Lawmakers refuse funds for Europe missile shield

By Richard Cowan

WASHINGTON (Reuters) - A military funding bill moving through Congress will not contain money to begin building a controversial U.S. missile defense system in Europe, a senior Democratic lawmaker said on Wednesday.

Rep. John Murtha of Pennsylvania, who chairs a House of Representatives panel that oversees military spending, told reporters that legislation will move this week without any funds for the project, which Russian President Vladimir Putin has protested.

"We don't even have the basic agreement between Poland and the United States," Murtha said in justifying Congress' refusal to fund the program in the current fiscal year, which extends until next September 30.

Last week, President George W. Bush stressed the need for installing the 10 missile interceptors in Poland and radar in Czech Republic at a total cost of about $3.5 billion.

Bush asked Congress to provide $310 million this year.

The Bush administration has argued that the missile system would protect against attacks from Iran and other countries the United States considers "rogue states."

Bush said U.S. intelligence agencies think Iran might be able to develop an intercontinental ballistic missile capable of reaching Europe and the United States by 2015.

Russia so far has been unconvinced by U.S. assurances that the missile defense system would not pose a security threat. As an alternative, Moscow has offered bases in former Soviet states in the Caucasus.