One day after he was quoted saying NATO troops aren't effectively fighting the Taliban in southern Afghanistan, U.S. Defense Secretary Robert Gates praised the nations doing battle against insurgents in the country.

He downplayed a Wednesday article in the L.A. Times that quoted him directly as saying, "I'm worried we have some military forces that don't know how to do counterinsurgency operations ... Most of the European forces, NATO forces, are not trained in counterinsurgency."

He appeared to back-pedal from that position on Thursday.

"This does not reflect reality or I believe the views of our governments," Gates said during a news conference.

"As I said before the House Armed Services Committee last month, allied forces from the United Kingdom, Canada, the Netherlands, Australia, Denmark and other nations have stepped up to the plate and are playing a significant and powerful role in Afghanistan."

He said NATO soldiers have pushed the Taliban from strongholds in the south, fighting in grueling conditions and taking casualties. As a result the Taliban "no longer holds real estate of any consequence," he said.

Gates didn't suggest he was misquoted in the article, but said he was speaking about challenges faced by NATO as a whole -- and not specific nations.

He said NATO as an institution still has shortcomings and needs to adapt to current fighting strategies, something the U.S. has also dealt with.

"We have to acknowledge the reality that the alliance as a whole has not trained for counter-insurgency operations even though individual countries have considerable expertise at and success in this arena," Gates said.

Gates mentioned Canada several times, saying he telephoned Defence Minister Peter MacKay on Wednesday to clarify his comments and express his respect and appreciation for Canada's sacrifice.

Canadian Reaction

Prime Minister Stephen Harper downplayed the remarks on Thursday. Speaking in Prince Albert, Sask., he insisted that U.S. officials support the work Canada is doing in Afghanistan and both military and non-military officials have always expressed appreciation and confidence for the Canadian Forces.

MacKay also downplayed the reports about Gates' comments, pleading on Wednesday for cooler heads to prevail and insisting that in two recent conversations with Gates, the U.S. defence secretary "lauded Canadian forces" and their efforts in the region.

But NDP leader Jack Layton said Thursday the controversy may be the last straw that tips Canadian opinion away from supporting the Afghan mission beyond its current mandate.

"I think Canadians, just as they rose up and spoke around the war in Iraq -- ultimately provoking Mr. Chretien to do the right thing at the last moment on the eve of the invasion -- the Canadian people need to speak out now," Layton said.

"We can change the direction of Canadian foreign policy."

Scott Taylor, editor of Esprit de Corps magazine, told CTV's Canada AM on Thursday morning that Gates needed to make a public apology.

"I think it deserves more than just a phone call between him and Peter MacKay. If you've made a public condemnation of NATO troops, then Mr. Gates needs to come out and make a public apology to the Canadian forces and to other allies of NATO," Taylor said Thursday.

He suggested the U.S. is in no position to be criticizing Canada's commitment to Afghanistan, considering the Canadian Forces have stepped in to take a leading role in the mission when the U.S. shifted its focus to Iraq, leaving few resources in Afghanistan.

"The Americans have let this thing sit and stew and have left a very minimal amount of troops on the ground in Kandahar from 2002 to 2005. the Taliban regrouped and then they handed this thing off to NATO knowing that it was a mess," Taylor said.

"Now they're saying it's our fault for letting this thing degenerate and we don't know what we're doing. As opposed to what? The Americans in Iraq?"

We're 'pulling our weight': U.S. ambassador

The top American diplomat in Canada denied that the U.S. had reduced its military commitment in Afghanistan. U.S. Ambassador to Canada David Wilkins said the U.S. has 30,000 troops in the country and another 3,200 will arrive in the spring.

"We're certainly pulling our weight, as is Canada, as is Britain, and several of the NATO allies," Wilkins told CTV Newsnet's Mike Duffy Live.

A former Canadian military commander in Kabul said it may be premature to predict long term troop commitments by the Americans. Retired Col. Mike Chapstick noted that in 2005 and 2006, the Americans were considering reducing their troop numbers.

"There are 3,200 committed for seven months, and I think we should take that as it is," Chapstick said.

NATO allies on Wednesday reacted with surprise and disbelief to Gates' comments. The Dutch Defence Ministry summoned the U.S. ambassador for an explanation.

In Ottawa, Liberal defence critic Denis Coderre demanded the Tory government either call in the U.S. ambassador to Canada or seek a clarification from Gates.

Coderre said at the very least, the comments smack of insensitivity in light of the death of a Canadian soldier north of Kandahar on Wednesday.

Patchwork of NATO duties in Afghanistan

CTV Washington Bureau Chief Tom Clark told Mike Duffy Live that the American officials are saying behind the scenes they are frustrated that there is a patchwork among the allied nations about how they are carrying out their duties in Afghanistan. Clark said that, for example, the Dutch are far less aggressive in their approach than the Canadians. He pointed out that some European allies are hamstrung about what they can do militarily by legislation at home.

"You can call this a classic Washington gaffe. (Gates) spoke the truth by mistake," Clark said.

He said the Americans are highlighting apparent successes in the eastern part of Afghanistan where U.S. troops are present.

Chapstick noted, however, that the American attempt to distinguish successes and shortcomings of various military forces in different parts of Afghanistan is a mistake.

"I think the biggest mistake (Gates) made was making an unfavourable comparison between the NATO troops in southern Afghanistan and the American troops in Eastern Afghanistan," said Chapstick.

"In the first place, both of those sets of troops operate to an American commander (in Kabul) ... and it's his headquarters' responsibility to try to get these troops marching on the same line and the same direction."

Chapstick also noted that British and Canadian troops do not have the legal limitations placed on some European countries and do.

"They are out of the camp. They're on patrol all the time. We had another seven wounded this morning outside the wire," he said.

Chapstick said the controversy should point to the need for a greater and more coordinated plan for Afghanistan.

Gates' reported comments came to light the day after Washington authorized the deployment this spring of more marines to Afghanistan after failing to convince European countries to provide reinforcements. Most of the U.S. troops will be deployed to the south to strengthen NATO forces there ahead of an expected increase of Taliban and insurgent activity with the spring thaw.

A U.S. military analyst says Gates was likely showing his frustration about an overstretched American military fighting on two fronts -- in Afghanistan and Iraq. Bruce Riedel, who has been a presidential adviser and CIA officer, said Gates may be uneasy about the fact that he does not have the resources to fight insurgencies in the two countries effectively.

"Gates's comments to some extent reflect his frustration that he doesn't have a very good solution to this problem," Riedel said.

But Riedel said that his comments may have made the situation even worse.

"He made it harder for our NATO allies to explain to their constituencies what's going on," Riedel said.

"Criticizing the allies for allegedly underperforming in Afghanistan is not likely to encourage better performance."

Seventy-seven Canadian soldiers and a Canadian diplomat have died in Afghanistan since 2002.