US Suggests Honoring Past Iraq Oil, Food Contracts (UN Food for Oil)

Reuters ^ | May 2, 2003

[Shermy]

UNITED NATIONS (Reuters) - In a move to win allies, the United States is considering honoring contracts made by Saddam Hussein's government under the U.N. oil-for-food program if the Security Council lifts sanctions against Iraq, diplomats said on Friday.

The proposal was made by U.S. Ambassador John Negroponte during a meeting of council members and U.N. Secretary-General Kofi Annan on Thursday and reported by several participants in the session. It would reimburse firms whose contracts had been approved and funded under the multibillion dollar program.

Negroponte said a final decision had not been made. However, his comments indicated serious consideration by Washington to win support from nations like Russia, which had numerous oil and goods contracts with Iraq before the war, the envoys said.

Washington wants the Security Council, which refused to authorize the U.S.-British invasion of Iraq, to adopt a resolution lifting all sanctions, except for an arms embargo, so Iraq's economy can be set free.

Any honoring of past contracts would be included in the resolution, expected to be adopted by June 3 when the oil-for-food plan is up for renewal.

The U.S. proposals would end the oil-for-food program, which puts Iraq's oil revenues into a U.N.-administered fund out of which are paid suppliers of food, medicine and other goods. The account holds $12 billion -- more than any other aid fund.

Russia wants the United Nations to take complete charge of the oil-for-food program until a proper Iraqi government is recognized. France has advocated suspending or phasing out the sanctions, without giving many details.

And staunch ally Britain has not yet signed on to the Bush administration's proposals. It wants some kind of political role for the United Nations and to see U.N. arms inspectors back in Iraq so that any weapons of mass destruction found by the U.S. military can be verified.

Differences also persist between the Defense Department, which wants one "omnibus" resolution, and the State Department, which advocates step-by-step measures, diplomats said.

LISTEN TO POWELL, NOT RUMSFELD

British Ambassador Sir Jeremy Greenstock told a panel discussion at Harvard University on Friday, If the Pentagon runs the peace, we're in trouble."

"If I were an adviser to George Bush, I would say: 'Listen to Colin Powell, not Donald Rumsfeld,"' he said when asked how he would advise Bush on managing post-war Iraq.

At the United Nations, Negroponte told reporters, "We would like to be able to put something concrete before the council as soon as possible."

He said discussions were ongoing in Washington as well as with British officials. "But I am hopeful it will be some time in the course of next week," Negroponte added.

The U.S. proposals, diplomats said, want the Security Council to transfer Iraq's oil wealth to a new Iraqi administration, with World Bank (news - web sites) oversight. The measure would ask the council to appoint a U.N. envoy in an advisory role but exclude U.N. arms inspectors from verifying that Iraq is clean of weapons of mass destruction.

Unraveling the oil-for-food program will be complex, particularly determining which contracts will be honored and which creditors will be paid.

Since the program began in 1996, Russia had $7.31 billion worth of oil or goods contracts with Iraq, followed by Egypt with $4.3 billion and France with $3.7 billion.

Bush administration officials argue that since the sanctions were imposed to restrain Saddam Hussein's government after he invaded Kuwait, there could be little justification for keeping them in place now that he is gone.

While the United States could just let the oil-for-food program lapse on June 3 by vetoing any resolution to renew it, such an action could raise legal problems and possibly deter multinational companies from doing business there.

[Shermy]

Ping.

[Dog Gone]

While the United States could just let the oil-for-food program lapse on June 3 by vetoing any resolution to renew it, such an action could raise legal problems and possibly deter multinational companies from doing business there.

Our leverage will increase as that date approaches, and business always goes where the money is. That last phrase is baloney.

[adam_az]

"If I were an adviser to George Bush, I would say: 'Listen to Colin Powell, not Donald Rumsfeld,"' he said when asked how he would advise Bush on managing post-war Iraq.

Now we know why this guy isn't an advisor to George Bush. :)

[pgyanke]

In a move to win allies, the United States is considering honoring contracts made by Saddam Hussein's government under the U.N. oil-for-food program if the Security Council lifts sanctions against Iraq, diplomats said on Friday.

NOOOOOOO!!!!

[Dog]

I'm going to get flamed for this opinion.....but I say let's do it..

Give the Russian's the money that is owed to them.

We need to end the Oil for Food...ASAP.

[kritikos]

"The proposal was made by U.S. Ambassador John Negroponte during a meeting of council members and U.N. Secretary-General Kofi Annan on Thursday and reported by several participants in the session. It would reimburse firms whose contracts had been approved and funded under the multibillion dollar program."

As long as they simply reimburse the firms and not seek fulfillment of contracts...what the heck would Iraq need with more weapons and munitions?

[My2Cents]

Sure, why not honor agreements that allowed graft and corruption, and allowed nations such as France to sacrifice the welfare of the people of Iraq for the promise of cheap oil. Sure, we should protect these corrupt bargains.

[GraniteStateConservative]

Russia is owed those contracts like Hussein's heirs are owed all his stolen riches.

[pgyanke]

Give the Russian's the money that is owed to them.

I agree to a point--but it's a very small point. So dumb and Insane ran Iraq like it was his own piggy bank. With him out of power, I would treat it like a bankruptcy and carefully scrutinize all debts. No has yet argued that the Iraqi people had any say in their former government, therefore they should not be saddled indefinitely with the criminal deals made by it.

[FairOpinion]

Are you suggesting that we should allow Russia & France blackmail us into honoring their billions of dollars of programs, after they were obstructing us?

We might as well just lie down, so Chirac can kick us better.

[cake_crumb]

" 'If I were an adviser to George Bush, I would say: 'Listen to Colin Powell, not Donald Rumsfeld,' he said when asked how he would advise Bush on managing post-war Iraq."

Who is this idiot Greenstock? Is he advising Blair in the same way??

[Dog]

Nooooooo....

Offering the Russians that 8 billion that is owed them.....will peel them from France and Germany.

[cake_crumb]

Don't be too worried about the oil for food scam. It can't be the same now. Saddam is gone, and the Kurds are after the $4 billion bucks the UN owes them for their oil.

I can't see how the UN can get away with allowing millions of Iraqis to starve now that the world is watching them, so a version of an oil for food program may be just the ticket.

If I were you, I'd be a heckuva lot MORE worried that PM Blair seems to want the UN to GOVERN Iraq. No way. The country would dissolve into permanent civil war within a week of the UN taking control of governing it.

[Dog]

I would treat it like a bankruptcy and carefully scrutinize all debts

This is how I would handle it.

[cake_crumb]

"No has yet argued that the Iraqi people had any say in their former government, therefore they should not be saddled indefinitely with the criminal deals made by it."

BUMP!!

[GailA]

MASTER LIST Useless Nation's Oil for Food scam + galloway

[may18]

quote
______
If I were you, I'd be a heckuva lot MORE worried that PM Blair seems to want the UN to GOVERN Iraq. No way. The country would dissolve into permanent civil war within a week of the UN taking control of governing it.
____

Well blair is naieve in thinking the un is relevant

but i saw him with putin in their incredibly hostile meeting, he stated then

"american and british lives were lost in iraq, it is inconceivable that control will just be handed to the UN"

he wants a role for them,

I personally dont want the un heavily involved. But its clear they wont be in charge

[MadIvan]

I don't want the UN involved at all. As the Scotsman reported, the UN gets a cut of Oil for Food. French and Russian banks get a cut. French and Russian oil companies get a cut. Then the Iraqi's people cut is reduced to a simply expressed amount - bugger all.

Regards, Ivan

[HuntsvilleTxVeteran]

Mr. Negroponte is a member of the Council on Foreign Relations and the American Academy of Diplomacy. He is former chairman of the French-American Foundation.