Bodyguards and lots of cash are useful

The main road to Baghdad from the west is infested with highwaymen who hit an average of four vehicles or convoys every day as they pass the towns of Ramadi and Falluja, about an hour's drive from Baghdad. Since credit cards do not work in Iraq and most banks are not functioning, travellers are obliged to carry large amounts of cash.

The Irish Times made the journey in a small convoy organised by a major television network, which had its own armed protectors. This does not deter organised gangs who carry automatic weapons.

A limited number of small planes and charter flights now use Baghdad's international airport. Commercial services are expected to resume soon. These have been delayed until the US military secures Iraqi airspace. The airport road, heavily travelled by US forces, is dangerous.

There is also the risk of being stopped, robbed and kidnapped almost anywhere by "Ali Babas" - thieves who prey on Iraqis as well as foreigners.

However, hotels are abundant and functioning reasonably well. Personal satellite phones and Iraqi internet facilities provide businessmen with connections to their principals. The occupation authority has established business centres to facilitate contacts at the heavily protected International Conference Centre in central Baghdad.

While it is uncomfortable and highly dangerous, business people are trickling back to the Iraqi capital. The first commercial delegation to visit Iraq since the fall of former president Saddam Hussein came from India. Thirty-five businessmen, sponsored by the Indian Ministry of Trade, flew into Baghdad on a charter flight and held discussions with key Iraqi ministry officials, figures in the US occupation administration and local businessmen.

The majority of the Indians had commercial connections in Iraq going back a decade or more, as have many Irish firms. The Indians represented firms dealing in a range of goods, including foodstuffs, chemicals for agriculture and water purification, computers and software, machinery for the oil and gas sector, pharmaceuticals and telecommunications equipment. Others offered consultancy services.

Since the Republic, like India, did not join the US in waging the war that destroyed Iraq, Irish businessmen can expect a warm welcome if they seek to establish ventures in the country.

Ms Susan Hamrock, the senior US liaison to the Iraqi Ministry of Trade, told The Irish Times that the visit of the Indian delegation was the first in what is hoped will be a series of similar "matchmaking" events, bringing foreign investors together with Iraqi customers.

The US occupation authority has produced a business guide for potential exporters, investors and foreign partners. This guide, she said, could be found on the website www.export.gov/iraq. The guide includes a run-down of commercial laws and practice in Iraq. This will be updated.

At present, all ministries involved in trade are providing information on procedures for the operations of foreign and domestic firms.

"These will be streamlined during the policy review now taking place and will be available on the website in the next couple of weeks," she said.

A meeting at the end of July in Jordan of telecoms firms tendering for a new mobile phone network for Iraq attracted more than 400 participants from firms in Europe, the US and the region. The awards will be announced at the end of August and new systems could be in place by October.

Two mobile phone companies, one from Kuwait and the other from Bahrain, were forced to shut down GSM roaming systems operating for a few days in July because the occupation authority intends to regulate telephonic and radio communications.

This is not the case as far as satellite internet connections are concerned. Consequently, internet centres and cafes have sprung up in Baghdad and other major cities. Email and voice communications are fast and cheap.

Ms Hamrock said the US was committed to a "free-market economy". "Free" is the operative word. Iraq has open borders. There are no customs to be paid. US and British customs departments are still training Iraqi personnel.

"Businessmen who operate in this environment are at great risk," Ms Hamrock admitted. "A lot of businessmen contact us. They bring in their own security or hire Iraqis. External investment will help with the entire rehabilitation effort.

"Iraq has a lot of resources, its people are bright and easy to work with. Many sectors [of the economy\] will develop if businessmen come in on the ground floor. Later there will be opportunities for expansion."

Prime sectors include information technology, agriculture, health, tourism, medical equipment and pharmaceuticals. She said the US administration was committed to creating "marketing conditions to facilitate investment".

Investors do not have to deal with US firms given major contracts for reconstruction or the occupation regime, even in the oil sector.

"They can deal with Iraqi ministries and businessmen directly. This is the smarter thing to do in the long-run" since the US will pull out and Iraqis will remain.