Read the first article carefully.  It is the virus in the computer, the
poison pill, the Trojan horse, and the primacy of the bottom line.

Bush's response, in article two, was predictable and offers good
news and bad.  It pitches powerful forces against him, but will
either allow or seduce many others to accept these two deadly
failures as the only options, most, likely to support Baker/Hamilton.
Reality in Iraq will trash both programs, but the carnage continues
even while both inperialist views are laid bare, but remain dominant
in all branches of our government.
Ed


Democracy Now
Thursday, December 7th, 2006
Oil for Sale: Why the Iraq Study Group is Calling for the Privatization of
Iraq's Oil Industry

--------------------------------------------------------------------------------
Among its recommendations, the Iraq Study Group advised that Iraq privatize
its oil industry and to open it up to international companies. Author and
activist Antonia Juhasz writes "Put simply, the oil companies are trying to
get what they were denied before the war or at anytime in modern Iraqi
history: access to Iraq's oil under the ground." [includes rush transcript]

  a.. Antonia Juhasz, author and activist. Her latest book is "The Bush
Agenda: Invading the World, One Economy at a Time,"

--------------------------------------------------------------------------------
RUSH TRANSCRIPT
This transcript is available free of charge. However, donations help us
provide closed captioning for the deaf and hard of hearing on our TV
broadcast. Thank you for your generous contribution.
Donate - $25, $50, $100, more...

AMY GOODMAN: The Iraq Study Group also recommended for Iraq to privatize its
oil industry and to open it up to international companies. The author and
activist, Antonia Juhasz, has been closely watching this aspect of the Iraq
reconstruction process. She's author of The Bush Agenda: Invading the World,
One Economy at a Time. Antonia Juhasz, thanks for joining us in studio in
San Francisco. Your response to the report, not talked about almost at all,
the issue of privatization?

ANTONIA JUHASZ: Yeah, absolutely. And good morning, Amy. It's a completely
radical proposal made straightforward in the Iraq Study Group report that
the Iraqi national oil industry should be reorganized as a commercial
enterprise. The proposal also says that, as you say, Iraq's oil should be
opened up to private foreign energy and companies. Also, another radical
proposal: that all of Iraq's oil revenues should be centralized in the
central government. And the report calls for a US advisor to ensure that a
new national oil law is passed in Iraq to make all of this possible and that
the constitution of Iraq is amended to ensure that the central government
gains control of Iraq's oil revenues.

All told, the report calls for privatization of Iraq's oil, turning it over
to private foreign corporate hands, putting all of the oil in the hands of
the central government, and essentially, I would argue, extending the war in
Iraq to ensure that US oil companies get what the Bush administration went
in there for: control and greater access to Iraq's oil.

AMY GOODMAN: Antonia Juhasz, let's talk about the members of this Iraq Study
Group. That might explain what their approach has been, particularly James
Baker, the former Secretary of State, and also Lawrence Eagleburger. Talk
about the two of them.

ANTONIA JUHASZ: Both Baker and Eagleburger have spent their careers doing
one of two things: working for the federal government or working in private
enterprise taking advantage of the work that they did for the federal
government. So, in particular, in this case, both Baker and Eagleburger were
key participants throughout the '80s and early 1990s of radically expanding
US economic engagement with Saddam Hussein, with a very clear objective of
gaining greater access for US corporations, particularly oil corporations,
to Iraq's oil, and doing everything that they could to expand that access.

Baker has his own private interest. His family is heavily invested in the
oil industry, and also Baker Botts, his law firm, is one of the key law
firms representing oil companies across the United States and their
activities in the Middle East. And Lawrence Eagleburger was president of
Kissinger Associates, which was one of the leading multinational advising
firms for advising US companies who were trying to get contracts with Saddam
Hussein and get work in Iraq.

Now, these two members of the Iraq Study Group are joined by two additional
members who are representatives of the Heritage Foundation, and the Heritage
Foundation is one of the few US organizations that point-blank called for
full privatization of Iraq's oil sector prior to the invasion of Iraq, as a
stated goal of the invasion. And to call point-blank for full privatization,
as I said, is truly radical. It's actually a shift for the Bush
administration, which has for the past about two years been working on a
more sort of privatization-lite agenda, putting forward what are called
production-sharing agreements in Iraq that would have the same outcome of
privatization without calling it privatization.

For the Iraq Study Group, which is supposed to be, you know, the meeting of
the pragmatists, the sort of middle-ground group that's going to help solve
the war in Iraq, to put forward this incredibly radical proposal and to have
nobody talk about it, to me, is fairly shocking and makes clear that still
the Democrats, the Republicans, the media are afraid to talk about oil, but
that oil, in my mind, still remains the lynchpin for the administration and
for all those in the oil sector in the United States, Baker and Eagleburger
counted among them, for why US troops are being committed and committed to
stay. And the report says troops will stay until at least 2008 -- I think
that is at a minimum -- to guarantee this oil access to US oil companies.

AMY GOODMAN: Former Secretary of State James Baker in 2003 went to Rome,
Moscow, London, first official trip since he joined the Bush administration
as a point person on issues around Iraq in 2003, but remained a senior
partner in the law firm, Baker Botts, which, among others, represents
Halliburton, as well as the Saudi government, in the suit filed by family
members who lost relatives in 9/11. Now, that's the family members who lost
their loved ones versus the Saudi government, and he was representing the
Saudi government.

ANTONIA JUHASZ: Yeah, he's definitely had his allegiance spread, and it
almost always, in the bottom line, has to do with oil. And as the public has
been very clear in saying in its reports on Baker -- or rather, excuse me,
the media -- that Baker is a pragmatist. He is a pragmatist. The Iraq Study
Group report, page 1, chapter one, says that the reason why Iraq is a
critical country in the Middle East, in the world and for the United States,
is because it has the second-largest reserves of oil in the world. The
report is very clear.

The report is also very clear, however, that this isn't a report where the
recommendations can be picked and choosed. It says that all of the
recommendations should be applied together as one proposal, that they
shouldn't be separated out. That means that the authors of the report are
saying that oil, privatization of oil, and foreign corporate access to oil
is as key as any other recommendation that they have made.

And the report also says that the US government will withhold military,
economic and political support of the Iraqi government, unless the
recommendations are met. That's a pretty straightforward statement. The US
government will not provide any support to the al-Maliki government, unless
it advances the changes to the Iraqi constitution and changes to Iraqi
national law that essentially privatize Iraq's oil.

That is something for us in the antiwar movement to be very, very clear
about, that this is their objective and that we have to, as I repeatedly
say, not just call for the end of troops in Iraq, but make clear that the US
corporate invasion cannot be progressed or continue, as well.

AMY GOODMAN: Antonia Juhasz, I want to thank you very much for being with
us, author of The Bush Agenda: Invading the World, One Economy at a Time,
speaking to us from San Francisco.

To purchase an audio or video copy of this entire program, click here for
our new online ordering or call 1 (888) 999-3877.

***

http://www.nytimes.com/2006/12/08/world/middleeast/08prexy.html?pagewanted=1&_r=1&th&emc=th

Bush Backs Away From 2 Key Ideas of Panel on Iraq

By SHERYL GAY STOLBERG and KATE ZERNIKE
Published: December 8, 2006
WASHINGTON, Dec. 7 - President Bush moved quickly to distance himself on
Thursday from the central recommendations of the bipartisan Iraq Study
Group, even as the panel's co-chairmen opened an intensive lobbying effort
on Capitol Hill to press Mr. Bush to adopt their report wholesale.

One day after the study group rattled Washington with its bleak assessment
of conditions in Iraq, its Republican co-chairman, James A. Baker III, said
the White House must not treat the report "like a fruit salad," while the
Democratic co-chairman, Lee H. Hamilton, called on Congress to abandon its
"extremely timid" approach to overseeing the war.
But Mr. Bush, making his first extended comments on the study, seemed to
push back against two of its most fundamental recommendations: pulling back
American combat brigades from Iraq over the next 15 months, and engaging in
direct talks with Iran and Syria. He said he needed to be "flexible and
realistic" in making decisions about troop movements, and he set conditions
for talks with Iran and Syria that neither country was likely to accept.

The president addressed reporters after meeting in the White House with his
closest ally in the war, Prime Minister Tony Blair of Britain. In light of
the report's stark warning that the situation in Iraq was "grave and
deteriorating," Mr. Bush came close to acknowledging mistakes. "You wanted
frankness - I thought we would succeed quicker than we did," the president
said to a British reporter who asked for candor. "And I am disappointed by
the pace of success."

But Mr. Bush, and to a lesser extent, Mr. Blair, continued to talk about the
war in the kind of sweeping, ideological terms the Iraq Study Group avoided
in its report. While the commission settled on stability as a realistic
American goal for Iraq, Mr. Bush cast the conflict as part of a broader
struggle between good and evil, totalitarianism and democracy.

If extremists emerge triumphant in the Middle East, Mr. Bush warned,
"History will look back on our time with unforgiving clarity and demand to
know, what happened? How come free nations did not act to preserve the
peace?"

While the president said he would give the report serious consideration, he
said he did not intend to accept all 79 recommendations. "Congress isn't
going to accept every recommendation in the report," Mr. Bush said, "and
neither will the administration."

Three other reviews - one by the Pentagon, one by the State Department and
one by the National Security Council - are under way, and Mr. Bush
reiterated Thursday that while he believed that the nation needed "a new
approach" in Iraq, he would make no decision until he received those
reports. The current White House plan is for Mr. Bush to receive them over
the next week to 10 days, then make a decision about what both he and the
Baker-Hamilton commission are calling "the way forward" in Iraq. He intends
to announce his plans in a speech before the end of the year, probably
before Christmas, according to administration officials.

Pentagon officials are scheduled to brief Mr. Bush soon on the department's
recommendations for a strategy shift in Iraq. The department's
recommendations are likely to differ in some respects from the ideas
presented by the Iraq Study Group, particularly over the role to be played
by American combat troops over the next 12 to 18 months.

Mr. Bush and Mr. Blair have long stood side by side on the war in Iraq. The
White House insisted that Mr. Blair's appearance on Thursday was not timed
to coincide with the release of the report, but it did help them
underscore - as Tony Snow, the White House press secretary, put it - that
"the president isn't standing alone."

The Pentagon recommendations, which are still being completed, are the
product of discussions in recent weeks among ground commanders, the Joint
Chiefs of Staff and civilian officials in the department. While department
officials are likely to present Mr. Bush with one set of recommendations,
differences remain.

Some officials still back the idea of a temporary surge in American troops,
though the top commander in the Middle East, Gen. John P. Abizaid, has been
urging recently that any troop shortfall to restore security in Baghdad
should be filled by more Iraqi forces or by repositioning American forces
now in Iraq.

Military officials are also concerned about the Iraq Study Group's call for
pulling back all American combat brigades over the next 15 months, a goal
that some uniformed officials see as desirable but possibly unrealistic.
Pentagon officials remain skeptical about the timetable, and they are
leaning toward an approach that pulls back some combat brigades but keeps
others in Baghdad and other violence-ridden areas of Iraq until Iraqi units
can better handle the fight on their own.

Though the Iraq Study Group also called for keeping enough American troops
in place to provide protection to expanded teams of American advisers
attached to Iraqi Army units, Pentagon officials fear that the panel's
recommendations, if adopted, could lead to withdrawals of substantial
American troops before the Iraqi units can stand on their own.

The study group said combat brigades could withdraw from Iraq by the first
quarter of 2008 if conditions on the ground permitted. Some analysts say
that phrasing gives Mr. Bush wiggle room to ignore the call for withdrawal,
and on Thursday Mr. Bush seized on that "qualifier," as he called it. "I
thought that made a lot of sense. I've always said we'd like our troops out
as fast as possible."

Mr. Bush was sensitive about commenting on the military recommendations put
forth by the Iraq Study Group until he heard from his own commanders,
according to a senior administration official, who was authorized to discuss
the president's point of view. "When you have your military leadership who
are tasked with fighting this war, who are in the process of giving him
military advice, you also have to be deferential to that," this official
said.
On Iran and Syria, Mr. Bush stuck to the conditions he set long ago for
talks: Iran must abandon its nuclear program, and Syria must give up its
support for the Lebanese militant group Hezbollah. "If they want to sit down
at the table with the United States, it's easy - just make some decisions
that will lead to peace, not to conflict," he said.

The Baker-Hamilton panel - five Republicans and five Democrats - made an
intense plea for a bipartisan consensus, and Mr. Bush's aides say the
president has taken at least that part of their effort to heart. He met
Wednesday with leaders of committees that oversee foreign affairs, defense
and intelligence, and plans to meet with Republican and Democratic leaders
on Friday.

The Wednesday meeting opened with Mr. Bush making an overture to Democrats,
the senior official said, and telling them that although they may believe he
has made the wrong decisions, they needed to work together. "The president
started by saying that, you know, there's a lot of water under the bridge,
but that while we may not share all the views of this report, we ought to
use it as an opportunity to work together," the official said, adding, "I've
been through a lot of those meetings, and sometimes you feel like people are
going through the motions. And I felt yesterday that there was really a
sincere effort, both Republican and Democrat, to say this could provide us
an opportunity to find common ground."

On Capitol Hill on Thursday, Republican and Democratic senators pressed Mr.
Baker and Mr. Hamilton for ways that Congress could be involved in shaping
the president's response to the report - noting that the original impetus
for the study group had come from Capitol Hill. "We've now heard from the
Iraq Study Group, but we need the White House to become the Iraq Results
Group," said Senator Hillary Rodham Clinton, Democrat of New York.

Mr. Baker replied by asking Congress to accept the report, saying that would
put pressure on the administration to do the same. "If the Congress could
come together behind supporting, let's say, utopianly, all of the
recommendations of this report, that would do a lot toward moving things
downtown, in my opinion," he said. Both he and Mr. Hamilton argued that
cherry-picking the suggestions would not work.

"I hope we don't treat this like a fruit salad and say, 'I like this but I
don't like that. I like this, but I don't like that,' " Mr. Baker said.
"This is a comprehensive strategy designed to deal with this problem we're
facing in Iraq, but also designed to deal with other problems that we face
in the region, and to restore America's standing and credibility in that
part of the world."





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