Washington ? President Bush turned on Friday to a longtime family friend and troubleshooter, former Secretary of State James A. Baker III, to be his personal envoy in seeking an international deal to lower and refinance Iraq’s staggering foreign debt.

The appointment gives high-profile attention to a complex issue that clouds Iraq’s economic prospects. The war-ravaged country owes an estimated $125 billion to other countries, excluding war reparations.

Baker, 73, who was Bush’s main advocate in the 2000 Florida recount battle with Democrat Al Gore, brings a wealth of negotiating experience to the job as well as personal ties with many of the world’s leaders.

“Secretary Baker will report directly to me and will lead an effort to work with the world’s governments at the highest levels, with international organizations and with the Iraqis in seeking the restructuring and reduction of Iraq’s official debt,” Bush said in a statement.

Administration officials argue that major debt relief is needed for Iraq’s economy to get back on its feet. The issue has become politicized, however, with countries that opposed the war, such as Germany and France, expressing doubt about high levels of debt forgiveness.

Negotiations are expected to be extensive and involve trade-offs as countries offer to forgive debt in return for bidding on new construction contracts.

Baker, a Houston attorney, served under President Reagan as White House chief of staff and then as treasury secretary. He also managed Bush’s father’s 1980, 1988 and 1992 presidential campaigns.