U.S. allies threaten retaliation for Pentagon decision to ban war critics from contracts
By Robert H. Reid, Associated Press, 12/11/2003 04:38
BRUSSELS, Belgium (AP) Critics said a U.S. decision to bar opponents of the war in Iraq from reconstruction contracts could complicate American efforts to restructure Iraq's estimated $125 billion debt as Europe reacted swiftly and angrily to the decision.
French President Jacques Chirac, German Chancellor Gerhard Schroeder and Russian President Vladimir Putin all raised the contracting issue during previously scheduled telephone calls with President Bush on Wednesday, the White House said.
''Iraq's debt to the Russia Federation comes to $8 billion and as far as the Russian government's position on this, it is not planning any kind of a write-off of that debt,'' Defense Minister Sergei Ivanov told reporters earlier, responding to a question about the contracts. ''Iraq is not a poor country,'' he said.
Much of Iraq's estimated $125 billion debt is owed to France, Germany, Russia and other nations whose companies are excluded under the Pentagon directive. (snip/...)
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