France, Germany to Help Relieve Iraq Debt

Post-9/11 Era Forum

Yay! Losers.

By TONY CZUCZKA, Associated Press Writer

BERLIN - U.S. special envoy James A. Baker III won German and French agreement Tuesday to work for Iraqi debt relief, but Washington did not say whether it would lift the ban on firms from those nations bidding for lucrative reconstruction projects in Iraq.

"Germany and the United States, like France, are ready not only for debt restructuring but also for substantial debt forgiveness toward Iraq," German Chancellor Gerhard Schroeder's spokesman Bela Anda said in a statement after talks with Baker.

The German statement indicated that the United States also was prepared to relieve debt, and that levels would be decided by the Paris Club of creditor nations. However, statements from the White House earlier were noncommittal.

Iraq owes some $40 billion to the United States, France, Germany, Japan, Russia and others in the 19-nation Paris Club. Other countries and private creditors are owed at least another $80 billion.

"We appreciate the commitment by France and Germany to restructure and reduce the debt burden on the Iraqi people," White House spokesman Scott McClellan said in Washington.

But he gave no indication that debt forgiveness by those two opponents of the Iraq war could result in their winning a slice of $18.6 billion in U.S.-financed reconstruction contracts. The administration had left that possibility open last week.

The administration believes U.S. tax dollars paying for the contracts "should be going to the countries that have been involved in helping to liberate the Iraqi people and help them build a free and peaceful and prosperous future," McClellan said.

"If additional countries want to join the efforts of some 60 countries and the Iraqi people in the overall reconstruction then circumstances can change."

Asked earlier if the United States would set an example for its allies by forgiving the $4.5 billion in debt and interest Iraq owes it, McClellan replied, "That process is just beginning. We are looking at restructuring and reducing the debt."

In his talks with Baker, Schroeder pressed his country's misgivings over the Pentagon (news - web sites) decision to exclude from bidding nations that opposed the Iraq war.

"Germany's position on the awarding of reconstruction contracts in Iraq was clearly expressed in the talks," Anda said.

The Pentagon decision infuriated Germany, France and Russia, the very countries Baker is visiting on his tour.

Baker did not comment on his discussions with Schroeder. In Paris, after talks with French President Jacques Chirac, Baker said, "We are agreed it is important to reduce that debt within the Paris Club — if possible in the year 2004."

Chirac's spokeswoman Catherine Colonna said the two had agreed on the importance of cutting Iraq's debt next year. The German statement mentioned no time frame.

Russia, which is also on Baker's planned tour, has so far ruled out any outright forgiveness of the $8 billion Iraq owes it and says any restructuring must be through the Paris Club.

"Iraq is not a poor country," Russian Defense Minister Sergei Ivanov said last week.

Critics in Germany make the same point, questioning massive debt relief to a country with large oil wealth. The Foreign Ministry's top official on German-U.S. relations, Karsten Voigt, said he found it "hard to explain" that the United States was now pressing Iraq's creditors to help out.

"Before the war, the U.S. government always said that reconstruction would finance itself," Voigt told The Associated Press.

The Berlin newspaper Der Tagesspiegel said Germany must decide whether it wants to play a constructive role.

"Amid the warranted irritation, the government must decide what is more important: continuing skirmishes with hard-liners in the Pentagon like Paul Wolfowitz or making progress with the reconstruction of Iraq," the paper commented Tuesday.

"If the talks with the United States about debt relief bring German firms a few contracts, so much the better. The French and Russians won't do otherwise."

http://story.news.yahoo.com/news?tm...baker_s_trip_19

James Baker is a weapon of mass destruction... the Terminator.

I wish I could have heard... behind closed doors... what Baker was telling the euro-axis of weasels:

"You will do this... this... and this... or we will do/reveal to the world... that, that, and that"

When I think about it... the axis of weasels sure are getting hammered up the a*ss. They lose their former business and contracts with Saddam... they're cut out of the reconstruction bidding... now their debts owed from Iraq are being wiped/reduced.

A triple whammo!! Beautiful!


--JV

Right on JV, it's funny we are finally seeing cooperation only days after Bush's announcement that France and Germany won't be included in the contracts, and only a couple days after the capture of Saddam Hussein.
Something sure has lit a fire under the rear ends of France and Germany. Boy, with all the posts about how stupid Bush is and how everything he does is counterproductive, he must have done something right to get the support of countries that despise the 'arrogant US.'

Yeah - Bush's tactics are not very subtle, but they get results:

1. Bush says no contracts for appeasers;
2. Appeasers protest but realize their arguments are absurd, and the louder they bark the stupider they sound;
3. Appeasers finally get on board to ante up in support of Iraq's future.
4. Better late than never - let's see what materializes.
5. ? Bush announces they can bid (not that they will win anyway).

Personally, I find Bush's tactics a bit too obvious at times. But hey, i am not one so wise in the ways of science to criticize.

Both you guys ought to tone it down - and jv - you started it!

Hopefully the backroom boys just cut to the chase and dispensed with the BS.

"Confrontation between allies serves no one but enemy, so let's stop the public antagonistic posturing."

"We will all smile in public and look unified."

"Whatever we say in public, it will underscore support for new Iraq. That is the objective."

I'm sure they spoke their minds to eachother - and perhaps it wasn't pretty, but they will keep it behind closed doors. Or at least they ought to.