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IRAQ: East Europe Looks for its Dollar of Flesh
By Ed Holt and Martina Pisarova

BRATISLAVA, May 1 (IPS) - As the U.S. and Britain look to the spoils of the war in Iraq, some of the countries which backed the coalition campaign against Saddam Hussein's regime are looking for their chance to bid for rebuilding contracts.

Many leaders in central and eastern Europe who openly supported the military action in Iraq without a United Nations mandate, now expect reward for that support.

President George W. Bush has promised some leaders money, and a role in helping rebuild Iraq. But some analysts say a stronger relationship with the U.S. will be prized as much as opportunities in reconstruction.

"The question of support was not a matter of calculation," says Alexander Duleba, foreign policy expert at the Slovak Foreign Policy Association. "That would be a very superficial position to take. Whether or not there will be a couple of million dollars for backing the action against Iraq, or whether firms from these countries get some reconstruction contracts in Iraq were a long way down the list of reasons such a stance was taken."

The countries of central Europe, such as Slovakia, acted in their national interest "because as small countries with a (communist) past they are more vulnerable than the world's superpowers," he said. "It is in their interest to be a part of strong organisations, including the EU (European Union) and NATO (North Atlantic Treaty Organisation)."

Ten central and east European states officially backed the U.S.-led military action in Iraq, some providing logistic and military support by opening airspace and allowing U.S. troops to use their airbases.

During the conflict President Bush promised money for those countries, including Slovakia, which had supported the U.S. In a meeting with Slovak President Rudolf Schuster in Washington April 9, Bush told Schuster that Slovakia would have a role to play in rebuilding Iraq.

Slovakia was allocated six million dollars for its support. Slovak firms are now hoping to bid as suppliers to some of the larger international firms which will win contracts to help reconstruct Iraq in the coming months and possibly years.

Other countries in the region are following suit. About 500 Polish companies have expressed an interest in public works and oil industry contracts. Some Polish firms want to get back more than 700 million dollars owed to them from motorway construction in Iraq in the 1980s.

Romania wants its pre-Gulf War debts of 1.7 billion dollars paid back. The Czech Republic is hoping for contracts to equip the Iraqi army and police force, drawing on its experience of modernising its own Soviet-era equipment.

The government in Slovakia has focussed on potential business for Slovak firms. The Slovak Economy Ministry has said post-conflict contracts for reconstruction will be a good business opportunity for them. President Schuster has been quick to point out that any contracts would help reduce the 17 per cent unemployment.

"We can contribute with production and development of military systems in which we have good experience," Schuster told Bush. "A lot of jobs can thus be created in Slovakia."

Other analysts say the country's trade can be boosted by the reconstruction of Iraq. "Reconstruction is always a huge investment and export opportunity," says Milan Sikuta, head of the Institute of Slovak and World Economy at the Slovak Academy of Sciences.

But Prime Minister Mikulas Dzurinda will be looking also for less tangible rewards for his decision to back the U.S. on Iraq - a decision that went not only against a number of powerful states in the European Union, which Slovakia will join next year, but against the opinion of the majority of the country's five million people.

The U.S. is expected to recognise that. "Naturally the U.S. took note of Slovakia's position and appreciated it," says Duleba. "If countries share common positions in conflicts, it increases the ties between them."

The aspiring members from Eastern Europe were described as "primitive" by French President Jacques Chirac before the war for their support for the military action.

But their stand has almost certainly strengthened their hands in NATO, and may have speeded the resumption of dialogue between the U.S. and Europe. "From the U.S. point of view this stance shows them who are the allies they have in Europe," says Duleba. (END/2003)

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