The loss-making venture would affect partners and subcontractors including Thales , Safran and Avio.

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According to U.S. Central Command (CENTCOM), which is running the Iraq war, approximately 100, 000 contractors and subcontractors--including Iraqis, Americans and other foreigners--are currently assisting U.S. forces in Iraq.

FORBES: Magazine Article

At the same time, the group looked for engineers with the right expertise and language skills, and tracked heavy equipment around the globe, including big machines belonging to subcontractors in the region.

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But the Afghan government and U.S. government agencies have different interpretations of the exemptions, according to the report, including over whether they apply to subcontractors as well as prime contractors, and whether prime contractors should withhold a portion of subcontractor payments to cover tax liabilities.

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