By Jui Chakravorty

DEARBORN, Michigan, July 12 (Reuters) - Iraqi-Americans, who overwhelmingly supported the U.S.-led invasion of Iraq, reacted with frustration to a White House report on Thursday that said the Iraqi government had failed to meet its goals.

"There is no water, no electricity. We are such a big oil producer and there is no gas available for our cars. My family has to stand in line for three to four hours to get some gas," said Hassan Al-Botinar, who has lived in the United States for 15 years and manages an Iraqi restaurant in Dearborn, a city near Detroit that is home to one of the largest Iraqi populations outside Iraq.

He said life was hard for his seven siblings and mother, who live in Iraq. "There is no safety. So many people are dying every day. So I will say the government -- they are good people, but not doing a good job," Botinar, 38, said.

Mehsin Jwad Al-Busaid, 90, said his family in Iraq was living a life of bombs and death.

"We have terrorists coming in from our neighbors -- Syria, Jordan, Saudi Arabia and Yemen. We really need more security at the borders," he said. "The government is just not doing enough to secure the borders."

The interim report found the Iraqi government had made only mixed progress in meeting political goals. It said conditions were still dangerous and challenging, six months after Bush ordered a U.S. troop buildup.

Abbas Al-Daraji, a 32-year-old truck driver who has lived in the United States for 10 years and still has siblings in Iraq, said he was disillusioned with the administration.

"Progress? No progress, things are worse. The U.S. government is not doing anything to stop the terrorists from neighboring countries to enter Iraq," Daraji said.

"People are not happy and not safe. I give the U.S. government and the Iraqi government very poor marks."

The White House report is being sent to Congress as several prominent Republicans have broken ranks with Bush on Iraq, adding momentum to Democratic-led efforts to try to force a scaling back of troop levels more than four years after a U.S.-led invasion that toppled Saddam Hussein.

Mohammed Al-Aetiaj, 36, who has been in the United States for 12 years and has family in Iraq, said: "The situation is out of control. There are still people there from the old regime, there is a lot of terrorism, a lot of corruption."

"No gas, no water, no electricity. I worry for my family now more than I did when Saddam was in power," Aetiaj said.

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