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Bush says we risk lives we get contracts { December 11 2003 } Original Source Link: (May no longer be active)
http://www.latimes.com/news/nationworld/iraq/la-121103contracts_lat,1,7987667.story?coll=la-home-headlineshttp://www.latimes.com/news/nationworld/iraq/la-121103contracts_lat,1,7987667.story?coll=la-home-headlines
Bush Stands Firm on Iraq Contracts
By James Gerstenzang
Times Staff Writer
10:25 AM PST, December 11, 2003
WASHINGTON -- President Bush offered an unyielding response today to outrage from Europe, Russia and Canada over his plan to limit prime contracts in the rebuilding of Iraq to U.S. firms and those of its allies in the war. Meanwhile, the U.N. secretary general joined European leaders in trying to persuade Bush to ease his opposition to allowing wider bidding on the reconstruction work.
"In the expenditure of taxpayers' money and that's what we're talking about now the U.S. people, the taxpayers understand why it makes sense for countries that risk lives to participate in the contracts in Iraq," Bush said.
"It's very simple," he added. "Our people risk their lives. Friendly coalition folks risk their lives. And, therefore, the contracting is going to reflect that. And that's what the U.S. taxpayers expect."
The president made no mention of specific nations. But in a clear reference to France, Russia and Germany key targets of a U.S. effort being led by former Secretary of State James A. Baker III to restructure Iraq's staggering international debt, estimated at $125 billion Bush suggested that he might look more favorably on those who helped ease Iraq's current financial problems, even if they had not contributed militarily or financially to the war effort.
"It would be a significant contribution, for which we would be very grateful," the president said.
Bush spoke in response to questions during a photo session at the end of a Cabinet meeting.
Initial reports that the United States would favor its Iraq war allies when awarding $18.6 billion in prime contracts prompted angry responses not just from those countries that had openly opposed the war France, Germany and Russia, among them but also from Canada, which opposed the war but has contributed $230 million to efforts in Iraq.
On Wednesday, Bush spoke by telephone with the leaders of France, Germany and Russia and promised to "keep lines of communication open" to discuss which countries would be allowed to bid, a White House official said. The president had placed the calls to urge them to help restructure Iraq's massive debt, assistance that seemed less likely given the anger over the contract policy.
Responding to a reporter's statement today that German Chancellor Gerhard Schroeder had said that international law should be applied in the awarding of contracts, Bush responded: "International law? I better call my lawyer. He didn't bring that up to me.... I don't know what you're talking about, about international law."
He said he had spoken with Schroeder, Russian President Vladimir Putin and French President Jacques Chirac and asked them to meet with Baker and made it clear that if they were interested in helping Iraq, they could do so by forgiving its debt, before their companies could expect to benefit from the reconstruction work.
"If these countries want to participate in helping the world become more secure by enabling Iraq to emerge as a free and peaceful country, one way to contribute is through debt restructuring," the president said.
Baker is planning to visit Europe next week, the White House announced this morning.
U.N. Secretary General Kofi Annan told reporters in Berlin: "It is time we tried to rebuild international consensus and work together and pool our efforts ... to stabilize Iraq."
Schroeder added: "It makes little sense to discuss who can and who cannot individually participate economically in reconstruction. International law must apply here and it does not help things to look backward and is more directed at the past."
At a briefing on Wednesday, a senior defense official said the roster of 63 countries eligible to bid on the contracts "is not a fixed, closed list
. This is an open list. We're always going to reevaluate."
The official suggested that a country might qualify for the list simply by declaring itself a member of the Iraq coalition, a step that such war opponents as France and Germany might find politically unpalatable. Officials made no mention of such flexibility when they disclosed the policy Tuesday.
Reuters contributed to this report.
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