Not according to Arnett:
" They're requiring no censorship at all. ... There are no minders around us when we broadcast. I'm sitting here in the hotel and ... we can talk on the phone freely," Arnett said. While he assumes that his calls may be monitored, Arnett said that at no time in the months he's been in Baghdad have Iraqi officials questioned him about his telephone contacts or about the contents of his stories. here's link to full article.
They don't need to! They know for a fact that he's their bitch and will always paint them in a favorable light and portray the US as the Great Satan.