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Iraq Funds Package Gains Ground

A Senate committee unanimously votes to grant Bush's $87-billion request. But bipartisan opposition to an outright grant grows.

The World

October 01, 2003|Janet Hook, Times Staff Writer

WASHINGTON — President Bush's budget request for operations in Iraq cleared its first major hurdle in Congress on Tuesday, but the administration faces growing opposition from members of both parties to having U.S. taxpayers foot the bill for rebuilding the war-scarred nation.

The Senate Appropriations Committee voted 29 to 0 to approve a bill giving Bush the $87 billion he recently requested in new spending, with most of the money intended for Iraq. The bill passed after Republicans who control the panel thwarted Democratic amendments to require Iraq -- through use of future oil revenue or other means -- to eventually repay the $20 billion included for reconstruction projects.


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But it became clear during committee debate that when the bill goes to the Senate floor -- possibly this week -- the administration will have to work hard to derail other proposals to make the reconstruction aid a loan rather than a grant. Republicans were among those expressing support for such proposals.

"We ought not to be too fast to grant, to give away, $20 billion if we can find some way not to," said Sen. Arlen Specter of Pennsylvania, one of several Republicans exploring loan alternatives. "There's no reason [the Iraqis] should not pay for the reconstruction of their own country."

Senate Appropriations Chairman Ted Stevens (R-Alaska) said a compromise on the issue might be reached before the bill clears the Senate. But for now, the administration and its congressional allies remain opposed to any such agreement.

"We've got a problem on the loan issue, but we are hanging tough" in opposing it, said Tom Korologos, senior counselor to L. Paul Bremer III, the U.S. civilian administrator in Iraq.

House Majority Leader Tom DeLay (R-Texas) dismissed the idea of a loan, saying that Iraq's future oil revenue is already committed to reconstruction.

"Everybody thinks they're awash in oil," he said. "It's not a matter that there's a bunch of oil out there that can pay back the $20 billion."

The administration also came under fire Tuesday over contracts awarded to U.S. firms to help rebuild Iraq. Rep. Henry A. Waxman (D-Los Angeles) charged that "well-connected" U.S. firms -- including Halliburton, the oil services firm Vice President Dick Cheney once headed -- were being paid for work that could be done by Iraqis for much less.

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