Facts on Who Benefits From Keeping Saddam Hussein In Power by The Heritage Foundation
WebMemo #217 (With references.)
February 28, 2003
France
a. According to the CIA World Factbook, France controls over 22.5 percent of Iraq's imports.[1] French total trade with Iraq under the oil-for-food program is the third largest, totaling $3.1 billion since 1996, according to the United Nations.[2] In 2001 France became Iraq's largest European trading partner.
b. Roughly 60 French companies do an estimated $1.5 billion in trade with Baghdad annually under the U.N. oil-for-food program.[3]
c. France's largest oil company, Total Fina Elf, has negotiated a deal to develop the Majnoon field in western Iraq. The Majnoon field purportedly contains up to 30 billion barrels of oil.[4]
d. Total Fina Elf also negotiated a deal for future oil exploration in Iraq's Nahr Umar field. Both the Majnoon and Nahr Umar fields are estimated to contain as much as 25 percent of the country's reserves.[5]
e. France's Alcatel company, a major telecom firm, is negotiating a $76 million contract to rehabilitate Iraq's telephone system.[6]
f. From 1981 to 2001, according to the Stockholm International Peace Research Institute (SIPRI), France was responsible for over 13 percent of Iraq's arms imports.[7]
Germany
a. Direct trade between Germany and Iraq amounts to about $350 million annually, and another $1 billion is reportedly sold through third parties.[8]
b. It has recently been reported that Saddam Hussein has ordered Iraqi domestic businesses to show preference to German companies as a reward for Germany's "firm positive stand in rejecting the launching of a military attack against Iraq." It was also reported that over 101 German companies were present at the Baghdad Annual exposition.[9]
c. During the 35th Annual Baghdad International Fair in November 2002, a German company signed a contract for $80 million for 5,000 cars and spare parts.[10]
d. In 2002, DaimlerChrysler was awarded over $13 million in contracts for German trucks and spare parts.[11]
e. German officials are investigating a German corporation accused of illegally channeling weapons to Iraq via Jordan. The equipment in question is used for boring the barrels of large cannons and is allegedly intended for Saddam Hussein's Al Fao Supercannon project.[12]
Russia
a. According to the CIA World Factbook, Russia controls roughly 5.8 percent of Iraq's annual imports.[13] Under the U.N. oil-for-food program, Russia's total trade with Iraq was somewhere between $530 million and $1 billion for the six months ending in December of 2001.[14]
b. According to the Russian Ambassador to Iraq, Vladimir Titorenko, new contracts worth another $200 million under the U.N. oil-for-food program are to be signed over the next three months.[15]
c. Soviet-era debt of $7 billion through $8 billion was generated by arms sales to Iraq during the 1980-1988 Iran-Iraq war.
d. Russia's LUKoil negotiated a $4 billion, 23-year contract in 1997 to rehabilitate the 15 billion-barrel West Qurna field in southern Iraq. Work on the oil field was expected to commence upon cancellation of U.N. sanctions on Iraq. The deal is currently on hold.[16]
e. In October 2001, Salvneft, a Russian-Belarus company, negotiated a $52 million service contract to drill at the Tuba field in Southern Iraq.[17]
f. In April 2001, Russia's Zaruezhneft Company received a service contract to drill in the Saddam, Kirkuk, and Bai Hassan fields to rehabilitate the fields and reduce water incursion.
g. A future $40 billion Iraqi-Russian economic agreement, reportedly signed in 2002, would allow for extensive oil exploration opportunities throughout western Iraq.[18] The proposal calls for 67 new projects, over a 10-year time frame, to explore and further develop fields in southern Iraq and the Western Desert, including the Suba, Luhais, West Qurna, and Rumaila projects. Additional projects added to the deal include second-phase construction of a pipeline running from southern to northern Iraq, and extensive drilling and gas projects. Work on these projects would commence upon cancellation of sanctions.[19]
h. Russia's Gazprom company over the past few years has signed contracts worth $18 million to repair gas stations in Iraq.[20]
i. The former Soviet Union was the premier supplier of Iraqi arms. From 1981 to 2001, Russia supplied Iraq with 50 percent of its arms.[21]
China
a. According to the CIA World Factbook, China controls roughly 5.8 percent of Iraq's annual imports.[22]
b. China National Oil Company, partnered with China North Industries Corp., negotiated a 22-year-long deal for future oil exploration in the Al Ahdab field in southern Iraq.[23]
c. In recent years, the Chinese Aero-Technology Import-Export Company (CATIC) has been contracted to sell "meteorological satellite" and "surface observation" equipment to Iraq. This contract was approved by the U.N. oil-for-food program.[24]
d. CATIC also won approval from the U.N. in July 2000 to sell $2 million worth of fiber optic cables. This and similar contracts approved were disguised as telecommunications gear. These cables can be used for secure data and communications links between national command and control centers and long-range search radar, targeting radar, and missile-launch units, according to U.S. officials. In addition, China National Electric Wire & Cable and China National Technical Import Telecommunications Equipment Company are believed to have sold Iraq $6 million and $15.5 million worth of communications equipment and other unspecified supplies, respectively.[25]
e. According to a report from SIPRI, from 1981 to 2001, China was the second largest supplier of weapons and arms to Iraq, supplying over 18 percent of Iraq's weapons imports.[26]
