BERLIN — U.S. special envoy James A. Baker III won German and French agreement Tuesday to work for Iraqi debt relief, overcoming serious misgivings in Berlin about the U.S. exclusion of German firms from Iraqi reconstruction.
"Germany and the United States, like France, are ready not only for debt restructuring but also for substantial debt forgiveness toward Iraq," German Chancellor Gerhard Schroeder's spokesman Bela Anda said in a statement.
The German statement indicated that the United States also was prepared to relieve some Iraq debt. However, statements from the White House earlier were noncommittal.
"That process is just beginning. We are looking at restructuring and reducing the debt," White House spokesman Scott McClellan told reporters in Washington. "We will keep you posted as we move forward."
Despite responding to Washington's call for debt relief, Schroeder expressed misgivings about the Pentagon's exclusion of German companies from Iraqi reconstruction contracts.
"Germany's position on the awarding of reconstruction contracts in Iraq was clearly expressed in the talks," Anda said.