Weapons of Mass Destruction (WMD)

DATE=10-28-03

TYPE=CORRESPONDENT REPORT

TITLE=CONGRESS IRAQ (L ONLY)

NUMBER=2-309159

BYLINE=DEBORAH TATE

DATELINE=CAPITOL HILL

CONTENT=

VOICED AT:

INTRO: Congressional negotiators have begun to work out differences between Senate and House-passed spending bills for Iraq and Afghanistan. The most difficult issue facing lawmakers is whether to make 10 billion dollars in Iraq reconstruction aid a loan or a grant. Correspondent Deborah Tate reports from Capitol Hill.

TEXT: Lawmakers are under pressure from the Bush administration to keep the reconstruction money a grant, as reflected in the House version of the 87 billion dollar package. Administration officials have argued the United States should not add to Iraq's debt burden.

But the Senate bill calls for transforming half the 20 billion dollars for Iraq's rebuilding into a loan. Many Senators, including Democratic leader Tom Daschle, say Iraq should share the cost of its reconstruction since it has the world's second largest oil reserves.

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I think it was a terrible mistake for the administration to oppose the loans for Iraq. We are borrowing this money. To say to the American people that they ought to borrow the money before the Iraqis do with all the oil Iraq has is uncalled for, and I think very unfortunate.

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But some lawmakers believe Congress will ultimately agree to making all the funding a grant, particularly in the wake of the recent suicide bombings in Iraq, including an attack on the headquarters of the Red Cross.

Senator Kay Bailey Hutchison is a Texas Republican:

/// HUTCHISON ACTUALITY ///

There are even more problems as we speak in Iraq, and a lot of people are saying 'let's not quibble at this time, let's give the President the support he needs, the troops the support they need', so there will be an effort to keep it a grant.

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Congressman Jim Kolbe, an Arizona Republican, agreed:

/// KOLBE ACTUALITY ///

I am confident that in the end we will have grants provided to Iraq and not loans.

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The Congressional negotiators are to meet again on Wednesday.

Also on Wednesday, Ambassador Paul Bremer, U-S civil administrator in Iraq, and General John Abizaid, commander of U-S Central Command, hold a closed meeting with House members to discuss the latest developments in Iraq. (signed)

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