Maine Senators oppose Bush on Iraqi reconstruction

by Nicolas Parasie

WASHINGTON - - Maine Sens. Susan Collins and Olympia Snowe would rather lend than donate part of the $87 billion that the Bush administration has requested for war and reconstruction in Iraq and Afghanistan.

Collins and Sen. Kay Bailey Hutchison (R-Texas) plan to introduce an amendment that would provide $15 billion to rebuild part of Iraq's infrastructure in the form of long-term loans. President Bush has asked Congress to grant $20.3 billion for Iraq's reconstruction.

But some members of Congress, led by Democrats, have argued that the United States cannot afford to pay the entire cost of rebuilding Iraq in the face of record-setting budget deficits at home. Senate Appropriations Committee chairman Ted Stevens, R-Alaska, told the Associated Press Tuesday that he could envision a compromise on the loan issue and that "part of it should be considered repayable when oil comes out of the ground" in Iraq.

"I am not asking the Iraqi people to repay us immediately or even next year, but ultimately Iraq will have to," Collins said Tuesday. She also said Iraq could pay back the loan with oil revenue.

The White House and some Republican senators oppose the notion of loans. They argue that Iraq already has too many foreign debts and that forcing it to accept loans would serve to strengthen the belief among some foreign nations, particularly Arab countries, that the United States is after Iraq's vast oil reserves.

Snowe said the loan proposal represents "a reasonable course of action and the preferred approach" given the U.S. deficit.

The Senate Appropriations Committee, voting 15-14 along party lines, Tuesday rejected a Democratic proposal to remove the $20.3 billion in reconstruction money from the larger bill. It also killed an amendment that would have split the reconstruction money into a separate bill. Members of both parties say they will support the bulk of Bush's request for military operations in Iraq, Afghanistan and elsewhere.

Last week, Collins and Sen. Ron Wyden, D-Ore., introduced another amendment that would require competitive bidding among companies seeking reconstruction contracts in Iraq.

The amendment would prevent companies with close ties to the Bush administration from receiving contracts without competing for them. The Pentagon has come under fire for awarding large contracts to companies closely aligned with the White House, including Halliburton, formerly run by Vice President Dick Cheney.

Both of Collins' proposals will be considered as the Senate takes up the $87 billion request in coming days.