Bush's defence chief to stay on under Obama

ROBERT GATES will continue as American defence secretary under Barack Obama as the president-elect prepares to bolster troops in Afghanistan and oversee a withdrawal from Iraq.

The appointment is seen as the first step towards a major US deployment in Afghanistan because Mr Gates is a firm supporter of sending more troops to fight the Taliban and al Qaeda.

Mr Obama has said that winning the war in Afghanistan remains one of his main priorities and military chiefs have told him that can only be achieved with a substantial troop build-up.

The continued role of Mr Gates, who took over from Donald Rumsfeld in 2006, is expected to be confirmed by the president-elect after tomorrow's Thanksgiving holiday.

The Pentagon chief will become the first defence secretary to stay on after the election of a president from a different party.

Political experts said Mr Gates's appointment would be well-received by American military leaders and will also win favour with both Republicans and Democrats, as he is respected on both sides of the house.

Mr Gates is expected to stay on for one term, predicted to be just a year, during which time he will oversee the build-up of forces in Afghanistan and the gradual withdrawal from Iraq.

Mr Obama has stated that he wants to end the ground operation in Iraq and bring home the bulk of the 150,000 troops stationed in the country.

Further details of key appointments to Mr Obama's government emerged today as the president-elect moved a step closer to assembling his national security team.

Former Nato supreme allied commander James Jones will be named as his National Security Advisor, while retired Admiral Dennis Blair is tipped as his director of national intelligence. Mr Obama's favourite for director of the CIA, John Brennan, ruled himself out of running the spy agency over fears that his links to violent interrogation tactics approved by President Bush will tarnish Mr Obama's government.

In a letter to Obama, Mr Brennan said he did not want the concerns over waterboarding and other tactics - which he opposed but has been accused of supporting by critics - to be a "distraction" for the incoming administration.

It was also reported today that former Federal Reserve Chairman Paul Volcker will chair an economic advisory panel designed to stabilise the markets.

University of Chicago economist and Obama policy adviser Austan Goolsbee will serve as the panel's staff director.