DATE=10/09/03

TYPE=CORRESPONDENT REPORT

TITLE=CONGRESS / IRAQ (S)

NUMBER=2-308428 (CQ)

BYLINE=DAN ROBINSON

DATELINE=CAPITOL HILL

CONTENT=

VOICED AT:

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INTRO: A key committee in the House of Representatives has approved President Bush's request for about 87-billion dollars for reconstruction and military operations in Iraq and Afghanistan. V-O-A's Dan Robinson reports, some members were persuaded to drop demands that reconstruction money for Iraq be changed to loans a future Iraqi government would have to repay:

TEXT: Democrats and Republicans were mostly united on the 65-billion dollars in the bill for military operations.

But some wanted to turn the 20-billion dollars for Iraqi reconstruction into loans.

The Bush administration opposed this, saying Iraq, even taking into account future oil revenues, should not be burdened with additional debt.

Appropriations chairman (Republican) Congressman Bill Young:

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All of the funds provided here are in grants. There is no loan authority provided.

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Wisconsin Democrat David Obey argued in favor of loans:

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There can be a responsible mix of loans and grants, which in the process will deliver more aid to Iraq at less cost to the taxpayer.

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Of money for Iraq reconstruction, just more than three-billion dollars goes to train and equip Iraqi police and a new Iraqi army.

For Afghanistan, there is one-point-two-billion dollars for roads, schools, and other purposes.

The full House is scheduled to consider the funding bill next week, with the Senate expected to follow. (SIGNED)

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