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Anti-war nations may get chance at Iraq contracts

From John King
CNN Washington Bureau

National security adviser Condoleezza Rice addreses reporters at the White House, Friday.
National security adviser Condoleezza Rice addreses reporters at the White House, Friday.

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WASHINGTON (CNN) -- The Bush administration has signaled it may be open to making Canada and other opponents of the Iraq war eligible for major reconstruction contracts after an initial $5 billion in contracts are awarded in the near future.

Speaking to reporters at the White House, national security adviser Condoleezza Rice said Friday the initial $5 billion in contracts will go to countries on a list the Pentagon previously declared eligible for the reconstruction work.

Countries that either participated in the Coalition effort in the war or supported it -- including Britain, Australia, Spain, Italy, Poland, Turkey and Japan -- are on the list.

Canada, Russia, France and Germany are among Iraq war opponents excluded from those major contracts, stirring anger in those countries and accusations the Bush administration is not willing to put pre-war bitterness aside.

Just after the Pentagon list was released Bush appealed to those nations to forgive or reduce much of Iraq's international debt burden.

At the time, Bush said, "It is in every nation's interest that Iraq be free and peaceful, and we welcome contributions."

In voicing its disappointment, Canada cited its cooperation -- and deployment of troops -- in the war on terrorism in Afghanistan.

The contracting dispute is likely to be an issue next week when the president is to hold his first meeting with new Canadian Prime Minister Paul Martin during a Summit of the Americas in Mexico.

Rice suggested Friday the contracting policy could change after the initial round of contracts are awarded.

"As further contracts are let, as further funds are released over the next several months, then we can review in some detail the circumstances, the changed circumstances for different countries," she said. "And I think that we will talk to the Canadians about this. I think there is some understanding of where we are going."

There is $18.5 billion budgeted for the major U.S.-funded reconstruction contracts in Iraq -- meaning some $13 billion or so still to be awarded after the initial $5 billion worth now in the pipeline.


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