BUDAPEST, Hungary —  A number of NATO countries are balking at the United States' request that their troops in Afghanistan do more to confront drug lords whose money helps bankroll the Taliban, Defense Secretary Robert Gates said Thursday.

But he told reporters that several options are on the table for further discussion, including allowing some nations who are opposed to the plan to "opt out" without blocking others from participating.

"It's been a good conversation, it's been a frank one. I think people are listening to one another," said Gates, adding that he was not particularly surprised or frustrated by the plan's lukewarm reception. "How it will come out, I'm not certain at this point."

Some countries, including Germany, Italy and Spain, have expressed concerns that doing a more aggressive counter-drug effort would lead to a backlash against international troops serving in Afghanistan. And they also fear that broadening the mission there would overburden the troops, and give the Afghan government less incentive to fight the drug problem on its own.

Gates said he argued that the U.S. is not pressing for a counter-narcotics strategy, and instead is talking about giving troops greater freedom to track down the networks that are funding the Taliban.

The issue was discussed at length Thursday at a NATO meeting of defense ministers, and Gates says he is hopeful a resolution may be reached, even possibly Friday.

NATO allies have been struggling to find the troops and equipment needed to combat escalating violence, and growing threats from the Taliban and militants coming across the border from Pakistan. Commanders have said that a key way to fight back would be to target the drug money that fuels the insurgency.

Speaking to reporters Thursday, Gates acknowledged that opposing allied leaders expressed legitimate worries about the plan.

"I think that there are some concerns and I think there's merit to them," Gates said. One, he said, is whether escalating the fight will further antagonize the Afghan people _ many of whom rely on the poppy trade for their livelihood.

Also, he said, there is a concern that "if we take this on, that it will send a signal that we're relieving the Afghan government of responsibility for this problem. Of course, we tried to present a contrary view."

According to officials, the drug trade is concentrated in seven of the country's 34 provinces, but the heroin industry pours an estimated $100 million into the Taliban and its al-Qaida allies each year. Earlier this week, NATO's top commander, U.S. Army Gen. John Craddock, called it a cancer that fuels the insurgency.

Craddock is the one who first broached the plan that Gates endorsed and defended to the allies.

"It was a very respectful decision. Each of us understood where the other was coming from ... the question is, what do we do about it?" Gates said. Asked if there was a chance it could be resolved Friday, he responded, "I hope. I pray."

Gates also said that his recent endorsement of efforts to reach out to members of the Taliban and other militants who could be considered reconcilable does not apply to al-Qaida in Afghanistan.

And he said that such a program, modeled after the one used by U.S. forces in Iraq that led to a decline in violence there, must also be based on conditions set by the Afghan government. Winning over those who are fighting the government, he said, "is how most wars are won."

Gates, who at times has been critical of the NATO alliance _ from restrictions that country's place on their troops to their sometimes lackluster counterinsurgency efforts _ offered a broad defense of the recent effort.

The nations, he said, have met the commitments they made to provide additional troops, helicopters and other assistance. The real challenge, he agreed, will be to meet the growing requirements laid out by the commanders for even more troops, trainers and aircraft.

The seven-year-old Afghan war has seen recent spikes in violence, and a spate of U.S. attacks that killed a number of civilians, enraging the Afghan people. Gates said a new effort by the U.S. to do more to diminish civilian casualties, and to respond more quickly when such incidents are reported, should help.

But overall, he insisted that the tone of Thursday's meeting was more optimistic than recent reports would suggest, including a British general's comments that "we're not going to win this war."

Leaders at the meeting, Gates said, are cautiously optimistic about the war. Although, he added, "We know we face a lot of challenges."

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Associated Press Reporter Paul Ames contributed to this report.

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