Italian investigators have clashed with Americans over plans to absolve US soldiers of any blame for the death of the Italian secret service agent Nicola Calipari, killed while escorting an Italian hostage out of Iraq last month.
The Italians are also unhappy that the US will not let them examine the car in which Calipari was travelling when shot.
The joint investigation is deadlocked and the dispute is holding up the final report on the incident, according to Italian newspapers on Thursday.
In the US, however, NBC News has said a preliminary report from the US-Italian commission has been completed and clears the Americans of any wrongdoing in the killing of Calipari.
He was killed by a US patrol at a temporary checkpoint on the road to Baghdad airport on March 4 as he escorted the journalist Giuliana Sgrena, who had been held captive by extremists for a month. He tried to shield her as their car was hit by bullets. Sgrena and another intelligence officer were wounded.
Both sides agree the shooting was accidental, but the Italians dispute key elements of the account from the US soldiers, who say they fired at the car because it was speeding and did not stop.
The Italians deny the speeding, saying the car was doing 40-50kph. They say the US Army authorized the journey and the driver did not get a stop warning.
Italian Foreign Minister Gianfranco Fini said Italy and the US had shown excellent cooperation in the investigation, which is led by a US brigadier general and has two Italian members. But Corriere della Sera and La Stampa on Thursday suggested the diplomatic words hid serious misgivingss, which are holding up the report.
The US State Department, meanwhile, has denied the investigation absolved the Americans of responsibility.
"The investigation is still ongoing," spokesman Thomas Casey said. "Anyone claiming that conclusions have been reached, and they know what they are, must be misinformed."
The investigation also found that US troops shot at the car when it was 59m away, after flashing warning lights at 118m and firing warning shots at 82m, NBC said.
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