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About Those Iraq Contracts
Help our allies, or the French? You decide.
Friday, December 12, 2003 12:01 a.m. EST
OK, it was probably bad timing. Just at the moment the U.S. is going to ask Germany, France and Russia to forgive a big chunk of Iraqi debt, the U.S. put its finger in their collective eye.
We mean, of course, the list released by the Defense Department of the 63 countries that are eligible to bid for $18.6 billion of Iraq reconstruction work. The excluded countries--those that didn't lift a finger to help the U.S. and its coalition partners--immediately went berserk. Germany pronounced the list as "unacceptable" and Russia threatened to withhold any debt forgiveness.
But beyond the issue of possible bad timing, the Bush Administration is right on target in principle. The U.S. and its allies have spent blood and treasure to liberate Iraq and will spend a lot more to put Iraq back on its feet economically and politically. This particular $18.6 billion was pledged by the U.S.; it has nothing to do with money offered by the World Bank or the International Monetary Fund. And the American taxpayers who stand behind it undoubtedly have an interest in seeing it spent on those countries that were there when the U.S. needed them.
The list of eligible countries reflects not so much a punishment for those that were missing, but recognition of those that--some at great political risk--made the sacrifice. Britain and Poland sent fighting troops, for example, and Italy, Spain and others have provided security forces. They've all taken casualties.
Germany and France not only opposed the war but actually tried to obstruct the waging of it. They did not pledge any money at the donors' conference in Madrid this fall. And they, along with Russia, have not sent any troops to postwar Iraq. Worse, these countries, which took what they implied was the high moral ground against the war, are now complaining that they cannot make private profit from its aftermath. It's not a pretty sight.
In fact, given their opposition to the war, U.S. reconstruction plans can be seen as generous. The prohibition applies only to the 26 prime contracts. The majority of the money will be spent at the sub-contractor level and all countries--except for a few outlaw states--are welcome to bid on those. And it is expected that the currently outraged countries will indeed be successful bidders.
Moreover, the Bush Administration has hinted that the door is not closed. A friendly gesture to Iraq, either in debt forgiveness or the provision of troops, might elicit a friendly gesture from the U.S. On Wednesday, President Bush talked to the leaders of Germany, France and Russia about debt forgiveness. In characterizing those chats, a White House spokesperson, while reaffirming the policy on reconstruction contracts, said that the President had made it clear that "the lines of communication would be kept open."
This makes sense to us. Debt forgiveness is a crucial step in reconstituting Iraq as a healthy, functioning democratic state. If Germany, France and Russia agree with that goal--as they should, but we're beginning to wonder--then making their contribution to Iraqi reconstruction in the form of debt forgiveness is a reasonable route.
Put baldly, when the U.S. drew up its list of contractors to bid on its own money, it had a choice--put a finger in the eye of the countries that sat out the war or in the eye of its allies. We think the Bush Administration chose wisely.