[marron]

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.

[dennisw]

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.

[Bluntpoint]

Sauds won't deal with Baker

"Note to self: Found WMD in Sauds' closet, remember to tell George Jr. and Don Rumsfeld." (From James Baker's palm pilot)

[Fenris6]

"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."

I hope this is true. Would be a nice lesson to those who fund tyrants. How certain are you that this is so?