Clinton inherits Iraq inquiry

WASHINGTON (AP) - A special counsel investigating possible Bush administration wrongdoing in dollars 5.5bn ( pounds 3.5bn) of bank loans to Iraq said there was no need to appoint an independent prosecutor.

The Attorney-General, William Barr, promptly accepted the recommendation, thus ending any possibility that an independent prosecutor would be named in the remaining days of the Bush administration. Congressional Democrats said it was now up to president-elect Bill Clinton's administration to pursue the matter.

The Iraqi loan case haunted the Bush administration throughout the presidential campaign, with congressional Democrats repeatedly calling for the appointment of an independent prosecutor.