IRAQ SANCTIONS MONITOR Number 145
Friday, October 27, 2000
NEWS++++++LATEST
Arms-deal charges strike at one of Gore's strengths. Former US
foreign-policy officials cast aspersions on his judgment. . Democrats see a
late-election political ploy.
>From CHRISTIAN SCIENCE MONITOR, October 27th, 2000
Allegations that Al Gore cut a secret - and possibly illegal - deal with the
Russians over arms sales to Iran have put the vice president where no
candidate likes to be on the eve of an election: playing defense.
Republican congressmen are charging that Mr. Gore may have violated US law -
or at least used bad judgment - by signing a memorandum in 1995 that allowed
Russia to continue selling arms to Iran without the threat of economic
sanctions. It's an allegation that strikes at what has been viewed as a key
Gore asset - foreign-policy expertise.
This week's congressional hearings on the subject were prompted by documents
leaked to the press. The allegations against Gore are that he and then-Prime
Minister Viktor Chernomyrdin agreed to allow Russia to honor Soviet-era
contracts and complete deliveries of non-nuclear arms to Iran, a country
that the US considers a sponsor of international terrorism. In exchange,
Moscow agreed not to sell any new weapons to the Mideast nation.
Russian sales to Iran since this agreement was signed include a Kilo-class
attack sub (featured in the film "The Hunt for Red October"), long-range
torpedoes, and fighter planes.
Republican senators say these are dangerous weapons in a dangerous part of
the world, and that Congress should have been informed. After closed Senate
hearings this week, the Clinton administration has refused to provide a text
of the agreements, senators say.
"What we do know now about the Gore-Chernomyrdin agreement and its
implications for our interests abroad is disturbing," says Sen. Sam
Brownback (R) of Kansas. "It is difficult for me to understand how this
agreement is consistent with the Iran-Iraq Arms Non-Proliferation Act of
1992, a bill that the vice president himself introduced during his years in
the Senate."
The Gore campaign and the administration counter that these weapons do not
imperil the US or its interests, and that the agreement helped prevent Iran
from acquiring nuclear weapons, which advances American interests. They add
that the agreement was reported by many media outlets at the time, and key
House members were briefed on the meeting.
"The arrangements discussed here today are manifestly in the interests of
the United States and of the effort to halt nuclear proliferation," said
Joseph DeThomas, deputy assistant secretary of State for regional
nonproliferation in testimony Wednesday. "A partisan brawl that drags
legitimately classified material into the newspapers ... can only benefit
Iran."
Moreover, other Democrats say, the timing of the hearings is suspect.
Indeed, presidential contenders have historically faced charges and
allegations in the final weeks before an election.
George W. Bush faces a challenge of his own this week after a controversial
new report cast dispersions on his success in turning around Texas schools.
The Gore campaign jumped on this issue, and within 24 hours turned around a
TV ad based on this report. It started airing in battleground states
yesterday.
Experts say it's not clear whether Russian arms sales to Iran have the same
resonance with voters as education does. Foreign policy barely figures in
opinion polls this election, and Iran no longer fires public emotions as it
did in the 1980s.
But the issue could influence some voters in a close race, especially after
the recent terrorist attack on the USS Cole. It also raises important
foreign-policy issues on the relationship between the executive branch and
Congress.
"What's at stake is a law that Al Gore and John McCain both supported," says
Daniel Fisk of the Washington-based Heritage Foundation. "While the Congress
has been willing to give the administration some flexibility, it's not
willing to give a blank check."
On Tuesday, former Secretary of State George Schultz and 10 other top
foreign-policy officials said they were "deeply disturbed" by the agreement.
"We also find incomprehensible that this agreement was not fully disclosed
even to those committees of Congress charged with receiving highly
classified briefings - apparently at the request of the Russian premier,"
the statement concludes.
In response, former Rep. Lee Hamilton (D) of Indiana issued a statement that
members of his staff had been briefed on the agreement in July 1995.
"The judgment call many of us made in that meeting was that it made sense to
get this kind of agreement," says a senior congressional aide who attended
the meeting.
But GOP senators and others are questioning whether this level of
consultation was adequate.
"I don't view a discussion of this issue as being a matter of supporting or
repudiating either candidate," says Zbigniew Brzezinski, a former Assistant
to the President for National Security Affairs in the Carter administration.
"The issue is: Was there a secret agreement of which the Senate was not
informed?"
IEA ready to draw stks to meet Iraq oil threat
>From BRIDGENEWS GLOBAL MARKETS, October 27th, 2000
IEA ready to draw on stocks to meet Iraq oil threat Paris--Oct. 26--1409
ET--International energy agency head Robert Priddle said Thursday that IEA
member countries are ready to draw down stocks if Iraq cuts its oil supply
to the international market. He acknowledged that with some 2.3 million per
day supplied by Iraq, any disruption would be a "significant shock" to the
market. He pointed out, however, that other oil producers, notably Saudi
Arabia, would make good any slow down in supply.
IRAQ: Oil cutback would be "short-sighted," White House says
Washington--Oct. 26--1449 ET--Any attempt by Iraq to halt oil sales would be
a "short-sighted" move by President Saddam Hussein, a White House spokesman
said Thursday, responding to reports that Baghdad may cut back crude
supplies if the United Nations objects to a switch in how Iraq sells its oil
under a UN program.
NYMEX Oil Review: Higher on concern about Iraqi exports New York--Oct.
26--1523 ET--Crude oil futures in New York rose Thursday on concern that
Iraqi oil exports may be disrupted if the UN does not allow sales
transactions to be conducted in euros rather than U.S. dollars. Dec crude
ended up 79 cents at $33.75 per barrel. Dec Brent on London's IPE rose 61
cents to $31.97.
U.N. compensation panel pays out dlrs 1.3 billion
GENEVA (AP) _ The U.N. panel that oversees compensation for Iraq's invasion
of Kuwait paid out nearly dlrs 1.3 billion Thursday, bringing the total
payments so far to dlrs 9.4 billion.
The payments by the U.N. Compensation Commission went to governments in 38
countries and one U.N. agency for distribution to individual claimants,
corporations and the governments themselves.
Claimants in Kuwait received the bulk of the money _ just over dlrs 1
billion, of which 80 percent was to be paid to companies or corporations _
while the United States received the second-largest amount, dlrs 47 million.
Compensation awards approved by the commission are paid using 30 percent of
the Iraqi oil sales approved by the U.N. Security Council. That figure will
drop to 25 percent on Dec. 6.
The commission has received around 2.6 million compensation demands for a
total of some dlrs 320 billion from individuals, governments and
corporations seeking to offset loss and damage caused by the invasion of
Kuwait in 1990.
Processing all the claims is expected to take several more years. The panel
has given priority to smaller claims from individuals and companies, but
last month it approved a dlrs 15.9 billion claim from the Kuwait Petroleum
Company.
The 15-nation panel's membership mirrors that of the Security Council.
First Spanish flight lands in Iraq
BAGHDAD, Oct 26 (AFP) - The first Spanish delegation to fly into Saddam
International aiport in the campaign to end an air embargo on Iraq met
officials from the regime on Thursday, officials said.
The 35 politicians, businessmen, doctors and journalists landed in Baghdad
on Wednesday night on a three-day solidarity mission, said Abdel Razak
Al-Hashemi, head of Iraq's friendship, peace and solidarity organisation.
The Spanish flight "confirms the refusal of the unjust embargo imposed on
Iraq and the failure of American efforts to prevent the embargo from
crumbling," said the former higher education minister.
Russia, France and Turkey as well as numerous Arab countries have sent
flights to challenge the decade-old sanctions regime since the reopening of
Baghdad airport in August
Two flights were due to touch down in Baghdad on Thursday, one carrying
trade unionists from Damascus and the other 120 politicians and cultural
figures from Cairo, however the latter has been cancelled, Iraqi officials
said.
Iraqi threat to stop oil supports bonds
Oil prices could be in for more volatile trading after newswire reports that
Iraq would suspend oil sales by Nov. 1 if the US did not pay with EURs for
oil. Previously, Iraq has demanded that to be paid in EUR but the US has
ignored such demands. If such a course of action was taken, oil prices would
likely push sharply higher as Iraq produces about 2.7 mln barrels per day.
Oil front futures are about 30 ticks higher on the news at 33.32 USD. Both
Bunds and the EUR are also higher on the news. The Dec Bund is at 105.33, up
eight ticks, with the currency at 0.8260 against the USD.
Euro hits record low vs. dollar
>From BRIDGENEWS GLOBAL MARKETS, October 26th, 2000
Euro hits new low vs. dollar; recovers on Iraq report London--Oct. 26--The
euro has continued to probe fresh lifetime lows against the dollar, the
latest being 0.8228, though it appears to be benefiting from a recent report
that Iraq is threatening to suspend oil sales from Nov. 1 if the U.S.
objects to its proposal that it be paid in euros rather than dollars. The
European currency also hit a record low of 88.93 against the yen.
Vice president calls for `turning a new leaf` in relations with Turkey
Text of report by Iraqi radio on 25th October
Vice President Taha Yasin received (Lutfi Eth Dougan), Turkish writer,
journalist, and former member of the Turkish parliament.
Vice President Ramadan called for turning a new leaf in Iraqi-Turkish
relations in a way that serves their interests by taking bold and scientific
steps at the highest levels. Ramadan spoke about the importance of
activating work on the oil pipelines between Turkey and Iraq, reviving the
project of natural gas, and finding new border outlets.
The vice president said that lifting the unjust embargo on Iraq will not
come through an official Security Council resolution. The embargo is
beginning to collapse and eventually it will be
completely destroyed, he said. Ramadan recalled the flights to Iraq and
the states' serious endeavour to develop relations with Iraq on all levels.
For his part, Dougan said that Turkey wishes to strengthen its relations
with neighbouring countries, especially Iraq, because the two countries have
deep-rooted historical ties. He pointed out that the educated elite in
Turkey show deep love for Iraq and exhort the government to work seriously
to strengthen relations with Iraq.
Russian company bids to take part in gas projects in Iraq
Text of report in English by Russian news agency Interfax Moscow, 25th
October: Russia's gas and oil company, Rosneftegazstroy (RNGS), is taking
part in competitions for the right to develop natural gas fields in Iraq,
the company's chief executive officer has announced.
Projects RNGS has submitted bids on include a 180m-dollar plan to "maintain
pressure" at the Rumaylah gas field, Ivan Mazur
told Interfax. But the company's chances are slim because its competitors
have
made "dumping offers openly". RNGS expected, however, to win a role in a
"casing-head gas utilization" project estimated at between 150m and 160m
dollars, Mazur said.
These competitions have been called by the Iraqi government. "We haven't
made any special proposals to the Iraqi leadership,"
Mazur said. "Like all sober-minded people, we hope for the earliest possible
lifting of the economic sanctions against that
country, after which proper participation, including our company's, in Iraqi
projects will be made possible."
Russia's Aeroflot planning to open office in Iraq `soon`
Text of report in English by Russian news agency Interfax Moscow, 26th
October:
Aeroflot plans to soon open an office in
Iraq, the general director of the major Russian airline said. The order to
open the office has already been signed, Valeriy
Okulov told a news conference today.
The airline expects flights to Baghdad to begin immediately after
international sanctions against Iraq are lifted, Okulov
said.
Iraq pumping normal 800,000 bpd crude via Turkey pipelines
BridgeNews Istanbul--Oct. 26--Iraq continued at 0930 GMT Thursday to pump
the normal amount of about 800,000 barrels per day (BPD) through its twin,
trans-Turkey pipelines, sources at their Ceyhan terminal said. They said
that storage at the terminal was also nearly full at about 695,000 barrels
of the total available 793,000 barrels. They could not comment on reports
that Iraq has threatened not to implement any oil export contracts after
Nov. 1.
Iraq threatened Thursday to stop oil exports if the United States objects to
a proposal that Iraq be paid in euros and not dollars for its oil exports,
which are subject to limitations imposed by U.N. sanctions.
The Ceyhan sources said that a tanker called the Silba was currently loading
a 500,000 barrels shipment of Iraqi crude.
PRESS RELEASE
AS SANCTIONS CRUMBLE, THE OPPOSITION BUILDS!
Aircraft from all over the world are now breaching sanctions on Iraq,
landing in Baghdad, bringing not just humanitarian aid and solidarity, but
some of the world's leading politicians and dignitaries.
This weekend, in what will be the largest and most prestigious gathering of
international opponents to the US and British-imposed sanctions policy, more
than 50 delegates from 15 different countries will meet in Brussels to
strengthen links and plot strategy for what is hoped will be the final push
to demolish the blockade on Iraq. Among the delegates will be politicians,
deputies and Members of Parliament from Europe and the Middle East.
The European meeting of the Baghdad Conference is sponsored by the Mariam
Appeal, the campaigning organisation set up by the Labour MP George
Galloway. The conference will take place at the Metropole Hotel, 31, Place
de Brouckere, B-1000 Brussels, BELGIUM on Sat 28th, and Sun 29th October.
The inaugural session of the conference will be held at 11am in the Salon
Ambassadeur. Members of the press and the electronic media are cordially
invited to attend.
Following the conclusion of the two-day meeting a Press Conference will be
held on Monday October 30 at 10.00am in the Einstein Room of the Metropole
Hotel to which, again, members of the media are invited.
tel: +44 (0)20 7403 5200
fax: +44 (0)20 7403 3823
email: [EMAIL PROTECTED]
web: www.mariamappeal.com
