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          Germany to press Baker on Iraq contracts dispute
          ( 2003-12-16 16:15) (Agencies)

          Germany said Tuesday it hoped to use talks with U.S. special envoy James Baker to persuade the United States to drop its refusal to grant major rebuilding contracts in Iraq to countries that opposed the war there.

          But Defense Minister Peter Struck said the capture of Saddam Hussein would not prompt Berlin to offer to send troops to help stabilize Iraq.

          In an interview with Reuters, Struck made clear that the dramatic weekend arrest of Saddam would not magically dispel the differences between the United States and Germany, which strongly opposed the invasion of Iraq last March.

          Relations had improved since the war ended but "have certainly experienced a slight darkening" since the United States last week announced it was shutting out war opponents like Germany, France and Russia from bidding for prime contracts worth $18.6 billion in Iraq, he said.

          Asked if the U.S. move could be seen as revenge for that opposition, he said: "I can't judge that. But I don't consider this decision as smart."

          Struck said Germany would raise the issue in talks with Baker, who visits Europe this week to discuss debt relief for Iraq. Baker is due in Berlin Wednesday.

          "I hope the talks that James Baker will conduct in Berlin will bring a change in the stance of the U.S. government. I have no understanding for this position," he said.

          On German support for stabilizing Iraq, Struck said nothing had changed with Saddam's capture.

          "We have offered to train Iraqi police and military, if there is a wish for that. That's what Germany is offering in this area," he said. "It makes no sense now to speculate over any change of stance."

          Struck said Saddam's arrest should help calm the situation in Iraq by destroying any residual hopes of his supporters that he could seize back power.

          But he said the threat to Germany and Western countries from al Qaeda or its sympathizers remained undiminished, and attacks could never be ruled out.

           
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