Revolts in Iraq Deepen Crisis In Occupation: "'The Fallujah problem and the Sadr problem are having a wider impact than we expected,' a senior U.S. official involved in Iraq policy said. In Baghdad and Washington, officials had initially concluded that addressing those problems would not engender much anger among ordinary Iraqis. 'Sadr's people and the people of Fallujah were seen as isolated and lacking broad support among Iraqis,' the official added.
Instead, the official said, 'The effect has been profound.'
The violence has brought the U.S.-funded reconstruction of Iraq to a near-halt, according to U.S. officials and private contractors.
Thousands of workers for private contractors have been confined to their quarters in the highly fortified Green Zone in Baghdad that also houses the headquarters of the U.S. occupation authority. Routine trips outside the compound to repair power plants, water-treatment facilities and other parts of Iraq's crumbling infrastructure have been deemed too dangerous, even with armed escorts.
Compounding the problem is a growing fear that insurgents will seek retribution against Iraqis working for private contractors and the occupation authority. Scores of Iraqis have stopped showing up for their jobs"
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