The reason for the delay was to select a core group of bidders from thousands of companies that have expressed interest in placing bids on the 26 prime contracts covering the spectrum of Iraqi reconstruction projects, said Pentagon spokeswoman Nicole Deaner.

Deaner said the delay had no connection to a trip to Europe by former Secretary of State James Baker to urge France, Germany and Russia to forgive or restructure Iraq's vast debt.

The conference had previously been postponed from December 11 to December

She said a "more focused group of contractors" would be invited to the conference along with prospective subcontractors.

"They've gotten thousands of inquiries already," she said.

The bidding process aroused controversy after the Pentagon disclosed that it was limiting the bidding to companies from the United States, Iraq or countries that either had troops in Iraq or were members of the US-led coalition.

President George W. Bush has defended the decision to exclude countries that opposed the war, but on Monday said it was in the interests of the United States, France and Germany to "work together" in Iraq.

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