DHAKA, June 7: US Secretary of Defence Donald Rumsfeld refrained from formally raising the "resolutely planned American proposal" for sending Bangladeshi troops to Iraq because of Dhaka's dilemma , which has been aggravated by numerous street protests, diplomatic sources said on Sunday.

Mr Rumsfeld was advised by US embassy officials not to make a formal request and not to attend the scheduled joint press conference in view of protests on the streets in Dhaka, the sources added.

However, Washington still expects that Dhaka will be able to make a positive decision. Bangladesh has an enviable record in peacekeeping missions and it desperately needs foreign exchange, which it can earn through the peace mission and from reconstruction works, said foreign office sources.

Meanwhile, sources in the government said, despite having a "tacit positive mindset" for sending peacekeepers under UN supervision, Prime Minister Khaleda Zia "favours a parliamentary debate on whether to take part in the Iraq mission".

The government sources also said that Khaleda Zia, during her talks with Mr Rumsfeld on Saturday, hinted that this is an extremely sensitive issue and a decision in this regard might be taken following a discussion in the parliament.