Later last evening on PBS NewsHour I saw Dr. Rice respond to suggestions of dissent between DoD and NSA.  She smiled and emphatically stated that she is the coordinator of policy, not the creator of policy nor does she implement policy. Great comeback/disclaimer. 

 

Rumsfeld already has a slush fund of $9B in the $87B request marked as “not less than”.  This has attracted some fodder for opposition, but the President is likely to get most of what he asked for, this time.  And that’s why they asked for $87B to cover 18 months, which gets them past the Nov 04 election season, which would be a terrible time to reappear with another (expected) request.  If you did not catch it, check video of Lugar and Biden on Meet the Press Sunday.   -  KWC

 

My guess is that a certain percentage of these monies are to be used for covert activities.  Bill

 

On Tue, 14 Oct 2003 18:42:18 -0700 "Karen Watters Cole" <[EMAIL PROTECTED]> writes:

I’m filing this one under my Pax Americana folder, not my Iraq folder. It seems to contradict what I understood to be a transfer to the NSA staff.  Is this because they think Rice will not be allowed to administer the funds, as an unconfirmed private advisor to the White House, not a cabinet official accountable to the Congress?   - KWC

 

U.S. to Create New Agency for Iraqi Contracts

By Sue Pleming, Tuesday, October 14, 2003 @ http://news.findlaw.com/politics/s/20031014/iraqcontractsdc.html

 

WASHINGTON (Reuters) - Anxious to speed up work in Iraq, the Pentagon is planning a new office to oversee tens of billions of dollars in contracts, taking away some power held by the U.S. Agency for International Development, U.S. officials said Tuesday.

 

USAID, which falls under the auspices of the State Department, has been responsible for handing out many of the lucrative reconstruction projects in Iraq along with the U.S. Army Corps of Engineers.  The process of rebuilding Iraq has been criticized for being too slow and for favoring U.S. companies. USAID says those claims are unfair considering the massive task it faced going into Iraq, where the security situation is still precarious and U.S. troops come under daily fire.

 

The new office, which will be based in Baghdad, is expected to handle most of the $20.3 billion in new reconstruction work requested by President Bush to Congress in supplemental funding for Iraq, U.S. officials said.  Details of the new office were still being worked out but it was expected to be up and running next month.

 

The move underscores tensions and rivalry between the State and Defense Departments over the rebuilding of Iraq.  "It was felt that with so much money involved, it might be useful to have another body," said one U.S. official, who asked not to be named.

 

Plans to create the Project Management Office were first revealed at a conference in London Monday. It is expected to be headed by retired Admiral David Nash, who is already in Baghdad. 

 

"Things are coming in the direction of the Department of Defense taking over the (Iraq reconstruction) project," John Shaw, Deputy Under Secretary of Defense for International Technology Security told the London conference.

 

Quicker Results

Shaw said progress to date had been slow, but he expected results would now come very quickly with the Department of Defense running the show.  "We are moving out of that gridlock," Shaw said. 

 

USAID spokeswoman Ellen Yount said the new agency would be an oversight and management office for reconstruction work in Iraq.  "We will support any efforts to bring more efficiency to bear on the reconstruction of Iraq," said Yount.  She said USAID still expected to play a strong role in Iraq as many of the agency's current contracts ran for 12-18 months and most of those had options to extend. 

 

"Obviously we have not spent out all the funds and so there is ongoing work that will take place. We will continue to have a contracting role," said Yount.  She said USAID was prepared to take on more work if the CPA wanted the agency to become more involved. "That decision has not been made yet though," she said.

 

Last month, USAID put out a $1.5 billion tender to rebuild Iraq's infrastructure when money runs dry for a contract it gave to San Francisco engineering firm Bechtel.  That new contract is dependent on funding from Congress. 

 

Bechtel is USAID's biggest contractor, with a $680 million contract to rebuild Iraq's shattered infrastructure. Another $350 million is also in the works for Bechtel's project in Iraq.

 

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