Blackwater USA, the private security company involved in a Baghdad shootout last weekend, operated under State Department authority that exempted the company from U.S. military regulations governing other security firms, according to U.S. and Iraqi officials and industry representatives.
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"The Iraqis are trying to establish their own authority. And if they do this, they can show the world that Blackwater is not untouchable. And that the U.S. is not the ultimate authority in their country."