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BAGHDAD - Iraqi authorities want the U.S. government to sever all contracts in Iraq with Blackwater USA within six months and pay $8 million in compensation to each of the families of 17 people killed when the firm's guards sprayed a traffic circle with heavy machine gun fire last month.
The demands — part of an Iraqi government report examined by The Associated Press — also called on U.S. authorities to hand over the Blackwater security agents involved in the Sept. 16 shootings to face....