The US House of Representatives has passed a defence bill that exempts Iraq from lawsuits dating back to the regime of Saddam Hussein.
Bush and Iraq had objected to an earlier version, that included Iraq in a provision enhancing the ability of US citizens to sue state sponsors of terrorism for damages in US courts.
The new bill waives that provision for Iraq.
The Bush administration had received complaints from Baghdad that said that the original bill would have reopened lawsuits filed against Iraq under Saddam.
The new Iraqi government complained that such lawsuits could tie up $25BN.
Quite how a terrorist supporting country could be prosecuted, and brought to book in a US court is unclear to me.