US policy on Iraq contracts 'unacceptable'

A German government spokesman said it would be unacceptable for the United States to bar  firms from countries which opposed …

A German government spokesman said it would be unacceptable for the United States to bar  firms from countries which opposed the war in Iraq from competing for prime contracts to rebuild the country.

In a policy document released yesterday, US Deputy Defence Secretary Paul Wolfowitz said he was limiting competition for 26 reconstruction contracts worth up to $18.6 billion that will be advertised in coming days.

He cited national security reasons for the exclusion of firms from countries that opposed the war including France and Germany. They may bid for sub-contracts.

Chancellor Gerhard Schroeder's chief spokesman Bela Anda said that if the reports of such an exclusion were true:     "That would not be acceptable for the German government. And it wouldn't be in line with the spirit of looking to the future together and not into the past."

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He declined at a news conference to comment on what action the government would take.

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