December 12, 2003	Friday	Shawwal 17, 1424

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PARIS, Dec 11: The United States and some of its key allies turned up the volume on their transatlantic slanging match on Thursday over whether opponents of the US-led invasion could share in contracts to rebuild Iraq.

Despite fresh criticism from China, Germany and UN Secretary-General Kofi Annan, US President George Bush stuck to his guns, telling reporters in Washington the contracts would be reserved for those countries that risked lives in Iraq.

In Beijing, a spokesman for the Chinese foreign ministry said it was “concerned” over the US decision.

“We, the Chinese side, have noticed relevant reports and we express concern over such reports,” the spokesman said.

“China, along with the international community, has made much effort on resolving the Iraq problem and has provided humanitarian assistance. We believe the reconstruction of Iraq needs the participation of the international community.”

Speaking in Berlin, Mr Annan told reporters: “It is time we tried to rebuild international consensus and work together and pool our efforts...to stabilise Iraq.”

He urged Washington to reverse its decision and allow every country to join in bidding for the 18.6 billion dollars in reconstruction contracts.

German Chancellor Gerhard Schroeder, standing at Mr Annan’s side, said: “It makes little sense to discuss who can and who cannot individually participate economically in reconstruction.

“International law must apply here and it does not help things to look backwards and is more directed at the past.”

The White House said on Thursday it was sending James Baker, a former secretary of state, to visit France, Germany and Russia, along with Britain and Italy, next week to seek help in relieving Iraq’s crushing 125 billion dollars debt.

“If these countries want to participate in helping the world become more secure, by enabling Iraq to emerge as a free and peaceful country, one way to contribute is through debt restructuring,” Mr Bush said.

“It’s very simple. Our people risked their lives. Friendly coalition folks risked their lives, and therefore the contracting is going to reflect that, and that’s what the US taxpayers expect,” he said.

Mr Bush’s decision left European firms counting the cost and could open new trade disputes. But experts doubted the World Trade Organization would declare the US move illegal and said it was unlikely to kill a deal to reduce the Iraqi debt.

Karsten Voigt, coordinator of US-German relations at the foreign ministry in Berlin, said the US move was astonishing and made it hard to explain to parliament why Germany wanted to do more to help rebuild Iraq and possibly train Iraqi policemen.

“Returning to old arguments and divisions doesn’t seem particularly constructive,” Chris Patten, the European commissioner for external relations, said in Brussels.—Reuters