Non-participants in war to be denied reconstruction contracts
From the Wolf Blitzer Reports in Washington:
WASHINGTON (CNN) -- The message was posted on a Pentagon web site. The fallout has been predictable.
It's serving as more evidence for traditional allies who believe the Bush White House is going its own way in Iraq.
"We noted the reports today with astonishment and we will be speaking about it with the American side," said German Foreign Minister Joscka Fischer.
An electronic memo, posted Tuesday night from Deputy Defense Secretary Paul Wolfowitz, restricts the number of countries eligible to bid for prime reconstruction contracts in Iraq -- contracts that could total about $18.5 billion.
"It is necessary for the protection of the essential security interests of the United States to limit competition for the prime contracts of these procurements to companies from the United States, Iraq, coalition partners and force contributing nations," says the memo.
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Translation: France, Germany, Russia, China, Canada -- all who opposed the Iraq war -- are shut out.
Reaction was swift.
France and the European Union say they're trying to determine whether the United States is violating trade rules or international law.
Russia took a different angle with its response.
"Iraq's debt to the Russian Federation comes to $8 billion U.S. and as far as the Russian government's position on this, it is not planning any kind of write-off of that debt," said Igor Ivanov, Russia's Foreign Minister.
At the White House, Press Secretary Scott McClellan was put on the defensive and held his ground on the issue of who contributed to the overthrow of Saddam Hussein and who should benefit.
"I think it's perfectly appropriate and reasonable to expect that the prime contracts for reconstruction, funded by U.S. taxpayer dollars, would go to the Iraqi people and those countries who are working with the United States on this difficult task of building a free, prosperous and sovereign Iraq for the Iraqi people," said McClellan.
He went on to say that sub-contracts, and other deals earmarked from international donors, are not covered by this directive. And some of the nations complaining loudest do have companies taking a slice of the pie.
"You have a German company, Siemens, that has been in Iraq working on the ground. You have a French company that has been working on diesel generators. You have a Russian company that has been refurbishing a power plant," McClellan said.
But some close U.S. allies also feel bruised, including a next-door neighbor not on the list of 63 countries who can bid on prime contracts.
"Canada has put in close to $300 million in terms of the reconstruction of Iraq. We have troops in Afghanistan and are carrying a very, very heavy load in that country," said Canadian Prime Minister-Elect Paul Martin.
From the White House, one carrot: Discussions with traditional allies will continue and the situation could change.
Today on "Wolf Blitzer Reports:"
For the second time in as many days, children were among the causalities of U.S. military action in Afghanistan. Six Afghan children were found dead at a Gardez compound raided by U.S. forces Friday. A day later, nine Afghan children were killed in a U.S. airstrike in Petaw. What went wrong? We'll have a report.
As the flu vaccination supply dwindles and the number of children killed by the virus rises, so do fears among parents. We'll tell you why the illness hits its youngest victims the hardest and what parents can do to protect their kids.
They endured years of neglect during Saddam Hussein's regime and continued to practice as bombs fell during "shock and awe." But the show must go on. Now members of Iraq's National Symphony Orchestra are performing onstage at the Kennedy Center in Washington. We'll bring you the story.
Please join us today and every weekday at 5 p.m. ET as well as at noon ET for all the day's news.
