Martin Fletcher in Baghdad
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Iraq revoked the licence of one of the biggest American security companies in the country yesterday after eight civilians died in a gunfight in Baghdad.
The Interior Ministry said that it would prosecute any foreign contractors working for Blackwater USA found to have used excessive force, and suggested that it would expel hundreds of other employees.
The move would be resisted strenuously by the US Government, whose security arrangements will be thrown into chaos if Blackwater can no longer operate in Iraq. The company has lucrative State Department contracts to protect hundreds of US government officials and dignitaries, including Ryan Crocker, the US Ambassador.
Condoleezza Rice, the Secretary of State, planned to telephone Nouri al-Maliki, the Iraqi Prime Minister, to express regret for the deaths and promise an investigation to ensure there would be no repeat. Mr Maliki called the shootings a “crime”.

The shootout erupted after a car bomb exploded near a State Department convoy driving through the al-Yarmukh district shortly before 1pm on Sunday. The US embassy said the convoy was attacked by insurgents and its Blackwater security guards returned fire. Witnesses said there was a 20-minute gun battle which left eight civilians dead and thirteen injured. Iraqi officials said most were bystanders.
It was unclear last night whether private security contractors get the same immunity from prosecution as coalition soldiers. Iraqi officials insisted they did not, but orders issued by the Coalition Provisional Authority say they can only be prosecuted with the permission of their own Government.
There are scores of private security companies in Iraq, employing more than 30,000 well-paid, heavily armed ex-soldiers. They speed through crowded streets, forcing Iraqi vehicles off the road. That, and the propensity of some of them to shoot first and ask questions later, has angered Iraqis.
Blackwater is one of the biggest and most controversial of these security companies. In ten years it has grown into what one reporter called the “world’s most powerful mercenary army,” with more than 2,300 contractors in nine countries. Its fortunes took off after the 2003 invasion of Iraq when it was employed by Paul Bremner, the US proconsul. It is now thought to have about 1,000 contractors in Iraq, as well as a fleet of helicopters.
In March 2004 four contractors were captured by a mob in Fallujah, mutilated and hung from a bridge. The US military responded with a full-scale assault on the town.
In April 2005 six contractors were killed when their helicopter was shot down near Tikrit. In May this year a Blackwater guard shot dead an Iraqi driver who drove too close to a convoy. The same month a convoy was ambushed in central Baghdad, triggering a battle in which the contractors and US troops, backed by Apache helicopters, opened fire in a crowded area.
A State Department spokesman refused to discuss how the suspension of Blackwater’s operation in Iraq might affect its security regime there. There was no immediate comment from Blackwater.
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One question must be kept in mind, Why iraquis would be treated as terrorists when a foreign army is occupying their country for no good reason: No nuclear weapon, no terrorists arrested linked to 9/11, and where is the democracy?
Iraquis are killing each other in a civil war as u have to choose your side...it reminds me occupation of France in WW2 where "collaborators" and "resistants" killed each other
Romain, Lyon, France
In my limited US Special Forces involvement as a 22-year career soldier, I patterned my conducted based on the intelligence on hand and on the behavior of a nation's people. I have watched several Blackwater films where they were in fire fights and observed that their operatives were acting in the spirit and letter of doctrine concerning counter insurgent rules of engagement.
With the US Forces and its contractors not hamstrung by an uninformed legislative body politic (so far), operations in Iraq have a good opportunity NOT to turn into another Vietnam. Look at how low the military forces (from all foreign countries) numbers are from the dead.
Casey Harris, Sr., Sedona, Arizona
Its just the Iraqi government making noises. Nothingg will be done bcause the company is American. I wouldn't be surprised if the license is renewed next week.
hamad lone, Expat-Brit, Middle East
This is a true test of US intent if it really wants to establish a democracy in Iraq.
Will US will have the honor to uphold the most assertive decision made by the fledgling Iraqi democracy till today even when the decision goes against the economic interests of the Republican party as Blackwater is one of the major benefactors of the GOP.
Dave, Irvine,
Condi needs to do her homework - a simple search on the internet documents many abuses of power by this group. To allow them to operate without any consequences - above the law - and commit acts that are not within the honour and integrity that this country preaches is unacceptable. This group has interest in keeping the war going forever and growing huge and wealthy as a result - they are counter to the aim of settling this misguided event.
Rick_VT, Burliongton, Vermont
Well Farrukh of Woking, lets think about that for a minute. Would Britain, France, Germany or the U.S. tolerate it? Probably not. Why is this? Perhaps because those nations have a rule of law and the ability to enforce it. When Iraq comes to the point of being able to pass and provide law and order to protect human beings from random or planned savagery, then the Blackwaters will disappear from that region. Let's face it: security firms only exist if there's a vacuum to fill. Who would want to pay them for a service that the Iraqis should be providing for the cost of taxes?
Having a security service to protect you beats the heck out of being beheaded or strung up from a lamp post.
James P, Sacramento, California
So President Bush has been hiring assassins to do their dirty work in Iraq?
What else is new in war on terror!
No wonder proper soldiers are unable to win hearts and minds. I think these kind of private killers don't give a damn about US winning or losing in Iraq. As long as they make their millions, they might be seeing war as a good thing. I think US should pull them out if it wants to succeed in Iraq.
Z Hussain, Rochdale, UK
Lets be clear on this. Blackwater is not a security firm. They are ex special operations solders who are in, some circumstances, on the front line in a war where they have had immunity from prosecution since 2001. Blackwater and companies like them have been used in operations that have lead to many Iraqi deaths and just "bouncers" for US officials. The US Government has let corporations enter the battlefield . Another thing we can thank George for.
Natalie, Warwickshire, UK
Their job is not to kill civilians though. Their job is to protect their clients, and when the enemy hides in crowds of the innocent there's going to be collateral damage. Its not as if they're going into crowded marketplaces and blowing up car bombs. The majority of civilian deaths have been caused by Iraqis, Saudi and Iranians. Where is the outrage at them?
Matt, Pittsburgh, USA/Pennsylvania
Would any country really tolerate its citizens being murdered by a security firm? More importantly would any of us (UK, Europe, US) give immunity to foreigners who kill our civilians? Why should it be any different for the Iraqis?
Farrukh, Woking, UK
haha, so Condi's ever so sorry about what Blackwater's been getting up, but no there won't be any prosecutions, and can they stay in the country, please?
This is what happens when war is privatised. This one's been coming for a while now, and the Iraqi government has every right to throw these unaccountable mercenaries out of their country.
Owen, London, UK
WHAT? Just to get this straight....the US is essentially saying, "YOUR government can't prosecute OUR citizens for breaking the law and murdering people in YOUR country unless WE say YOU can"......? Seriously? Fancy that...wonder who in the Bush camp has a vested interest in Blackwater USA? On top of all this - - the US doesn't have enough troops on the ground so they employ mercenaries paid by the State Department.....? Wow - - glad to no longer be living in Canada on the US' doorstep.
Diego, Auckland, New Zealand