Thread: Iraq/Dinar News. before Febuary 2nd 2006

Originally Posted by chouchou

Please have a look at "Iraq:The Model", a blog by a local Iraqi.

Read the latest article about "Operation Baghdad starts on February 5"

Very good

IRAQ THE MODEL

Very Good!

Maybe this is what we're waiting on:

Bloomberg.com: News

Kuwait May Abandon Dollar Peg to Protect its Economy (Update4)

By Will McSheehy

Jan. 24 (Bloomberg) -- Kuwait, the third-largest Arab oil producer, may abandon the dinar's peg against the dollar in favor of a basket of currencies to help minimize economic harm after the dollar declined.

``We might go to a basket for an interim period,'' Bader al- Humaidhi, Kuwait's finance minister, told reporters today at the World Economic Forum in Davos, Switzerland. ``The dollar fell a lot against the euro last year, but if we'd been linked to a basket we wouldn't have suffered'' as much.

Al-Humaidhi declined to comment on which currencies might be in the basket. A switch from the dollar is being studied by Kuwait's central bank, he said. The Kuwaiti dinar rose to 0.28915 against the dollar as of 4 p.m. in London, from 0.28920 yesterday, according to Bloomberg data.

Dollar reserves are being replaced with euros by oil producers including the United Arab Emirates and Venezuela. China, which has the world's largest foreign-exchange reserves, and Indonesia say they plan to increase euro reserves and Iran says it's boosting oil sales priced in euros.

The dollar has declined 5.2 percent against the euro in the past 12 months. The currency traded at $1.2955 against the euro at 12:47 p.m. in New York from $1.3026 yesterday, when it reached a two-week high of $1.3044.

Currencies Undervalued

Most of the currencies of the six Gulf Arab states, including Saudi Arabia and Kuwait, are undervalued against the dollar, based on their current-account balances, inflation and costs of goods and services, Deutsche Bank AG said in a report this month.

``Without the peg, Gulf currencies would have appreciated in the past couple of years because of the increase in oil prices,'' thus boosting the cost of imports, Standard Chartered Plc economist Monica Malik said in a telephone interview today from Dubai. ``Instead they weakened against other major currencies owing to the dollar.''

The six Gulf Arab states earned as much as $500 billion from oil sales last year, according to the International Monetary Fund. About two thirds of that amount is likely to be invested in overseas savings and investments in countries including the U.S.

The U.S. needs to attract about $2.5 billion a day from foreign investors to keep the dollar steady and fund a current- account deficit that widened to a record $225.6 billion in the third quarter of last year.

G-7 Urge Float

Kuwait in 2003 became the last of six Gulf Arab monarchies including Saudi Arabia to peg its currency to the dollar in readiness for a single currency planned for 2010.

The Kuwaiti dinar is trading at the top of a 3.5 percent permitted band set when the dollar peg was established in January 2003.

Kuwait central bank governor Sheikh Salem Abdul Aziz al- Sabah last month said he may decide to widen the range or change the peg if the U.S. currency continues to weaken and threatens domestic growth.

The Group of Seven industrial nations, including the U.S., Japan, Germany and the U.K., in April urged countries with current-account surpluses to allow their currencies to appreciate to help adjust global imbalances.

``I don't think other Gulf countries are going to adjust their pegs,'' Dorothee Gasser, a Middle East and Africa economist at ING Bank NV in London, said in a phone interview today. ``What we are likely to see is that they are going to convert some of their reserves into gold. It's bearish for the dollar.''

Single Currency

Crude oil futures in New York reached a record on July 14. They have since fallen because of rising stock piles in the U.S. and receding security concerns in oil producing nations. Oil at around $55 a barrel is still almost three times higher than five years ago.

Kuwait remains committed to a single currency for the Gulf states, al-Humaidhi said today. ``The 2010 target is still the same. I hope we can meet it,'' he said.

To contact the reporters on this story: Will McSheehy in Davos, Switzerland at [email protected]

Last Updated: January 24, 2007 12:52 EST

U.S.: Brigade soon ready for Baghdad
Staff and agencies
29 January, 2007




By STEVEN R. HURST, Associated Press Writer Sat Jan 20, 10:15 PM ET

BAGHDAD, Iraq - A newly arrived brigade of the U.S. 82nd Airborne Division, the first of the 21,500-troop buildup ordered by President Bush , will be ready to join the fresh drive to quell sectarian violence in the capital by the start of next month, the American military said Sunday.

The announcement came a day after at least 20 U.S. service members were killed in Iraq on Saturday, the highest daily toll in two years for American forces.

Prime Minister Nouri al-Maliki has pledged to put an about equal number of Iraqi troops on the streets and has vowed they will target both Sunni insurgents and Shiite militia fighters.

Since the Bush and al-Maliki announced the planned drive against militants, U.S. and Iraqi special forces have regularly killed or captured a number of Mahdi Army commanders. The drive against Sunni insurgents has increased as well, with elite Iraqi police commandos reported to have killed 15 members of the al-Qaida-linked Omar Brigade in a U.S.-backed airborne assault on Saturday.

U.S.: Brigade soon ready for Baghdad

FuelNation Begins Loading Iraqi Fuel Oil by Tanker Trucks
WEST PALM BEACH, FL -- (MARKET WIRE) -- January 29, 2007 -- We are pleased to report that FuelNation (PINKSHEETS: FLNA) has reached additional milestones for the company, and its shareholders. We have entered into a long-term contract to purchase Iraqi fuel oil from the southern ports of Iraq. In addition, we have been notified by our ship that we have commenced loading fuel oil in Southern Iraq by tanker trucks. This arrangement will continue to produce additional revenues on other contracts we have mutually signed.

Our Iraqi fuel oil operations have been encountering several delays, from pipeline breakage to long waiting lines at the loading dock, due to low pumping pressure from the Iraqi pipeline. We have been sub-chartering our ship and transporting spot cargoes in the Arabian Gulf for other companies such as VITOL, until the pipeline is operational in southern Iraq. Despite the long delays in the repair of the pipeline, we were able to overcome these obstacles and have commenced loading our ship by multiple tanker trucks at the southern port of Iraq. We have been informed by the Iraqi Ministry of Oil that this pipeline situation should be fixed soon. The long-term opportunities in Iraq outweigh any short-term disappointments we encounter.


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Last year was a year of change and growth for FuelNation. We brought our operations into one parent company -- FuelNation Inc. -- and received a first round of investment commitments from leading Middle East funds. This is letting us build a management team and the internal processes that are needed to scale the business. We give credit to our exceptional people who thrive on challenges and are the foundation for our successful implementation of our plan. Our employees are people with inquisitive intelligence and a sincere passion for what they do. They are people who excelled in their studies, and who now excel in practice. These same people relish working with others, are only satisfied with a job superbly done, and measure their success by the success of those they work with and for. We hope that the shareholders will come and meet the employees in person at our annual shareholder meeting to be held at Pro Player Stadium in Miami, Florida on May 26, 2007.

Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. In addition to the factors discussed in the filings with the Securities and Exchange Commission, among the other factors that could cause actual results to differ materially are the following: adverse changes in the business conditions and the general economy; competitive factors, such as rival companies' pricing and marketing efforts; availability of third-party material products at reasonable prices; the financial condition of the customer; risks of obsolescence due to shifts in market demand; and litigation involving product liabilities and consumer issues. FuelNation cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the company's expectations or any change in events, conditions or circumstances on which any such statement is based.
PRESS RELEASE FuelNation Begins Loading Iraqi Fuel Oil by Tanker Trucks

Message On Kirkuk From Northern Iraq
Published: 1/29/2007
Turkishpress.com

By Ferai Tinc
I don’t know if the Iraqi Kurds realize that nobody agrees with them that Kirkuk should be attached to the north. However, obviously, besides Iraqi nationalists of various ethnic and religious backgrounds, many countries are closely following developments on this issue. I hear many Iraqi say that if Kirkuk is attached to Kurdistan, there would be huge consequences, and that Turkey’s stance on the issue supports them in their negotiations with the Kurds. Of course, nobody expects or wants a military intervention from Turkey. However, people also attach importance to political and diplomatic efforts to ensure Iraq’s territorial integrity and say that Turkey’s position helps during the negotiations. Arab countries and Israel are saying that Iraq’s territorial integrity should be protected and steps which might sow instability in Kirkuk should be avoided. In such an atmosphere, I asked Safeen Dizayee, a Kurdistan Democratic Party (KDP) official responsible for foreign relations, how they’re planning to deal with the Kirkuk issue.

As Dizayee has worked as the KDP’s representative to Turkey for many years, he understands Turkey’s concerns. During our conversation, he stressed the importance of establishing dialogue between Turkey and the northern Iraq administration. He said that we should talk to each other, discuss certain issues and look for solutions. When I asked if the end-year referendum in Kirkuk could be postponed, he said in sum, ‘We have a while until the referendum. However, the Iraqi constitution lays out the matter. The constitution will be obeyed. Kirkuk is in the region of Kurdistan, historically and geographically. We want this issue to be clarified. In other words, we want to prove that Kirkuk belongs to the Kurdistan region. We don’t say that Kirkuk is a city of Kurds. After the referendum, Turkmen and Arabs from Kirkuk will continue to live in the region.’ When I asked about reports they were moving Turkmen and Arabs out of the region and bringing in Kurds to replace them to alter the city’s demographic makeup, he said these reports were overblown and that Kurds who were moved away from the region between 1991 and 2003 were simply returning.

I asked him if he can’t see that their insistence on the Kirkuk issue will cause instability and that some people say Kirkuk could be a second Jerusalem in the region. I told him that such a source of instability would threaten the entire region and asked him if he thinks that Turkey’s worries on the issue come from its hostile feelings against Kurds. ‘We should talk to each other seriously, discuss problems mutually and try to work together for a good outcome,’ he replied. ‘We place great importance on Turkey. Turkey is an important power in our region. We want to establish good relations with Turkey. We know that establishing good ties suits our interests. And I hope that it would suit Turkey’s interests to do so. Today there are more than 300 Turkish companies in northern Iraq. Turks play the most important role in our improvement. We consider these relations valuable.’ Then I also asked him if he knows that the issue of the terrorist PKK is making things worse. ‘We’ve had relations with Turkey for a long time,’ he said. ‘We’ve fought, along with Turkey, against the PKK in northern Iraq. Now we’re continuing these efforts’

الاكراد-الائتلاف-ميزانيةKurds - the coalition-budget
كتب: nakr2004 في يوم الأثنين, 29 يناير, 2007 - 10:34 PM BTBooks : nakr2004 on Monday, January 29, 2007 10:34 PM-BT

نائبان كرديان: الخلاف بين التحالف والائتلاف ليس سياسيا وانما حول الميزانيةTwo Kurds : the difference between the coalition and the coalition is not politically, but on budget
من حسام الشحماني وهادي الهاديBy Hossam Shahamani Hadi Hadi
بغداد-(أصوات العراق)Baghdad - (Voices of Iraq)
قال فؤاد معصوم رئيس كتلة التحالف الكردستاني في البرلمان اليوم الاثنين ان انسحاب الكتلة من جلسة البرلمان الاخيرة لم تكن بسبب التخصيصات المالية وانما بسبب تزمت بعض الاعضاء بارائهم وان التحالف يطالب باجراء تخفيض على ميزانيات الرئاسات الثلاث(الجمهورية والنواب والوزراء) ، فيما قال محسن سعدون من التحالف الكردستاني أن الخلاف الذي جرى بين التحالف والائتلاف لم يكن خلافا سياسيا وانما حول الميزانية المقررة لرئاسة الجمهورية.Said Fouad Massoum head of the Kurdistan Alliance in parliament today, Monday, that the withdrawal from the bloc meeting last Parliament was not due to financial allocations, but because of strict behavior of some members of their views and alliance calling for a reduction in the budgets of three presidencies (Syrian parliament, and ministers), while Mohsen Saadoun of the Kurdistan Alliance that the dispute that took place between the coalition and the coalition that would not otherwise politically, but on the assessed budget for the presidency.
واوضح معصوم لوكالة أنباء (أصوات العراق) المستقلة أن" رؤساء الكتل السياسية في مجلس النواب لم يجتمعوا لحد الان لمناقشة المسائل المختلف عليها لاكمال الميزانية واولها مطالبة التحالف بتخصيص مبالغ ماليه من الميزانية لقوات حرس الاقليم وبقية المسائل العالقة وهو تعطيل لعمل البرلمان والحكومة.The infallible News Agency (Voices of Iraq) Independent that the "heads of the political blocs in the House of Representatives did not meet yet to discuss the contentious issues for the completion of the budget and the first claim Alliance funds be allocated from the budget to guard forces and the rest of the province the outstanding issues which disruption of the functioning of the parliament and the government.
واضاف"فيما يخص التخصيصات الماليه لحرس الاقليم نرى في حالة تكليف حرس الاقليم بمهمات اخرى فلابد من توفير مبالغ ماليه مقابل هذا العمل والحكومة الان بحاجة الى بناء مخافر حدودية وفرض سيطرات وهي خارج نطاق عمل حرس الاقليم."He added, "With regard to financial allocations for the province guards believe in the case of mandated territory guards assigned, it should provide the money for this work and the government now needed to build border posts and to impose Sitarat is outside the scope of the Guard territory."
وتابع"ان تسمية بيشمركة تسمية كردية وهم الان الحرس الخاص بالاقليم وهو غير تابع لوزارة الدفاع في بغداد لكن عندما تكلفه الحكومة المركزية المتمثلة بالقائد العام للقوات المسلحة نوري المالكي فيجب تخصيص مبالغ لصرفها على العمل الذي يقوم به."He continued, "that the name Bishmaraka naming Kurdish special guards who are now in the Territory which is not affiliated to the Ministry of Defense in Baghdad, but when the cost of the central government of General Commander of Armed Forces Nuri Al-Maliki must allocate funds for disbursement to the work he is doing."
وشدد معصوم على ضرورة" التمييز بين حرس الاقليم وبين قوات الجيش العسكرية التي تضم الوية وافواج خاصة به التابعة لوزارة الدفاع."He stressed the need infallible "to distinguish between guards province between army troops and military brigades, which includes its own batches of the Ministry of Defense."
وقال" يعتقد البعض ان كلمة (بيشمركة) تعني ميليشيات وهذا غير صحيح وقانوناً ودستوراً لنا الحق في تسمية مؤسساتنا باسماء كردية."He said, "Some believe that the word (Bishmaraka) mean militias This is not true, legally and constitution have the right to name our Kurdish names."
وقال أن" عملية دمج حرس الاقليم بالوزارات الامنية في بغداد موضوع دستوري وان امتلاك حرس للاقليم هو من حق كل الاقليم."He said that "the process of integrating the region Guard security ministries in Baghdad, the issue of constitutional Guard and the possession of the territory is the right of every province."
من جانبه قال محسن سعدون عضو البرلمان العراقي عن قائمة التحالف الكردستاني أن الخلاف الذي جرى بين التحالف الكردستاني والائتلاف العراقي الموحد في البرلمان لم يكن خلافا سياسيا وانما كان حول الميزانية المقررة لرئاسة الجمهورية.For his part, Mohsen Saadoun member Iraqi Parliament on the list of the Kurdistan Alliance, which was that the disagreement between the Kurdistan Alliance and the United Iraqi Alliance in the parliament was not only politically but otherwise was on the assessed budget for the presidency.
وأضاف سعدون (لأصوات العراق) " لقد تفاجئنا بان هناك مطالبة من الائتلاف بتخفيض 80% من مخصصات رئاسة الجمهورية التي هي تعتبر من ذات المنافع الاجتماعية وهو امر غير عادل وغير صحيح لان رئيس الجمهورية لم يمثل قائمة التحالف الكردستاني وانما يمثل جميع الكتل بما فيها النائبين الدكتور عادل عبد المهدي والدكتور طارق الهاشمي."He added Saadoun (of the votes of Iraq) : "We have noticed that there is a demand by the coalition to reduce 80% of the allocations Presidency of the Republic, which is considered one of the relevant social benefits, which is unfair and incorrect because the President of the Republic did not represent a list of the Kurdistan Alliance, but of all the blocks including MPs Dr. Adel Abdel Mahdi, Dr. Tariq Al-Hashmi."
وقال"في حين ان قائمة الائتلاف لم تطالب بتخفيض ميزانية رئيس الوزراء علما ان هناك ميزانية رصدت لمجلس الوزراء عالية جدا وتفوق كل الميزانيات و هذا هو سبب الخلاف وهي خلافات مالية ولم تكن سياسية."He said, "While the coalition list did not call for the reduction in the budget for the Prime Minister noted that the budget allocated to the Cabinet very high and exceeds all budgets, this is the reason for the difference is financial disputes were not political."
واكد سعدون أن" الميزانية المقررة لمجلس رئاسة الجمهورية هي (71) مليار دينار عراقي وان اعضاء قائمة الائتلاف طالبوا بتخفيض المبلغ الى الى (20) مليار اي بمعدل تخفيضSadoun stressed that "the assessed budget of the Presidency of the Republic (71) are one billion Iraqi dinars and that the list of members of the coalition called for the reduction of the amount to (20) billion, or the rate reduction
80% ."
واوضح سعدون أن" الاسبوع المقبل سيشهد التصويت على الميزانية المخصصو لرئاسة الجمهورية وهي تدهم بدورها بعض الجهات كالمؤسسات الرياضية وجهات تتعلق بالنقل والطيران."Saadoun explained that the "next week will vote on the budget Almkhssou for the presidency is Tdam turn some sports, such as their own views on the transport and aviation."
وقال " نحن في قائمة التحالف الكردستاني اتخذنا قرارا في مجلس النواب بان يستمر الفصل التشريعي الى العاشر من شباط فبراير وخلال عشرة ايام سننهي جميع القوانين المهمة."He said : "We are on the list of the Kurdistan Alliance took a decision in the House to continue the legislative chapter to the 10th of February and within ten days we will complete all important laws."
وقال" اعتقد ان اللجنتين المالية والاقتصادية انتهت من اقرار الميزانية وأن الخلاف على ميزانية رئاسة الجمهورية فقط."He said, "I believe that the financial and economic committees completed approval of the budget and that the disagreement over the budget Presidency of the Republic only."
ن عN p
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Turkey Warns Iraq Not to Involve Iraqi Kurdish Administration in Oil Trade
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Posted GMT 1-29-2007 18:45:34
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Ankara, Turkey (AP) -- Turkey warned Iraq Monday not to involve the Kurdish administration in northern Iraq in oil business between the two countries.

The warning came after Iraq's State Oil Marketing Organization asked Turkish companies to seek permission from the Iraqi Kurdish government when doing deals with Iraq's oil-rich north.

State Minister Kursad Tuzmen, who is in charge of foreign trade, said Turkey would only deal "with the central Iraqi government" and not with Iraqi Kurdish authorities, adding that he has sent Iraqi authorities a "strong letter," outlining Turkey's stance.

Tuzmen's warning to Iraq came amid unconfirmed reports that Turkey has halted or slowed down export of oil products to neighboring Iraq in alleged retaliation after Iraq's state oil company, SOMO, asked Turkish firms, whose contracts were about to expire, to deal with local Iraqi Kurdish authorities to obtain new contracts earlier this month.

Turkey is concerned about the growing power of Iraqi Kurds and has repeatedly warned Iraqi Kurdish groups against trying to seize control of the oil-rich city of Kirkuk, saying Turkey will not stand by amid growing tensions among ethnic Turkmens, Arabs and Kurds in Iraq's oil-rich north.

"If Turkey is ... tested, then the price of it would be dear," Tuzmen warned. "If there is a serious state, it must stand behind its signatures."

Tuzmen said Turkish authorities have failed to contact Iraqi oil officials at SOMO despite repeated efforts to seek clarification on the issue. Turkey had suspended sales of oil products to Iraq on Jan. 19, 2006 after SOMO's debts to Turkish companies exceeded $1 billion. The suspension was lifted in April.

Iraqi Kurds, who claim the region as their own and hope to eventually include Kirkuk in a region of self-rule in northern Iraq, accused Turkey of interfering in Iraqi internal affairs.

Turkey fears Iraq's Kurds want Kirkuk's lucrative oil to fund a bid for independence that could encourage separatist Kurdish guerrillas in Turkey, who have been fighting for autonomy since 1984.

Kirkuk, an ancient city that once was part of the Ottoman Empire, has a large minority of ethnic Turks as well as Christians, Shiite and Sunni Arabs, Armenians and Assyrians.

Since the U.S.-led invasion of Iraq in 2003, thousands of Kurds pushed out of the region under Saddam Hussein's rule have returned.

Kirkuk lies just south of the autonomous Kurdish region stretching across Iraq's northeast. Kurdish leaders want to annex the city, and Iraq's constitution calls for a referendum on the issue by the end of next year.

Moqtada warms up to Sunnis



By Ali Khalil



Azzaman, January 29, 2007



The radical Shiite leader Moqtada al-Sadr is reported to be working for reconciliation but it is not clear yet whether he will dismantle his formidable militia known as Mahdi Army.



Sadr’s senior aides say the clergyman has accepted the joint U.S.-Iraqi move to contain violence in Baghdad and has offered his assistance.



Initially, reports spoke of U.S. inclination to take on his militias in Baghdad. U.S. troops are said to have already arrested hundreds of his armed men including some senior militia leaders.



Sadr has dispatched one of his most senior aides, Bahaa al-Araji, who is also a member of parliament, to meet with officials from the Iraqi Islamic Party, a major Sunni political faction.



In the meeting, in the presence of President Jalal Talabani, the sides have agreed to put an end to sectarian killings and form joint committees to administer mixed quarters in Baghdad and work for the return of displaced people from both sects.



Another aide, speaking on condition of anonymity, said Sadr has instructed his followers in Baghdad and elsewhere to cooperate with the Muslim Scholars Commission, an umbrella group of top-ranking Sunni clerics.



The commission and Sadr have been at loggerheads, each accusing the other of violence and terrorist acts.



Araji, in a statement issued following his meeting with Talabani and his deputy Tareq Hashemi, leader of the Islamic Party, described the plan to secure Baghdad as “a welcome step.”



“If all goes well and our proposals are taken into account, the campaign to secure Baghdad will constitute a historic move which will undoubtedly lead to improvement in security conditions,” the statement said.



The statement said the Sadr movement has agreed with Sunni Islamic Party on steps to “protect innocent civilians as the military campaign to flush the city of armed groups is about to start.



Both Talabani and Hashemi were reported to have encouraged Sadr’s movement to effectively contribute to normalize conditions in the country and halt the current cycle of violence.



Araji, the Sadr representative, declined questions whether the group would disarm its militias which are accused of carrying out many violent operations in Baghdad, a charge the group denies.

Swede arrested for carrying forged passports



By Ihsan Aziz



Azzaman, January 29, 2007



Kurdish police have arrested a Swedish citizen allegedly involved in human trafficking.



The man, whom the police refused to identify, was seized at a checkpoint close to the oil-rich city of Kirkuk.



The police say the Swedish citizen of Iraqi origin was carrying 15 fake passports.



“The man was found to be carrying eight Belgium passports and seven Iraqi ones. All of them were found to be forged,” said Major Kaka Rashhama.



Rashhama said the man intended to use the passports for human trafficking which has increased recently due to Iraq’s violent conditions.



Hundreds of thousands of Iraqis have fled the country or have been forced to move to the relatively quiet Kurdish north.



Many Iraqis are keen to resettle in a European country and some are said to be ready to pay up to $15,000 to smugglers to accomplish their dream.



Rashhama said the man will remain in custody and will be tried according to the Iraqi penal code.

Iran plan to open bank in Baghdad

January 30, 2007

BAGHDAD: Iran has outlined an ambitious plan to expand its military and economic ties with Iraq, including an Iranian national bank branch in Baghdad, just as the Bush administration warned Tehran to stop meddling in Iraqi affairs.
Iran's plan, as outlined by its Iraq ambassador to The New York Times, could drag the Islamic republic further into conflict with the US, which has detained a number of Iranian operatives in Iraq and says it has proof of Iranian complicity in attacks on US and Iraqi forces.
Ambassador Hassan Kazemi Qomi acknowledged for the first time that two Iranians detained last month by US forces in Iraq were security officials, as the US has claimed.

"They worked in the security sector in the Islamic republic, that's clear," Mr Qomi said in a 90-minute interview at the Iranian embassy in Baghdad.

The interview appeared in yesterday's Times.

The Iranians were in Iraq because "the two countries agreed to solve the security problems", the ambassador said. The Iranians "went to meet with the Iraqi side", he said.

Mr Qomi said the Iranians should not have been detained and he ridiculed evidence the US military said it had proving that the Iranians were involved in planning attacks on the US and Iraqi forces.

He said Iran was prepared to offer Iraqi forces training, equipment and advisers for "the security fight" and was ready to assume major responsibility for the reconstruction of Iraq.

The ambassador announced that Iran would soon open a national bank in Baghdad. An Iraqi banking official has confirmed that Iran has received a licence to open what would be the first "wholly owned subsidiary bank" of a foreign country in Iraq, the newspaper reported.

US forces this month detained five more Iranians, in a raid on a diplomatic office in the northern city of Arbil.

The US has accused Iran of helping to arm, train and fund Iraqi militants, particularly fellow Shia Muslims.

President George W. Bush said last week that US forces in Iraq had authority to kill or capture Iranian agents in the country.

State Department spokesman Sean McCormack told the Times the US had a significant body of evidence tying Iran to sectarian attacks inside Iraq.

"There is a high degree of confidence in the information that we already have, and we are constantly accumulating more," Mr McCormack said.

The report said Mr McCormack did not address the specifics of Mr Qomi's comments about plans for stronger economic and security ties, but said Iran played "a negative role in many respects" in Iraq.

But Mr Qomi said the planned Iranian bank in Baghdad was just the first of what he said would be several in Iraq. An agricultural bank and three private banks also intended to open branches.

Referring to the Iran-Iraq war of the 1980s, Mr Qomi said: "We have experience of reconstruction after war. We are ready to transfer this experience in terms of reconstruction to the Iraqis."

Reuters