Sauds won't deal with Baker

Kingdom Will Not Discuss Iraqi Debt Write-Off With Governing Council: Saud P.K. Abdul Ghafour, Arab News Staff

JEDDAH, 24 December 2003 — Saudi Arabia will not discuss any loan write-offs with Iraq’s interim US-appointed government, Foreign Minister Prince Saud Al-Faisal said yesterday.

He said the Kingdom would wait until Iraq had an independent government before looking into the possibility of reducing the debt. “This (debt) has to be discussed with a government with total sovereignty, so... this issue is now premature,” the Saudi Press Agency quoted him as saying.

“There is an international dialogue and we are willing to take part and discuss, but I don’t think there is scope for a serious dialogue unless there is an Iraqi government,” he said.

Financial analysts estimate Iraq’s debt at $108-$123 billion, but that could rise to as much as $166 billion if compensation claims for Baghdad’s invasion of Kuwait are included — more if Iran seeks compensation for an earlier invasion by Iraq.

Iraq is currently run by a governing council installed by the United States after it ousted Saddam Hussein in April. Coalition forces are set to transfer power to an independent Iraqi government by July 2004 and a constitution would be written and elections held by end-2005.

Iraq owes $21 billion plus the same again in unpaid interest to the Paris Club, which groups sovereign creditors in working out debt reduction for poor nations.

On the issue of Iraq joining the Gulf Cooperation Council, Prince Saud said the Iraqi Governing Council announced it had not applied for membership in the six-member regional body.

The accession of Yemen to the GCC would take some time, he said, but added the Kuwait summit, which ended on Monday, decided to strengthen cooperation with Sanaa.

Prince Saud welcomed Libya’s decision to renounce its weapons of mass destruction program as well as Iran’s signing of additional protocols to the Nuclear Non-Proliferation Treaty (NPT). “These decisions go along with the general trend to keep the Middle East free of WMD,” he said, urging the international community to pressure Israel to sign the NPT too.

The prince said there was “nothing strange” about a meeting between Crown Prince Abdullah, deputy premier and commander of the National Guard, and Qatari Emir Sheikh Hamad on the sidelines of the GCC summit in Kuwait City.

Any unsolved differences between the two countries would not affect either their bilateral ties or the work of the Gulf Cooperation Council.

Asked whether the Saudi ambassador to Qatar will return to Doha, the prince said: “I believe that things will get settled, God willing.”

While granting that recent US warnings to its citizens in the Kingdom were within Washington’s rights, he objected to “predicting danger when all possible security measures are in place.” He insisted the Kingdom had taken adequate measures to protect expatriates in the country.

Referring to recent calls for elections in Saudi Arabia, Prince Saud said: “Elections are a means not an objective... it is a means to select the best government. I don’t know whether there is anything to fear if there is a different method to achieve the same objective.”

Saudi Arabia has created a new ministerial post and appointed Dr. Saud ibn Saeed ibn Abdul Aziz Al-Muthami state minister and Cabinet member for Shoura Council affairs, the Royal Court announced yesterday.

You will remember that Saddam's original war against Kuwait was in response to the refusal by Kuwait and Saudi Arabia to renegotiate Iraq's debt with them resulting from the Iran-Iraq war. His point was that he was defending them from Iran as surely as he defended Iraq. (This ignores the fact that he started it, of course. He had long-standing ambitions in southwestern Iran that were never possible until the Shah had left the scene...)

It would be ironic if we were now to pick up Saddam's argument, that Iraq owes the Saudis nothing. "Saudi Arabia put up the money, while Iraq put up the blood" was Saddam's argument, which we may now be repeating in private.

Actually, there is little to negotiate. Iraq's new government will repudiate all debts contracted by Saddam, and no one on earth will make them pay if the US does not back their claim. The only way to force payment is to cut off future credit, not possible when they are an oil producer backed up by the US taxpayer. The only other way is to invade, again not possible as long as the US is on the scene.

So the argument is already settled. Baker's trip is just making explicit in private what anyone could figure out.

<< Excerpted - click for full article ^ >>

Why?

You waiting for kickbacks from hits on your ludicrous link?

Don't hold your breath!

[And don't post unnecesary excerpts!]

"kingdom" Will Not Discuss Iraqi Debt Write-Off With Governing Council: Saud
P.K. Abdul Ghafour, Arab News Staff

JEDDAH, 24 December 2003 ¡X Saudi Arabia will not discuss any loan write-offs with Iraq¡¦s interim US-appointed government, Foreign Minister prince Saud Al-Faisal said yesterday.

He said the Kingdom would wait until Iraq had an independent government before looking into the possibility of reducing the debt.

¡§This (debt) has to be discussed with a government with total sovereignty, so... this issue is now premature,¡¨ the Saudi Press Agency quoted him as saying.

¡§There is an international dialogue and we are willing to take part and discuss, but I don¡¦t think there is scope for a serious dialogue unless there is an Iraqi government,¡¨ he said.

Financial analysts estimate Iraq¡¦s debt at $108-$123 billion, but that could rise to as much as $166 billion if compensation claims for Baghdad¡¦s invasion of Kuwait are included ¡X more if Iran seeks compensation for an earlier invasion by Iraq.

Iraq is currently run by a governing council installed by the United States after it ousted Saddam Hussein in April. Coalition forces are set to transfer power to an independent Iraqi government by July 2004 and a constitution would be written and elections held by end-2005.

Saddam Hussayn's Iraq dictatorship owes $21 billion plus the same again in unpaid interest to the Paris Club, which groups sovereign creditors in working out debt reduction for poor nations.

On the issue of Iraq joining the Gulf Cooperation Council, Saud said the Iraqi Governing Council announced it had not applied for membership in the six-member regional body.

The accession of Yemen to the GCC would take some time, he said, but added the Kuwait summit, which ended on Monday, decided to strengthen cooperation with Sanaa.

Saud welcomed Libya¡¦s decision to renounce its weapons of mass destruction program as well as Iran¡¦s signing of additional protocols to the Nuclear Non-Proliferation Treaty (NPT). ¡§These decisions go along with the general trend to keep the Middle East free of WMD,¡¨ he said, urging the international community to pressure Israel to sign the NPT too.

Saud said there was ¡§nothing strange¡¨ about a meeting between crown prince Abdullah, deputy premier and commander of the National Guard, and Qatari Emir Sheikh Hamad on the sidelines of the GCC summit in Kuwait City.

Any unsolved differences between the two countries would not affect either their bilateral ties or the work of the Gulf Cooperation Council.

Asked whether the Saudi ambassador to Qatar will return to Doha, Saud said: ¡§I believe that things will get settled, insh'allah.¡¨

While granting that recent American Government warnings to Americans in the kingdom were within The United States of America's Rights, he objected to ¡§predicting danger when all possible security measures are in place.¡¨ He insisted his dictatorship has taken adequate measures to protect expatriates in the country.

Referring to recent calls for elections in Saudi Arabia, Saud said: ¡§Elections are a means not an objective... it is a means to select the best government. I don¡¦t know whether there is anything to fear if there is a different method to achieve the same objective.¡¨

He had better believe there is.

Actually, there is little to negotiate. Iraq's new government will repudiate all debts contracted by Saddam, and no one on earth will make them pay if the US does not back their claim. The only way to force payment is to cut off future credit, not possible when they are an oil producer backed up by the US taxpayer.

Not a bad strategy for a special situation of Iraq. Will send a message to those who deal with scummy dictators that you might not get your loans paid when the nations rids itself of a murderous regime. I doubt the Russian commies ever paid off the Czar's debts.

Iraq will end up like a bankrupt who can't get a credit card but is great salesman, with great income, who must pay all bills cash on the barrel. Or with a debit card. The Iraqi secret is abundant oil reserves to trade with. Far different than if Zimbabwe repudiates it's debts after Mugabe is overthrown. At best Zimbabwe has fine tobacco and agricultural products to sell.

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