Los Angeles Times
May 9, 2003

Palace Being Renovated for U.S. Occupation

Cost of one contract for aiding U.S. in rebuilding nears $90 million, but little is going to Iraqis.

by Mark Fineman

BAGHDAD--The Pentagon has paid nearly $90 million to a subsidiary of the well-connected Halliburton Co. to cater to the Americans who are working to rebuild Iraq, U.S. officials said--while the reconstruction effort has yet to show significant results for ordinary Iraqis.

The Defense Department gave Halliburton's KBR exclusive rights to the job--which has included fixing up an extravagant presidential palace being used by the Americans--under a broad U.S. Army logistics contract that pays the company a fee based on a percentage of everything it spends, . . .

As supplies for the Americans continue to arrive by the ton, little of the millions KBR is spending have gone into the Iraqi economy that Washington has pledged to restore.


Enver Masud, "Corporate Globalization Threatens World's Poor, Middle Class," October 10, 2000

David Teather, "American to Oversee Iraqi Oil Industry," Guardian, April 26, 2003

["The proposal would give the United States far greater authority over Iraq's lucrative oil industry than administration officials have previously acknowledged. Buffeted by charges that the United States was launching a war to gain control over Iraq's oil fields, administration officials have for months sought to assure governments that Iraq's oil revenue would remain in the hands of the Iraqi people after the ouster of president Saddam Hussein."--Colum Lynch, "U.S. to Propose Broader Control Of Iraqi Oil, Funds," Washington Post, May 9, 2003]

["Washington and London sent a letter to the council president recognizing their responsibilities and obligations under international law 'as occupying powers.'

"Under the proposal, the 12-month initial authorisation would be automatically renewed unless the Security Council decided otherwise. Since the United States and Britain have veto power in the council, they could block any attempt to get them to leave Iraq . . ."--"US and Britain seek to limit UN role in Iraq," Associated Press, May 9, 2003]

["top American and British diplomats leading reconstruction efforts here told exile leaders in a meeting tonight that allied officials would remain in charge of Iraq for an indefinite period"--Parick E. Tyler, "In Reversal, Plan for Iraq Self-Rule Has Been Put Off," New York Times, May 17, 2003]

["The United Nations resolution has delayed the goal of Iraqi sovereignty for what some Western officials say could be two years."--Parick E. Tyler, "Iraqis Frustrated by Shift Favoring U.S.-British Rule," New York Times, May 26, 2003]

"More and more Iraqis view the US as occupation force: poll," AFP, October 23, 2003

Stephen Fidler and Thomas Catan, "Consultant on Iraq contracts employed president's brother," Financial Times, November 27, 2003

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