A deep new transatlantic rift opened last night over a US decision to exclude Iraq war opponents including France, Russia and Germany from bidding for lucrative contracts to rebuild the country. Paris, Berlin and Moscow reacted angrily to the decision, which threatens efforts to rebuild diplomatic ties damaged by the war, and the European Commission said it is investigating whether the move complies with global trade rules. Washington also faced the risk of a row with its neighbour Canada as well as China, which were also excluded from bidding for 26 contracts worth 18.6 billion US dollars. While the door was shut on traditional allies such as France and Germany, more than 60 others were eligible, including Japan, Britain, Australia, Poland, Italy, Norway, Spain, Turkey, Saudi Arabia, Jordan, Egypt, South Korea, the Philippines and Romania. The White House suggested it could be willing to open up contracts to countries that did not participate in the war if they assist "coalition efforts" in other ways. It said it was "appropriate and reasonable" to limit the opponents of the war to bidding for sub-contracts while countries that backed the war such as Britain, Spain and Poland had a chance to reap the benefits. The US cited security reasons for limiting the countries that can bid for contracts covering electricity, communications, public buildings, transport, public works, security and justice. UN Secretary-General Kofi Annan suggested the US decision was divisive and unhelpful in stabilising the country. France said it was studying the move's legality while Germany called it unacceptable. **PHOTO CAPTION*** Deputy Defense Secretary Paul Wolfowitz has ruled that lucrative, prime contracts to rebuild Iraq must exclude firms from nations such as France and Germany that opposed the U.S. war effort, according to a document released December 8, 2003. (Photo by William Philpott/Reuters)