Iraq Oil Deal Probed

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iht.com — Bush administration officials knew that a Texas oil company with close ties to President George W. Bush was planning to sign an oil deal with the regional Kurdistan government that runs counter to U.S. policy and undercuts Iraq's central government, a congressional committee has concluded. U.S. policy is to warn companies that they incur risks in signing contracts until Iraq passes an oil law and strengthens Iraq's central government. The Kurdistan deal, by ceding responsibility for writing contracts directly to a regional government, infuriated Iraqi officials. But documents show that State Department officials did nothing to discourage the deal and in some cases appeared to welcome it.

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