"I believe the best strategy for the rebuilding of New Orleans and revitalization of the parishes around New Orleans is for the local folks to design the strategy and to have federal government become a partner," he told local businesspeople on his first visit to the region in three months.

But he added: "One of the keys to success is going to be private-sector initiatives."

Faced with criticism over the slow emergency and aid response to Hurricane Katrina in August and then Hurricane Rita, Bush highlighted the 85 billion dollars in assistance already approved by the federal government.

Although many parts of the three states ravaged by the hurricanes remain in dire condition, Bush noted dramatic progress since his visit immediately after the first hurricane struck.

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