The Independent of London reports the United States is holding hostage some $50 billion of Iraq's money in the Federal Reserve Bank of New York to pressure the Iraqi government into signing an agreement to prolong the US occupation indefinitely. Patrick Cockburn reports the Federal Reserve continues to hold Iraq's financial reserves as a legacy of the international sanctions against Saddam Hussein. US negotiators are threatening to remove tens of billions of dollars of Iraq's money to settle outstanding court judgments dating back to the 1980s unless Iraq accepts the highly controversial military deal. The deal would allow the US to permanently keep more than fifty military bases in Iraq. American forces would also be able to continue to carry out arrests of Iraqi citizens and conduct military campaigns without consultation with the Iraqi government. American soldiers and contractors will enjoy legal immunity.