U.S. PRESIDENT GEORGE BUSH LAUDED THE NEW GOVERNMENT IN BAGHDAD, CALLING ITS FORMATION A "REAL BLOW" AGAINST TERRORISM, DPA REPORTED. IN HIS WEEKLY RADIO ADDRESS SATURDAY, BUSH, WHO RECEIVED ONE OF HIS LOWEST POPULARITY RATINGS OF 36 PER CENT EARLIER THIS WEEK, CITED A VIDEO MADE BY ABU MUSAB AL-ZARQAWI, THE AL-QAEDA TERRORIST LEADER BLAMED FOR THOUSANDS OF DEATHS FROM SUICIDE ATTACKS AND KIDNAPPINGS IN IRAQ. BUSH SAID THAT ZARQAWI'S VIDEO SHOWED THAT "THE TERRORISTS CLEARLY RECOGNIZE THE THREAT THAT THE NEW UNITY GOVERNMENT POSES TO THEIR DARK PLANS FOR IRAQ AND THE BROADER MIDDLE EAST." BUSH WARNED THERE WOULD BE MORE "TOUGH FIGHTING," BUT HELD OUT HOPE THAT "MORE OF OUR TROOPS CAN COME HOME" AS "IRAQIS CONTINUE TO MAKE PROGRESS TOWARD A DEMOCRACY THAT CAN GOVERN ITSELF, DEFEND ITSELF AND SUSTAIN ITSELF."