to the Bush family, she was not equipped to serve as America's ambassador to the world.

"Condoleezza Rice was loyal to the president, and clearly has his confidence, but she never really managed the inter-agency process the way a national security adviser should," said Joseph Cirincione, an arms control expert at the Carnegie Endowment for International Peace. "Most of the world will see Condi Rice as a step down from Colin Powell, and they would be right. She doesn't bring much experience or knowledge of the world to this position."

There were reports yesterday that Mr Powell had hesitated before resigning as secretary of state. Although he had long said he would stand down after serving a single term, the Washington Post reported that he had recently expressed a desire to stay, but had been rebuffed by the White House.

"The president is trading off multiple viewpoints in favour of policy coherence, but the risk is that you are liable to be surprised by events that you hadn't anticipated," said Raymond Tanter, who was on the national security council under Ronald Reagan. "If the focus is on the global war on terror then the issues are simpler with respect to the demands they make on her skills. But if the focus is on postwar reconstruction of rogue regimes - the next Iraq - then you need to build a coalition of the willing, which takes considerable skill."

Further evidence of the ascendancy of the neo-conservatives at the state department arrived with press reports that John Bolton, under-secretary of state for arms control, was a favourite to succeed Richard Armitage as deputy secretary of state. Mr Armitage, a close friend of Mr Powell as well as sharing his views, announced his resignation yesterday.

Mr Bolton is seen as a hawk among hawks, an ardent supporter of diplomatic ties with Taiwan and a harsh critic of international institutions such as the international criminal court.

He is viewed as a hardliner on North Korea and has said that regime change in Iran would be the US's next priority.