|
Bush funds shift to oil production and security { September 13 2004 } Original Source Link: (May no longer be active)
http://www.washingtonpost.com/wp-dyn/articles/A18840-2004Sep13.htmlhttp://www.washingtonpost.com/wp-dyn/articles/A18840-2004Sep13.html
Bush to Shift Iraq Funds to Boost Security
Reuters
Monday, September 13, 2004; 8:44 PM
By Adam Entous
HOLLAND, Mich. (Reuters) - Faced with mounting violence in Iraq, the Bush administration plans on Tuesday to propose shifting $3.46 billion from Iraqi water, power and other reconstruction projects to improve security, boost oil output and prepare for elections scheduled for January.
Administration and congressional officials briefed on the plan said it cleared the way for President Bush, who was campaigning in Michigan, to forgive 95 percent of Iraq's prewar debts to the United States totaling about $4 billion.
The changes, which will require congressional approval, reflect a realization within the administration that without better security, long-term rebuilding is impossible.
Of the more than $18 billion approved for Iraq's reconstruction, only about $1 billion has been spent so far.
"This is adjusting a plan in response to changing circumstances," said a U.S. official who asked not to be named. "One of the changing circumstances is the need to focus more urgently and more quickly on developing Iraqi security capability. Another is the need to accelerate employment of Iraqis."
According to a document outlining the plan, a copy of which was seen by Reuters, the administration would shift $1.804 billion now earmarked for water, sewage and electricity projects to expand security forces. This would include adding 45,000 Iraqi police officers and 16,000 officials for border enforcement.
Another $180 million would help plan for elections and strengthen local governments.
The number of U.S. troops killed since the March 2003 invasion passed the 1,000 mark last week, while the number of wounded topped 7,000, and administration officials say the anti-U.S. insurgency may intensify in the months ahead.
White House national security advisor Condoleezza Rice told CBS's "Face the Nation" on Sunday that "there will undoubtedly be violence up until the elections and probably even during the elections."
Secretary of State Colin Powell added, "This insurgency isn't going to go away."
In addition to the funds to bolster Iraqi security and election planning, the administration will shift $450 million from refined oil purchases to expand Iraq's oil capacity.
The document said the funds would be used for "specifically targeted oil infrastructure projects that will increase Iraqi oil production by 650,000 barrels per day by mid-2005."
The Bush administration wants to expand oil production and exports at the Kirkuk oil field, including building a new pipeline and improving facilities at Rumaylah oil field.
A further $380 million would be used to boost economic development. Some of that money would also be handed out in resettlement aid to 300,000 Kurds. A separate $286 million would help expand job training programs.
The administration would set aside $360 million to cover the "budget cost" of forgiving 95 percent of Iraqi debt to the United States. The figure represents the current estimated amount of the debt, largely run up during the 1980s.
The administration is required to seek congressional approval for major changes in Iraq's reconstruction package, but congressional aides said the White House now wants to ease those restrictions. One aide complained that the administration was effectively seeking a "blank check" to spend the money with minimal oversight.
Without authorization from Congress, the administration would only be able to shift $800 million of the requested funds, the document said. (Additional reporting by Anna Willard and Arshad Mohammed)
© 2004 Reuters
|
|
