Weapons of Mass Destruction (WMD)

DATE=7/30/04

TYPE=CORRESPONDENT REPORT

TITLE=POWELL / IRAQ (L-UPDATE)

NUMBER=2-317923

BYLINE=DAVID GOLLUST

DATELINE=BAGHDAD

/// EDS: UPDATES 2-317914, ADDS POWELL NEWS CONFERENCE COMMENTS OTHER NEW DETAILS THROUGH. CAN BE USED WITH IRAQ/MUSLIM FORCE (L) NUMBER=2-317922 BY MCDONOUGH ///

HEADLINE: Powell Promises Speed-up of Iraq Reconstruction Spending

INTRO: U.S. Secretary of State Colin Powell paid a surprise visit to Baghdad Friday, telling leaders of the Iraqi interim government the United States will speed up billions of dollars of reconstruction spending in the country. VOA's David Gollust reports from Baghdad.

TEXT: The Powell visit came amid a week of stepped up insurgent attacks in Iraq. And Mr. Powell, in a series of meetings with government officials and public statements, reaffirmed the U.S. commitment to Iraqi democracy and reconstruction.

The U.S. Congress has approved some 18 billion dollars in funds to rebuild Iraq's crumbling infrastructure, but due to bureaucratic delays and security problems in Iraq, only a fraction has been committed to actual projects.

At a news conference here with Iraq's Deputy Prime Minister Barham Salih, Mr. Powell promised to accelerate spending on job-creating projects and said it could help curb public discontent that has contributed to the insurgency:

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"The rate of obligation, the rate of commitment, the rate of expenditure will be increasing markedly in the immediate future, and this will affect the security situation. As people start to see their neighborhoods improve, their housing improve, the infrastructure improve, they will gain confidence in what we are doing. But most importantly they will gain confidence in their government's ability to deliver."

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Both Mr. Powell and Deputy Prime Minister Salih acknowledged that the spate of kidnappings and terror attacks in Iraq is deterring countries from committing peacekeeping troops and investments to Iraq.

Mr. Salih, who attributed at least part of the problem to abductions-for-ransom by organized crime elements, appealed for patience as Iraq's security agencies rebuild to deal with the situation.

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"This process in Iraq of reconstruction and helping the people of Iraq build a democracy in the heart of the Middle East is not an easy proposition. The Iraqi people need help, but those who would come to help us hopefully understand that they must not be deterred by the acts of criminals, because acceding to their demands can only lead to a greater threat to the entire civilized community of nations."

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Mr. Powell reiterated his cautious welcome for the Saudi proposal, made public this week, that would bring peacekeeping troops from Muslim and Arab states to Iraq under a United Nations umbrella.

The Secretary, who discussed the idea with its Saudi sponsors and Iraqi Prime Minister Iyad Allawi in Jeddah Thursday, said it is "premature" to say if the United States will ultimately support the plan.

He has said questions need to be answered about where the new troops would fit in the chain-of-command with the U.S.-led coalition and whether its sponsors see the Muslim soldiers as complementing, or replacing, the 31-nation multi-national force. (Signed)

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