To: calgal who wrote (7437 ) 12/11/2003 12:52:10 AM From: calgal Respond to of 10965 White House defends Iraq contract rule By Richard Tomkins UPI White House Correspondent WASHINGTON, Dec. 10 (UPI) -- The White House stood firm Wednesday in defending government policy that bars French, German and Canadian companies from bidding for U.S.-funded prime contracts to help rebuild Iraq. A ruling by the Pentagon agency overseeing the awarding of reconstruction contracts allows only coalition members, Iraqi companies and others supporting U.S. efforts in Iraq to bid on projects funded by Congress's $18.6 billion appropriation. White House spokesman Scott McClellan called the ruling, made after interagency consultations, "appropriate and reasonable." "We are talking about U.S. taxpayer dollars here and I think it is appropriate and reasonable to expect that the Iraqi people and those countries who have been working with the United States and contributing forces to the efforts in Iraq would be the ones that would be eligible for the prime contracts," he said. France, Germany and Canada opposed the U.S.-led invasion of Iraq and refrained from contributing troops to ongoing efforts to end violence there by Saddam Hussein loyalists and assorted militants. McClellan said companies from the three countries, and from countries not on the list of 63 eligible states, could still participate as sub-contractors on U.S.-funded projects. Those countries are also free to participate in projects funded by the $13 billion coughed up by the international community earlier in the year during a donor's conference in Madrid. He said ineligible companies could also participate in projects undertaken by their own governments, and pointed out to Russian, French and German companies already doing so in Iraq. A total of 63 countries fall under the Pentagon's eligibility list, including states such as Australia, Britain, Colombia and Palau. Reasons for the inclusion of each state were not immediately available. The White House said it not only applied to those with troops in Iraq but to others that have helped or supported the effort to topple Saddam and restore stability to the country. The Department of Defense plans choose prime contractors for 26 projects in Iraq by Feb. 3. The decision to restrict prime awards to companies from allies participating in the Iraq effort has been slammed by Democrats. Presidential candidate Sen. John Kerry, D-Mass, said he couldn't think of anything "dumber" or more insulting. Sen. Joe Biden, D-Del., said it was a "gratuitous slap" at other countries and would alienate those not on the approved list. McClellan left the door open Wednesday for ineligibles to change their status. He said the administration would be willing to talk to those states that decide to join in the peacekeeping and reconstruction effort in Iraq. "The limitation of source to prime contractors from those countries should encourage continued cooperation of coalition members," he added. "These are countries that have been with us from Day One; these are countries that are contributing forces, that have been making sacrifices. And that's why this decision was made.