Iraq

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A $165 million children's hospital in Basra is among hundreds of projects in Iraq funded by U.S. taxpayers. The U.S. and its allies are still paying millions of dollars for reconstruction of the war-ravaged country, even though Baghdad is reaping revenue from its oil industry. Two donor nations are pulling out of the trust fund. A State Department official defended U.S. assistance, saying it is aimed at maintaining a strategic partnership with Iraq. However, the official said, there is "room for improvement" (Associated Press)