By Paul Eckert and Andrew Gray WASHINGTON, Dec 5 (Reuters) - The Pentagon and U.S. State Department signed a pact on Wednesday to improve oversight of private security contractors in Iraq, part of reforms aimed at avoiding incidents that have caused friction with Baghdad. Senior defense and State officials reached an agreement after a review sparked by a September shooting in Baghdad in which security guards from U.S. firm Blackwater, working for the State Department, are accused of having killed 17 Iraqis. "We think this a very good and strong memorandum of agreement between our two departments and should vastly improve the coordination and control of private security contractors operating in Iraq," Pentagon spokesman Bryan Whitman said. He noted the document included guidelines on the use of force and improved coordination of the movements of security contractors. "A lot of this is about improving the communications and coordination between the two sides," said State Department deputy spokesman Tom Casey. The two U.S. agencies with key responsibility in Iraq sought a "common understanding of how and when force, and particularly deadly force, should be used by private security contractors," Casey told reporters. Private security companies have been the subject of persistent complaints by Iraqis, who accuse them of abusing their power and acting like private armies above the law. Defense Secretary Robert Gates said in October that guards had been involved in incidents where "to put it mildly, the Iraqis have been offended and not treated properly." He said those actions were at odds with the larger U.S. mission in Iraq of winning support from the local population. Wednesday's deal tries to strike a balance between the U.S. military's desire to gain a clearer picture of the actions of private security companies while preserving State Department control over the movements of its personnel. CONVOYS The agreement gives the U.S. military a greater coordination role in the movements of contractors working for both the State Department and Pentagon, but leaves final authority for the movement of State Department convoys with the U.S. ambassador in Baghdad. Gates and Secretary of State Condoleezza Rice are committed under the deal to put in place clear standards for coordinating contractors' operations, investigating incidents and holding guards accountable in the event they break rules. The memorandum gives private guards the right to use deadly force to defend themselves or others when they have reason to believe they face the imminent risk of death or serious harm. Additional authority to use lethal force to protect national security assets or to prevent theft of dangerous property, such as weapons, may be granted to the private guards under specific contract terms, the agreement says. The memorandum also says the U.S. Embassy in Baghdad or military authorities can authorize private security contractors to carry firearms if they have undergone a background check, security clearance and appropriate weapons training. The killing of the Iraqis in September created tensions between the Iraqi and U.S. governments, and Baghdad took its own steps to tighten controls on contractors. The security firm Blackwater said its guards acted lawfully after being shot at, but the Iraqi government said the guards "deliberately killed" the 17 people. Iraq says there are more than 180 mainly U.S. and European security firms in the country, with estimates of the number of individual security contractors between 25,000 and 48,000. (Editing by Cynthia Osterman)
