US War With Iraq Could Cost up to US$200 bn: Report

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Last updated at: (Beijing Time) Tuesday, September 24, 2002

US War With Iraq Could Cost up to US$200 bn: Report

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A swift and successful US military attack against Iraq could cost as much as 60 billion US dollars but the figure could go up to as high as 200 billion dollars if follow-up expenditures and some other factors are taken into consideration, a US congressional report said Monday.

The report, prepared by Democrat members on the House of Representatives Budget Committee, is based on the assumption that the conflict lasts 30 to 60 days and involves 125,000 to 250,000 US troops facing weak opposition from Iraqi forces and no chemicalor biological weapons.

Under such conditions, the strike would cost 31 billion to 60 billion dollars but the figures could rise to 48 billion to 93 billion dollars if interest costs are included, the report said.

However, the estimates only cover the initial military stage ofthe conflict and did not include the costs of an extended US occupation or other nonmilitary spending.

"When all of the other costs that would be incurred -- humanitarian assistance to refugees, reconstruction assistance, foreign assistance to obtain cooperation for US military action and interest costs due to increased borrowing to finance these other costs -- are considered, the total would easily exceed 100 billion dollars," the report said.

"And if the war has an adverse impact on the US or global economy, or proves more difficult and lengthier than assumed, 200 billion dollars may unfortunately prove to be a reasonable estimate," it added.

Lawrence Lindsey, top economic adviser for President George W. Bush, said last week that a cost for a war with Iraq could fall between 100 billion to 200 billion dollars.

But the Pentagon estimate is only 50 billion dollars, which is 10 billion dollars less than the cost in the 1991 Gulf War.

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