Thread: Archive Latest News - Dinar Think Tank - 27/08/08 - 15/01/09

Impact of new US President on Iraq and Middle East

After five years of US invasion to Iraq, the country is still unstable despite security improvement. Yet, rows are taking grip of a vital security agreement that would allow for US Forces to stay in Iraq for another three years. While Obama and McCain stress the necessity to draw down US troops in Iraq, Obama favors a timetable to withdraw US Forces from the country by mid 2010. However, McCain opposes any timetable for US troops’ pullout from Iraq.

On the other hand, Iraqis insistence on their stand might lead McCain to accept a three years timeline approved by Bush Administration in principal. Yet, Obama might find it difficult as well to commit to his vows of withdrawing US combat troops from Iraq by mid 2010 if Iraq slips anew into turmoil.

As for Iran, Iran nuclear aspirations and regional influence have largely expanded, thus it became alarming to US vital national inserts while all attempts failed to isolate Iran and UN sanctions did not curb Tehran from pursing its nuclear activities. On the sideline of elections, Iran called on the US to seriously reevaluate its standing in the region during the last eight years while Iranian Foreign Minister called it as an urgent demand from the US Government.

On the Palestinian level, almost a year after President Bush re-launched Israeli-Palestinian peace negotiations in Annapolis, talks between Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas failed to settle the crisis of borders, refugees and Al Quds.

Meanwhile, Israeli settlement expansion in the West Bank has sapped chances to establish two States while Palestinian rows blocked way to any agreement.

Both Obama and McCain endorse Israel and pledge to engage intensely in the Middle East peace process unlike Bush’s policy of indirect interference.

The Palestinian President hoped the next US President would achieve a greater success in comparison to his successors regarding the peace process affirming that Palestinians are willing to cooperate with the new President regardless of his identity. As for outgoing Israeli Prime Minister Ehud Olmert, he said that the next President whether Obama or McCain will be Israel’s friend calling to pursue negotiations with Palestinians and Syria.

In regards to Syria, the recent US raid on Syria against gunmen smugglers into Iraq has proved that the Bush Administration is still critical of Damascus though US endeavors to isolate Syria have weakened when French President Nicolas Sarkozy and EU Representative for Foreign Policy Affairs Jafier Solana visited Syria the last two months. Syria is still considered as the ally of Iran and movements such Hezbollah and Hamas while Syrian indirect talks with Israel last year have shown its interest in a peace agreement that requires strong US support to be achieved. Unlike McCain, Obama supports dialogue with Syria saying that it might help restore stability in the region and ascertain security in Israel.

http://www.alsumaria.tv/en/Iraq-News...ddle-East.html

Iraqis gloomy about US elections results

While millions of American voters are casting their ballots in favor of one of the US presidential candidates, Iraqi citizens are not optimistic about the results of US elections as they believe these elections will not change the US strategy in Iraq.

http://www.alsumaria.tv/en/Iraq-News...s-results.html

Proceedings of the long table economic: impact of global financial crisis in future of Iraqi economy

This is really long, so I have picked out bits. Full version follow the link.

Dialogue in a hot red hall in Al-Mansour Hotel Meliá table conference in the long focused on the economic (impact of the global financial crisis in the future of the Iraqi economy) with a crowd of experts, researchers and specialists on fiscal policy and monetary issues, investment and a large number of businessmen and workers in the sector Banking ..

Provide the appearance of Dr. Mohamed Salih, adviser to the Iraqi central bank paper which pointed to Maictnf monetary policy difficulties in Iraq, which is a component of the public budget constraint on monetary policy and monetary policy is a restriction on the public budget and the relationship and thus acquired must be approved between monetary policy and fiscal policy. . He also had the appearance: As everyone knows that the oil resources constitute 95% of the general budget and so the listener to understand what is taking place, the budget last year which was designed on the basis that a barrel of oil equivalent of $ 57 .. This is a precautionary large part designed as income on that basis if there was a surplus in the supplementary budget .. Almost identical to the current year budget, but the deterioration of oil prices make Inattv thinking in another direction .. The current budget has been corrected ten times with lower oil prices .. Meaning that the budget fluctuate as the volatility of the world, and the process of preparing a difficult process in Iraq and I appreciate the suffering of Rasim budget difficulties in the light of oil price fluctuations .. This budget by the cost of fixed and variable costs .. Fixed cost: It is difficult to destabilize it contains the salaries and wages with the ration card allocations and the amounts of aid .. The move is the cost of changing .. He pointed out that the appearance of Dr. International Monetary Fund is expected to range price of a barrel of oil without (70) dollars because of high demand in Asia and the countries that are harvested more than 75% of the growth rates in the world, such as emerging industrial countries so this is a safety valve for the continued sustainability of demand Oil .. And the general budget based on the region's reference crude basket price of Iraqi oil and lower the region's reference crude price of some of the reasons of course, so the oil barrel price will be determined between the possible 62 to $ 65 for the preparation of the budget .. And he said. The appearance that he believed that .. Unless there are extraordinary collapse in the world - Iraq and the current situation will not be affected by the scope of the financial situation because it has a financial surplus .. If committed to the budget without additions, everything will go well .. Regarding the impact of the crisis in monetary policy, said Dr. appearance: under the financial policy of monetary policy significantly .. Inflation created the financial policy of demand-side .. Mutual relationship .. Oil revenue within the Development Fund for Iraq within 100% DFI and deduct 5% compensation by the war of Kuwait and this is part of the expenditure .. The Iraqi budget is determined as follows: 60% for local costs of 30% for imports in foreign currency government.

The impact of the crisis in the future of monetary policy

After 2004 the reserve was more than Iraq (2) billion dollars and became (4) billion .. Today the Central Bank reserves (40) billion dollars and these cover more than 12 months for import of a universally accepted period of time .. Part of the stability in the balance of payments and external stability is part of the foreign reserves .. These reserves acquired with the budget 100% in Singapore, for example, do not come from the foreign reserves of financial policy, but comes from foreign capital flows ..etc

But it is different in Iraq, where (people Kaadp Bhoudn people) that the Government is considering to reserves as allocations back to them - if the government did not come to these reserves is not it - but it was due to the people .. The Ministry of Finance with the process of financing the Iraqi dinar conversion of foreign currency assets (DFI) to the ID, where up to take the process of settling foreign assets and give IQD Vihol dollar, which we take account budget (Finance Ministry's account in DFI) account to another account reserves Foreign to the DFI also .. In this way - to cover the expenses of Interior - have accumulated large reserves .. Monetary policy based on the size of these reserves .. According to the Central Bank Act No. 56 of 2004 that the number one goal is to achieve economic stability and fight inflation and thus part of the autonomy granted by the Central Bank of Iraq under the Parliament of the Republic of Iraq's new constitution .. Granting the central bank governor and his board independence .. Not receive orders from the Government and lend the government and check accounts via externally audited, whether the Office of Financial Supervision or external auditors in accordance with international standards ..

These three elements about government interference in monetary policy, but the central bank accountable to Parliament .. Is monetary policy has achieved its objectives? .. We are facing a dilemma in the face of inflation .. How to choose effects of inflation caused by demand? We are responsible for the inflation caused by demand in order to restore market balance of cash .. Which happened was that the monetary policy adopted nominal installed .. The installer nominal inflationary expectations .. The most serious inflation is inflationary expectations .. These inflationary expectations and inflation caused us born on the size of inertia .. Any sign of inflation is turning into reality, because the expectations match reality for the future, and so we have lived since the beginning of the siege to God .. Therefore, we must break the cycle of inflationary expectations things real .. When we examine the dinar to the reserves .. We found that the theory of purchasing power taking into consideration the new terms of trade .. The terms of trade with the world in Iraq, is in the interest of Iraq .. With the increasing oil prices and the existence of inflation in the world .. In the outcome there is a small surplus in the balance of payments during these years .. Our studies found that the real interest rate on the nominal interest rate monetary policy adopted at the top and is therefore part of the inflationary pressures could be absorbed by raising real interest rates to nominal interest rates .. This difference was consistently 25% is why we have to improve the value of Iraqi dinar in the last two years nearly 22% of the dinar improved in 2003 to the present time about 42% this improvement will vary in its impact on economic life as not only changing ..

There is imported inflation - the global food crisis - all within this effect .. How determined exchange rate and success in that and how is the continued improvement in the Iraqi dinar exchange rate through the installer nominal inflationary expectations through the exchange rate? This continuity depend on two factors - the first is the development of Iraq's international reserves and the second development trends in inflation and if the international reserves are sufficient and fair balance of payments with no risk can improve the value of the dinar, and if inflationary pressures were at a high level it is different .. Therefore, we are bound by these workers .. He pointed to the appearance of Dr. relics of the financial crisis on monetary policy: first: the decline in oil prices is under budget and under the income of foreign currency Iraqi dinar .. However, the fall in food prices in the world by the positive .. Second: Where are our foreign currency? Come from the budget expenditures .. If budget expenditures fell, landed resources .. Cash Block is at the request and not constructive to offer .. Asked pegged production (mainly the production of oil base) .. If the budget is determined to lower expenses, it means that what comes from the reserves be less .. This affects the Central Bank reserves, but do not forget that cash flow generated by the demand for money and therefore would be less pressure on the central bank to buy foreign currency will be less food bill and the bill has serious pressure on the foreign currency auction .. Since the founding of the auction since 15/10/2003 until this hour, the central bank sold 60 billion dollars .. Reference exchange rate to restore the balance in the money market .. If the demand for money is part of the surplus in this market causing inflationary pressures and therefore absorb part of the attractiveness of the Iraqi currency to be high external value .. You will see how it is the pressure on the central bank in this aspect, and this improves the function of the demand for cash and raise the function and thus the behavior of individuals to be growing criticism of Iraq and end the problems of dollarization to a certain extent, and can address any gap in cash from the reference task .. The reference rate is high globally and we Khvdhanaha to 15% .. Development can not move in Iraq, but soft loans, banks Ttollagha specialist .. As a central bank supporters of this thing .. And the general budget of the State must restructure their support for the benefit of development and production .. I think the paragraph in the investment law says that the State should provide easy loans for development .. I invite the Investment Authority to accept the view of the Iraqi Central Bank to transfer credit from banks to specialist loans and easy credit support from the public budget ..

The left monetary policy measures without linking interest rates to stop the process in economic activity, this talk is exaggerated in many symposiums cheap and this is not meaningless, does not believe that the development of trade based on borrowing: commercial borrowing may be required capital for the operation of the challenged We have plants operating and infrastructure and technology are available .. We start from scratch .. Look at the banks that there are 29 trillion Iraqi dinars of the deposits .. Trliuna of which 17 are in government deposits must be spent on reconstruction and therefore are not deposits of the secretariats of false and therefore did not fall within the definition of money supply (currency in circulation plus current deposits to the public) and not government deposits .. The central bank's decision was the right decision until a mandatory reserve on the government deposits 75% until the government acted to banks Taatke it ... In the global financial crisis of present borders .. If maintained on the international market rate of $ 65 we are in a very secure and this reflects in 2009 because we have good reserves of rationality and rationalization, however, we will be in a comfortable position ..

Monetary policy to respond with financial policy as it came to harmony between them and the Iraqi dinar will be stable, God willing, and Omar cash politicians were not surprises to the public and I see the future as a prosperous, God willing, I am very optimistic future of this country.
Future investment in the crisis

http://www.almadapaper.com/paper.php...page&sid=54157

Just wanted to add a bit more....

There is a link between government investment and private investment in two cases: the first expansion in government investments in the economies of countries limited opportunities would lead to crowding out private investment opportunities in the private sector find the feasibility or economic profit .. The second: the weak government investments in the economies needed investments in infrastructure will lead to reluctance of the private sector to engage in certain areas due to poor investment in infrastructure .. I think that is the second case would apply to the Iraqi economy and the deterioration of the situation by virtue of the large investment gap in the Iraqi economy .. The impact of the crisis in private investment, said Professor Mazen: It is known that the Iraqi Stock Exchange will not be affected by the crisis because of the limited volume of total market within the first and limited the circulation of foreign .. I think that this crisis can be Hafra of the Iraqi economy that we governance procedures to anticipate and prepare for any emergency .. We believe that the impact of the crisis in the future flow of investments and attract the legal climate is regulated business in Iraq .. We expect to be affected direct investment in the Iraqi economy in two cases: reduced government investment will lead to a slowdown in the construction of infrastructure .. The other hand, many investors, especially from countries directly affected by the crisis will find great difficulty in obtaining funding .. We believe that many investors think a serious investment in the transition from indirect to direct investment on the grounds that the process of building confidence in the markets of the United States and Europe will need some time .. They would look for other countries and economies affected, directly or degree considerable Iraq crisis may be one of them, but that is how to create the conditions and complete the legislative environment governing the business sector once the security and political tensions .. We must use this crisis Vnad appropriate climate to attract investors.


....Mr. Ghazi al-Kinani, representative of the Federation of Businessmen said: should be reconsidered in the public budget and transfers in some doors (to quote) .. Is necessary to activate the real economy and put an end to dumping policy .. And stimulate private industry .. In agriculture should pay attention to the strategic agricultural crops .. There should be harmony between fiscal and monetary policies .. Then spoke on behalf of economic researcher Antoine stock on the history of the crisis and the merits and then said: that the value of the stock market in the Iraq Stock Exchange is not a 2 or 3% of the value of Mjodath .. Where the shares are sold (Albbsi Cola) shares the sense dinar dollar .. The value of shares Hotel Babylon 15 dinars and the real value of assets of not less than 300 dinars .. The Iraqi market for securities remained active despite the deteriorating financial situation and should be supported because of this market downturn, which has been ..

http://www.almadapaper.com/paper.php...page&sid=54157

Bit more. This is fascinating, just very long....

.......He then asked Dr. Hisham Amr, a researcher at the Center for the Study of Mustansiriya, saying: May the Central Bank will strengthen its policy of the Iraqi dinar exchange rate? Is the central bank continues to make the exchange rate of one Iraqi dinar to one or 100 one? And the remaining number of Iraqi debt? .. And Dr. Ahmed Al Wazzan Chairman of the Economics Department at Mustansiriya University, said: This is a question relating to the Iraqi mind programming designed to the International Monetary Fund and World Bank, which are (imperial), a political views does not concern us .. Adding that the looting we have the will to control the resources and we must support the control of private sector resources and spoiled .. And corruption component repair facilities you do not quite acceptable to corruption .. The need to reform the corruption level in a long time changing cultures and values relating to moral character and behavior of individual people .. The investment needed is a savior to the request .. He pointed out that Wazzan (treasure), but he handled the crisis and the involvement of Americans believe that the cause of the economic misfortunes suffered by his call for state intervention ..

Then Dr. Sattar Jabbar al-Bayati researcher at the Center for the Study of Mustansiriya, said: The psychological factor mentioned by the director, professor Symposium Mohammad Sharif Abu Meysam played a major role in the economy, with expectations as the psychological factors affecting, what happened in Egypt at the beginning of the global financial crisis Was due to psychological factors and this is what happened later in the Gulf capital markets, and asked Al-Bayati said: Are trade-off between direct investment and indirect investment? .. The Al-Bayati said: that referred to (brother Abu Meysam) on the economy based on the figures is the fact refers to the economy, where the much better on the real economy and this problem is one of the most important issues that have invited the (Ramzi Zaki) for a book itself capital renewed .. Where the economy is shifting from symbolic to the real economy, some economists attribute to this crisis (big difference) between the real and symbolic .. And Dr. Mona al-Musawi, director of the market studies and consumer protection, said: Unfortunately, we did not find any government institution tried to take their role to discuss the repercussions of the global financial crisis on the future of the Iraqi economy .. This crisis was of great importance to the study of many Arab countries, we first study the impact of the withdrawal of the Iraqi capital markets, which pulled the effects of the crisis and whether there is a possibility of return of capital from abroad? .. "Said Dr. Mona: The heavily on the threshold of national investment, as bodies with the provinces (Cap-large), some bodies in the provinces is still incomplete .. There was a great desire for the bodies in the provinces to meet the National Authority for investment, there is no strong relationship between the bodies, how we do the investment law, if the bodies are not coordinated and have not qualified? .. Then the economic expert, Dr. Majid said the picture: The whole world crisis over extremism after the Second World War, where the extremism and totalitarian liberal .. The theme is the basis of extremism in the absence of global balance .. The image, describing the financial crisis that occurred as a crisis of extremism in the market economy .. Among the most prominent features of speculation the crisis in financial markets .. He drew the picture to a market economy is the economy of supply and demand, but the economy is the American market economy and speculation extremism .. He warned that we live in Iraq, all these crises, notably the crisis of lack of clarity in economic policy that can serve the Iraqi economy .. He explained that operating expenses have increased since 2006 to the year 2009 as planned, it had more than doubled, while the expenditures are expenses of investment services in the crisis surrounding the administration.

Responses to interventions
And then answered the appearance of Dr. Mohammed Saleh to the questions and interventions attendance, said: This is the time chart by a clear vision of the Iraqi economy .. All that was said in the interventions is right and I have no objection on something .. It is dangerous to give cautious outlook and alternatives on such a sensitive subject .. We are constrained by foreign reserves of the Central Bank and are bound by the Central Bank in order to achieve stability and work in this area .. And my pledge to achieving stability in the Iraqi economy and within the available and possible .. There are inherent between us and the public budget ..

If the budget surplus and 60% of the surplus comes international reserves of the Central Bank and turn to spend in the market and put pressure on the operating budget, we take advantage of this part in the fight against this section, any points we Twaznip .. We have a restriction on the state budget (all the growth in the value of Iraqi dinar 1% Aloiznp cost to the public 400 to $ 450 million of that (restricting) part of the budget expenditures and Holnaha market .. became part of the reform and the reform has cost it leads to stability .. Even if the support (some support conducive to stability and some of it does not do so) .. point gap in the international economic system is called (Washington Consensus), which established the system of liberal capitalism and the new three axes: the privatization and liberalization of controls and regulations and, most importantly Is the (small) and thus far, not being (socialist) and not (Knzip intrusive) in the new institutional the intellectual enterprise market and there is a State enterprise (the institution of the state where the law framed and increase the efficiency of market institutions and policies if the State is a non-efficient market Efficient .. there is a difference between classic and new Alknzip .. After a refined and length of the appearance of Dr. responded representative of the National Investment for interventions in attendance, among other things, addressed his decision to clarify the confusion on the mechanics of the investment law, he said: With regard to the investment law instructions: Legal Service, the National Board for Investment completed instructions to facilitate the implementation of the law since last April is so far in the Council of Ministers for information and expressing opinions, and therefore ratified .. As you know, the law does not include the investment of public enterprises .. and we were able to get the approval of the Legal Service Office of the Prime Minister to: a specific mechanism through which the coverage of firms that invest public companies affiliated to the Ministry of Industry Investment Act - which would include the Privileges investment law is the private sector or mixed sector in which to invest in the company - the company benefited Term the private sector or mixed law privileges .

http://www.almadapaper.com/paper.php...page&sid=54157

Parliamentary debate on the law excludes oil and gas during this period

Exclusion of a member of the Committee on oil and gas Osama Najifi discuss oil and gas law in the new parliament during a period of 15 days.

The Najifi newspaper Asharq al-Awsat that the oil and gas law arrived in the House of Representatives through the cabinet without the approval or even consent.

A member of the Commission on oil and gas that the new law authorized the regions and governorates to negotiate with the companies only after the initial agreement will be sent in its initial contract, the Federal Council of oil and gas for consideration and has the right to reject or accept the contract.

Stressing that there is no provision in the new law gives the right of the regions and governorates where there are oil wells for agreements with international companies.

http://66.102.9.104/translate_c?hl=e...4fhIQuL9zdFxYA

Shell is considering the use of floating terminals to ship gas in Egypt and Iraq

Said a senior ****utive of Royal Dutch Shell today, Wednesday, the company was considering the use of floating terminals to ship liquefied natural gas in Egypt and Iraq.

Said John Mills, ****utive Vice President for Shell Gas and Power in North Africa and the Middle East and South Asia that each of these ports will be able to export two million tonnes per year of liquefied natural gas. Mills was speaking to reporters at an energy conference in Abu Dhabi.

Shell has signed a preliminary agreement worth billions of dollars with Iraq last month to collect the gas is being disposed of through combustion of oil production.

The gas will be used to supply power stations and export part of it in the form of liquefied natural gas through Basra, the main port for the export of crude oil. This will be the first port for the export of liquefied gas in Iraq. Mills said that Shell was also studying the use of floating gas port to export liquefied gas produced from gas field in Western Australia. He added that this may be the largest port and has a capacity of five million tons annually.

Meanwhile, Mills, the giant Pearl GTL in Qatar will be completed as scheduled at the end of 2010. This project is the largest foreign investment and Shell will be the largest project of its kind in the world.

The rise in expenditures to the arrival of the project cost to around 18 billion dollars, compared with the original budget estimates which amounted to around five billion dollars.

Mills said that the floating storage terminal being built for imports of liquefied gas in the United Arab Emirates also in the process of completion of the end of 2010.

Shell will enter into a partnership with Qatar to import gas to liquefied natural gas during periods of peak demand in the summer of Dubai and UAE to supply up to 1.5 million tons annually.

http://66.102.9.104/translate_c?hl=e...l1RW3JdHCBMn0Q

Troop reductions coming in Iraq, military officials say

The U.S. military will reduce the number of troops in Iraq this month as violence has dropped and Iraqi security forces have shown vast improvements, senior military officials said Wednesday.

An Iraqi child waves to a U.S. soldier Wednesday in Mosul, 225 miles northwest of Baghdad, Iraq.

The military said it is sending home two brigades and not replacing one of them this month, dropping the number of brigades in Iraq from 15 to 14. A brigade has about 3,000 troops.

There are currently about 152,000 U.S. troops in Iraq.

The 2nd Brigade of the 101st Airborne Division was scheduled to leave Iraq in February, but a late November departure will cut short by two months its 15-month tour.

The second unit, the 3rd Brigade of the 101st, is scheduled to leave this month and will not be replaced, according to Pentagon officials.

Army officials said several other units will be returning early because of positive security situations on the ground in Iraq. However, plans are to eventually replace those units, they said.

Early departures and not replacing forces could be the start of a trend that could allow President-elect Barack Obama to fulfill his campaign pledge to reduce the number of combat brigades in Iraq by roughly one a month in his first 16 months in office.

Meanwhile Wednesday, a suicide bomber drove a minibus packed with explosives into a police checkpoint on the road that leads to Baghdad's airport, killing six people, an Interior ministry official said. The explosion happened about 5:30 p.m. (9:30 a.m. ET) just a few kilometers from Baghdad International Airport.

Those killed included two police officers. Another 12 were wounded, including three national police officers, the official said.

The road leading to Baghdad's airport used to be a hotbed of insurgents attacks, but security has improved over the past year.

http://pukmedia.com/english/index.ph...=7412&Itemid=1

Iraqi MP says oil law could pass by year end

Iraq's parliament could pass a long overdue federal oil law by the end of 2008, but other laws needed to get Iraq's energy production on track would have to wait until 2009, said the vice chairman of the legislature's oil and gas committee on Wednesday.

Speaking on the sidelines of a Houston energy conference Abdulhadi Al-Hassani said the law must unite all of Iraq, including the northern Kurdish region, disputes with which have held up the law's passage since February 2007.

"We want to build one people," Al-Hassani said. "We want to build one nation. We want this law to unite us. We can pass the oil law in the year, within in 2008."

Iraq's oil and natural gas industry also needs laws to govern a national oil company, which would partner with international companies, as well as laws on the distribution of revenues among Iraq's regions.

Passage of the oil law is being held up on the question of combining with the laws on a national oil company and revenue distribution, he said.

"They insist on passing the laws together, we have to do it one-by-one," Al-Hassani said.

Other news reports have cited disputes over contracts the Kurdish government has signed with oil companies.

The lack of a federal oil law is seen holding up Iraq's development of its reserves beyond current production of 2.5 million barrels per day.

To get around the lack of an oil law, the Iraqi government is in talks for individual contracts with foreign oil companies, including majors like Royal Dutch Shell Plc said Hamid Al Bayati, Iraq's ambassador to the United Nations.
As many as 115 companies are vying to develop Iraq's reserves, Iraqi officials have said.

Iraq hopes to expand the country's oil output to 4 million barrels per day within two to three years, Al Bayati said.

"The potential is up to 6 million, even 8 million, even 10 million barrels," he said.

Building an infrastructure to produce the maximum amount possible from Iraq's 115 billion barrels in proven reserves could cost $100 billion, Al Bayati said.

Iraqi MP says oil law could pass by year end | Markets | Markets News | Reuters

Barzani fuels bases row

Iraqi President Jalal Talabani has said that American troops can set up bases in northern Iraq's Kurdish region only if the Shiite-led government in Baghdad gives its approval.

"It is not possible for US troops to stay in Kurdistan without the approval of the central government," he said.

His remarks came after Massud Barzani, president of the northern Kurdish administration of Iraq, said on a visit to Washington that the US military could have bases in the north if Washington and Baghdad failed to sign a security deal.

Barzani has strongly backed the controversial deal, but its signing was delayed after the Iraqi cabinet decided to seek changes in the latest draft of the agreement.

Anti-American Shi'ite cleric Moqtada Al Sadr's group also criticised Barzani over his comments. The US will give its formal answer to proposed Iraqi amendments to a controversial bilateral security accord in the coming days.

The draft pact says US forces will withdraw from towns and neighbourhoods by the end of June next year and from the whole country by the end of 2011, but has drawn fierce opposition in Iraq on national sovereignty concerns.

The new row over bases was highlighted as a string of bombings killed 10 people and wounded at least 39 others yesterday, including a senior Oil Ministry official.

Six people died when two bombs exploded in Tahariyat square in central Baghdad. Abdul-Sahib Salman Qutub, a senior undersecretary in the Oil Ministry suffered minor injuries. Another bomb exploded around noon near a police patrol in west Baghdad, injuring one policeman and a civilian, while another officer died and six others were wounded when their patrol hit a roadside bomb in east Baghdad. In Baquba, some 60km northeast of the capital, a car bomb exploded in a parking lot killing two policemen and a 10-year-old girl. Nine others - three of them policemen - were wounded.

In a related development, Prime Minister Nouri Al Maliki yesterday pledged to protect the Christian minority, which has faced a spate of attacks last month in Mosul, 360km northwest of Baghdad.

Iraq's parliament voted yesterday to guarantee religious minorities seats on provincial councils to be selected next year, but drew ire from some politicians who said greater safeguards for fragile groups were needed. The measure, passed by 106 out of 150 lawmakers present, gives six out of 440 provincial council seats nationwide to Christians, Yazidis and other religious and ethnic groups who are a small part of Iraq's 28-million, mainly Muslim, population.
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http://www.gulf-daily-news.com/Story...&IssueID=31229