Wary Saudis Withhold Aid to Iraq (a setback for the Bush administration)

[papau]

http://www.latimes.com/news/nationworld/iraq/la-fg-usarabs1dec01,1,2353906.story?coll=la-home-headlines

Wary Saudis Withhold Aid to Iraq
By Paul Richter
Times Staff Writer

December 1, 2003

WASHINGTON — Saudi Arabia will withhold the $1 billion in loans and credits that it pledged last month for Iraq's reconstruction until the security situation is stabilized and a sovereign government takes office, U.S. and Saudi officials said.

The Saudi decision is a setback for the Bush administration, which had hoped that the kingdom would set an example for other Arab governments by providing vitally needed aid. At an international donors conference in Madrid in October, Saudi Arabia pledged to give Saudis willing to do business in Iraq $500 million in loans and $500 million in export credits over the next five years. The U.S. hailed the commitment.<snip>

But so far, no checks have been written to make good on the pledges, said one U.S. official, since an international trust fund for the money has yet to be put in place.<snip>

A further source of friction is the looming question of Iraq's crippling foreign debt, estimated at about $300 billion to $400 billion. The U.S. would like to see nations forgive much of that debt, arguing it is a necessary step to ensure than an emerging democratic regime in Iraq will have financial stability.<snip>

Iraq owes about $50 billion to Saudi Arabia, Kuwait and other Arab nations, and they are loathe to forgive that debt. <snip>

[GainesT1958]

1. It's a blue Christmas, indeed...

When even your OLD FAMILY FRIENDS aren't in a "giving mood"!:eyes:

B-)

[izzie]

2. So mush for Bush flying the Saudi Arabia people out on 911

Ha Ha