Iraq to review security contracts

It appears Maliki blinked.

The Iraqi Cabinet decided Tuesday to review the status of all foreign security companies amid mounting public outrage over the alleged killing of civilians by the U.S. Embassy's security provider Blackwater USA.

Exploiting that anger, anti-American cleric Muqtada al-Sadr demanded the government ban all 48,000 foreign security contractors, whom Iraqis have long viewed as mercenaries.

The Iraqi government appeared to back down from statements Monday that it had revoked Blackwater's license and would order its 1,000 personnel to leave the country — depriving American diplomats of security protection essential to operating in Baghdad.

"We are not intending to stop them and revoke their license indefinitely but we do need them to respect the law and the regulation here in Iraq," government spokesman Ali al-Dabbagh told CNN.

Via Yahoo! News.