A confidential report prepared by the US-led administration in Iraq says that the attacks by insurgents in the country have escalated sharply, prompting fears of what it terms Iraq's "Balkanisation". The findings emerged after a rocket-propelled grenade attack on the top US general in Iraq, John Abizaid, on Thursday. "January has the highest rate of violence since September 2003," the report said. "The violence continues despite the expansion of the Iraqi security services and increased arrests by coalition forces in December and January."