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US issues threat to Iraq's $50bn foreign reserves in military deal
Friday, 06 June 2008 00:30

The US is holding hostage some $50bn (£25bn) of Iraq's money in the 
Federal Reserve Bank of New York to pressure the Iraqi government into 
signing an agreement seen by many Iraqis as prolonging the US occupation 
indefinitely, according to information leaked to The Independent.

US negotiators are using the existence of $20bn in outstanding court 
judgments against Iraq in the US, to pressure their Iraqi counterparts 
into accepting the terms of the military deal, details of which were 
reported for the first time in this newspaper yesterday.

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