RE: Politics of 'Oil for Food': The big catch

[Devine, James]

Title: RE: [PEN-L:35871] Politics of 'Oil for Food': The big catch





 also, despite all the possible aid to the Iraqi people, the overhead and clean-up will be likely supplied by Bush cronies, who will profit mightily.

JD


(hi, Paul!)
-Original Message-
From: Paul_A
To: [EMAIL PROTECTED]
Sent: 3/21/2003 10:00 AM
Subject: [PEN-L:35871] Politics of 'Oil for Food': The big catch



>
>http://www.moscowtimes.ru/stories/2003/03/20/042.html
>Thursday, Mar. 20, 2003. Page 7
>
>Report: U.S. Plans to Tap $40Bln Iraq Account




In itself, the current proposal of Kofi Anon is technical and almost 
required: the residual unspent amounts left over from the sale of Iraqi
oil 
under the sanctions (in the billions) will be needed by desperate and 
suffering people.  So the U.N. Secretariat should be authorized to use
the 
residual funds quickly on its own since there will be no Iraqi
government 
in the picture (the current Resolution requires the UN Secretariat to
use 
lengthy procedures involving the Iraqi government and the Security
Council).


The catch - who will control the NEXT batch of Iraqi oil to be sold
(and, 
of course, for the long term)?  The Military Government?  Under what 
rules?  For example:


 - Will 'humanitarian needs' include 'public safety' and thus 
reimburse the U.S./UK for the costs of the occupation?
 - The current 'Oil for Food' took billions (25% or maybe some
$10 
billion?) from Iraq and gave it to other countries as war 
reparations  (surpassing Versailles).  Now will the US/UK receive 
reparations for the cost of the war using this precedent?
 - Until there is a legally recognized national Government, who 
will control the oil fields and sell the oil?  U.S./UK oil companies
under 
a leasing arrangement with the Military Government?  (Of course this
leads 
to the issue of the ultimate privatization of the oil fields
themselves.)


There is one big point of leverage over the US/UK.  To export Iraqi oil 
legally (other than through 'Oil for Food') there will have to be a 
Security Council Resolution.  Could the US/UK try to attach the first
steps 
in this direction to a more innocuous Resolution?  The press reports
that 
the US/UK have floated a private draft of a new 'Oil for Food' 
resolution.  Alternatively they may have to wait for some weeks or
months, 
when there is an impending crisis as the residual funds run out and when


they have some sort of local Iraqi partners.

Politics of 'Oil for Food': The big catch

[Paul_A]

http://www.moscowtimes.ru/stories/2003/03/20/042.html
Thursday, Mar. 20, 2003. Page 7
Report: U.S. Plans to Tap $40Bln Iraq Account


In itself, the current proposal of Kofi Anon is technical and almost 
required: the residual unspent amounts left over from the sale of Iraqi oil 
under the sanctions (in the billions) will be needed by desperate and 
suffering people.  So the U.N. Secretariat should be authorized to use the 
residual funds quickly on its own since there will be no Iraqi government 
in the picture (the current Resolution requires the UN Secretariat to use 
lengthy procedures involving the Iraqi government and the Security Council).

The catch - who will control the NEXT batch of Iraqi oil to be sold (and, 
of course, for the long term)?  The Military Government?  Under what 
rules?  For example:

- Will 'humanitarian needs' include 'public safety' and thus 
reimburse the U.S./UK for the costs of the occupation?
- The current 'Oil for Food' took billions (25% or maybe some $10 
billion?) from Iraq and gave it to other countries as war 
reparations  (surpassing Versailles).  Now will the US/UK receive 
reparations for the cost of the war using this precedent?
- Until there is a legally recognized national Government, who 
will control the oil fields and sell the oil?  U.S./UK oil companies under 
a leasing arrangement with the Military Government?  (Of course this leads 
to the issue of the ultimate privatization of the oil fields themselves.)

There is one big point of leverage over the US/UK.  To export Iraqi oil 
legally (other than through 'Oil for Food') there will have to be a 
Security Council Resolution.  Could the US/UK try to attach the first steps 
in this direction to a more innocuous Resolution?  The press reports that 
the US/UK have floated a private draft of a new 'Oil for Food' 
resolution.  Alternatively they may have to wait for some weeks or months, 
when there is an impending crisis as the residual funds run out and when 
they have some sort of local Iraqi partners.