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Admin to Euros: Give them the Stick, then ask for a carrot...

Discussion in 'BBS Hangout: Debate & Discussion' started by SamFisher, Dec 11, 2003.

  1. SamFisher

    SamFisher Contributing Member

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    Another blunder, this one is uncharacteristically ham handed eve for this administration:


    December 11, 2003
    DIPLOMACY
    Bush Seeks Help of Allies Barred From Iraq Deals
    By DAVID E. SANGER and DOUGLAS JEHL

    WASHINGTON, Dec. 10 — President Bush found himself in the awkward position on Wednesday of calling the leaders of France, Germany and Russia to ask them to forgive Iraq's debts, just a day after the Pentagon said it was excluding those countries and others from $18 billion in American-financed Iraqi reconstruction projects.

    White House officials were fuming about the timing and the tone of the Pentagon's directive, even while conceding that they had approved the Pentagon policy of limiting contracts to 63 countries that have given the United States political or military aid in Iraq.

    Many countries excluded from the list, including close allies like Canada, reacted angrily on Wednesday to the Pentagon action. They were incensed, in part, by the Pentagon's explanation in a memorandum that the restrictions were required "for the protection of the essential security interests of the United States."

    The Russian defense minister, Sergei Ivanov, when asked about the Pentagon decision, responded by ruling out any debt write-off for Iraq.

    The Canadian deputy prime minister, John Manley, suggested crisply that "it would be difficult" to add to the $190 million already given for reconstruction in Iraq.

    White House officials said Mr. Bush and his aides had been surprised by both the timing and the blunt wording of the Pentagon's declaration. But they said the White House had signed off on the policy, after a committee of deputies from a number of departments and the National Security Council agreed that the most lucrative contracts must be reserved for political or military supporters.

    Those officials apparently did not realize that the memorandum, signed by Paul D. Wolfowitz, deputy secretary of defense, would appear on a Defense Department Web site hours before Mr. Bush was scheduled to ask world leaders to receive James A. Baker III, the former treasury secretary and secretary of state, who is heading up the effort to wipe out Iraq's debt. Mr. Baker met with the president on Wednesday.

    Several of Mr. Bush's aides said they feared that the memorandum would undercut White House efforts to repair relations with allies who had opposed the invasion of Iraq.

    White House officials declined to say how Mr. Bush explained the Pentagon policy to President Vladimir V. Putin of Russia, President Jacques Chirac of France and Chancellor Gerhard Schröder of Germany. France and Russia were two of the largest creditors of Saddam Hussein's government. But officials hinted, by the end of the day, that Mr. Baker might be able to show flexibility to countries that write down Iraqi debt.

    "I can't imagine that if you are asking to do stuff for Iraq that this is going to help," a senior State Department official said late Wednesday.

    A senior administration official described Mr. Bush as "distinctly unhappy" about dealing with foreign leaders who had just learned of their exclusion from the contracts.

    Under the Pentagon rules, only companies whose countries are on the American list of "coalition nations" are eligible to compete for the prime contracts, though they could act as subcontractors. The result is that the Solomon Islands, Uganda and Samoa may compete for the contracts, but China, whose premier just left the White House with promises of an expanded trade relationship, is excluded, along with Israel.

    Several of Mr. Bush's aides wondered why the administration had not simply adopted a policy of giving preference to prime contracts to members of the coalition, without barring any countries outright.

    "What we did was toss away our leverage," one senior American diplomat said. "We could have put together a policy that said, `The more you help, the more contracts you may be able to gain.' " Instead, the official said, "we found a new way to alienate them."

    A senior official at the State Department was asked during an internal meeting on Wednesday how he expected the move to affect the responses of Russia, France and Germany to the American request. He responded, "Go ask Jim Baker," according another senior official, who said of Mr. Baker, "He's the one who's going to be carrying the water, and he's going to be the one who finds out."

    In public, however, the White House defended the approach. Scott McClellan, the White House spokesman, said "the United States and coalition countries, as well as others that are contributing forces to the efforts there, and the Iraqi people themselves are the ones that have been helping and sacrificing to build a free and prosperous nation for the Iraqi people."

    He said contracts stemming from aid to Iraq pledged by donor nations in Madrid last month would be open to broad international competition.

    Richard A. Boucher, the State Department spokesman, said Wednesday that while the bidding restriction applied to prime contracts, "there are very few restrictions on subcontractors."

    He also said the World Bank and International Monetary Fund "may have different, or their own, rules for how they contract."

    When the committee was drafting the policy, officials said, there was some discussion about whether it would be wise to declare that excluding noncoalition members was in the security interests of the United States. As a matter of trade law, countries are often allowed to limit trade with other nations on national security grounds.

    "The intent was to give us the legal cover to make the decision," one official said.

    But the phrase angered officials of other nations because it seemed to suggest they were a security risk.

    Moreover, the United States Trade Representative's office said on Wednesday that contracts with the occupation authority "are not covered by international trade procurement obligations because the C.P.A. is not an entity subject to these obligations."

    "Accordingly, there is no need to invoke the `essential security' exception to our trade obligations," the office added.

    That raised the question of why Mr. Wolfowitz included the phrase.

    The Pentagon was already recasting the policy on Wednesday.

    "Nobody had the intent of being punitive when this was being developed," said Larry Di Rita, spokesman for Defense Secretary Donald H. Rumsfeld.

    "This is not a fixed, closed list," he said. "This is meant to be forward looking and potentially expansive."
     
  2. Cohen

    Cohen Contributing Member

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    Why should they EXPECT us to give them our money?
     
  3. SamFisher

    SamFisher Contributing Member

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    Precisely.

    and why should we EXPECT them to give us theirs?


    Either way, that's beside the main point: Why the hell is Wolfowitz allowed to make his own foreign policy these days, anyway?:confused: Apparently even the President is not to happy about it either.
     
  4. SamFisher

    SamFisher Contributing Member

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    BTW, as a taxpayer who is paying for the reconstruction of Iraq, I couldn't give two sh-ts if german multinational corporations weere allowed to bid for contracts along with american or british ones. THe increased competition would ultimately make it cheaper, so I am all for it.
     
  5. bnb

    bnb Contributing Member

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    And George moves further along the path of alienating the rest of the world.

    You're either wid us, or aginst us.

    I thought this was supposed to be about the reconstruction of Iraq...not just rewarding the team?
     
  6. Oski2005

    Oski2005 Contributing Member

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    Shouldn't Iraq decide who gets to rebuild their stuff?
     
  7. RocketMan Tex

    RocketMan Tex Contributing Member

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    "I'm a unitifier, not a dividerer".

    Wrong on both counts, George. You are a moron.
     
  8. rimrocker

    rimrocker Contributing Member

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    As I pointed out in another thread, this is disturbing because Canada, which lost folks in Afghanistan due to our incompetence and has given almost $200 million to the cause in Iraq has been excluded from bidding. Russia and France carry the most Iraqi debt and we'll be asking them to forgive that debt. We depend on France and Germany to stop Al-Q in Europe before they make it to the US and in this, both have been cooperative and very helpful. That cooperation will be needed in the future yet we continue to poke them in the eye. It may make some feel good to pursue this type of "policy" but in the long-term it will hurt us. I also can't imagine that discussions about excluding US firms from France, Germany, Russia, etc. are not happening.
     
  9. underoverup

    underoverup Member

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    I'm speechless could we isolate ourselves anymore? :confused:
     
  10. Cohen

    Cohen Contributing Member

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    They're not giving any to us.
     
  11. Cohen

    Cohen Contributing Member

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    It's our money. We have every right to determine who gets to bid. We're not prohibiting their firms from getting some of the money (as subcontractors), only from the bidding. And none are exlcuded from bidding on the $13B that other countries have contributed.

    As for the debt relief, the biggest benefactors are the Iraqis. If some countries forgive debt and others don't, I imagine it will effect their future business in Iraq.
     
  12. Cohen

    Cohen Contributing Member

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    I imagine there will be enough competition as is; adding some more European bidders won't benefit us enough to make up for the lost tax revenues.


    Funny how some of the same folks who crticize Bush in other threads for the loss of jobs or jobs lost overseas are so willing to giveaway $18B in business.
     
  13. SamFisher

    SamFisher Contributing Member

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    Essentially, by forgiving debt, they are.

    Cohen, how come the Bush administration can see the problem with the juxtaposition of the two policies, but you can't?:confused: I'm beginning to doubt that you read the article at all.
     
  14. Woofer

    Woofer Contributing Member

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    I thought this was hilarious. The Bushies believe in free markets, except when they don't - competive bidding on Iraq contracts/WTO notwithstanding; Bushies believe in democracy except when we don't - Pakistan/Saudi Arabia/China over Taiwan, Bushies believe in unilateralism except when they screw up - post war Iraq/ now North Korea/ now Iran.

    If one believes in the free market one has to be arguing against excluding the Euros, because otherwise we the taxpayer is footing a higher bill as a consequence of non competitive bidding. But maybe that's conservative thinking. It's not like some one from Fiji is going to compete with the Bushies buddies.
     
  15. basso

    basso Contributing Member
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    thought you might be interested in seeing what those rabid neocons at the weekly standard think about this:

    --
    Contracts for Iraq: Reverse the Pentagon's Decision
    by William Kristol and Robert Kagan
    12/11/2003 12:00:00 AM

    President Bush, we suspect, is going to overrule the Pentagon's attempt to exclude from the bidding for Iraq reconstruction contracts certain countries that have opposed U.S. policy in Iraq. He might as well do it sooner rather than later, so as to minimize the diplomatic damage done by the Pentagon's heavy-handed and counterproductive action.

    We hold no brief for the Chirac, Schroeder, or Putin governments. We are also very much in favor of finding ways to work more closely with other governments -- such as those of Britain, Spain and Poland -- who have courageously stood with us, and who hold the promise of continuing to be more helpful to us. We have even been critical of the Bush Administration for a certain lack of imagination in finding ways to work constructively with these friendly governments. But this particular effort by the Pentagon to reward friends and punish enemies is stupid, and should be abandoned.

    A deviously smart American administration would have quietly distributed contracts for rebuilding Iraq as it saw fit, without any announced policy of discrimination. At the end of the day, it would be clear that opponents of American policy didn't fare too well in the bidding process. Message delivered, but with a certain subtlety.

    A more clever American administration would have thrown a contract or two to a couple of those opponents, to a German firm, for instance, as a way of wooing at least the business sectors in a country where many businessmen do want to strengthen ties with the United States.

    A truly wise American administration would have opened the bidding to all comers, regardless of their opposition to the war -- as a way of buying those countries into the Iraq effort, building a little goodwill for the future, and demonstrating to the world a little magnanimity.

    But instead of being smart, clever, or magnanimous, the Bush Administration has done a dumb thing. The announcement of a policy of discriminating against French, German, and Russian firms has made credible European charges of vindictive pettiness and general disregard for the opinion of even fellow liberal democracies. More important, it has made former Secretary of State James Baker's very important effort to get these countries, among others, to offer debt relief for the new government of Iraq almost impossible. This is to say nothing of other areas where we need to work with these governments.

    This decision is a blunder. We trust it will be reversed.
     
  16. RocketMan Tex

    RocketMan Tex Contributing Member

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    basso....Bill Kristol's heart and mind are in the right place in that article. However, I believe it would take something huge for Bush to reverse the Pentagon's decision. Maybe if Bush sees it affecting his re-election chances he would reverse it...other than that, probably not. Kristol is correct with his conclusions.
     
  17. Cohen

    Cohen Contributing Member

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    Originally posted by SamFisher
    Essentially, by forgiving debt, they are.

    Nope. We're trying to do a friend a favor. It means no money to us, no matter how you spin it.

    Cohen, how come the Bush administration can see the problem with the juxtaposition of the two policies, but you can't?:confused: I'm beginning to doubt that you read the article at all.

    Did you read it?

    ...White House officials were fuming about the timing and the tone of the Pentagon's directive, even while conceding that they had approved the Pentagon policy of limiting contracts to 63 countries that have given the United States political or military aid in Iraq. ...

    Timing and tone, not content.

    Sounds like they were expecting to do something more along the lines of what Kristol and Kagan envisioned, but they erroneoulsy let the Pentagon handle something that should have been managed by State.
     
  18. SamFisher

    SamFisher Contributing Member

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    Nothing means any money for us. Pretty much everything having to do with Iraq means less money for us. I really have no idea what you're talking about at all.

    If you can't see the problem with crapping on somebody and then asking them for help the next day, which it sounds like you can, I don't see what you're arguing about or why.

    :confused:
     
  19. michecon

    michecon Contributing Member

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    Mean and unwise
     
  20. glynch

    glynch Contributing Member

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    Very stupid and perhaps illegal.

    Way to go. Needlessly piss off 'Russia, Germany, France,China, I believe Mexico. I guess it plays well, with the same macho crowd that liked "wit us or agin us" or "bring it on" and the other cowboy rhetoric. As Caligula said: "I don't care if they hate us as long as they fear us".


    Iraq is still nominally a sovereign country.

    Shouldn't the Iraqis have something to say about it? I guess not. To the imperialists the profits.

    This is very likely illegal under international law. Oh well these guys don't believe in international law.

    It is extremely simplistic to just say it is "our money".
    When we help the Iraqis in area after area we require that all the technology be American regardless of if it can be acquired cheaper. Cell phones, healh care etc. all of the parts must come from our corporations. The same one that contributed to Bush-Cheney. Halliburton type stuff over and over.

    Even if the dittoheads don't see this, the rest of the world and even the Iraqi see it this way.
     

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