- HOLLAND, Mich. (Reuters)
-- Faced with mounting violence in Iraq, the Bush administration plans
on Tuesday to propose shifting $3.46 billion from Iraqi water, power and
other reconstruction projects to improve security, boost oil output and
prepare for elections scheduled for January.
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- Administration and congressional officials briefed on
the plan said it cleared the way for President Bush, who was campaigning
in Michigan, to forgive 95 percent of Iraq's prewar debts to the United
States totaling about $4 billion.
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- The changes, which will require congressional approval,
reflect a realization within the administration that without better security,
long-term rebuilding is impossible.
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- Of the more than $18 billion approved for Iraq's reconstruction,
only about $1 billion has been spent so far.
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- "This is adjusting a plan in response to changing
circumstances," said a U.S. official who asked not to be named. "One
of the changing circumstances is the need to focus more urgently and more
quickly on developing Iraqi security capability. Another is the need to
accelerate employment of Iraqis."
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- According to a document outlining the plan, a copy of
which was seen by Reuters, the administration would shift $1.804 billion
now earmarked for water, sewage and electricity projects to expand security
forces. This would include adding 45,000 Iraqi police officers and 16,000
officials for border enforcement.
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- Another $180 million would help plan for elections and
strengthen local governments.
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- The number of U.S. troops killed since the March 2003
invasion passed the 1,000 mark last week, while the number of wounded topped
7,000, and administration officials say the anti-U.S. insurgency may intensify
in the months ahead.
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- White House national security advisor Condoleezza Rice
told CBS's "Face the Nation" on Sunday that "there will
undoubtedly be violence up until the elections and probably even during
the elections."
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- Secretary of State Colin Powell added, "This insurgency
isn't going to go away."
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- In addition to the funds to bolster Iraqi security and
election planning, the administration will shift $450 million from refined
oil purchases to expand Iraq's oil capacity.
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- The document said the funds would be used for "specifically
targeted oil infrastructure projects that will increase Iraqi oil production
by 650,000 barrels per day by mid-2005."
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- The Bush administration wants to expand oil production
and exports at the Kirkuk oil field, including building a new pipeline
and improving facilities at Rumaylah oil field.
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- A further $380 million would be used to boost economic
development. Some of that money would also be handed out in resettlement
aid to 300,000 Kurds. A separate $286 million would help expand job training
programs.
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- The administration would set aside $360 million to cover
the "budget cost" of forgiving 95 percent of Iraqi debt to the
United States. The figure represents the current estimated amount of the
debt, largely run up during the 1980s.
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- The administration is required to seek congressional
approval for major changes in Iraq's reconstruction package, but congressional
aides said the White House now wants to ease those restrictions. One aide
complained that the administration was effectively seeking a "blank
check" to spend the money with minimal oversight.
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- Without authorization from Congress, the administration
would only be able to shift $800 million of the requested funds, the document
said.
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- - Additional reporting by Anna Willard and Arshad Mohammed
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