Report: Blackwater may be dropped in Iraq | WHAT REALLY HAPPENED

Report: Blackwater may be dropped in Iraq

State Dept. panel to issue report on contract to protect diplomats

The Associated Press. updated 1:56 p.m. PT, Wed., Dec. 17, 2008

WASHINGTON - An internal State Department report says Blackwater Worldwide may lose its license to work in Iraq and recommends that the agency prepare alternative means to protect its diplomats there.

The 42-page draft report by the State Department's Inspector General says the department faces "numerous challenges" in dealing with the security situation in Iraq, including the prospect that Blackwater may be barred from the country. The department would have turn to other security arrangements to replace Blackwater, officials said.

The State Department had no immediate comment on the report itself, but deputy spokesman Robert Wood said that after the probe is done, officials would look at "whether the continued use of Blackwater in Iraq is consistent with the U.S. government's goals and objectives."

It is not clear how the State Department would replace Blackwater. It relies heavily on private contractors to protect its diplomats in Iraq, as its own security service does not have the manpower or equipment to do so. The report suggests that one way to fill the void would be for the State Department's Diplomatic Security Service to beef up its presence in Iraq.

"The department faces the real possibility that one of its primary Worldwide Personal Protective Services contractors in Iraq — Blackwater (Worldwide) — will not receive a license to continue operating in Iraq," says the recently completely report.

The report is labeled "sensitive but unclassified."