WASHINGTON, Oct 30: A US House-Senate reconciliation committee on Wednesday approved an 18.4 billion dollar reconstruction aid package for Iraq, complying with the White House’s demand that no part of the money should be provided in the form of a loan.

The Senate on Oct 17 approved the measure, but included an amendment requiring Iraq to pay back half the money unless the country’s creditors, such as Saudi Arabia, Russia and France, forgave part of the loans Baghdad owed them.

Passed by the Democratic minority and eight Republican Senators, the amendment was rejected by the reconciliation committee by a vote of 16 to 13 after a long day of negotiations which saw two loan-favouring Republican Senators change their minds.

The White House had threatened to veto the entire 87 billion dollar package for Iraq and Afghanistan President George Bush had asked for fiscal 2004 (which began on Oct 1) if the loan amendment was kept in the final version of the bill the reconciliation committee is thrashing out.

While the Iraqi reconstruction aid met heated debate in Congress, the remainder of Mr Bush’s request to maintain the US military deployment in Iraq and Afghanistan met little resistance even among Democrats.—AFP