US urges Arab states to use oil profits for Iraq

US urges Arab states to use oil profits for Iraq
By Sue Pleming

WASHINGTON (Reuters) - Arab nations should use some of their windfall profits from high gasoline prices to help rebuild Iraq and forgive most of the $40 billion in debt owed to them by Baghdad, a senior U.S. official said on Thursday.

The State Department's Iraq coordinator, James Jeffrey, told lawmakers the Bush administration had been campaigning to get Arab states such as Saudi Arabia and Kuwait to follow through on pledges to help rebuild Iraq and to forgive debt.

"They understand that reconstruction and stability in Iraq is absolutely critical and they are the beneficiaries of large windfall profits (from high oil prices)," Jeffrey told a hearing on Iraq reconstruction at the House of Representatives International Relations Committee.

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Jeffrey said he had traveled to the Gulf region several times to appeal directly for more aid and for debt forgiveness from Arab nations as had Secretary of State Condoleezza Rice.

"The president feels exactly the same way and he has charged us to get this debt removed," said Jeffrey, when pushed by lawmakers who said the Bush administration was not putting enough pressure on Arab nations.

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http://news.yahoo.com/s/nm/20060608/pl_nm/iraq_usa_arab_dc