Reply #50: Bush to veto defense bill after Iraq objects

[rodeodance]

Source: reuters

Bush to veto defense bill after Iraq objects

By Tabassum Zakaria Fri Dec 28, 3:33 PM ET

CRAWFORD, Texas (Reuters) - President George W. Bush intends to veto defense legislation after Iraq objected to a provision that could freeze its assets in the United States if Americans sue the country, the White House said on Friday

Iraqi officials raised their concerns with U.S. Ambassador Ryan Crocker about 10 days ago and when administration officials took a closer look at the provision they agreed that it could pose "grave financial risk" for Iraq, tying up assets needed for reconstruction, the White House said.

Iraq also discussed with the United States the possibility of pulling its assets, about $20 billion to $30 billion, out of U.S. institutions if the defense policy bill became law, a senior administration official said on condition of anonymity..........

The Bush administration is concerned that the bill would re-open lawsuits filed against Iraq under Saddam Hussein, some going back to the first Gulf War, and tie up the assets of the post-Saddam government.

Read more: http://news.yahoo.com/s/nm/20071228/pl_nm/bush_defense_dc;_ylt=ArjTL2iBhimLOyk.CjA.Fzus0NUE