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Hill Says New Iraq Government Must Ramp Up Economy

By Nicole Gaouette

March 30 (Bloomberg) -- The next Iraqi government should focus on boosting economic growth in the oil-producing nation to generate more money for public services, the U.S. ambassador to Iraq said today.

“I want to see the economy pick up,” Ambassador Christopher Hill told reporters in Washington through a video link from Baghdad. “The last government did good things on oil resources. I want to see that continue.”

Hill said the U.S. has no favorite in the competition between Iraqi Prime Minister Nouri al-Maliki and former Prime Minister Ayad Allawi to build a governing coalition after this month’s parliamentary elections.

Al-Maliki appealed the results yesterday after Allawi finished with 91 seats to al-Maliki’s 89. Al-Maliki’s Shiite Muslim State of Law alliance asked the Supreme Court for a recount in Baghdad and the northern city of Mosul. A ruling may come in 10 days.

“You really do need to stay tuned,” Hill said. “The U.S. doesn’t have a favorite in this election. We are prepared to work with whoever emerges.”

Al-Maliki’s appeal comes as a vetting committee tried to have six winning candidates disqualified for their alleged ties to the outlawed Baath Party of former Iraqi leader Saddam Hussein. Four of the six are members of Allawi’s coalition, raising the prospect that Allawi could lose his two-seat edge, making al-Maliki’s the largest group.

‘Agony’ of Losing

Given the narrow margin between al-Maliki and Allawi, Hill said that a challenge about the results was to be expected. “It’s not fun to lose a close election,” Hill said. “I don’t think anyone should be too surprised about comments that reflect the agony of losing.”

Hill said he believes political bargaining will succeed and doesn’t see Iraq descending into the sort of deadly sectarian violence it experienced four years ago.

Al-Maliki has been “very clear” with the U.S. in public and private that he will obey the law and the final results, Hill said.

Allawi’s Iraqiya coalition “has 91 seats,” Hill said. “He needs at least another 70-plus seats if he’s going to form a government. His ability to do that depends on his ability to work with coalitions.”

Iraq’s parliament has 325 seats.

Al-Sadr Loyalists

Allawi, who leads a secular alliance, has held talks with the followers of the anti-U.S. cleric Moqtada al-Sadr who won 40 seats in the March 7 vote, “one of the surprises” of the election, Hill said. The Kurds, who backed al-Maliki in 2005, will play a decisive role in determining the formation of a coalition government, Hill said.

After the election results are settled, Hill said he expects the new Iraqi government to turn its attention to the country’s internal development and especially its economy.

“In the next four years, we’re going to see further development, especially in the economic arena,” Hill said.

The ambassador would also like to see Iraq work on reconciliation between Kurds and Arabs and reach out to its neighbors to “improve the overall atmosphere.”

He cautioned those who would interpret tensions over the election as a reflection of Iran’s involvement or its uneasy relationship with the U.S. “This is an election by and for the Iraqi people,” Hill said.

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