WASHINGTON - A U.S. military propaganda program used in the Iraq war was legal under the rules for psychological operations, a Pentagon investigation has concluded.

A classified Defense Department inspector general's report said regulations were followed when the military paid to have favorable stories about coalition forces planted in Iraqi newspapers, according to the unclassified executive summary obtained Thursday by The Associated Press.

"Psychological operations are a central part of information operations and contribute to achieving the ... commander's objectives," the summary said. They are aimed at conveying "selected, truthful information to foreign audiences to influence their emotions, ... reasoning, and ultimately, the behavior of governments" and other entities, it said.

Republican and Democratic critics had complained that secretly planting stories set a bad example in a country where the U.S. was trying to establish democracy and a free press.

The office of the inspector general completed the report Oct. 6. It is being redacted so an unclassified version can be released publicly. Meanwhile, a copy has been forwarded to Sen. Edward M. Kennedy, D-Mass., who had requested the Pentagon review.

"We concluded that [commanders in Iraq] complied with applicable laws and regulations in their use of a contractor to conduct psychological operations and their use of newspapers as a way to disseminate information," the executive summary says.

The inspector general looked at three contracts, valued at $37.3 million and awarded to the Washington-based Lincoln Group for services from October 2004 through last month.

The contractor not only placed articles to influence Iraqis but worked to "respond rapidly to counter anti-coalition propaganda," the summary said.

It faulted only one contract, saying the military hadn't maintained required documentation.