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GOP defeats first effort to make Iraqi aid a loanTougher battles lie ahead
WASHINGTON (AP) -- Senate Republicans have fended off the first effort to convert President Bush's proposed aid package for Iraq into loans, but tougher battles on the issue remain. The Senate voted 57-39 Tuesday to defeat a proposal by Sen. Byron Dorgan, D-North Dakota, to eliminate $20.3 billion in grants that Bush wants for retooling Iraq's economy and government. The amendment would have required Iraq to borrow the money, which Bush included in his $87 billion measure for Iraq and Afghanistan. Dorgan's defeat was expected in the Senate, which the GOP controls by a slender margin. In what otherwise was a party-line vote, seven Democrats opposed him: Joseph Biden and Thomas Carper of Delaware, Maria Cantwell of Washington, Mark Dayton of Minnesota, Christopher Dodd of Connecticut, Russell Feingold of Wisconsin and Zell Miller of Georgia. But other, narrower amendments seemed to have more support, like one by Sen. Kay Bailey Hutchison, R-Texas, that would put half the $20.3 billion into a loan fund overseen by the World Bank. "We may well change at least part of these grants into loans," Dorgan said after the roll call. Just in case, Republicans prepared an amendment designed to siphon off support for loans. It would put the rebuilding money into a U.S.-administered fund. A board would control it and could decide whether individual reconstruction projects should be grants or loans, said GOP officials speaking on condition of anonymity. In addition, Bush personally lobbied senators of both parties at the White House, though with uncertain results. Bush visited a meeting with a dozen senators hosted by Secretary of State Colin Powell and White House budget director Joshua Bolten. He argued that providing aid as a loan would complicate U.S. efforts to persuade other countries to forgive debt owed to them by Iraq, said Cantwell, who was at the meeting. "There's no mistaking the intensity of the president's feelings about that," said Sen. Susan Collins, R-Maine, a co-sponsor of Hutchison's amendment. But Collins and Cantwell, a grant supporter, said it was unclear if Bush changed any lawmakers' minds. Even so, a week after all-out White House lobbying headed off a similar move toward loans in a GOP-controlled House committee, top Republicans were optimistic they would prevail in the Senate, too. "I feel very good. We've been making steady progress over the last two weeks," said Senate Majority Leader Bill Frist, R-Tennessee. The administration arranged for some 75 House members and 25 senators to visit Iraq in recent weeks to view U.S. efforts there, said an administration official on condition of anonymity. The official said almost all have returned supporting Bush's $87 billion proposal. With polls showing Iraq becoming a political liability for Bush, Democrats said they would use the Senate debate to underscore his lack of a clear plan. They returned from recess armed with amendments to ease the burden on U.S. taxpayers for Iraq's reconstruction and to increase spending for needs at home. One amendment by Sen. Debbie Stabenow, D-Michigan, would divert $5 billion of the Iraqi money to U.S. schools, veterans and transportation projects, but it was defeated by 59-35. There was little doubt that the Senate would approve some version of the overall bill. Daschle predicted that eventually, a majority of Senate Democrats would vote for final passage. The House seemed likely to approve its similar, $87 billion package by week's end. Congressional leaders would like to finish a final House-Senate bill by the time nations meet in Madrid on October 23 and 24 to discuss funding for Iraq. Copyright 2003 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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