The Guardian

London, February 26

Top-level lobbying by British ministers on a trip to Washington on behalf of UK companies trying to win work in Iraq has been rebuffed by White House officials.

The UK Trade Minister, Mike O’Brien, insisted at a reconstruction conference on Tuesday

that his visit had been successful, but well-placed sources argue differently.

Confidential papers seen by The Guardian show the United States national security adviser, Condoleezza Rice, phoned Tony Blair’s office to discuss the issue after she read a leak about the concerted lobbying in this newspaper on February 13.

But O’Brien and Tony Blair’s trade envoy, Brian Wilson, were told clearly there could be no

special efforts to help win deals for UK firms.

“The White House is sympathetic but officials there say they cannot intervene in a procurement process handled by the Pentagon,’’ said a source.

Briefing documents dated February 20 — before the trip to Washington — suggest Blair might raise the issue directly with President George Bush if there is no progress.

“Depending on the outcome of the minister’s visit, he (O’Brien) may want to recommend to

the prime minister that he raise this directly with President Bush,’’ according to documents marked “restricted’’.

The British government has become embarrassed about domestic firms’ failure to win a

big slice of the Iraq reconstruction contracts. Billions of dollars worth has gone to American companies such as Halliburton, which used to be headed by US vice-president Dick Cheney.

A new round of contracts come up early next month and the UK looks better placed, with stakes in 15 of the 17 bids being considered. But there is still acute nervousness.

O’Brien told a London gathering on rebuilding Iraq that 20 UK firms had already won deals, although he denied he had made the visit to Washington last week to plead Britain’s case.

The trip had been “to discuss transparency and a level playing field’’.

But the documents prepared ahead of that meeting make clear the true reason for the mission by O’Brien and Wilson.

Special guidance on how to handle media interest in the Washington trip argues: “The purpose of the visit is to lobby for UK contracts and if there are none offered, then the media would report on this negatively.’’