Washington, Sept. 19 (Reuters): Leading members of President George W. Bush?s Republican party today criticised mistakes and ?incompetence? in his Iraq policy and called for an urgent ground offensive to retake insurgent sanctuaries.

In appearances on news talk shows, Republican senators also urged Bush to be more open with the American public after the disclosure of a classified CIA report that gave a gloomy outlook for Iraq and raised the possibility of civil war.

?The fact is, we?re in deep trouble in Iraq...and I think we?re going to have to look at some recalibration of policy,? Republican Senator Chuck Hagel of Nebraska said on CBS? Face the Nation.

?We made serious mistakes,? said Senator John McCain, an Arizona Republican who has campaigned at Bush?s side this year after patching up a bitter rivalry.

McCain, speaking on Fox News Sunday, cited as mistakes the toleration of looting after the successful US-led invasion of Iraq in 2003 and failures to secure Iraq?s borders or prevent insurgents from establishing strongholds within the country.

A ground offensive was urgently needed to clearing insurgents out of strongholds such as Falluja, McCain said. He said Iraqi elections scheduled for January would be impossible unless this were done.

The criticisms came as Bush prepared this week to host Iraqi Prime Minister Iyad Allawi and focus strongly on Iraq after stepped up attacks from Democratic presidential nominee Senator John Kerry.

However, Allawi today elections would be held as planned in January despite a surge in violence across the country. ?We definitely are going to stick to the timetable of elections in January next year,? he said after talks in London with British Prime Minister Tony Blair.

A militant group has threatened to kill two American and a British hostage on Monday.

Moreover, a hitherto unknown Islamist group has threatened to kill 15 captured Iraqi soldiers if authorities do not release an aide to Shia rebel cleric Moqtada al-Sadr within 48 hours, Al Jazeera reported today.