White House Backs Limiting Iraq Reconstruction

[The Finman]

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<h2><font color=#003399>White House Backs Limiting Iraq Reconstruction</font></h2>
WASHINGTON --- The White House staunchly defended Wednesday the Pentagon's decision to bar companies from countries opposed to the Iraq war from bidding on $18.6 billion worth of major reconstruction contracts in that country.

But nevertheless, the European Union said Wednesday it would examine whether the United States violates world trade rules with its decision.

The administration said countries can boost their chances of winning contracts by donating more military resources.

"I think it is appropriate and reasonable to expect that prime contracts for reconstruction funded by U.S. taxpayer dollars go to the Iraqi people and those helping with the United States on the difficult task of helping to build a free, democratic and prosperous Iraq," White House spokesman Scott McClellan told reporters on Wednesday.

"This decision was previously announced and it's one we fully support ...

other countries can fully participate through the subcontracting process."

McClellan said other nations that want to be eligible for a slice of the $18.6 billion -- the amount of money Congress approved for Iraq reconstruction following a special budget request by President Bush -- can do so by participating militarily.

They can also vie for contracts being financed by a separate international fund that the White House estimates will be worth $13 billion, he said.

A directive from Deputy Defense Secretary Paul Wolfowitz (search) limits bidders on those 26 contracts to firms from the United States, Iraq, their coalition partners and other countries that have sent troops to Iraq.

The ruling bars companies from U.S. allies such as France, Germany, Russia and Canada from bidding on prime contracts because their governments opposed the American-led war that ousted Saddam Hussein's regime.

Countries that contributed troops and supported the effort -- such as Italy, Africa, Micronesia, Spain, Japan, Rwanda and Afghanistan -- will be able to bid on prime contracts.

"To exclude Canadians just because they are Canadians would be unacceptable if they accept funds from Canadian taxpayers for the reconstruction of Iraq."

Steven Hogue, a spokesman for Prime Minister Jean Chretien (search), said Canada has contributed more than $190 million to the rebuilding effort.

Germany called the decision "unacceptable" and Foreign Minister Joschka Fischer said, "We will be speaking about it with the American side."

She said the 26 contracts listed on the Pentagon Web site would be examined to see what they cover and whether national security exemptions would apply.

Iraqis are included in the rebuilding process, the spokesman said, and "if countries want to join in coalition efforts in Iraq, they would become eligible for prime contracts" unless those countries are aiding terrorists.

Bush administration officials have suggested publicly and privately since before the war started that countries that opposed the United States on Iraq would be cut out of at least some of the lucrative rebuilding contracts administered by Washington.


Full Article <font color="red"><u>Here</u></font>

[dsfiscool]

Dear France and Germany:





Sincerely,

The United States of America