Thread: Iraq/Dinar News until 5PM CST May 10,2007

Iraq urges neighbours to secure bordersBy Reuters, Friday May 4 2007

SHARM EL-SHEIKH, Egypt, May 4 (Reuters) - Iraq urged its neighbours on Friday to stop militants sneaking into Iraq and, at talks in Egypt on stemming bloodshed, is expected to ask the Arab League to hold a conference on national reconciliation.

Iraq made the call to its six neighbouring states at a conference in the Red Sea resort of Sharm el-Sheikh that also brought together the five permanent members of the U.N. Security Council, the European Union and the Group of Eight leading industrialised countries.

"We will not allow terrorist organisations to use Iraqi territory as a safe haven," Iraqi Prime Minister Nuri al-Maliki told an opening session of the one-day conference.

"That is what drives us to call on the regional neighbours to prevent the infiltration of terrorist groups into Iraq and to stop them obtaining material support and political and media support."

The talks are due to focus on border security, Iraqi refugees and political reconciliation between Iraqi factions and ethnic and religious communities.

Arab League Secretary-General Amr Moussa said a draft final communique from the conference was expected to call on the Arab League to convene a national reconciliation conference for Iraq.

"We are ready for this. We are ready to host Iraqi national reconciliation," he said. "Now is not the time to exchange accusations but is the time to work together."

Moussa gave no time frame as to when such a meeting could take place, nor did he say where it would be held. The 22-member Arab League is based in Cairo.

Baghdad is dependent on U.S. military support in its drive to halt a slide into all-out civil war by stamping out sectarian violence and defeating insurgents who draw support from the Sunni Arab minority once-dominant under Saddam Hussein.

CONTACTS WITH IRAN Diplomats said Baghdad was also pushing for talks between U.S. Secretary of State Condoleezza Rice and Iranian Foreign minister Manouchehr Mottaki, who exchanged pleasantries on Thursday but had no substantial discussions.

But Iran has appeared to dismiss the chance for talks, with a spokesman saying on Tuesday that it would not negotiate with Washington until it stops its "evil approach". A U.S. official said a bilateral meeting was not planned for Friday.

"We'll see if any other kind of interaction occurs," the official added.

Rice's brief encounter with Mottaki and talks with Syria's foreign minister on Thursday marked a shift in U.S. President George W. Bush's once resolute opposition to high-level contacts with Iran and Syria as he seeks ways to end the Iraq conflict.

Baghdad's interest in seeing a Rice-Mottaki meeting is clear as it is widely acknowledged that Shi'ite Muslim Iran is an influential force on Iraq, both as a neighbour and because of its links with elements in the Shi'ite-led Iraqi government.

The U.S. ambassador to Iraq, Ryan Crocker, did not rule out a meeting between Rice and Mottaki, saying his government would see "what options present themselves".

"The point from our side is not to have meetings with the Iranians. It is what can we do in Iraq and what can we do in the region to create better circumstances and a better future for the Iraqis," he told reporters.

While Rice and Mottaki exchanged greetings during lunch on Thursday, they did not have further contact at dinner. A U.S. official said Mottaki had abruptly left a dinner where he was to sit opposite Rice, complaining that a red dress worn by a violinist was too revealing.

State Department spokesman Sean McCormack said Mottaki left the conference dinner site just as Rice was arriving.

"She did not see the Iranian foreign minister," he said.

Serious talks between Rice and Mottaki would be the highest-level substantive U.S.-Iran contact since a 1979 revolution turned Iran from a close U.S. ally into the arch-foe Islamic Republic. Over the years Iran has been less enthusiastic than the United States about dialogue.

Washington has accused Iran of fomenting violence in Iraq. Tehran rejects the charge. Lower level U.S. and Iranian envoys spoke to each other directly about Iraq at regional talks in Baghdad in March.

U.S.-led forces invaded Iraq in March 2003 to topple Saddam, but U.S. troops -- now numbering more than 150,000 -- have since failed to stop the violence.

Fallon: Agencies Must Act Now to Move Iraq ForwardBy Sgt. Sara Wood, USA
American Forces Press Service

WASHINGTON, May 3, 2007 – U.S. and coalition troops have made significant progress in improving the security situation in Iraq, but the Iraqi government and other U.S. government agencies need to act more quickly to improve the political situation and build infrastructure needed to sustain the country, the commander of U.S. Central Command said in congressional testimony today.
“Time is of the essence, and it’s right now,” Navy Adm. William J. Fallon told members of the Senate Armed Services Committee. “My perception is that we need actions right now that are going to show results in the very near term, over the next six months, say, that can be a direct follow-on to the security push that’s ongoing.”

One of the biggest challenges CENTCOM leaders face is ensuring that U.S. government efforts are coordinated after the initial security push so political and economic initiatives are carried out properly, Fallon said. To that end, CENTCOM is working closely with the State Department and is deploying new provincial reconstruction teams that are closely aligned with the military leadership on the ground.

Beyond U.S. involvement, success in Iraq depends largely on the actions of the Iraqi government, Fallon said. While the government has made progress in some key areas, it has not moved fast enough on key issues that support the U.S. effort in Iraq, he said.

“I think that making sure the leadership in Iraq understands that we don’t have unlimited time, that we must move forward, that they’re going to have to make these tough decisions, is important,” Fallon said. “I understand it’s complex; I understand it’s challenging. But they are going to have to make the kind of progress that will give the people in this country the confidence that they can believe in this government.”

Iraqi Prime Minister Nouri al-Maliki and other leaders are working on achieving benchmarks they set for themselves for political progress, Fallon said, and ongoing security operations are important to give them a stable environment in which to operate. He noted that Maliki faces a serious challenge in dealing with the country as a whole instead of with sectarian divisions. Maliki himself doesn’t have a lot of experience dealing with people from different sectarian groups, and he has to take into consideration the long history of ethnic divisions in Iraq, Fallon said.

Right now, the largest destabilizer in Iraq is the ability of Sunni insurgent groups allied with al Qaeda to conduct large-scale car-bomb attacks, Fallon said. These attacks are aimed at inciting sectarian violence and give Shiites a reason to caution Maliki about reaching out to Sunnis, he said. Breaking the link between these Sunni groups and al Qaeda could prove to produce a substantial turn of events in the country, he said.

“We need to convince (Maliki) that taking steps to give some sense of inclusion to the Sunnis so they will then lessen their support for al Qaeda would be the biggest and most important thing that could happen in the political realm of this country,” Fallon said.

Since taking command of CENTCOM about six weeks ago, Fallon said his main focus for Iraq has been supporting Army Gen. David H. Petraeus, commander of Multinational Force Iraq, as he implements a new strategy on the ground. However, Fallon said he also has his staff thinking about the future of U.S. involvement in Iraq, such as what the enduring force will look like and when that transition might occur.

“I envision that we will want to be and we will be asked to be in Iraq for some period of time with some representation of U.S. capability, just as we do in other countries,” he said.

Long-term success in Iraq depends not only on internal efforts within the country, but also on external support from neighboring countries, Fallon said. He expressed optimism about the launch of the International Compact with Iraq and the Expanded Neighbors of Iraq Ministerial, with diplomats from more than 50 countries coming together this week in Sharm el-Sheikh, Egypt.

“This place doesn’t exist by itself in another galaxy,” Fallon said. “The influence of the neighbors, certainly very unhelpful from two of them in the recent past, but the willingness of others to come and assist Iraq, is critical.”

Istanbul to host the next International Conference on Iraqi affairs

(صوت العراق) - 04-05-2007

(Voice of Iraq) - 04-05-2007

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D'Alema :
Sharm el-Sheikh (May 4) Agency (Lucky) Italian News-Deputy Prime Minister and Italian Foreign Minister Massimo D'Alema on Friday that he agreed to host the Turkish city of Istanbul for the next neighboring countries, but did not specify a date for the conference.

He stressed, in press statements before leaving Egypt where he represented his country in the international conference on Iraq, international efforts on the Iraqi situation "continuous and not accidental," they would not be confined to Sharm el-Sheikh. The president of the Italian diplomacy of international cooperation that has emerged in the Sharm el-Sheikh as "model worthwhile can be transferred to other incidents" in the global arena, in an implicit reference to the situation in Afghanistan. The Sharm el-Sheikh has hosted conferences on Iraq, where he witnessed the launch Thursday of the so-called (International Covenant with Iraq), while reviewed the neighboring states today, the role of these countries in the political and security stability.

(Rzz/Aki)

(Rzz/Aki)

Translated version of http://www.sotaliraq.com/

Security

Syrian Foreign Minister al-Muallim at the conference today
(AFP)
May 4, 2007 (RFE/RL) -- An international conference on Iraq is in its second and final day in the Egyptian resort of Sharm el-Sheikh. Ministers are meeting to discuss ways Iraq's neighboring states can help reduce sectarian violence in the country.


Much attention is focused on the delegations from the United States and Iran, the two major foreign players in the Iraq crisis. Iraq's Foreign Minister Hoshyar Zebari told journalists that Iran and the United States had held talks "at the level of experts" on the conference's sidelines. But he said there has been no meeting so far involving U.S. Secretary of State Condoleezza Rice or Iranian Foreign Minister Manuchehr Mottaki.

Iraqi Prime Minister Nuri al-Maliki opened today's proceedings by calling on neighboring states to help stop the inflow of fighters and their funds into Iraq.

"Now, after the fall of the dictatorship, we will not allow terrorist organizations to [find] shelter in the Iraqi territories," al-Maliki said. "And this is what urges us to demand that neighboring countries stop the infiltration of terrorist groups inside Iraq, and prevent them from getting any funds and political and media support -- as has been agreed at [all] the meetings of the Arab interior ministers, and the conferences of the foreign ministers of Iraq's neighbors."

Regional Threat

Al-Maliki also said there will be a price to pay if they do not heed his call.

"Backing terror will not be of benefit to any given party, and will not save [that party] from the danger of killers" he told the conference. "The terror that kills innocent civilians in public places, hits universities, destroys libraries, mosques, and churches is the same terror that hit in Morocco, Algeria, Saudi Arabia, and Jordan, and here in Sharm el-Sheikh."

"We will not allow terrorist organizations to shelter in the Iraqi territories," al-Maliki said.He was referring to a terrorist bombing in Sharm el-Sheikh in July 2005 that killed 88 people.

Washington accuses Iran of supplying arms and funds to members of Shi'ite militias that resist the U.S.-led occupation but which also battle Sunni militants for control of neighborhoods.

Washington also accuses Syria of letting fighters and funds enter Iraq to aid Sunni insurgents.

All of Iraq's neighbors deny interfering or permitting other parties to interfere through them in Iraq's affairs.

Bilateral Breakthrough

On May 3, the conference produced one breakthrough that offers at least some hope of easing the crisis. U.S. Secretary of State Condoleezza Rice held bilateral talks with Syrian Foreign Minister Walid al-Muallim to discuss Iraq's security directly.

Rice said today that she and al-Muallim discussed ways of keeping insurgents from using Syria as a base from which to send weapons and foreign fighters into Iraq. She said she hoped Iran would do the same. "I sincerely hope that Iran will act in what it says is its own self-interest to stop the flow of arms to extremists, who then use them to hurt our forces and innocent Iraqis," she said. "I hope that Iranian support for terrorism will cease."


Iran Foreign Minister Mottaki speaking in Sharm el-Sheikh today (AFP)The meeting was the first high-level talks between the two countries in more than two years and signals a new U.S. effort to engage, rather than isolate, Damascus.

Washington withdrew its ambassador to Damascus following the assassination of former Lebanese Prime Minister Rafiq Hariri in 2005 amid allegations of Syrian involvement.

Much of the attention on the Sharm el-Sheikh conference has focused on whether the U.S. secretary of state would meet her Iranian counterpart. So far, third-party efforts to bring together Rice and Mottaki have produced no results.

Following today's meeting involving Iranian and U.S. diplomats, Iraq's Zebari said he did not know what had happened during the talks, but said he thought the results were "positive."

The two states have had no relations since U.S. diplomats were taken hostage in Tehran immediately following the 1979 Islamic Revolution.

Radio Farda correspondent Mahtab Farid, who is covering the conference in Sharm el-Sheikh, says one apparent effort occurred at a May 3 dinner for delegates. Conference host Egypt put the U.S. and Iranian tables close together in the dining room.

"The way the tables were set up, these two countries were put together very close to each other, probably only a couple of [meters] from each other," Farid said. "I have been told by one of the U.S. State Department officials, who did not want to be named, that as soon as Secretary Rice walked in, Manuchehr Mottaki, the Iranian foreign minister, left. But then [Mottaki's] excuse was that there was a lady violinist who was wearing a sexy red dress -- she was wearing a shawl on it -- but he was objecting to the fact the lady was wearing a revealing red dress."

Rice herself has been ambiguous about whether she would try to meet Mottaki. She said on May 3 that she would not miss any opportunity to deliver a message to Tehran about its need to support Iraq.

"We haven't planned and have not asked for a bilateral meeting, nor have [the Iranians] asked us," she added.

Yesterday's Results

Meanwhile, conference delegates pledged on May 3 to forgive roughly $32 billion of Iraq's remaining $56 billion debt from the Saddam Hussein era.

That came as participants endorsed a UN-sponsored International Compact with Iraq (ICI) designed to help the country with development and reconstruction.

The participants at the conference include Iraq's neighbors, as well as representatives of the Group of Eight, the United Nations, and the European Union.

(Nabil Khoury and Abdelilah Nuaimi of RFE/RL's Radio Free Iraq contributed to this report.)

U.S. Congress are you LISTENING?:



Steady Progress Continues Despite Challenges in Iraq, General SaysBy Sgt. Sara Wood, USA
American Forces Press Service

WASHINGTON, May 3, 2007 – Though they face daily challenges that will continue, U.S. forces remain dedicated to the fight in Iraq and are making steady progress, the deputy director for operations on the Joint Staff said here today.
Three of the five additional combat brigades slated for the Baghdad security plan have arrived and are operating with Iraqi security forces, Army Brig. Gen. Perry L. Wiggins told Pentagon reporters in a news conference. “We are seeing early indications of steady progress. It’s not often flashy, but it’s the sort of progress that can make a difference over time,” Wiggins said.

Since the Baghdad security plan began, sectarian murders in the city are down by two-thirds, and the number of tips from Iraqi citizens leading to weapons caches has increased dramatically, Wiggins said. Through these tips and cache finds, U.S. forces are learning more about the insurgent networks and how they operate and are funded. The networks often involve foreign influence, and some are tied to Iran, he said.

Despite the progress made, the number of high-profile attacks on civilians in Iraq continues to rise, Wiggins said. These attacks are carried out by al Qaeda to incite sectarian violence, and preventing them is a top priority for the coalition, he said.

“We’re working hard to enhance security, and we’re working hard to better secure the areas where people live and meet, as well as go after the networks that support these attacks,” Wiggins said.

Wiggins cited Anbar province as an example of progress in Iraq. There, the tribal sheikhs have decided to turn against al Qaeda and put a stop to indiscriminate killing, he said. “The key element has been the local population, predominantly the Sunni Arabs, who have stepped up and taken a more active role to secure their own destiny,” he said.

While everyone would like to see faster progress on the part of the Iraqi government, coalition forces remain dedicated to the mission in Iraq, and Iraqi security forces continue to show their dedication as well, Wiggins said. Iraqi security forces lost more than 300 people in April, but have remained committed to their duty and the hope for a peaceful Iraq, he said.

Wiggins conceded that April was a tough month for U.S. forces in Iraq, as more than 100 servicemembers were killed. There will undoubtedly be challenging days ahead, he said, but “we remain dedicated to the fight.”

Admiral Fallon Sees Progress in Iraq, Urges Government Unity
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Posted GMT 5-4-2007 14:41:52
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Washington -- The U.S. and Iraqi troop surge in Baghdad, Iraq, and Anbar province is making progress, but success requires political unity by Iraq's government and quick results in economic programs, says the senior U.S. commander for the region.

In particular, conditions in the once turbulent Anbar province might set the tone for the future of Iraq, Admiral William Fallon told Congress. Sunni leaders north of Baghdad largely have halted violent opposition to the new Iraqi government and instead are seeking constructive political influence, he said. Fallon, the new chief of U.S. Central Command (CENTCOM), testified May 3 before the Senate Armed Services Committee.

"We have good indications that they are having success on the ground in expanding the areas of stability and security," Fallon said. "But we need the parallel effort, as you would indicate, to make the political decisions to move forward."

Along with the security mission in Iraq, Fallon said, he is giving equal importance to coordinating other U.S. government agencies assisting in the economic and political development of Iraq. This effort includes provincial reconstruction teams, which pool military and other U.S. government resources to focus on local and regional development projects.

"We need actions right now that are going to show results in the very near term over the next six months, say, that can be a direct follow-on to the security push," he said.

Senate Armed Services Chairman Carl Levin expressed impatience with Iraqi forces and the Iraqi government. "Iraqi military units were promised extra pay and short three-month Bagdad deployment to gain their acquiescence to the mission, while American Army units are being extended for 15-month tours," Levin told Fallon. "Baghdad is burning while the Iraqi politicians avoid responsibility for their country's future."

Commanders report that violence between Sunni and Shiite communities appears to have subsided. But al-Qaida and foreign insurgents have tried to undermine reconciliation with a relentless series of spectacular and deadly suicide attacks.

"The Shi'a have not responded in a major retaliatory way to these attacks," Fallon said. He credited the leadership of Iraq Prime Minister Nouri al-Maliki with preventing the Shiite community from retaliating. But U.S. officials have stressed that Maliki and other elected Iraqi officials must quickly demonstrate their ability to put aside partisan and sectarian differences and create a unified government.

"Success in Iraq is going to be greatly dependent [on] -- and I believe not possible without -- the firm commitment and demonstration by the political leadership ... that they are acting in the interests of the entire population," Fallon said.

Success also depends on getting support from other countries in the region, Fallon said.

Fallon said he was pleased that two regional conferences have just started in Sharm el-Sheikh, Egypt, that will bring together all of Iraq's neighboring countries as well as other members of the world community with a stake in the success of Iraq.

Fallon also said there has been a "dramatic shift" in Anbar province compared to six months ago, and that this move away from violence "is indicative of what could happen in this country." Although the Baghdad surge has received most public attention, there also has been a surge of U.S. Marines in Anbar to build upon successes that began late in 2006.

"It looks like in Anbar there are people who [were] very clearly fighting us who have now stopped doing that and have gone over to the other side," Fallon said. "These are disaffected, unhappy, disenfranchised Sunni who were the beneficiaries of certain things under the Saddam [Hussein] regime who, when they lost all this, saw that their best interests were served by fighting the coalition and fighting the government."

The Sunnis of Anbar province were favored under the government of the late dictator and opposed the creation of a more inclusive government for fear they would be oppressed by Shiites, who make up the majority of Iraq's population.

"After several years of this [armed opposition], it's very clear that they have realized this is a mistake. And so they've opted to come over and help the Coalition and the government," Fallon said of the Sunni leadership.

"I think the reason is self-interest. Frankly, they see that their future, a future with al-Qaida, is a loser, and they have a much better chance of now working and trying to influence this government to be more representative of them, and that's why they're doing it."

As a result, the major towns and cities from the Syrian border to the Euphrates toward Baghdad are largely in the hands of the Iraqi security forces and U.S. forces, Fallon said.

By Vince Crawley
Washington File

© 2007, Assyrian International News Agency

Rice Urges Broad International Participation in Iraq Compact
Agreement outlines Iraqi economic reform in exchange for assistance

By David Shelby
USINFO Staff Writer



Washington – Secretary of State Condoleezza Rice, praising Iraqi Prime Minister Nouri al-Maliki’s agenda of national reconciliation, economic recovery and good governance, urged the international community to support Iraq’s efforts by participating in the International Compact for Iraq.

The compact, signed in Sharm el-Sheikh, Egypt, May 3, establishes a five-year plan for Iraq to achieve economic self-sufficiency and seeks commitments from the international community for debt relief and financial and technical assistance. To date, 60 nations and organizations have agreed to take part in the compact. Rice urged the signatories to seek even broader international participation.

“Under the compact, Iraq has undertaken important steps for advanced economic reforms and good governance -- including priority goals: reforming fuel subsidies, restructuring the hydrocarbon sector, and sharing oil revenues fairly among all Iraqis,” Rice said at the signing ceremony. “In return, Iraq’s compact partners have agreed to help Iraq by providing substantial debt relief, along with significant financial and technical assistance.”

She said the compact has an impact beyond its economic measures because it provides “powerful incentives for the Iraqi government to function more effectively and to achieve its broader national goals of political reconciliation and security for all Iraqis.”

Rice had a clear message for those countries that still carry large Iraqi debts from the Saddam Hussein era. “[T]o realize its full economic promise, to build a new economic relationship with the world, and to fulfill the goals of the compact, Iraq needs for those creditors that have not yet done so to reduce or to forgive its Saddam-era debts,” she said.

According to U.S. Deputy Treasury Secretary Robert Kimmitt, Saudi Arabia, the United Arab Emirates, Kuwait, Russia, China, Turkey, Jordan, Egypt and Bulgaria each hold more than $1 billion in Iraqi debt.

Rice said the signing of the compact marks the beginning of a process in which the international community will monitor Iraq’s progress toward its stated goals and work to ensure that the donors honor their commitments.

The secretary of state remains in Sharm el-Sheikh May 4 for the first ministerial-level meeting of the Iraqi Neighbors’ Conference.

(USINFO is produced by the Bureau of International Information Programs, U.S. Department of State. Web site: USINFO - The United States Department of State)

Waste water treatment plant replaces septic tanks in Fallujah
Friday, 04 May 2007
By Norris Jones
Gulf Region Central District



Iraqi workers place concrete for a small clarifier tank for a waste water treatment plant as part of a U.S. Army Corps of Engineers project to rebuild the Fallujah sewer system. U.S. Army Corps of Engineers photo by Travis Edwards.FALLUJAH — A new sewer system is taking shape in Fallujah.

Involving hundreds of Iraqis in the workforce, it’s the biggest construction project the U.S. Army Corps of Engineers oversees in Al Anbar Province of Iraq.

Fallujah’s new facility will use the construction of pump stations trunk mains and a treatment plant to serve as the backbone for a city-wide system. This is the initial phase that will eventually connect every home in the city.

“That community has been relying on septic tanks and the raw sewage is making its way onto the streets and into the storm sewers going directly to the Euphrates River,” explains Michael Jakubiak, part of a team of U. S. Army Corps of Engineers involved with the project. “So you have residents downstream that are taking their drinking water from that contaminated source. This project will improve that situation.”

Jakubiak said his office meets with the various construction firms for some 13 separate contracts, city and Iraqi ministry officials on a regular basis to ensure issues are resolved and the project moves forward.

“It’s those city and ministry officials who will eventually take over operation and maintenance of the new sewer system and we want to make sure it meets their standards," he added. "They’re fully engaged and eager to see this project completed.”

Regarding the contractors, he pointed out, “we’re doing a lot of work to mentor them especially in the areas of quality control and safety. Those are two key factors we continue to emphasize.

With the new system, two large pump stations will each have the capacity to handle 150,000 cubic meters daily. Fallujah’s sewage will be sent to inlet tanks at the waste water treatment facility, then aerated grit and oil removal tanks, onto 65-meter-wide aeration tanks, then settling tanks. The last stop is a chlorination contact chamber before being released to the Euphrates River.

“There’s no question the health of Fallujah’s residents will be benefited by this project. Our mission is to help the Iraqi people get back on their feet and I’m proud to be part of this effort,” said Jakubiak. He had been involved with sewer-related projects in Cary, N. C., prior to volunteering for a year’s duty in Iraq.

“This is a great assignment. We’re helping a community with real needs,” he said. “The local jobs created are a boon to Fallujah’s economy. Those workers know they’re making a difference.”

KBR 1st-quarter earnings rise 7.7 percent, lifted in part by business in Iraq
By JOHN PORRETTO AP Business Writer
© 2007 The Associated Press


HOUSTON — KBR Inc., the former Halliburton Co. subsidiary, said Friday its net income rose 7.7 percent in the first quarter, lifted in part by business in Iraq.

The Houston-based military contractor and engineering/construction outfit, which split from Halliburton last month, said earnings for the January-March period were $28 million, or 17 cents a share, up from $26 million, or 19 cents a share, a year ago.

The most recent results included a loss from discontinued operations of $2 million, or 1 cent per share, related to the sale in last year's second quarter of Production Services Group.

Revenue in the first three months of 2007 rose to $2.3 billion from $2.2 billion a year ago.

Wall Street analysts polled by Thomson Financial had predicted earnings of 24 cents a share on revenue of $2.25 billion.

"With the separation from Halliburton now complete, I look forward to KBR's future with great optimism as KBR is now able to devote its full focus toward delivering the highest quality engineering, construction and services projects to our industrial, governmental and military customers," KBR Chairman and Chief Executive Bill Utt said in a statement.

Halliburton welcomed the separation too, which allows it to focus on its profitable oilfield services operations and distance itself from KBR's military support services in Iraq and elsewhere. Analysts have said KBR, with its lower profit margins, has been a drag on Halliburton earnings.

The two companies have been magnets for criticism because of KBR's more than $19 billion in Pentagon contracts to be the sole provider of food and shelter services to the military in Iraq and Afghanistan. Democrats in Congress have claimed KBR benefited from ties to Vice President Dick Cheney, who once led Halliburton.

In its earnings report, KBR said first-quarter operating income at its government and infrastructure arm rose to $55 million from $52 million a year earlier, due primarily to increased income in Iraq.

Operating income at its energy and chemicals division fell sharply to $13 million from $44 million in the first quarter of 2006. KBR attributed the decline largely to a $20 million charge related to a joint venture in Algeria.

The company also said while it incurred no charges in the most recent quarter for a joint venture to build a gas-to-liquids project in Escravos, Nigeria, it identified an additional $63 million in projected cost increases. The Nigerian project already has been a drag on earnings in previous quarters because of delays and cost increases.

KBR said all parties involved "continue to have an active and ongoing discussion to find an optimal way to execute the project."

Shares of KBR rose two cents to $22.30 in morning trading.

'UAE stands in support of Iraq'


IANS Friday 4th May, 2007

The UAE has reiterated its unequivocal stance in support of the Iraqi government and people in their effort to build 'stable, unified, fully independent and prosperous Iraq,' Emirates news agency WAM reported.

'The UAE stands strongly for respecting Iraq's territorial integrity and non-interference in its internal affairs,' UAE Minister of Governmental Sector Development Sultan Al Mansoori told an international conference on Iraq currently in session in this Red Sea resort.

Delivering the UAE statement to the conference, which brings together delegates from over 60 countries, Al Mansoori said the UAE was hopeful that the conference would facilitate the restoration of security and stability to Iraq.

'This meeting is convened at a tough time for the Iraqi Government and people who are in dire need of the support of the international community to overcome their present ordeal,' the Minister said.

Al Mansoori urged the international community to gear up support for institutional building and reconstruction efforts. The world community, he stressed, is duty bound to help Iraq rebuild its social structure on the principles of law and liberty.

He reaffirmed that the UAE will spare no effort in helping Iraq overcome its present sufferings and realize stability and prosperity.