WASHINGTON, Dec 6 (Reuters) - A report by the bipartisan Iraq Study Group called the situation in Iraq "grave and deteriorating" on Wednesday and urged the United States to start moving combat forces out.

The report, presented to President George W. Bush, said: "Our most important recommendations call for new and enhanced diplomatic and political efforts in Iraq and the region and a change in the primary mission of U.S. forces in Iraq that will enable the United States to begin to move its combat forces out of Iraq responsibly."

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