The US military is battling fear and skepticism as it tries to recruit Iraqi contractors for the monumental rebuilding of Fallujah, according to officials who say the battered city's reconstruction is being held up by Iraqi laborers failing to show up to work.
"One of the biggest obstacles is getting contractors in here," said marine Lieutenant Colonel Scott Ballard, operations officer for civil-military affairs at the marine's headquarters in Fallujah.
"Contractors have been scared off through intimidation. A lot of contractors probably want to wait and see if security is going to stabilize."
But he said willing Iraqis have started to come forward as the heavy fighting that engulfed the insurgent stronghold earlier this month has dwindled to sporadic streetfights.
"We are starting to see the wheels turn. If security is maintained the contractors will stay."
Military officials say only pockets of resistance - small groups of four or five rebels - remain as US-led forces finish clearing insurgents from the south of the city.
The military said a "Green Zone" has been created in Fallujah's northwest corner where contractors will work under the guard of US and Iraqi troops.
But in this theoretically safe area, military officials said fighting broke out as US navy engineers tried to clear a park area of debris.
And the insurgency has spread its fear far beyond Fallujah's streets, hindering the massive task of rebuilding the shattered city.
During negotiations Saturday with US navy officials, one Iraqi contractor said he had seen on the Internet that rebels were claiming to have killed or captured many US troops.
"It's putting the fear back in the people's heads," said navy Lieutenant Commander David Hahn, a contracting officer with the Marine Expeditionary Force, who despite getting a handshake and a signed contract from the man, said "he's remained skeptical".
"They are very concerned about insurgents. Security is a big issue for these people," he added, without saying how many reconstruction contracts had been signed so far.
The contractor, who has agreed to help clear Fallujah's rubble-strewn streets, said two months ago he was seized by gunmen who released him several days later with the warning not to work for Americans.
"I am afraid to come and work here. But I have to work."
The assault against the rebel bastion that was launched by US marines and Iraqi forces on November 8 has been the most devastating military operation since the 2003 invasion.
It came after weeks of pounding on insurgent positions in the city by the US air force and left the city of 300,000 in ruins.
Almost every single building bears the scars of the battle and vital infrastructure needs to be urgently repaired.
But even a signed contract is no guarantee work will be done. Some Iraqi contractors have failed to show up on the job after agreeing to work, military officials said.
"We're trying to clear rubble from the street but we've been stood up by contractors for the last three or four days. We're frustrated with that," said one marine officer as he drove past ruined streets choked with shattered brick and a burned out car.
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