The Iraqi government has informed the U.S. Embassy in Baghdad that it will not issue a new operating license to Blackwater Worldwide, the embassy's primary security company, which has come under scrutiny for allegedly using excessive force while protecting American diplomats, Iraqi and U.S. officials said Wednesday.
Blackwater employees who have not been accused of improper conduct will be allowed to continue working as private security contractors in Iraq if they switch employers, Iraqi officials said Wednesday.



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