The Hindu : India not to raise exclusion from Iraq contracts

Online edition of India's National Newspaper
Friday, Dec 12, 2003

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India not to raise exclusion from Iraq contracts

By Our Diplomatic Correspondent

NEW DELHI DEC. 11. India does not seem perturbed by the United States' decision to exclude New Delhi from a list of 63 countries whose companies can bid for "principal contracts" worth $18.6 billion in Iraq. The Government will not raise this issue with Washington, as senior officials told this correspondent that India had built this possibility into the calculations that went into its refusal to send troops.

They said the exclusion of Indian companies was only from 26 principal reconstruction and relief contracts listed by the U.S. Deputy Secretary for Defence, Paul Wolfowitz, in a memorandum dated December 5 and posted on the Internet four days later. Both Government and U.S. Embassy officials said Indian companies were eligible to act as "sub-contractors" to those who were allocated the "principal projects."

The Indian response is quite different from the sense of umbrage demonstrated by some European nations which have also been excluded. Interestingly, Pakistan, along with India, is not on the list of 63 countries eligible for the contracts that are to be funded with U.S. Government money.

In his memorandum, Mr. Wolfowitz has invoked "national security" to prohibit non-troop contributing and "non-coalition partner" nations from participating in the American-funded reconstruction of Iraq.

"It is necessary for the protection of the essential security interests of the United States to limit competition for the prime contracts of these procurements to companies from the United States, Iraq, coalition partners and force contributing nations. Thus, it is clearly in the public interest to limit prime contracts to companies from these countries," he argued.

The memorandum also links the issue of contributing troops to the ability to bid for the principal contracts. "Every effort must be made to expand international cooperation in Iraq. Since May 2003, coalition forces other than those from the United States have increased from 14,000 to 23,700."

"U.S. force levels, accordingly, have decreased by approximately 12,000. Limiting competition for prime contracts will encourage the expansion of international cooperation in Iraq and in future efforts," Mr. Wolfowitz said.

"International cooperation", as used by the U.S. official, is a euphemism for troop contribution. As the above statement makes clear, the overriding American priority is to replace its own troops in Iraq with forces from any other country. And, Mr. Wolfowitz believes that dangling "prime contracts" before those countries, which have not sent troops to Iraq, will surely help in changing perceptions.

"Coalition partners share in the U.S. vision of a free and stable Iraq. The limitation of sources to prime contractors from those countries should encourage the continued cooperation of coalition members," Mr. Wolfowitz said. He is making it clear that the need of the hour is to keep those countries which have committed troops to Iraq on board - ensuring continued cooperation and making sure that these forces remain on the ground in Iraq in a difficult security scenario.

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