Mr. Karzai who was first installed by the U.S. after the Taliban was ousted in late 2001 has also wrested new concessions from the U.S., most recently winning an agreement for the withdrawal of coalition special-operations troops from Wardak province, an area west of Kabul that has been a staging ground for insurgent attacks.

WSJ: U.S. to Hand Bagram Jail to Afghans

The report paints a dire picture of the situation in Iraq, but also warns of the consequences of a precipitous U.S. withdrawal, as President Bush has repeatedly done, most recently at a speech in Kansas City, Mo.

NPR: Report: Iraqi Leaders 'Unable to Govern'