Bush to veto defense authorization bill

WASHINGTON, Dec. 28 (UPI) -- President George W. Bush plans to veto a defense authorization bill passed by Congress because it would freeze Iraqi assets while victims of Saddam Hussein sue.

"The president intends to veto H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008," said White House spokesman Scott Stanzel in a statement Friday.

Stanzel said the administration was willing to work with Congress to fix the bill -- which also contains a 0.5 percent pay raise for U.S. troops and reforms for veteran's healthcare -- in January.

The provision in the bill Bush objects to would permit plaintiffs' lawyers to freeze Iraq funds in U.S. banks immediately while courts dealt with claims against Iran from Saddam Hussein's reign.

"The new democratic government of Iraq, during this crucial period of reconstruction, cannot afford to have its funds entangled in such lawsuits in the United States," said Stanzel, deputy White House press secretary.

The defense authorization bill had bipartisan support in Congress and Sen. Carl Levin, D-Mich., told The Washington Post it was "unfortunate" the president had failed to identify his concerns before the bill reached his desk.