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Thursday, September 30, 2004 - Page updated at 12:00 A.M.

Iraq Notebook
Congress OKs shift in aid's use


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WASHINGTON — The Bush administration won Congress' permission yesterday to shift $3.5 billion from slow-moving Iraqi reconstruction projects to improving security and speeding job creation there.

The White House asked Congress on Sept. 13 to let it transfer the money, which is part of an $18.4 billion package for Iraq enacted last November.

The request, sparked by an ongoing insurgency that has put many contractors well behind schedule, has met little opposition in Congress. Democrats have used it to launch campaign-season accusations that President Bush had an inadequate blueprint for rebuilding Iraq.

Without the change, the White House could shift only $800 million without Congress' approval. Though the administration insisted last fall that lawmakers urgently approve the $18.4 billion, barely $1 billion has been spent.

The House approved the measure 389-32. The Senate approved the measure by voice vote.

IMF offers $436 million in emergency lending

WASHINGTON — The International Monetary Fund yesterday approved $436 million in emergency lending to Iraq and said it hoped its backing would generate additional international economic support, including debt relief.

The IMF loan, the first ever by the global lender to Iraq, should help economic rebuilding efforts by the Iraqi interim government after decades of dictatorship and a U.S.-led war, which have worn down the economy and caused unemployment.

The Bush administration had been prodding the IMF to reach a financing agreement with Iraq's interim government. U.S. officials expect the program will pave the way for billions of dollars in aid from the World Bank and meet one of the conditions for creditors to forgive much of the nation's debt, totaling about $120 billion.

Global conference endorsed by Powell

WASHINGTON — Secretary of State Colin Powell offered strong support yesterday for an Iraqi proposal for an international conference to promote political stability in the country.
 
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"I hope the meeting can be held in the not-too-distant future," he said, adding that he plans to attend.

It would be staged in the region, with the leading industrialized countries, the Arab League, the Organization of the Islamic Conference and possibly others attending, Powell said.

Diplomats attending the U.N. General Assembly session in New York said this week they expected Egypt to host the gathering.

Iran official: No need to delay vote in Iraq

NEW YORK — Iranian Foreign Minister Kamal Kharrazi said yesterday that his nation supports holding parliamentary elections in January in neighboring Iraq even if continued violence there prevents balloting in some areas.

"It won't be more secure in the spring," he said, in response to suggestions that the polling be delayed a few months until the country can be stabilized. "Elections have to be held on time."

While he acknowledged concerns by U.N. officials and others that some areas of Iraq — especially in the so-called Sunni Triangle north and west of Baghdad — may still be unsafe for voting in January, he said partial elections would be acceptable to Iran.

"It is only several cities that would not be able to vote, and even in those cities, they could find a way," Kharrazi said in a separate interview Tuesday night. "This happens in many countries. Maybe they can join in the second round (of voting). "

Experts say Iran expects elections in Iraq to produce a government dominated by Shiite Muslims, the majority Islamic sect in both countries, especially if Sunni Muslims in areas beset by violence are unable to vote. Iran is spreading its support among a range of groups, betting that any elected government will favor Iran over the United States.

Among the recipients of Iran's millions of dollars in political contributions over the past year are the Supreme Council for Islamic Revolution in Iraq — which has close ties to Shiite Grand Ayatollah Ali Sistani — and the Islamic Dawa Party. But Kharrazi said yesterday that Iran had not been funding or arming rebel cleric Muqtada al-Sadr and his Mahdi militia, as U.S. officials have alleged.

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