President Bush said on Wednesday that the beheading of an American working in Iraq was part of an effort to "shake our confidence," but he insisted that the United States would "complete our mission," despite what his aides freely concede is a major loss of credibility in the Arab world.
Speaking briefly on the South Lawn of the White House, Mr. Bush appeared to try to use the beheading of Nicholas Berg, a young Pennsylvania man seeking work rebuilding Iraq, to refocus attention on the nature of the enemy the United States faces rather than on the continuing investigation into the abuses of Iraqi prisoners in American custody.
But some of Mr. Bush's aides and many of his outside advisers said in interviews that conservatives who had backed the war were now badly fractured on how the administration should pursue its Iraq strategy, and they fear that the combination of the prisoner abuse scandal and the inability of American forces to put down the insurgency are taking a toll on the Bush re-election race.
http://www.nytimes.com/2004/05/13/politics/13ABUS.html