Wolfowitz's decision seen as punishment for anti-war campaign

WASHINGTON, December 10 (IslamOnlin.net & News Agencies) - The U.S. decided to bar companies from anti-Iraq war countries, notably Russia, France, Germany and Canada, from competing for lucrative contracts to rebuild the oil-rich country, according a Pentagon memo made public Tuesday, December 9.

Inked by U.S. Deputy Defense Secretary Paul Wolfowitz on December 5, the memorandum lists 63 countries that are eligible to compete for some 18.6 billion dollars in lucrative contracts, reported Agence France-Presse (AFP).

The contracts range from equipping the new Iraqi army to rebuilding and refurbishing power and water plants, roads, oil installations and communications systems.

Wolfowitz argued in a notice posted on a Pentagon website that "essential security interests" of the U.S. and the need to encourage countries to provide troops for Iraq were the reason for the decision.

"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," he said.

"Thus it is clearly in the public interest to limit prime contracts to companies from these countries," Wolfowitz argued.

But procurement specialist Professor Steven Schooner, of George Washington University, said it was "disingenuous" to use national security as an excuse.

"This kind of decision just begs for retaliation and a tit-for-tat response," the BBC News Online quoted him as saying.

Bargaining Chip

Analysts believe Wolfowitz's notice indicated that Washington intended to turn up the pressure on countries that opposed its Iraq policy by making their influential business sectors pay a price, reported AFP.

They argued that U.S. efforts to lure international troops and raise funds for Iraq have so far fallen short of Washington's expectations.

The Pentagon failed, for its part, to find troops to fill a third international division in time for deployment early next year, forcing the redeployment of a Marine division that recently returned from Iraq.

"Limiting competition for prime contracts will encourage the expansion of international cooperation in Iraq and in future efforts," the notice read.

The biggest contractor in Iraq is Bechtel, the American construction firm that has an estimated I billion dollar contract to rebuild Iraq's infrastructure.

The other major U.S. contractor is Kellogg, and Brown & Root (KBR) - a subsidiary of the oilfield services company Halliburton, once chaired by now U.S. Vice President Dick Cheney.

Poisoning Relations

Conspicuously absent from the list are the countries that opposed the war and have declined to send troops to join in the post-war occupation of Iraq, including France, Germany, Russia and Canada.

Observers believe the decision could further poison relations with Germany and France, erstwhile allies that Pentagon portrayed during the war as isolated representatives of "old Europe".

Russia, for its part, refrained from giving any official reaction Wednesday, December 10, to the U.S. move.

A foreign ministry official told AFP that Moscow did not expect to issue an official reaction to the decision in the immediate future.

"This concerns American money and they can do with it as they please," the official said on condition of anonymity.