Washington, Oct 22: The Bush administration threatened for the first time today to veto an 87 billion dollars package for Iraq and Afghanistan if Congress converts any Iraqi rebuilding money into loans. White House officials issued the warning even though many lawmakers agree that the bill's final version is likely to bow to President George W. Bush and omit any loans. By underscoring Bush's opposition to loans, the administration threat could make it easier for congressional Republican leaders to nail down enough votes to help the President prevail.
The House bill included 18.6 dollars to help Iraq rebuild its water supplies, health clinics and Army, and made the money a grant that country would not have to repay. The Senate included 18.4 billion dollars but would require Iraq to repay about half - unless Saudi Arabia, Russia and other countries forgave 90 percent of the debt Baghdad ran up under Saddam Hussein's regime.
Bush and a host of administration officials had repeatedly expressed their opposition to loans in recent weeks, but had not issued a veto threat before. A letter written yesterday reiterated White House arguments, but contained the first such veto warning. ``If this provision is not removed, the President's senior advisers would recommend that he veto the bill,'' wrote White House budget director Joshua Bolten. Bureau Report