see, this is why we want to give contracts to people who support our goals

[sisyphusshrugged]

On the one hand, they like the way we're thinking about excluding "old Europe" and Canada

The Howard Government has endorsed the US ban on awarding reconstruction contracts to countries that opposed the Iraq war and urged Australian firms to bid for the lucrative work.

In Washington, President George Bush also defended his policy of barring France, Germany, Russia and others from bidding for $18.6 billion in Iraqi reconstruction projects.

"The taxpayers understand why it makes sense for countries that risk lives to participate in the contracts in Iraq," Mr Bush told reporters after a cabinet meeting at the White House.

"It's very simple... coalition folks risk their lives, and, therefore, the contracting is going to reflect that."

Foreign Minister Alexander Downer said that France, Russia and Germany opposed the policy that liberated Iraq and had refused to support its rehabilitation, so it was not unreasonable to bar them from US-funded contracts...

On the other hand, screw us.

Foreign Affairs Minister Alexander Downer's office yesterday refused to say whether the US had also asked Australia to wipe Iraq's debt, but said officials were locked in multilateral negotiations over the outstanding millions.

"There is a debt owed to Australia, including the Commonwealth Government and wheat growers, and it all relates to the export of food items, mainly wheat, before the first Gulf War," Mr Downer's spokesman, Chris Kenny, said.

Australian wheat and other exports to Iraq between the 1991 war and the 2003 war have already been paid for under the UN-administered oil for food program.

Mr Kenny said the pre-1991 outstanding debt would not be waived by Australia and that the US had no ability to ask it be waived.

"There are multilateral discussions going on over this; we are in the preliminary stages of discussions," he said.

Asked if the US had specifically asked Australia to forget the debt, Mr Kenny said: "We were part of the action to get rid of Saddam Hussein. We've had this dispute with Iraq over debt for many, many years, prior to the removal of Saddam Hussein.

"It's not for anybody else to ask us to do anything.

"We believe that money should be paid to Australia."

Great strategery, guys.