katlaughing,

You asked me to provide some sites to support the contention that US aid must be spent in the US - go to Google and call up USAID. I have also pasted in part of an article on the likely subjects to be discussed by George Bush and Tony Blair today at Camp David. The BBC mention USAID and the fact that existing rules would be changed if Iraqi oil revenues (not US money) are used to fund the work.

From BBC:

"Post-war contracts

One issue which has already provoked tensions between Britain and the United States is the handing out of contracts to American companies for the initial rebuilding phase.

This is being handled by the US Agency for International Development.

Naturally it turns to American contractors to give contracts paid for with American money.

The British company P&O has just lost out on a contract to run the port of Umm Qasr to an American firm.

After pressure from London, the US government has now said that the rules are being chnaged and that the British will be included in future bidding.for contracts.

Who will pay in the longer term is not so clear.

The US Secretary of State, Colin Powell, said: "We're going to use the assets of the people of Iraq, especially their oil assets, to benefit their people."

That implies that future contracts will be paid for out of oil revenues.

And the British will expect some of the action in peace since they have taken their share of the action in war."