BASRA, IRAQ - Thirty-nine-year-old British Army Captain Steve Morte rides into this tense, sweltering city in the steel belly of a Warrior armored vehicle, wearing a Kevlar helmet and toting a rifle. But when his patrol arrives at a downtown orphanage and Morte dismounts the Warrior, the helmet comes off and the rifle disappears behind his back. He extends one meaty hand and grins broadly as he greets Fadil, a tall Iraqi man wearing slacks and a dress shirt.

"Salaam alaikum," Morte says. Peace to you.

"Alaikum salaam," replies Fadil, a 39-year-old local construction contractor with a $56,000 contract, issued by Morte using U.S. reconstruction funds, to shore up the orphanage's ceilings and build new bathrooms. It's just one of more than 200 projects that Morte oversees. Officially, his title is Civil-Military Cooperation expert. Unofficially, he's like Santa Claus to the thousands of Baswaris who rely on him for employment and the hundreds of thousands who benefit from their labors.

"Buying a little consent in the area, showing them the way," is how Morte describes his mission. For eventually the American money will dry up and the 8,000 British troops will leave. When that happens, contractors such as Fadil will be on their own.

"That's a problem," Morte stresses, adding that hopefully the contractors he has set up in business will work for the Iraqi government as it assumes more responsibility for reconstruction in Basra.

Morte and Fadil tour the orphanage after gaining permission from its imposing matron. There's a surprise in one classroom. Fifty young orphans dressed dressed in crisp white shirts and dark pants or skirts stand at their desks and sing a song in English:

We are orphans, orphans, orphans ...

There's an even bigger surprise down the hall. Orphanage staff have turned a renovated room into a classroom for seamstresses. Around a hundred women attend courses there. In effect, Morte's investment in the orphanage has spawned a small business. That's the kind of effect he longs to see -- and when orphanage staff request U.S. funds for more sewing machines, Morte nods. "If it provides work and its sustainable, it's something we could look at."

Morte dons his helmet, shoulders his rifle and climbs into the Warrior. He gets back to base just in time to meet another contractor, this one the son of a prominent sheik from Qarmat Ali, a bad part of town where several British soldiers have been killed. Morte hands over an envelope stuffed with $25,000 cash -- a downpayment on a project to rebuild local street curbs. Morte takes the opportunity to probe for information. British forces want to start more projects in Qarmat Ali. "Will we be welcomed?"

The contractor touches his chest in a gesture of gratitude. He says through an interpreter, "The sheiks of the area are very happy because you've done good work here."