Rumsfeld said the decision to have a single Global War on Terrorism Expeditionary Medal was "unanimously recommended" after debate and discussion by the chiefs of all the military services.
Asked whether there was a political agenda behind the action, Rumsfeld said, "Not that I can imagine, no. This department is not involved in politics."
General Richard Myers, the chairman of the Joint Chiefs of Staff, backed him up, saying that "we thought that this was the best for our forces."
Some servicemembers are privately seething, however.
"They're pissed," said one servicemember who asked not to be named. "They don't understand it."
"As a servicemember who served in Iraq and Afghanistan, it doesn't make sense. Those were two totally different wars. People should be recognized for the service they give," he said.
In the past, the military has recognized specific campaigns with ribbons and medals, from Guadalcanal during World War II to Desert Storm and the NATO air war in Kosovo.
The decorations are a point of pride for servicemembers and when worn on their chests an outward symbol of where they have served.
Rumsfeld said the recommendation to have a single campaign medal covering the global war on terrorism "came from below."
"It's aproved by the chiefs in the tank," he said, referring to the super-secure room in the Pentagon where the most sensitive discussions of military issues are held.
"They had a lengthy discussion and debate about it. It was approved by the under secretary for personnel and readiness that has jurisdiction over it. And it was signed off on it by Paul Wolfowitz," he said. Wolfowitz is deputy secretary of defense.
Myers added, "And everything goes into it -- the history of the war, the appropriateness of how we do that was all considered. And I can tell you at least in our discussion what was considered was what was best for the troops."
"Almost any decision you make, somebody's not going to be happy with the decision," he said.
Democrats have complained the terrorism medal blurs the distinction between the war in Afghanistan, which was precipitated by attacks on Washington and New York by al-Qaeda militants, and the war in Iraq, which US forces invaded preemptively in response to a perceived threat of weapons of mass destruction.
Bush authorized the medal on March 12 before the war began.
No medals have actually been awarded yet because Pentagon lawyers are still reviewing the criteria of who is eligible to receive them, defense officials said.
But a defense official said that a separate campaign medal for Iraq has been ruled out, saying that creating a new award now would be redundant.
Besides the Global War on Terrorism Expeditionary Medal, which will go to servicemembers who deployed in support of that struggle, Bush has authorized a Global War on Terrorism Service Medal for those who supported the effort and defended the homeland as part of Operational Noble Eagle.
Commanders will have the authority to award battle stars for those who engaged in combat operations.
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