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The US state department has extended a contract with a subdidiary of the company formerly known as Blackwater to provide security to US diplomats in Iraq.
The extension with the Presidential Airways arm of the firm comes despite an Iraqi government ban on the company imposed after a gunbattle in Baghdad 2007 that left at least 17 Iraqis dead.
The state department said it had asked Blackwater, now renamed Xe, to keep providing "aerial services" - primarily transporting US officials around o