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http://www.guardian.co.uk/Iraq/Story/0,2763,926081,00.html


Read the small print: the US wants to privatise Iraq's oil

No one here believes this is a humanitarian war

Jonathan Steele in Damascus
Monday March 31, 2003
The Guardian

In this highly politicised city where anger over the invasion of Iraq
alternates with pride in the resistance, there is one sure way to lighten
the mood. Suggest that George Bush and Tony Blair launched their war
because of Saddam Hussein's suspected weapons of mass destruction.
Hoots of derision all round. Whether they are Syrians or members of the
huge Iraqi exile community, everyone here believes this is a war for oil. In
nearby Jordan and across the Arab world the view is the same.

Some suggest a second motive - Washington's desire to strengthen Israel.
Under one theory US hawks want to break Iraq into several statelets and
then do the same with Saudi Arabia, to confirm the Zionist state as the
region's superpower. Others cite Donald Rumsfeld's recent comments
about Iran and Syria as proof that war on Iraq is designed to frighten its
neighbours, who happen to be the leading radicals in the anti-Zionist
camp.

Oil is the war aim on which all Arabs agree. While the Palestinian intifada is
resistance to old-fashioned colonialism with its seizure and settlement of
other people's land, they see the Iraqi intifada as popular defence against
a more modern phenomenon. Washington does not need to settle Iraqi
land, but it does want military bases and control of oil.

Many Arabs already define this neo-colonial war as a historic turning point
which might have as profound an effect on the Arab psyche as September
11 did on Americans. Arabs have long been accustomed to seeing Israeli
tanks running rampant. Now the puppet-master, arrogant and unashamed,
has sent his helicopter gunships and armoured vehicles to Arab soil.

The US has mounted numerous coups in the Middle East to topple regimes
in Egypt, Iran and Iraq itself. It has used crises, like the last Gulf war, to
gain temporary bases and make them permanent. In Lebanon it once
shelled an Arab capital and landed several hundred marines. But never
before has it sent a vast army to change an Arab government. Even in Latin
America, in two centuries of US hegemony, Washington has never dared to
mount a full- scale invasion to overthrow a ruler in a major country. Its
interventions in the Caribbean and Central America from 1898 to 1990 were
against weak opponents in small states. Three years into the new
millennium, the enormity of the shift and the impact of the spectacle on
Arab television viewers cannot be over-estimated. Is it an image of the past
or future, they ask, a one-off throw-back to Vietnam or a taste of things to
come?

Blair sensed Arab suspicions about the fate of Iraq's oil when he persuaded
Bush at their Azores summit to produce a "vision for Iraq" which pledged to
protect its natural resources (they shrank from using the O word) as a
"national asset of and for the Iraqi people". No neo-colonialism here.

Unfortunately, the small print is different, as could be expected from an
administration run by oilmen. Leaks from the state department's "future of
Iraq" office show Washington plans to privatise the Iraqi economy and
particularly the state-owned national oil company. Experts on its energy
panel want to start with "downstream" assets like retail petrol stations.
This would be a quick way to gouge money from Iraqi consumers. Later
they would privatise exploration and development.

Even if majority ownership were restricted to Iraqis, Russia's grim
experience of energy privatisation shows how a new class of oil magnates
quickly send their profits to offshore banks. If the interests of all Iraqis are
to be protected, it would be better to keep state control and modify the
UN oil-for-food programme, which has been a relatively efficient and
internationally supervised way of channelling revenues to the country's
poor.

Drop the controls on Iraq's imports of industrial goods. End the rule that all
food under the programme has to be imported, thereby penalis ing Iraqi
farmers and benefiting rich exporters in Canada, Australia and the US. But
maintain the programme for several years to keep helping the 60% of Iraqis
who depend on subsidised food (it will be more after this war) rather than
channel revenues to a new Iraqi government or a World Bank-administered
trust fund which will be under pressure to pay it to US construction
companies to repair the infrastructure which Bush's war machine has
destroyed. US and UK taxpayers should finance the peace as they have
financed the war. Iraqi oil earnings must stay out of US and British hands.

If Downing Street has a better grasp than Washington of the need not to
appear to be occupying Iraq, it was equally misinformed about Iraqis' views
of invasion. Both governments confused hatred of Saddam with support for
war. War has its own dynamic, trapping millions in the desperate business
of daily survival. Naturally they blame US and British troops for the chaos.
Yet, even before the first bomb fell, most Iraqis were against "liberation"
by force.

People living under Saddam Hussein's rule do not give opinions easily but
British and US officials should have done a better job of talking to Iraqis in
Jordan and Syria who are in close touch with their families in Iraq.

On the eve of the war, I interviewed 20 Iraqis in Amman individually or in
groups of two or three friends for an hour each on average. They included
Sunni and Shia, property owners, artists, factory workers and several
unemployed. Most were fierce critics of the Iraqi president. But on the
over-riding issue of whether Bush should launch a war, a majority was
opposed. Nine were against, four were torn and only seven were in favour.
Now that war is no longer a theoretical option but a reality affecting every
Iraqi at home and abroad, patriotic feelings are stronger.

Western governments apparently confined their research to people with a
narrow vested interest. They financed exiled politicians who want a share
in US-supplied power and then talked to them as though they were
independent. They listened to businessmen eager to cash in when the US
privatises the economy. They were fascinated by nostalgic Hashemite
monarchists.

The voices of the poor and the professional classes were not deemed of
interest, although these are the people who benefited from the surge in
social investment from 1975-85 and later fell back under sanctions. London
and Washington convinced themselves that Saddam Hussein had ruined the
economy without asking whether Iraqis shared this view. If they now divert
Iraq's oil revenues, they will be following a long tradition of blunder and
exploitation.

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the authority of teachers, elders or wise men.  Believe only after
careful observation and analysis, when you find that it agrees with
reason and is conducive to the good and benefit of one and all.
Then accept it and live up to it." The Buddha on Belief,
from the Kalama Sutra

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