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Bush Abandons His
'Favourite Son' Chalabi
Administration Cuts Off Cash
For Gathering Of Intelligence

By Alec Russell
The Telegraph - UK
5-18-4
 
WASHINGTON -- The Bush administration has signalled an end to its relationship with Ahmad Chalabi, the leader of the Iraqi National Congress and the Pentagon's former favourite for leadership of the country.
 
After months of feuding within President George W Bush's administration over Mr Chalabi's role, the Pentagon is stopping monthly payments of $335,000 (£200,000) to the INC for intelligence-gathering in Iraq.
 
The decision was taken a week ago at a meeting of Mr Bush's senior officials, including the defence secretary, Donald Rumsfeld, and the secretary of state, Colin Powell, and reflects a renunciation of Mr Chalabi, a source close to the administration said.
 
The monthly payments, which began in summer 2002 as part of a programme run by the Defence Intelligence Agency, the Pentagon's intelligence arm, are to end on June 30, when the coalition will hand over sovereignty.
 
Backed by powerful sponsors in the Pentagon and Vice-President Dick Cheney's office, Mr Chalabi, a former exile, played a major role in urging the administration to overthrow Saddam Hussein.
 
His prominence was always opposed by the State Department and the CIA, which had grown to mistrust him after years of contacts. During the past year, his stock has fallen, even among former supporters in the Pentagon.
 
His appearance at the United Nations last September when he criticised the coalition's performance in Iraq infuriated Mr Bush, who sets much store by loyalty.
 
He has also become a whipping boy for critics of the administration amid growing evidence that much of the faulty intelligence about Saddam's weapons of mass destruction programmes came from his network of exiles and defectors.
 
Reports that the erroneous information about mobile biological weapons laboratories, a key part of America's case for war, came from a brother of one of Mr Chalabi's aides, nicknamed "Curveball", worsened the irritation in Washington. Mr Chalabi has angrily denied any knowledge of "Curveball".
 
More recently, with the administration increasingly desperate to finesse Iraq's transition and dependent on the UN, it has seen Mr Chalabi as part of the problem rather than the solution.
 
His supporters, who include prominent neo-conservatives, regard him as a victim of internal warfare between the Pentagon and State Department, where the mood is now more chipper because of the Pentagon's difficulties.
 
They defend his intelligence operation, and say it is ironic that Washington is sidelining a westernised liberal while doing deals with former Ba'athists and Iranian-backed groups.
 
"Much of the information he collected was to roll up the insurgency and Ba'athist cells. It caught people red-handed," said Michael Rubin, a former Pentagon adviser who is now at a conservative think-tank, the American Enterprise Institute.
 
"By telegraphing that he is not the favourite son of America, the administration will bolster him, showing he is his own man."
 
© Copyright of Telegraph Group Limited 2004. http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2004/05/19/wirq19.xml
&sSheet=/news/2004/05/19/ixnewstop.html


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