US Senate approves financial package for rebuilding Iraq

The US Senate has given final congressional approval to President George W. Bush's request for $87

The US Senate has given final congressional approval to President George W. Bush's request for $87.5 billion to help finance the occupation and reconstruction of Iraq.

Congress sent Mr Bush the bill - which gives him almost everything he sought to fund operations in Iraq and Afghanistan through much of next year - the day after 16 US soldiers were killed when guerrillas shot down their Chinook helicopter near Falluja.

The vote ends weeks of bitter debate and a near rebellion among some of Mr Bush's fellow Republicans who felt Iraq should repay part of the aid with its oil revenues.

Bowing to Mr Bush, however, lawmakers provided all of the nearly $20 billion reconstruction money as a no-strings grant, although a number of Republicans joined Democrats in advocating that at least half of the rebuilding money be in the form of loans.

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The White House had threatened to veto the entire bill if it required any repayment, arguing that would undermine efforts to stabilise Iraq.

Bush said in a statement that the bill's passage "underscores that America and the world are united to prevail in the central front in the war on terror by helping build a peaceful, democratic, and prosperous Iraq."

He said the United States was "being tested" by forces who "want America and its coalition partners to run so the terrorists can reclaim control".

The House of Representatives on Friday had overwhelmingly passed the final bill with $64.7 billion for US troops in Iraq and Afghanistan and $18.6 billion to rebuild Iraq.

This follows on $79 billion Congress approved in April mostly for Iraq and Afghanistan operations.

Several Democrats used Senate debate to charge that Mr Bush had entangled the nation in an ill-conceived, costly conflict, as polls showed growing public doubts about the wisdom of the war.

Senator Robert Byrd of West Virginia called the bill "a monument to failure" that contradicted White House assurances last spring that Iraq would finance most of its rebuilding.

Senator Richard Durbin of Illinois said the rising US death toll showed Mr Bush should have enlisted more international help.

While the final bill tracked Mr Bush's plan, lawmakers boosted aid to Afghanistan to $1.2 billion from Bush's $800 million, expanded health benefits for National Guard and Reserves, included $245 million for peacekeeping in Liberia, and an extra $500 million in U.S. disaster relief after deadly wildfires in Southern California.