The decision on Wednesday came as a boost for President George
Bush, as Congress prepared a final $87 billion bill for Iraq and
Afghanistan.
The White House had threatened to veto the entire bill if
Congress did not agree to give Iraq nearly $20 billion in
reconstruction funds.
The US Senate had earlier passed a plan
that would have turned half of that amount into loans.
Republicans from the Senate Appropriations Committee
voted
against including loans in the final bill, as House of
Representatives and Senate members met to resolve differences
.
Differences
The measure was not in the House bill, so the loan
provision was eliminated from the final bill.
 |
|
US lawmakers want Iraq to use
its oil wealth to repay loans |
With that key hurdle passed, negotiators from the
Appropriations Committees of each chamber hoped to agree on a
bill later in the day.
Both the House and Senate are expected to approve the final
Iraqi aid package easily, despite broad support among lawmakers
to make Iraq use its potential oil wealth to repay
reconstruction money.
The negotiators had approved with little debate the nearly
$67 billion to keep US troops in Iraq and Afghanistan.
White House pressure
Bush had argued that seeking repayment would burden Iraq
with more debt, slow efforts to stabilise the country and
prolong the US occupation.
Under intense White House pressure, two Senate Republicans
who said they would push for loans - Sam Brownback of Kansas
and Ben Nighthorse Campbell of Colorado - backed down to give
Bush the win.
One Democrat, Senator Daniel Inouye of Hawaii, also
voted against loans.
Republicans who backed loans said they would support the
final package, even if the repayment measure was eliminated.