Tuesday, the U.S. supported efforts by the Hamid Karzai government in Afghanistan to reconcile with the moderate elements in the Islamic militant outfit Taliban, as part of the Obama administration's revamped policy to deal with the growing insurgency in the war-torn country, reports say.

The move came as the administration quietly dropped from its lexicon the phrase 'war on terror,' coined by former President George Bush to defend many of his controversial actions.

Speaking at an international conference on Afghanistan in The Hague, Netherlands Tuesday, U.S. Secretary of State Hillary Rodham Clinton stressed on the need to support efforts by President Hamid Karzai to separate the extremists of Al-Qaida and the Taliban from those who have joined their ranks not out of conviction, but out of desperation.

Noting that this was the case for a majority of those fighting with the Taliban, Clinton said that they (moderate Taliban) should be offered an honorable form of reconciliation and reintegration into a peaceful society, if they are willing to abandon violence, break with Al-Qaida, and support the constitution.

She also announced a fund of $40 million for the upcoming Afghanistan's presidential election in August, urging for an open, free and fair poll.

Earlier talking top reporters aboard her aircraft on her way to the Hague Clinton said she has not got any directive about using or not using the phrase war on terror.

It's just not being used, she said, adding the administration has stopped using the phrase and that speaks for itself.

The discontinuation of the term 'war on terror' marks a departure from the practice of the Bush administration, which began using the phrase after the September 11, 2001 attacks on the U.S.

Many in the international community, including human rights groups, had objected to the term, finding it overly broad, including to justify actions like the opening of the Guantanamo Bay prison for detainees held without trial at the U.S. naval base in Cuba.

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