As I recall, there were a number of reasons. When this issue was discussed
under Paul Bremmer's Provisional Coalition Authority last year in connection
with a series of decrees governing the deregulation of the economy and
foreign trade, it was decided to "shelve" the issue of privatizing the Iraq
National Oil Company for political reasons, ie. it would reinforce the
perception of the Iraqi masses that the US invaded to get its hands on the
country's oil. There was also of course the military issue, securing the
oilfields against sabotage by insurgents. There was an intertwined economic
and diplomatic one: the US oil companies also wanted to develop the fields
in conjunction with French, Russian, and other oil companies, who already
had concessions in Iraq and knew the terrain, but this awaited a diplomatic
solution to the differences between these countries and the US, which in
turn revolved around forgiveness of Iraq's foreign debt. And finally there
were the legal niceties: various international legal conventions forbade an
occupying power from fundamentally altering the economic landscape and
plundering the nation's resources. So it was decided to wait until elections
were held, a new Iraqi government installed, a constitution drafted, and the
country stablized for foreign investment.

So I think it's more appropriate to say the multinationals are against
privatizing Iraqi oil - for now.

MG


----- Original Message ----- From: "Jim Devine" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Monday, May 16, 2005 11:42 PM Subject: Re: [PEN-L] Cambodia and Unions


I don't see why you say the oil companies were against privatizing Iraqi
oil<

I was only citing what Palast said.

--
Jim Devine
[EMAIL PROTECTED]
http://myweb.lmu.edu/jdevine

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