Bush rocked by Senate rebellion on Iraq

A Republican rebellion in the Senate against White House plans for rebuilding Iraq raised questions yesterday about President George Bush's authority in Washington as he struggles to maintain control of a divided administration.

A late-night Senate vote to turn half the $20bn (£12bn) Iraq reconstruction budget into a loan marked a serious setback for the administration, which had wanted all the money in the form of a grant. It also came as a personal defeat for the president.

On Tuesday, Mr Bush had called in nine Republican rebels and ordered them to support his version of the bill, reportedly slamming a table at one point and refusing to answer their questions.

The outburst did him little good. Eight Republican senators voted against the administration on Thursday. One rebel, Senator Olympia Snowe of Maine, said: "It was very difficult to stop this train because it made so much sense."