When Republican Sen. Chuck Hagel traveled around his home state this week, citizens at every stop brought up Iraq policy and the inexorable rise in fuel prices.

"Is there anything the United States can do to get some stability in crude oil prices in the world, because it affects everything we do?" Larry Ahlers, a manager at medical device manufacturer Becton and Dickinson in Broken Bow, asked Hagel in one of dozens of such encounters.

Hagel, a possible Republican presidential candidate in 2008, responded that gasoline prices were likely to stay high for the foreseeable future because of rising world demand and the U.S. failure to develop new energy sources and conserve.

Earlier the same day in Lincoln, an elderly woman asked about Iraq. "Why are we there in the first place?" she asked.

On Tuesday in the central Nebraska town of Lexington, after a meeting with law enforcement officials on drug problems, three sheriffs expressed serious doubts about what the United States was doing in Iraq and whether it could succeed.

Hagel, a Vietnam veteran, acknowledged the U.S. military presence was becoming harder and harder to justify. He believes Iraq faces a serious danger of civil war that would threaten Middle East stability, and said there is little Washington can do to avert this.

"We are seen as occupiers, we are targets. We have got to get out. I don't think we can sustain our current policy, nor do I think we should," he said at one stop.

UNCERTAINTY, NOT PANIC

In an interview, Hagel said uncertainties over Iraq and oil prices fed off and reinforced each other.

"The mood is one of a certain sense of unsteadiness," he said. "I have sensed that since September 11, 2001. Our people have still not found an equilibrium and when you get these shocks, like gasoline at $2.50 a gallon and projecting natural gas costs doubling and tripling from what they paid last year, that further shakes them."

"I don't think there's panic, I don't think there's cynicism. I think there's this steady unsure sense about where is this all leading -- the constant daily reports on Iraq, our people being killed there, the money being spent there," he added.

Nebraska has been a solid Republican state in presidential elections for decades. Republicans dominate state politics and hold most elective offices.

But Hagel said even some who had previously backed Bush strongly on Iraq now felt deep unease.

"The feeling that I get back here, looking in the eyes of real people, where I knew where they were two years ago or a year ago -- they've changed," he said. "These aren't people who ebb and flow on issues. These are rock solid, conservative Republicans who love their country, support the troops and support the president."

Hagel said Bush faced a growing credibility gap. "The expectations that the president and his administration presented to the American people 2 1/2 years ago is not what the reality is today. That's presented the biggest credibility gap problem he's got," he said.

"I hope he has some sense that something's going on out in the country, that there's a lack of confidence that has developed in our position."

© 2005 Reuters

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