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Bush Vetoes Defense Bill Over Iraq's Exposure To Lawsuits

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By BEN FELLER, The Associated Press

Published: December 29, 2007

CRAWFORD, Texas - President Bush on Friday used a pocket veto to reject a sweeping defense bill because he dislikes a provision that would expose the Iraqi government to expensive lawsuits seeking damages from the Saddam Hussein era.

In a statement, Bush said the legislation "would imperil billions of dollars of Iraqi assets at a crucial juncture in that nation's reconstruction efforts."

The president's objections were focused on a provision deep within legislation that sets defense policy for the coming year and approves $696 billion in spending, including $189 billion for the wars in Iraq and Afghanistan.

Also in the legislation were improved veterans benefits and tighter oversight of contractors and weapons programs.

The pocket veto means that troops will get a 3 percent raise Jan. 1 instead of the 3.5 percent authorized by the bill.

Bush's decision to use a pocket veto, announced while vacationing at his Texas ranch, means the legislation will die at midnight Monday. This tactic for killing a bill can be used only when Congress is not in session.

The House last week adjourned until Jan. 15; the Senate returns a week later, but has been holding brief, often seconds-long pro forma sessions every two or three days to prevent Bush from making appointments that otherwise would need Senate approval.

The sponsor of the contested provision, Sen. Frank Lautenberg, D-N.J., said the provision would allow "American victims of terror to hold perpetrators accountable - plain and simple."
Senate Republican Leader Mitch McConnell of Kentucky called on lawmakers to "move rapidly to fix this section" when Congress returns in January so that the underlying bill can be signed.
Bush aides said they had signaled concern about the controversial provision for weeks, although there had been no formal veto threat.

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