-Caveat Lector-

http://www.guardian.co.uk/print/0,3858,4791982-103677,00.html

Iraq is not America's to sell
International law is unequivocal - Paul Bremer's economic reforms are
illegal

Naomi Klein
Friday November 7, 2003
The Guardian

Bring Halliburton home. Cancel the contracts. Ditch the deals. Rip up the
rules. Those are just a few of the suggestions for slogans that could help
unify the growing movement against the occupation of Iraq. So far, activist
debates have focused on whether the demand should be for a complete
withdrawal of troops, or for the United States to cede power to the United
Nations.

But the "troops out" debate overlooks an important fact. If every last
soldier pulled out of the Gulf tomorrow and a sovereign government came to
power, Iraq would still be occupied: by laws written in the interest of
another country; by foreign corporations controlling its essential
services; by 70% unemployment sparked by public sector layoffs.

Any movement serious about Iraqi self-determination must call not only for
an end to Iraq's military occupation, but to its economic colonisation as
well. That means reversing the shock therapy reforms that US occupation
chief Paul Bremer has fraudulently passed off as "reconstruction", and
cancelling all privatisation contracts that are flowing from these reforms.

How can such an ambitious goal be achieved? Easy: by showing that Bremer's
reforms were illegal to begin with. They clearly violate the international
convention governing the behaviour of occupying forces, the Hague
regulations of 1907 (the companion to the 1949 Geneva conventions, both
ratified by the United States), as well as the US army's own code of war.

The Hague regulations state that an occupying power must respect "unless
absolutely prevented, the laws in force in the country". The coalition
provisional authority has shredded that simple rule with gleeful defiance.
Iraq's constitution outlaws the privatisation of key state assets, and it
bars foreigners from owning Iraqi firms. No plausible argument can be made
that the CPA was "absolutely prevented" from respecting those laws, and yet
two months ago, the CPA overturned them unilaterally.

On September 19, Bremer enacted the now infamous Order 39. It announced
that 200 Iraqi state companies would be privatised; decreed that foreign
firms can retain 100% ownership of Iraqi banks, mines and factories; and
allowed these firms to move 100% of their profits out of Iraq. The
Economist declared the new rules a "capitalist dream".

Order 39 violated the Hague regulations in other ways as well. The
convention states that occupying powers "shall be regarded only as
administrator and usufructuary of public buildings, real estate, forests
and agricultural estates belonging to the hostile state, and situated in
the occupied country. It must safeguard the capital of these properties,
and administer them in accordance with the rules of usufruct."

Bouvier's Law Dictionary defines "usufruct" (possibly the ugliest word in
the English language) as an arrangement that grants one party the right to
use and derive benefit from another's property "without altering the
substance of the thing". Put more simply, if you are a housesitter, you can
eat the food in the fridge, but you can't sell the house and turn it into
condos. And yet that is just what Bremer is doing: what could more
substantially alter "the substance" of a public asset than to turn it into
a private one?

In case the CPA was still unclear on this detail, the US army's Law of Land
Warfare states that "the occupant does not have the right of sale or
unqualified use of [non-military] property". This is pretty
straightforward: bombing something does not give you the right to sell it.
There is every indication that the CPA is well aware of the lawlessness of
its privatisation scheme. In a leaked memo written on March 26, the British
attorney general, Lord Goldsmith, warned Tony Blair that "the imposition of
major structural economic reforms would not be authorised by international
law".

So far, most of the controversy surrounding Iraq's reconstruction has
focused on the waste and corruption in the awarding of contracts. This
badly misses the scope of the violation: even if the sell-off of Iraq were
conducted with full transparency and open bidding, it would still be
illegal for the simple reason that Iraq is not America's to sell.

The security council's recognition of the United States' and Britain's
occupation authority provides no legal cover. The UN resolution passed in
May specifically required the occupying powers to "comply fully with their
obligations under international law including in particular the Geneva
conventions of 1949 and the Hague regulations of 1907".

According to a growing number of international legal experts, that means
that if the next Iraqi government decides it doesn't want to be a wholly
owned subsidiary of Bechtel and Halliburton, it will have powerful legal
grounds to renationalise assets that were privatised under CPA edicts.

Juliet Blanch, global head of energy and international arbitration for the
huge international law firm Norton Rose, says that because Bremer's reforms
directly contradict Iraq's constitution, they are "in breach of
international law and are likely not enforceable". Blanch argues that the
CPA "has no authority or ability to sign those [privatisation] contracts",
and that a sovereign Iraqi government would have "quite a serious argument
for renationalisation without paying compensation". Firms facing this type
of expropriation would, according to Blanch, have "no legal remedy".

The only way out for the administration is to make sure that Iraq's next
government is anything but sovereign. It must be pliant enough to ratify
the CPA's illegal laws, which will then be celebrated as the happy marriage
of free markets and free people. Once that happens, it will be too late:
the contracts will be locked in, the deals done and the occupation of Iraq
permanent.

Which is why anti-war forces must use this fast-closing window to demand
that the next Iraqi government be free from the shackles of these reforms.
It's too late to stop the war, but it's not too late to deny Iraq's
invaders the myriad economic prizes they went to war to collect in the
first place.

It's not too late to cancel the contracts and ditch the deals.

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