Wary Saudis Withhold Aid to Iraq

http://www.latimes.com/news/nationworld/iraq/la-fg-usarabs1dec01,1,2353906.story?coll=la-home-headlines

Saudi Arabia will withhold the $1 billion in loans and credits that it pledged last month for Iraq's reconstruction until the security situation is stabilized and a sovereign government takes office, U.S. and Saudi officials said.

The Saudi decision is a setback for the Bush administration, which had hoped that the kingdom would set an example for other Arab governments by providing vitally needed aid. At an international donors conference in Madrid in October, Saudi Arabia pledged to give Saudis willing to do business in Iraq $500 million in loans and $500 million in export credits over the next five years. The U.S. hailed the commitment.

But Baghdad won't be counting Saudi cash any time soon, according to Saudi and U.S. officials. The money "can't go anywhere until there can be actual movement toward development," said a Saudi official, referring to the military and political instability in Iraq.

The Saudis' reluctance underscores how the mounting violence in Iraq is feeding a deep ambivalence among Arab governments about the rebuilding effort, Arab diplomats in Washington said. The deadly insurgency that U.S. officials say is being mounted by remnants of Saddam Hussein's deposed regime and foreign militants has already forced international aid agencies to decrease their staffs in Iraq.

from the American taxpayer soon. Wasn't the $87 billion just spending money through this year?

What a con game. Why don't they just have us all mail the money to Bectel and Halliburton directly, cut out the middle man?

The Arab world is listening and is very worried about the neocons "global democratic revolution" in the Mid East. The Saudi's seem to want to wait and see if there ever is an independent Iraq and what that entity means in their world before committing $1b.

Dems have a good opposition point here after three years of empire building without regard for the consequences - read exit plan or deaths and injuries or international relations or legality - even the House of Saud won't throw money down this hole.

William Kristol called the Admin's ME plans "overambitious" this afternoon on Fox. If he's backtracking, they have problems. I hope some Dems pick up on this.