Officials from the Department of Trade and Industry and the Department for International Development will now try to offer further reassurance, the sources said.

Following the collapse of the Saddam Hussein's government in Baghdad, the British Consultants and Construction Bureau (BCCB), representing more than 300 top firms, are meeting Whitehall officials about their concerns.

Tony Blair has already denied suggestions that American companies will profit out of the war by winning the valuable reconstruction work.

The contracts to rebuild Iraq's shattered infrastructure are expected to total more than US$600 million pounds or US$468 million.

Some British businesses feel they lost out in the first Gulf War, despite British forces playing a leading role in liberating Kuwait after the Iraqi invasion.

BCCB chief executive Colin Adams said, "Many UK firms have a great deal of experience in Iraq, know relevant Iraqi professionals and thus have a great deal to offer."

He said, "Ignoring this experience, especially if the idea is to rebuild the country quickly, would be not a little short-sighted."

American government agency US Aid is planning to fund moves to build five airports and set up a health service.

BCCB said it is natural for US Aid to give the lead contracts to American companies.

But it said there is a strong case for the US Government to allow British firms to bid for sub-contracts.

They are also pushing for the Ministry of Defense to look out for opportunities for British firms.

Government officials are expected to tell BCCB on Thursday that up to half of the work will be sub-contracted out, with British companies set to get a fair share.

(Xinhua News Agency April 11, 2003)