(Adds quotes, details) By Andrew Gray WASHINGTON, Feb 1 (Reuters) - The top U.S. commander in Iraq defended his record on Thursday after scathing criticism in Congress, declaring he had laid the foundations for success and his strategy had made progress in a tough environment. "I do not believe that the current policy has failed," Gen. George Casey told the U.S. Senate's Armed Services Committee, meeting to consider his nomination to be U.S. Army chief of staff. Tens of thousands of Iraqis and over 3,000 U.S. troops have died in Iraq since U.S.-led forces invaded in 2003 and toppled Saddam Hussein. American forces now are battling a stubborn insurgency amid widespread concerns about Iraq sliding into sectarian civil war. Even President George W. Bush referred to the Iraq policy under Casey as a "maybe a slow failure" last month as he made his case for his new plan to send in an additional 21,000 troops. Democratic Michigan Sen. Carl Levin, the committee's chairman, asked Casey if he agreed with Bush's assessment. After a pause, the general replied: "I actually don't see it as a slow failure. I actually see it as slow progress." Arizona Sen. John McCain, a front-runner for the Republican presidential nomination in 2008, said he did not question Casey's patriotism and honor, but declared: "I question seriously the judgment that was employed in your execution of your responsibilities in Iraq." He accused Casey of presenting "unrealistically rosy" assessments during his 2 1/2 years in Iraq and pursuing a strategy that used too few troops and relied too heavily on transferring responsibilities to Iraqi security forces. Bush said last month he would send 21,500 additional U.S. troops to Iraq in an effort to get a grip on sectarian killings, insurgent attacks and other violence. "It took us a long time to get where we are today," McCain said, describing the situation as "dire and deteriorating." "We have paid a very heavy price in American blood and treasure," said McCain, a supporter of the war who backs Bush's plan to raise troop levels but questions whether his proposed increase will be sufficient. 'MY STRATEGY' Casey said his strategy had made progress. He noted that Iraqi forces were responsible for security in three of the country's 18 provinces and said they were on track to be in charge nationwide by November. "The strategy that I articulated here today is my strategy and I believe in it," Casey said. "It may not have produced the results on the timelines that people expected or wanted. But I do believe that it has laid the foundation for our ultimate success in Iraq." Several senators asked Casey if he truly supported Bush's plan, as the general requested two extra combat brigades for Baghdad, not the five the president wants. Casey said the three further brigades would allow more flexibility and be deployed over time so they could be stopped if they were not required. That suggested at least a difference in emphasis from his designated successor, Gen. David Petraeus, who has asked for all the extra forces to be deployed as quickly as possible. Under the new plan, U.S. forces will be more actively involved in bringing security to Baghdad. Another Republican, Lindsey Graham of South Carolina, also expressed frustration at Casey's relatively upbeat assessment of Iraq. "It's almost like I'm hearing two different wars being described here," he said, contrasting Casey's testimony with recent statements by Petraeus and Adm. William Fallon, in line to become the top U.S. commander for the Middle East. If confirmed, Casey would replace Gen. Peter Schoomaker as Army chief of staff. Schoomaker is retiring.
