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“We’ve been told no on the dye,” he said.

The Washington Times asked the JIEDDO press office if the situation with Fatima has improved in the month since Gen. Barbero’s testimony. A spokeswoman declined to comment.

As Fatima stiff-arms the U.S. military, it is eyeing a chunk of the American fertilizer market.

Jim McGoff, counsel for the Indiana Finance Authority, told The Times that Fatima has created the Midwest Fertilizer Corp. and plans to build its first U.S. plant in that state.

Fatima is capitalizing on a 2008 federal disaster relief law that allows its company to obtain financing through Indiana’s municipal bond market. The law allows the bond buyer, or lender, to pay no or limited taxes on the bond’s interest, which means that Fatima would pay 5 percent interest instead of 7 percent.

“The federal benefit bestowed to the borrower would be the 2 percent differential,” Mr. McGoff said. “The growth repayment of their obligations is much cheaper.”

Midwest Fertilizer “is a new entity that is being incorporated and will be registered in the state of Indiana. And it will be a subsidiary of a company that is Fatima Group,” Mr. McGoff said. “My understanding is this is a startup, a first endeavor for the Fatima Group in the United States.”

Indiana state records show that Midwest was registered in Indiana in September at a time when the Pentagon says Fatima continued to be uncooperative in fighting homemade bombs.

Besides the CAN-Fatima issue, Gen. Barbero had more bad news when it comes to Pakistan and countering homemade bombs.

In July, Pakistan agreed to a military-to-military cooperation framework. At the time of his Dec. 13 testimony, the agreement “remains in its original draft form, with no progress,” Gen. Barbero said.