IRAQ - Oct 13 - Donors Urged To Speed Up Funding.

At a donor's conference in Tokyo, a follow-up to the last year's Madrid meeting, the deputy PM Barham Salih urges donors to speed up funding for its reconstruction and step up pledges to forgive much of its $125 bn debt, saying faster project implementation is vital in the struggle against insurgency. He said: "Assistance and aid in the short term is the key to destroying the causes of terrorism. Development and stability in Iraq cannot be driven forward through the barrels of a gun". Salih criticised the UN for not providing enough support, saying: "We need more UN support and we need it now". Although donors pledged $14 bn in Madrid, the money has been slow to trickle through because of concerns about security, corruption and the legitimacy of the US-led occupation. The funding gap has been exacerbated by a recent US decision to transfer $3.3 bn earmarked for electricity and water projects to security operations. US Deputy State Secretary Richard Armitage, who was attending the two-day donors' conference, said the decision to shift funds had been necessary to improve security. He admitted it had left a funding "void" for infrastructure projects and urged donors to bring forward reconstruction plans, particularly in parts of Iraq where security was relatively good. Armitage acknowledged that the US had been slow to disburse funds in the run-up to handing over sovereignty last June. But he said $1 bn had been disbursed since then and US was committed to spending $400m a month from now on. On debt forgiveness, Armitage defended comments by US vice president Dick Cheney, saying that Iraq's creditors had forgiven $80 bn in debt, an estimate bigger than any publicly announced figure. He said creditors had promised "significant" reduction, though he conceded this might not mean the 95% that Washington had in mind. But if even half of the total were forgiven that would imply more than $60 bn, Armitage said. Salih said Iraq was escaping from 30 years of corruption and mismanagement. Planning Minister Mehdi Al Hafedh, said the government remained committed to holding nationwide elections in January in spite of widespread violence. Differences have emerged within the US administration as to whether elections can be held in all parts of Iraq, but Armitage said it was vital that no region was left out. "We wouldn't hold elections in the US without including California or Texas", he said. Japan, which is hosting the conference attended by 55 countries, pledged $40m to help stage elections.