WASHINGTON (Reuters) - The U.S. ambassador to Iraq is holding talks with Iraqi nationalist insurgents and the Sunnis they represent, Time magazine reported on Sunday. Time quoted U.S. Ambassador Zalmay Khalilzad as saying "We will intensify the engagement, interaction and discussion with them." He said reaching out to Sunnis regarding their "legitimate concerns" makes sense because of rifts between the nationalist and al Qaeda camps in the insurgency.Asked about the report on CNN's "Late Edition," National Security Adviser Stephen Hadley said U.S. officials are "not going to have contact with people who have blood on their hands." But he said...