Thread: Archive Latest News - Think Tank - 15/04/08 - 26/08/08

Originally Posted by Seaview

Kuwaiti MPs Reject Government Attempt to Write-Off Iraqi Debts

The decision made by the UAE to write-off Iraq's debts did not encourage Kuwaiti MPs to follow suit. They said that "this is unacceptable to the people and the government has no right to write- off those debts without approval from parliament. As for the UAE's decision it's an internal matter that concerns them."

Deputy Rawdan al-Rawdan said that writing-off the Iraqi Government's debts by Kuwait is rejected by the populace, and if there are any political decisions in this regard then it is better to cancel the debts of the Kuwaiti people.

Al-Rawdan commented to Al-Watan saying that the situation in the Emirates is different from that of Kuwait because we are the country that was harmed and came under aggression, so naturally the political situation is different. Al-Rawdan added that Iraq is a rich country, and if there is a political problem in distributing the wealth and mismanagement then this is not Kuwait's problem. He adds: "Iraq does not need to have it debts written-off. It is not a poor country but is considered one of the richest in the world."

Deputy Salih Ashur said that Iraq is a rich country with large amounts of oil production and its revenue from oil and other sources is several times larger than Kuwait. The Iraqi parliament set a budget for itself that exceeds Kuwait's last budget. In a comment Ashur made to Al-Watan he said that "Iraq is living in a state of administrative, financial, and economic corruption which is something I personally followed up on during the Iraqi parliament's discussions. This indicates that Iraq's economy is strong but that administrative corruption is stronger." Hence, he added: "Kuwait cannot write-off Iraq's debts because that will open the door for other countries like Egypt, Jordan, and Syria to call for writing- off their debts. This is locally unacceptable in Kuwait." Ashur goes on to say: "The Kuwaiti people are more deserving of having their debts written-off than the Iraqi Government, in addition to Iraq not needing such a decision because its economy is strong and rich."

Deputy Abdallah Ra'i al-Fahma said that "the UAE's decision to write-off Iraq's debts is a personal issue that we have nothing to do with," affirming that "if there is a government plan to write- off Iraq's debts then we will not accept it, and we warn the government against taking this path." Al-Fahma said to Al-Watan that the government had once before assured the National Assembly that there will be no writing-off of Iraqi debts without a law presented to the National Assembly, indicating that the legislative authority is in agreement on not cancelling these debts because the Kuwaiti people deserve them. If the government is planning to write-off Iraq's debts then it is more appropriate to write-off the debts of the people, adding that the National Assembly will make a stand if it comes to this.

Al-Fahma pointed out that Kuwait was among the first countries to support Iraq ever since the old days and even as of late. It stood by Iraq and its government in full support. However, if there is any move to write-off Iraq's debts, then we will not accept it, and we warn the government once again in hopes that it does not commit what is forbidden by bypassing the National Assembly and abolishing those debts.

Al-Fahma aded: "Unfortunately information is circulating in this regard nowadays, and we fear that the debts will be written-off in the absence of the National Assembly. But I assure you that we as MPs will not stand for this." He maintained: "Unfortunately, we find that the government stands against the citizens. It reacts negatively to their needs, whether about giving 50 dinars [as a grant], buying off their debts, or writing-off their debts while it gives away millions to other countries through grants and aid."

Al-Fahma said: "After the government found itself in a weak position lately, it came up with the idea of a fund that supports low income individuals. This can be considered, at best, a reward from the government to the banks." He asserts that "there are procedures that the MPs will follow up with, and they will propose new projects in this regard during the coming session."

On his part, deputy Abdallah al-Ajmi refuses any government move to bypass the National Assembly and write-off Iraqi debts, indicating that these debts are the right of the Kuwaiti people and that this decision belongs solely to the National Assembly, not the government.

In his comments to Al-Watan Al-Ajmi says that the National Assembly was, and still is, insistent on refusing any attempt to write-off Iraq's debts, while emphasizing the importance of reclaiming these funds and not thinking at all of writing-off these debts. With regards to the UAE cancelling Iraq's debts he says that this has nothing to do with Kuwait, adding that this is an affair of the UAE exclusively. In addition the political conditions and situations in Kuwait are unique. He maintained: "Add to that the fact that the National Assembly is the only party that can make this decision, not the ****utive authority." He further maintained that "if there is a move to lower or cancel Iraq's debts then we at the National Assembly will not stand for this, we will make sure that the government adheres to the demands and will of the people, who are represented by the National Assembly."

Kuwaiti MPs Reject Government Attempt to Write-Off Iraqi Debts

seems like I am not the only one who thinks Iraq's government is corrupt...if enuff of these countries speak up and do not reduce the debt owed by Iraq it might make them Rv faster....like the guy stated...Iraq is a rich country with large amounts of oil and resources several times larger then Kuwaits but that they are living in a state of administrative,financial and economic corruption....he also goes on to mention that Iraq's economy is strong...but that the administrative corruption in Iraq is stronger...thats why you keep seeing delays in an RV....about time other Arab countries started speaking up and out about this corruption...IMHO...Pat

Great observation Pat. Parliment has spent the last several years lining their pockets at the detriment to Joe Iraqi.. These guys are so blatant about it. Yet we roll along and try to play nice and get nowhere very fast. I doubt any significant RV till there are stable, forward thinking, somewhat honest members of parliment. Think we can find any..?? Blessings All.. A Very Tired and disgruntled Warrior...:>(

Al-party government bears responsibility for delaying ratification of the oil and gas

MP from the Kurdistan Alliance Mohsen Sadoun some parties in the Iraqi government responsible for delaying ratification of the oil and gas for reasons he described as "political" and stresses that the PKK "also demands the adoption of all laws relating to the oil sector in one go with the law of oil and gas."

He explained in an interview with Al-Sadoun "Uzmatik" These parties which were not disclosed by "trying to violate Iraqi constitution through the imposition of certain paragraphs in the law of oil and gas lead to the development of all the powers of signing oil contracts, however, the Iraqi Ministry of Oil."

He added that the Kurdistan Alliance Sadoun "Demands by reference to a draft oil law endorsed by the Iraqi Council of Ministers in February 2007 and approval of contracts signed by the Kurdistan region with foreign companies as a condition for agreeing to endorse the law of oil and gas in the Iraqi parliament."

He stressed that the Kurdistan Alliance Sadoun "also demands the adoption of all laws relating to the oil sector such as law and the Oil Ministry and the Law of the National Oil Company in one go with the law of oil and gas."

Attorney for the Kurdistan Alliance Mohsen Sadoun said, "The reason for delaying adoption of laws on the oil sector in Iraq is the lack of government bodies to complete drafts of the Iraqi Oil Ministry and Law and the Law of the National Oil Company."

Sadoun pointed out that the contracts signed by the Kurdistan Regional Government with international companies "are legitimate contracts under the oil had been issued by the Kurdistan province last year", indicating that the contracts signed by the Iraqi Oil Ministry with some international companies to develop some oil fields ", although it comes at Legal context, but the ministry clarifying paragraphs of the Iraqi parliament is clearly in terms of time allocated for its implementation is whether service contracts or investment contracts "as he put it.

It is noteworthy that the Iraqi cabinet had unanimously endorsed the beginning of the month of February in 2007 to the Law on oil and gas, but the Kurdistan Alliance objected to the law after the state council amendments to some paragraphs, which was deemed unconstitutional Kurdistan Alliance, has also contain clauses allowing law Of the province and provincial-linked province signed investment contracts without reference to the oil centre, to the refusal by the other political blocs in the Iraqi Parliament, which viewed it as a step to partition Iraq.

Translated version of http://iraqalaan.com/bm/Politics/3535.shtml

Iraq Closeup: Following the Oil Money

Iraq’s government is likely to earn about $70 billion in oil revenue this year, but it could earn a lot more if its existing fields operated at maximum capacity. It took a step toward realizing that production increase, with a series of reported deals with Western oil companies. But the proposed contracts only raised suspicions across the Arab world that the real purpose of the war was to give America access to the site of the world’s third largest oil reserves.

Reporting from Iraq, Andrew E. Kramer wrote last month that Exxon Mobil, Shell, Total, BP and Chevron won unusual no-bid contracts, still pending, to help revive existing oil fields over more than 40 other companies, including companies in Russia, China and India.

In Washington, Democrats seized on the issue. The New York Times’s Baghdad bureau chief, James Glanz, reported that a group of senators led by Charles E. Schumer of New York appealed to the State Department to block the no-bid contracts and threatened “to cut off financing for as-yet-unspecified programs in Iraq that are not directly in support of American troops.”

Kramer also reported that U.S. officials helped draw up the no-bid contracts between Iraq’s Oil Ministry and the five major Western oil companies. American officials responded that they provided only technical help with the contracts and did not choose the companies.

Iraqi officials said that they were opening servicing contracts for six oil fields to bids from 35 foreign companies. Winners of the long-term lucrative contracts will be announced in 2009. Critics are watching to see if the majority of those contracts are again awarded to Western companies.

Further adding to the controversy, a congressional panel released documents questioning the State Department’s role in an oil deal between a Texas oil company and the regional Kurdistan government that ran counter to American policy and undercut the government in Baghdad. The company, Hunt Oil of Dallas, has close ties to President Bush.

Peter S. Goodman, writing in the Week in Review, summed up the issue saying, “Today, the question hanging over Iraq is whether its natural endowment will be used to help create a sustainable new state, or will instead be managed in ways that reward the cronies and allies of the country whose army toppled Mr. Hussein. Or perhaps both at the same time.”

Meanwhile, the ministries in Baghdad have problems spending even a portion of the money that is allocated for government services. And American officials say the country is still years away from being able to meet the electricity needs of the Iraqi people. Lawmakers remain split on an effort to pass an oil law that might spread the country’s wealth more evenly.

Iraq Closeup: Following the Oil Money - Baghdad Bureau - Iraq From the Inside - New York Times Blog

UAE and Other Gulf Countries Urged to Switch Currency Peg from the Dollar to a Basket That Includes Oil

The possibility that some Gulf states, particularly the United Arab Emirates, might abandon their long-time pegs to the dollar has been getting increasing attention recently (for example, from Feldstein and, especially, Setser). It makes sense. The combination of high oil prices, rapid growth, a tightly fixed exchange rate, and the big depreciation of the dollar against other currencies (especially the euro, important for Gulf imports) was always going to be a recipe for strong money inflows and inflation in these countries. The economic dynamism — most striking in Dubai – is admirable and fascinating as a onger term phenomenon, but also now clearly shows signs of overheating. Indeed inflation has risen alarmingly, as predicted. Among other ill effects, it is producing unrest among immigrant workers. An appreciation of the dirham and riyal is the obvious solution.

Most often discussed as an alternative to the dollar peg is a peg to a basket of major currencies. This would be an improvement. Kuwait, for example, made this switch a couple of years ago.

But a basket peg does not address the fact that when oil prices rise generally (not just against the dollar), as they have in recent years, monetary policy is constrained to be looser than it should be. Similarly, when oil prices fall generally (not just against the dollar), as they did in the 1990s, monetary policy is constrained to be tighter than it should be. A floating exchange rate regime is the traditional alternative, on the theory that the currency would then automatically appreciate when oil prices rise and depreciate when they fall, thus accommodating the terms of trade shocks. But there are serious disadvantages to small open countries floating, such as the loss of a nominal anchor for monetary policy.

Today’s reigning orthodoxy is to add an inflation target as the new nominal anchor. But this doesn’t solve the problem, if the targeted price index is the CPI, which gives little weight to oil, the biggest sector in production and exports.

I believe that a better solution would be to include the price of oil in the basket of currencies to which the Gulf currencies would peg. I have laid out the case elsewhere (including also for Iraq). I call it PEP, for Peg the Export Price. I was pleased to see that the FT mentioned this option approvingly yesterday (“Dollar-pegged Out,” July 7):

“The Gulf needs to peg to something. A first step (after revaluation) would be to peg to a basket of currencies that included the euro and the yen. A bolder step would be to include the price of oil in that basket, so that currencies would appreciate when oil is strong, and depreciate when it is weak.”

http://www.rgemonitor.com/globalmacr...t_includes_oil

The Kuwaiti government will return to Parliament to cancel Iraqi debt

A Kuwaiti government announced Tuesday it would return to Parliament to discuss the possibility of debt cancellation of Iraq and the United Nations on the possible abolition of compensation for war damages owed by Baghdad.'s Foreign Ministry Undersecretary Khaled Al-Jarallah, the Kuwaiti "The position of the State of Kuwait from these subjects referred to realize our brothers in Iraq had previously announced by officials in Kuwait and in more than one occasion and that any negotiations with the Iraqi side will not depart from the present situation. "

Jarallah was attached to what some newspapers reported on a statement attributed to Under-Iraqi Foreign Ministry on the "contacts between Kuwait and Iraq to begin negotiations to end some of the outstanding issues related to debt and reparations, demarcation of borders and installing border markers final," according to a report Kuwaiti News Agency. The official Kuwait "in The debt has already informed the brothers in Iraq to Kuwait, while it always expresses its eagerness to provide support at all levels, it would not hesitate days on the continuation of this situation. "But said" the issue of debt remaining issues that must return By the Kuwaiti government to Parliament to take a common position. "Damages and on-Jarallah said that" there is a meeting soon with the Iraqi side under the supervision of those responsible for compensation in the United Nations to discuss this issue, which is making and unequivocally to the Security Council. "Iraq and the consequent pay 5 % Of its oil revenues to fund set up by the UN Security Council after Iraq's invasion of Kuwait in August 1990 to repair the dilapidated Iraqi invasion.

Regarding the negotiations on border-Jarallah said that "the matter will not exceed the search in the details related to the maintenance of border markers under the auspices of the United Nations and cooperation between the two fraternal countries which As stipulated in UN Resolution 833. "He explained that" the maintenance of the boundary markers have not been realized since the installation of such signs as a result of the defunct Iraqi regime and the prevailing conditions in the border at that time. "He stated that he "will soon direct responsibility for the maintenance of these common between the two countries and across the Commission supervised by the United Nations was financed from both sides. "He disclosed that "the maintenance require the removal of some excesses in the limited Iraqi farms on the Kuwaiti side." Regarding the demarcation of the Iraq-Kuwait border said that "talk about the demarcation is not and will not be no question as to the demarcation process had been resolved and a final resolution 833 which Confirmed by the brothers in Iraq and was the last of what was said recently to a Kuwaiti newspaper the Prime Minister of Iraq, "Nouri al-Maliki.

Translated version of http://wasatonline.com/index.php?option=com_content&task=view&id=9584&Ite mid=101

Bush Won't Back Setting Timeline for Troops in Iraq, Aide Says

The Bush administration rejects setting any ``arbitrary'' deadline to withdraw forces from Iraq, the president's spokeswoman said after an Iraqi official said his government wants a timeline for the presence of U.S. troops.

"We have always been opposed, and remain so, to an arbitrary withdrawal date,'' White House press secretary Dana Perino said in Toyako, Japan, where President George W. Bush is attending a summit of the Group of Eight industrial nations. ``We believe the Iraqis agree with us in that regard.''

The U.S. and Iraq are negotiating an agreement on the status of coalition forces after their United Nations mandate expires at the end of December. Iraqi national security adviser Mowafaq al-Rubaie said yesterday that his nation wants a ``timeline horizon on combat operations.''

Bush, who has less than seven months left in his term, has repeatedly refused to set such a timeline, saying any decision on withdrawal will be based on whether Iraq is stable and secure.

Iraq is one of the top issues in the political campaign to succeed Bush. Democrat Barack Obama, an Illinois senator, has said he wants to have most combat troops out of Iraq within 16 months if he's elected. Republican John McCain, an Arizona senator, backed Bush's decision to send more forces into Iraq and has said they should remain as long as necessary.

U.S. casualties have declined in recent months and the administration says the country is more stable than a year ago.

Perino said al-Rubaie's comments are ``a reflection of the positive developments we've seen recently in Iraq.''

About 150,000 U.S. soldiers remain in the country, down from a peak of 165,000 at the end of 2007. The last of the five combat brigades sent to the country last year by Bush as part of a so-called surge to improve security is preparing to come home this month.

PUKmedia :: English - Bush Won't Back Setting Timeline for Troops in Iraq, Aide Says

Di Mistura to Visit Kurdistan Parliament

In an interview with al-Hayat newspaper, Tariq Jawher, the media adviser of Kurdistan Parliament speaker said “UN’s envoy Mr. Staphan Di Mistura will arrive tomorrow in Kurdistan Region to discuss his 2nd stage recommendations that concerns the disputed areas which include Sinjar, Khanaqin, Shekhan and Tilkef.”

“Di Mistura is going to meet Kurdistan Parliament speaker to discuss his 1st stage recommendations and the preparations for the 2nd and 3rd stages”, Jawher added.

Mohammed Khalil, member of Kirkuk’s Province Council from the Party of Iraqi Republican Gathering made doubts on Di Mistura’s neutrality by saying “UN’s envoy stood with the Kurds in his recommendations.”

Jawher rejected this accusation and said “Di Mistura’s recommendations weren’t fair for the Kurds. He tried to make balance for solving this issue. We must return to the people of these areas, because no one can make decisions on behalf of them. Any agreements far from the Article 140 are unaccepted by the Kurdish side.”

PUKmedia :: English - Di Mistura to Visit Kurdistan Parliament

Here's another

Kuwait to Meet Iraq Soon on Gulf War Reparations

Kuwaiti and Iraqi officials will meet "very soon" to discuss reparations imposed on Baghdad for the invasion and occupation of its smaller neighbour in 1990, Kuwait's state news agency said.

"There is a meeting very soon with the Iraqi side, under the supervision of officials responsible for compensation at the United Nations to look into this issue in which the Security Council has the ultimate say," KUNA quoted Kuwaiti Foreign Ministry Undersecretary Khaled Jarallah as saying.

Jarallah did not give a date for the meeting but Iraq said in April that Kuwait had agreed to consider its request to reduce the compensation payments.

Kuwait said at the time that any change in the reparations regime would have to come in a Security Council decision.

Iraq's government has become more vocal in calling on world powers to reduce the percentage of its oil exports earmarked for the Geneva-based fund, the largest ever programme set up to settle post-conflict damage claims.

Iraq initially had 30 percent of its oil exports diverted to the reparations fund but now pays about 5 percent.

The United Nations Gulf War reparations body paid out $972.4 million in April for damage inflicted on Iraq's neighbours and others during the seven-month occupation that began in August 1990, bringing the total to almost $24.4 billion.

Kuwait, which has received nearly $14 billion from the UN reparations body, is still owed some $27 billion.

Jarallah said the repayment of loans mostly made to Iraq during its 1980-1988 with Iran was for parliament to decide.

Kuwaitis are still bitter about Saddam Hussein's 1990 invasion and parliament was unlikely to allow the government to forgive debts, MPs and analysts have said.

The United States has been pressing its Arab allies to forgive Iraq's debts and restore top-level diplomatic ties since its 2003 invasion toppled Saddam.

The issue has come to the fore since the United Arab Emirates, another Gulf Arab oil exporter, waived all of Iraq's almost $7 billion obligations this week.

Kuwait's al-Wasat newspaper quoted diplomatic sources as saying that Kuwait would shortly send Ali al-Mumin, a retired military officer, as ambassador to Baghdad.

PUKmedia :: English - Kuwait to Meet Iraq Soon on Gulf War Reparations

Kurdish official doubts ‘legality’ of oil deals

The oil deals the Kurdish regional government and the central government in Baghdad are signing are illegal, according to a top Kurdish politician and legislator.

Mahmoud Othman, the head of the powerful Kurdish bloc in Iraqi parliament, described the signing of these deals as “a premature and out-of-lace move” in the absence of a national law organizing the exploitation of the country’s oil riches.

The Kurds have signed about two dozen deals and the central government has agreed to let foreign oil giants to boost output from producing fields and is also mulling signing oil development contracts.

“The rush towards signing the contracts is anachronistic. So long as the draft oil and gas law remains unsigned, these deals will lack the constitutional basis to kick them off the ground,” Othman said.

Othman is the first senior Kurdish officials to criticize the oil development deals the Kurdish regional government has signed.

Othman’s opinion counts because he is seen by many across the country, particularly in Iraq’s Kurdish enclave in the north, as a veteran politician whose stance Kurdish political leaders may not afford to ignore.

Othman warned that the sides’ appetite to proceed ahead with the singing of oil deals in the absence of constitutional backing would backfire.

Under these circumstances, he said, conditions “will reach a point at which everyone will become motionless. A situation like this will not be in the country’s interests.”

He advised both the Kurdish regional government in Arbil and the central government in Baghdad to “wait until the draft oil and gas law is approved.”

The law has stalled at the parliament mainly due to objections from Kurdish legislators.

Othman said it was time the country’s Supreme Court looked into the matter as Iraq’s politicians are apparently unable to reach some sort of agreement on the draft law.

It is not clear why Othman made the remarks at a time he was a strong supporter of the deals the Kurds have signed.

Analysts say many Kurds have discovered that the deals they have signed with foreign firms are not “fair”.

They say foreigners will reap most of the benefits as they are given “wide concessions” and large tax benefits.

The analysts also charge that almost all the Kurdish deals have been signed without the proper betting procedures.

Azzaman in English