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House Panel Backs Funding for Iraq Without Repayment (Update2)

Oct. 9 (Bloomberg) -- The House Appropriations Committee approved spending $86.9 billion for U.S. operations in Iraq and Afghanistan, heeding President George W. Bush's pleas to provide the money without demanding repayment from Iraq.

Representative Zach Wamp said the president persuaded him to drop his proposal to make half of the bill's $18.6 billion for rebuilding projects in the Iraq a loan. Bush argued that would harm U.S. efforts to get other countries to forgive Iraq's debts at an Oct. 23 conference in Madrid, Wamp said.

``If his eyes had been lasers, my mind would have been burned out,'' said Wamp, a Tennessee Republican.

The House Appropriations Committee, on which Wamp serves, approved the Iraq funding by a 47-14 vote after trimming $1.7 billion from the $20.3 billion Bush requested to pay for repairing roads, pipelines and other infrastructure and to help establish a new government in Iraq.

The rest of the money in the $86.9 billion funding plan will pay for the U.S. military occupation in Iraq and Afghanistan. The cut in reconstruction money, initiated by Bush's fellow Republicans, reflects concern about the cost of the Iraq invasion within his own party and among voters. A Pew Research Center poll released Sept. 23 found that 59 percent of Americans opposed spending the $87 billion Bush sought.

`Heart and Vision'

Bush defended the reconstruction request today in a speech in New Hampshire.

``We're providing this help not only because we've got good hearts, but because our vision is clear,'' Bush said. ``A stable and democratic and hopeful Iraq will no longer be a breeding ground for terror, tyranny and aggression.''

Democrats on the House Appropriations Committee used the session to denounce Bush's decision to invade Iraq.

``We have been led into a preemptive war that's left us isolated from our allies, left us holding the bag for costs, and left our soldiers as sitting ducks,'' said Representative David Obey, the senior Democrat on the panel.

Obey offered an amendment, which was rejected on a 36-25 vote, that would have reduced the reconstruction aid by $4.6 billion to shift more funds to the military. His alternative would have provided $7 million in reconstruction funds as a grant, transferring another $7 million into a World Bank fund that could be used to leverage loans to Iraq.

`Political Scientist Romantics'

Obey voted against the broader bill after blaming the war on the administration's ``cadre of political scientist romantics with a political naivete that believes we can turn Iraq into a beacon of democracy that will rival New Hampshire.''

The Senate will work next week to complete its version -- which generally mirrors Bush's request -- and he faces a tougher challenge there to his effort to win the reconstruction funds as an outright grant. About a dozen Republican senators said they want at least part of the funds to be a loan, joining with almost all of the chamber's Democrats. Republicans control the Senate with 51 of 100 votes.

The administration said that demands for repayment will dampen efforts to get countries that hold much of Iraq's $200 billion in loans to forgive their debts. Wamp outlined his amendment at the committee session before withdrawing it.

Representative Carolyn Cheeks Kilpatrick of Michigan said she wouldn't offer a similar amendment on behalf of Democrats.

Contract Bids

The panel rejected, 33-29, an amendment offered by Representative Maurice Hinchey, a New York Democrat, that would ensure more competitive bids in awarding Iraq reconstruction contracts, and contracts for Iraq-based companies to reduce costs. Republicans on the panel said that the legislation already limits use of sole-source bids.

Democrats have criticized a no-bid contract given March 8 to Kellogg, Brown & Root, a unit of Halliburton Co. Vice President Dick Cheney was Halliburton's chief executive from 1995 to 2000.

House and Senate leaders said they want to complete a final version of the bill before the conference begins Oct. 23.

The House legislation would provide $64.7 billion for defense, $18.6 billion for Iraq reconstruction, and $1.2 billion for Afghanistan reconstruction.

Republicans drafting the measure excised some of the most controversial requests outlined by Paul Bremer, the U.S. administrator in Iraq.

Rejected projects included $200 million to capitalize an ``Enterprise Fund'' that would invest in private companies and ``disseminate Western business know-how,'' $150 million to start construction of a new children's hospital, $100 million for new communities, and funds for new prisons and garbage trucks.

Committee Chairman C.W. ``Bill'' Young shifted $413 million to pay for repair of military facilities damaged by Hurricane Isabel, and the panel agreed today to add $150 million to that amount.

Last Updated: October 9, 2003 16:56 EDT