(Updates with further talks expected Wednesday, paragraph 4) By Steve Holland WASHINGTON, Nov 28 (Reuters) - A special bipartisan panel held a second day of intensive meetings on Tuesday seeking a consensus on recommendations for U.S. President George W. Bush on how to change course in Iraq. The 10-member group, led by former Secretary of State James Baker and former Rep. Lee Hamilton, wants to submit recommendations to Bush by the end of the year but has found some rough going in reaching agreement among themselves. Bush, whose Republicans were bounced from control of the U.S. Congress last month due in large part to his handling of Iraq, is under strong pressure for a major shift in course, and many in Washington are hoping the panel will provide an impetus for change. The group has been meeting in secret and participants have been reluctant to discuss their deliberations. A source familiar with its work said the group was expected to meet again on Wednesday. "I think everybody would like to have a consensus, but it's a tough thing to reach," said another official familiar with the group's deliberations. "Behind closed doors they want to come out with a reasonable plan that everybody embraces, but there's no easy way to do it." The group has been considering a number of options, including the possibility of the United States holding talks with Iran and Syria about influencing the warring groups in Iraq. The White House, annoyed at Iran over its nuclear program and at Syria for its influence in Lebanon, has been reluctant to hold talks with either government about Iraq. White House national security adviser Stephen Hadley told reporters on Monday this subject was likely to come up in talks Bush is to have in Amman, Jordan, on Thursday with Iraqi Prime Minister Nouri al-Maliki. "As you know, the Iraqis have been talking to the Syrians, the Iraqis have been talking to the Iranians. Their view is that the future of Iraq, if it is a subject of conversation with Syria and Iran, ought to be a conversation by Iraqis, not by others on the outside," he said. The group has also been discussing a gradual drawdown of U.S. troops from Iraq. Some Democrats have urged a phased withdrawal of U.S. troops from Iraq beginning in four to six months. "I suspect they're looking for a compromise. Nobody thinks you can walk away tomorrow and know that everything will be fine, but nobody wants to stay there forever," the official said. Bush has been adamantly opposed to a phased withdrawal, and reiterated his position again on Tuesday in a speech at the University of Latvia. "There is one thing I'm not going to do. I am not going to pull our troops off the battlefield before the mission is complete," he said. (Additional reporting)
