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     Apr 17, 2007
Page 2 of 3
Wolfowitz postings went to war backers

By Emad Mekay and Jim Lobe

member of the ruling right-wing ARENA party in El Salvador and effectively ran the country's economic policy from 1999 to 2004.

"He really was [then president Francisco] Flores' right-hand man," said Roberto Rubio, president of the Fundacion Nacional para Desarrollo in San Salvador, "and, as such, pursued the most orthodox economic policy in the country's history, closely tied to



US policies."

According to Rubio, he was also a frequent visitor to Washington, where he founded the Instituto America Libre to advocate free market policies. At a conference in Washington in 2005, he called on Washington to "act more aggressively on the problem of security that South American populists represent to the United States and to other Latin American countries that have not fallen into leftist hands yet."

Palacio, an outspoken supporter of the US invasion of Iraq, lost her position as foreign minister after the 2004 defeat of Aznar's Partido Popular in 2004. Before her appointment to the bank, she repeatedly denounced the decision of prime minister Jose Luis Rodriguez Zapatero to withdraw Spanish forces from Iraq and praised the persistence of both George W Bush and Prime Minister Tony Blair of Britain.

In an interview with the neo-conservative American Enterprise Institute's magazine, American Enterprise, in late 2005, she accused Zapatero of "plung[ing] Spain into Third World politics" by allying it more closely with France and Germany than with Britain and the US.

As Jordan's ambassador in Washington before the Gulf War and later as foreign minister, Muasher met with then-deputy defense secretary Wolfowitz on at least several occasions, according to the Pentagon's web site.

Despite King Abdullah II's public criticism of the war, Washington found a "willing" - if behind-the-scenes - ally in Muasher. While Jordan, like other Arab countries, did not send troops to Iraq, it quietly provided intelligence and other critical support for the US before and during the war. It has also helped train thousands of Iraqi security personnel and tightened control of its borders to prevent the infiltration of Sunni fighters after the war.

As deputy prime minister, Muashar was charged with implementing the country's "reform" agenda, a portfolio that required frequent contact with US officials, including former deputy assistant secretary of state for Near East and South Asian Affairs Elizabeth Cheney, the daughter of Vice President Dick Cheney, with whom Wolfowitz was closely allied during Bush's first term.

Washington increased its aid to Jordan by some US$300 million in 2003 to a total of $450 million. In 2006, it received $500 million split between economic and military assistance.

Jordan's benefits from the war included oil subsidies from Gulf States, substantial new US aid, a booming real estate sector and a growing Iraq-related trade and transport account - and, apparently, the appointment of Muasher to the World Bank's vice presidency.

"It's not at all surprising given Wolfowitz's actions so far within the bank and the Bush administration's propensity to reward allies and cronies," said Doug Hellinger, a veteran bank observer.

Wolfowitz's allies regroup
Wolfowitz is receiving new support from conservative politicians and right-wing publications that previously backed his notorious role as an architect of the war in Iraq, but missing from the regrouping attempts are answers to two important questions.

Why has Wolfowitz given his girlfriend such a large pay hike and favorable contract terms in spite of bank rules? And why has his office and staff attempted what appears to be a botched cover-up? So far no explanations have been given.

Further, and despite his own public admission of wrongdoing, Wolfowitz's friends now say he has not done wrong in the scandal over improper pay hikes to Riza.

Canadian Finance Minister Jim Flaherty spoke on Friday of a conversation he had with Wolfowitz: "I am satisfied, based on what he told me, that the process was followed."

The Bush administration, too, continued to air its support of Wolfowitz, despite the unprecedented media attention to the scandal and the many questions that remain unanswered.

Treasury Secretary Hank Paulson described Wolfowitz as a "dedicated public servant" and said he had "very high regard" for him.

Earlier, White House spokeswoman Dana Perino said that she expected Wolfowitz to remain president of the World Bank, one of the most important global economic institutions.

Wolfowitz is Bush's appointee. He served during Bush's first term in office as deputy secretary of defense and is best known as the ardent architect of the ill-fated US invasion of Iraq.

Right-wing publications that have previously backed Wolfowitz's crusade promoting the war on Iraq have also come to his aid, citing a new campaign he is leading.

David Frum, a fellow neo-conservative and a former presidential

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