Washington,(Saba) - France and Germany have agreed with the United States to substantially reduce Iraq's debt of 120 billion dollar, the White House has said.
The decision was taken after US envoy James Baker met with French President Jacques Chirac in Paris and with German Chancellor Gerhard Schroeder in Berlin, the White House said in a statement released here yesterday.

France and Germany were two of the most ardent opponents of the US-led war on Iraq which ousted president Saddam Hussein.

The White House said President George W Bush had spoken with Baker about the talks with Chirac and Schroeder.

Baker, Bush's special envoy on Iraq's debt, is on a tour of several European countries to convince leaders to lighten Iraq's total debt burden.

Bush believes war-torn Iraq's reconstruction could be hampered unless debt is forgiven, cut or rescheduled.