[Vision2020] How odd?

Sat, 29 Mar 2003 11:44:13 -0800

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Facts on Who Benefits From Keeping Saddam Hussein In Power
by The Heritage Foundation
WebMemo #217=20

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France

*	According to the CIA World Factbook, France controls over 22.5
percent of Iraq's imports.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn1> [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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn2> [2] In =
2001
France became Iraq's largest European trading partner.=20

*	Roughly 60 French companies do an estimated $1.5 billion in trade
with Baghdad annually under the U.N. oil-for-food program.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn3> [3]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn4> [4]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn5> [5]=20

*	France's Alcatel company, a major telecom firm, is negotiating a $76
million contract to rehabilitate Iraq's telephone system.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn6> [6]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn7> [7]=20

Germany

*	Direct trade between Germany and Iraq amounts to about $350 million
annually, and another $1 billion is reportedly sold through third =
parties.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn8> [8]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn9> [9]=20

*	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. <http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn10> =
[10]=20

*	In 2002, DaimlerChrysler was awarded over $13 million in contracts
for German trucks and spare parts.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn11> [11]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn12> [12]=20

Russia

*	According to the CIA World Factbook, Russia controls roughly 5.8
percent of Iraq's annual imports.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn13> [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. <http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn14> =
[14]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn15> [15]=20

*	Soviet-era debt of $7 billion through $8 billion was generated by
arms sales to Iraq during the 1980-1988 Iran-Iraq war.=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn16> [16]=20

*	In October 2001, Salvneft, a Russian-Belarus company, negotiated a
$52 million service contract to drill at the Tuba field in Southern =
Iraq.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn17> [17]=20

*	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.=20

*	A future $40 billion Iraqi-Russian economic agreement, reportedly
signed in 2002, would allow for extensive oil exploration opportunities
throughout western Iraq.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn18> [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. =
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn19>
[19]=20

*	Russia's Gazprom company over the past few years has signed
contracts worth $18 million to repair gas stations in Iraq.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn20> [20]=20

*	The former Soviet Union was the premier supplier of Iraqi arms. From
1981 to 2001, Russia supplied Iraq with 50 percent of its arms.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn21> [21]=20

China

*	According to the CIA World Factbook, China controls roughly 5.8
percent of Iraq's annual imports.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn22> [22]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn23> [23]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn24> [24]=20

*	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. =
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn25>
[25]=20

*	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.
<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn26> [26]=20

  _____ =20

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref1> =
[1]Central
Intelligence Agency, The World Factbook 2002, at
http://www.cia.gov/cia/publications/factbook.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref2> [2]Jon
Talton, "French Ideals and Profits in the Iraqi Triangle", The Arizona
Republic, February 23, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref3> [3]Jon
Talton, "French Ideals and Profits in the Iraqi Triangle," The Arizona
Republic, February 23, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref4> =
[4]Kenneth
Katzman, Iraq: Oil-for-Food Program, International Sanctions, and =
Illicit
Trade, Congressional Research Service, September 26, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref5> =
[5]Kenneth
Katzman, Iraq: Oil-for-Food Program, International Sanctions, and =
Illicit
Trade, Congressional Research Service, September 26, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref6> =
[6]Evelyn
Iritani, "Hussein's Government Signs Lucrative Contracts, Especially =
with
Nations that Oppose the U.S. Led Effort to Oust the Regime," The Los =
Angeles
Verdana,Arial,Helvetica, November 11, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref7>
[7]Information from Stockholm International Peace Research Institute
(SIPRI), "Arms Transfers to Iraq, 1981-2001," at
http://projects.sipri.se/armstrade/IRQ_IMPORTS_1982-2001.pdf.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref8> =
[8]David
R. Sands, "France, Germany Protect Iraq Ties," The Washington
Verdana,Arial,Helvetica, February 20, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref9> =
[9]David
R. Sands, "France, Germany Protect Iraq Ties," The Washington
Verdana,Arial,Helvetica, February 20, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref10>
[10]"Africa Analysis-Trade Points Way to Peace", The Financial
Verdana,Arial,Helvetica: Asia Africa Intelligence Wire, November 19, =
2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref11> =
[11]Faye
Bowers, "Driving Forces in War-Wary Nations: The Stances of France, =
Germany,
Russia and China Are Colored by Economic and National Interests," =
Christian
Science Monitor, February 25, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref12>
[12]"Helping Saddam Rearm," The Wall Street Journal, October 11, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref13>
[13]Central Intelligence Agency, The World Factbook 2002, at
http://www.cia.gov/cia/publications/factbook.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref14>
[14]Testimony provided by Ariel Cohen to the House International =
Relations
Committee, "Russia and the Axis of Evil: Money, Ambition and U.S.
Interests," February 26, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref15> =
[15]Nelli
Sharushkina, "Russia Plays the Field in Iraq-Mixed Signals Worry =
Baghdad,"
Energy Intelligence Briefing, February 5, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref16> =
[16]Dan
Morgan and David B. Ottaway, "In Iraqi War Scenario, Oil Is Key Issue," =
The
Washington Post, September 15, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref17> =
[17]Dan
Morgan and David B. Ottaway, "In Iraqi War Scenario, Oil Is Key Issue," =
The
Washington Post, September 15, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref18> =
[18]Scott
Peterson, "Russia's Newest Tie to Iraq: Moscow Is Set to Sign a $40 =
billion
Economic Pact with Baghdad Next Month," Christian Science Monitor, =
August
20, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref19>
[19]"Mideast Tensions to Delay Iraq Iraqi-Russian Signing," Energy =
Compass,
April 19, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref20>
[20]Dmitry Zhdannikov, "Russian's Grim About Working Under Saddam," The
Houston Chronicle, April 14, 2002.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref21>
[21]Information from Stockholm International Peace Research Institute
(SIPRI), "Arms Transfers to Iraq, 1981-2001," at
http://projects.sipri.se/armstrade/IRQ_IMPORTS_1982-2001.pdf.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref22>
[22]Central Intelligence Agency, The World Factbook 2002, at
http://www.cia.gov/cia/publications/factbook.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref23> =
[23]Trish
Saywell, "Oil: The Danger of Deals with Iraq," Far Eastern Economic =
Review,
March 6, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref24>
[24]Kenneth R. Timmerman, "Rogues Lending Hand to Saddam," Insight on =
the
News, March 4, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref25>
[25]Kenneth R. Timmerman, "Rogues Lending Hand to Saddam," Insight on =
the
News, March 4, 2003.

<http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref26>
[26]Information from Stockholm International Peace Research Institute
(SIPRI), "Arms Transfers to Iraq, 1981-2001," at
http://projects.sipri.se/armstrade/IRQ_IMPORTS_1982-2001.pdf.

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      <DIV class=3Dfeaturestorytitle>Facts on Who Benefits From Keeping =
Saddam=20
      Hussein In Power</DIV><SPAN class=3Dstandardcontent>by The =
Heritage=20
      Foundation<BR>WebMemo #217=20
      <P>
      <P>
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      =
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color=3D#000000 size=3D2>
<DIV>
<H1 style=3D"MARGIN: auto 0in"><SPAN style=3D"FONT-SIZE: x-small"><FONT=20
face=3DArial>France</FONT></SPAN></H1>
<UL type=3Ddisc>
  <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
  style=3D"FONT-SIZE: x-small"><FONT face=3DArial>According to the =
<I>CIA World=20
  Factbook</I>, France controls over 22.5 percent of Iraq&#8217;s =
imports.</FONT><A=20
  title=3D"" =
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn1"=20
  name=3D_ftnref1><SPAN class=3DMsoFootnoteReference><FONT=20
  face=3DArial>[1]</FONT></SPAN></A> <FONT face=3DArial>French total =
trade with Iraq=20
  under the oil-for-food program is the third largest, totaling $3.1 =
billion=20
  since 1996, according to the United Nations.</FONT><A title=3D""=20
  href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn2"=20
  name=3D_ftnref2><SPAN class=3DMsoFootnoteReference><FONT=20
  face=3DArial>[2]</FONT></SPAN></A> <FONT face=3DArial>In 2001 France =
became Iraq&#8217;s=20
  largest European trading partner.</FONT></SPAN>=20
  <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
  style=3D"FONT-SIZE: x-small"><FONT face=3DArial>Roughly 60 French =
companies do an=20
  estimated $1.5 billion in trade with Baghdad annually under the U.N.=20
  oil-for-food program.</FONT><A title=3D""=20
  href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn3"=20
  name=3D_ftnref3><SPAN class=3DMsoFootnoteReference><FONT=20
  face=3DArial>[3]</FONT></SPAN></A></SPAN>=20
  <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
  style=3D"FONT-SIZE: x-small"><FONT face=3DArial>France&#8217;s largest =
oil company,=20
  Total Fina Elf, has negotiated a deal to develop the Majnoon field in =
western=20
  Iraq. The Majnoon field purportedly contains up to 30 billion barrels =
of=20
  oil.</FONT><A title=3D""=20
  href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn4"=20
  name=3D_ftnref4><SPAN class=3DMsoFootnoteReference><FONT=20
  face=3DArial>[4]</FONT></SPAN></A></SPAN>=20
  <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
  style=3D"FONT-SIZE: x-small"><FONT face=3DArial>Total Fina Elf also =
negotiated a=20
  deal for future oil exploration in Iraq&#8217;s Nahr Umar field. Both =
the Majnoon=20
  and Nahr Umar fields are estimated to contain as much as 25 percent of =
the=20
  country&#8217;s reserves.</FONT><A title=3D""=20
  href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn5"=20
  name=3D_ftnref5><SPAN class=3DMsoFootnoteReference><FONT=20
  face=3DArial>[5]</FONT></SPAN></A></SPAN>=20
  <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
  style=3D"FONT-SIZE: x-small"><FONT face=3DArial>France&#8217;s Alcatel =
company, a major=20
  telecom firm, is negotiating a $76 million contract to rehabilitate =
Iraq&#8217;s=20
  telephone system.</FONT><A title=3D""=20
  href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn6"=20
  name=3D_ftnref6><SPAN class=3DMsoFootnoteReference><FONT=20
  face=3DArial>[6]</FONT></SPAN></A></SPAN>=20
  <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
  style=3D"FONT-SIZE: x-small"><FONT face=3DArial>From 1981 to 2001, =
according to=20
  the Stockholm International Peace Research Institute (SIPRI), France =
was=20
  responsible for over 13 percent of Iraq&#8217;s arms imports.</FONT><A =
title=3D""=20
  href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn7"=20
  name=3D_ftnref7><SPAN class=3DMsoFootnoteReference><FONT=20
  face=3DArial>[7]</FONT></SPAN></A></SPAN> </LI></UL>
<H2 style=3D"MARGIN: auto 0in"><FONT face=3DArial><SPAN=20
style=3D"FONT-SIZE: x-small; COLOR: black; FONT-FAMILY: =
Arial">Germany</SPAN></FONT></H2>
<UL type=3Ddisc>
  <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
  style=3D"FONT-SIZE: x-small"><FONT face=3DArial>Direct trade between =
Germany and=20
  Iraq amounts to about $350 million annually, and another $1 billion is =

reportedly sold through third parties.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn8"=20
 name=3D_ftnref8><FONT=20
 face=3DArial>[8]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">It has recently been =
reported that=20
 Saddam Hussein has ordered Iraqi domestic businesses to show =
preference to=20
 German companies as a reward for Germany&#8217;s &#8220;firm positive =
stand in rejecting=20
 the launching of a military attack against Iraq.&#8221; It was also =
reported that=20
 over 101 German companies were present at the Baghdad Annual=20
 exposition.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn9"=20
 name=3D_ftnref9><FONT=20
 face=3DArial>[9]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">During the 35th Annual =
Baghdad=20
 International Fair in November 2002, a German company signed a =
contract for=20
 $80 million for 5,000 cars and spare parts.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn10"=20
 name=3D_ftnref10><FONT=20
 face=3DArial>[10]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">In 2002, =
DaimlerChrysler was=20
 awarded over $13 million in contracts for German trucks and spare=20
 parts.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn11"=20
 name=3D_ftnref11><FONT=20
 face=3DArial>[11]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">German officials are =
investigating=20
 a German corporation accused of illegally channeling weapons to Iraq =
via=20
 Jordan. The equipment in question is used for boring the barrels of =
large=20
 cannons and is allegedly intended for Saddam Hussein&#8217;s Al Fao =
Supercannon=20
 project.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn12"=20
 name=3D_ftnref12><FONT=20
 face=3DArial>[12]</A> </LI></UL>
<H2 style=3D"MARGIN: auto 0in"><SPAN=20
style=3D"FONT-SIZE: x-small; COLOR: black; FONT-FAMILY: =
Arial">Russia</H2>
<UL type=3Ddisc>
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">According to the =
CIA World=20
 Factbook, Russia controls roughly 5.8 percent of Iraq&#8217;s =
annual=20
 imports.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn13"=20
 name=3D_ftnref13><FONT=20
 face=3DArial>[13]</A> Under the U.N. =
oil-for-food=20
 program, Russia&#8217;s total trade with Iraq was somewhere between =
$530 million and=20
 $1 billion for the six months ending in December of 2001.<A =
title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn14"=20
 name=3D_ftnref14><FONT=20
 face=3DArial>[14]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">According to the =
Russian=20
 Ambassador to Iraq, Vladimir Titorenko, new contracts worth another =
$200=20
 million under the U.N. oil-for-food program are to be signed over the =
next=20
 three months.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn15"=20
 name=3D_ftnref15><FONT=20
 face=3DArial>[15]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">Soviet-era debt of $7 =
billion=20
 through $8 billion was generated by arms sales to Iraq during the =
1980&#8211;1988=20
 Iran&#8211;Iraq war.=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">Russia&#8217;s LUKoil =
negotiated a $4=20
 billion, 23-year contract in 1997 to rehabilitate the 15 =
billion-barrel West=20
 Qurna field in southern Iraq. Work on the oil field was expected to =
commence=20
 upon cancellation of U.N. sanctions on Iraq. The deal is currently on=20
 hold.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn16"=20
 name=3D_ftnref16><FONT=20
 face=3DArial>[16]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">In October 2001, =
Salvneft, a=20
 Russian&#8211;Belarus company, negotiated a $52 million service =
contract to drill at=20
 the Tuba field in Southern Iraq.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn17"=20
 name=3D_ftnref17><FONT=20
 face=3DArial>[17]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">In April 2001, =
Russia&#8217;s=20
 Zaruezhneft company received a service contract to drill in the =
Saddam,=20
 Kirkuk, and Bai Hassan fields to rehabilitate the fields and reduce =
water=20
 incursion.=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">A future $40 billion =
Iraqi&#8211;Russian=20
 economic agreement, reportedly signed in 2002, would allow for =
extensive oil=20
 exploration opportunities throughout western Iraq.<A title=3D"" =

href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn18"=20
 name=3D_ftnref18><FONT=20
 face=3DArial>[18]</A> The proposal =
calls for 67=20
 new projects, over a 10-year time frame, to explore and further =
develop fields=20
 in southern Iraq and the Western Desert, including the Suba, Luhais, =
West=20
 Qurna, and Rumaila projects. Additional projects added to the deal =
include=20
 second-phase construction of a pipeline running from southern to =
northern=20
 Iraq, and extensive drilling and gas projects. Work on these projects =
would=20
 commence upon cancellation of sanctions.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn19"=20
 name=3D_ftnref19><FONT=20
 face=3DArial>[19]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">Russia&#8217;s Gazprom =
company over the=20
 past few years has signed contracts worth $18 million to repair gas =
stations=20
 in Iraq.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn20"=20
 name=3D_ftnref20><FONT=20
 face=3DArial>[20]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">The former Soviet =
Union was the=20
 premier supplier of Iraqi arms. From 1981 to 2001, Russia supplied =
Iraq with=20
 50 percent of its arms.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn21"=20
 name=3D_ftnref21><FONT=20
 face=3DArial>[21]</A> </LI></UL>
<H2 style=3D"MARGIN: auto 0in"><SPAN=20
style=3D"FONT-SIZE: x-small; COLOR: black; FONT-FAMILY: =
Arial">China</H2>
<UL type=3Ddisc>
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">According to the =
CIA World=20
 Factbook, China controls roughly 5.8 percent of Iraq&#8217;s =
annual=20
 imports.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn22"=20
 name=3D_ftnref22><FONT=20
 face=3DArial>[22]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">China National Oil =
Company,=20
 partnered with China North Industries Corp., negotiated a 22-year-long =
deal=20
 for future oil exploration in the Al Ahdab field in southern =
Iraq.<A=20
 title=3D"" =
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn23"=20
 name=3D_ftnref23><FONT=20
 face=3DArial>[23]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">In recent years, the =
Chinese=20
 Aero-Technology Import&#8211;Export Company (CATIC) has been =
contracted to sell=20
 &#8220;meteorological satellite&#8221; and &#8220;surface =
observation&#8221; equipment to Iraq. This=20
 contract was approved by the U.N. oil-for-food program.<A =
title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn24"=20
 name=3D_ftnref24><FONT=20
 face=3DArial>[24]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">CATIC also won =
approval from the=20
 U.N. in July 2000 to sell $2 million worth of fiber optic cables. This =
and=20
 similar contracts approved were disguised as telecommunications gear. =
These=20
 cables can be used for secure data and communications links between =
national=20
 command and control centers and long-range search radar, targeting =
radar, and=20
 missile-launch units, according to U.S. officials. In addition, China =
National=20
 Electric Wire &amp; Cable and China National Technical Import=20
 Telecommunications Equipment Company are believed to have sold Iraq $6 =
million=20
 and $15.5 million worth of communications equipment and other =
unspecified=20
 supplies, respectively.<A title=3D""=20
 href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn25"=20
 name=3D_ftnref25><FONT=20
 face=3DArial>[25]</A>=20
 <LI class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt; COLOR: =
black"><SPAN=20
 style=3D"FONT-SIZE: x-small">According to a report =
from SIPRI,=20
 from 1981 to 2001, China was the second largest supplier of weapons =
and arms=20
 to Iraq, supplying over 18 percent of Iraq&#8217;s weapons =
imports.<A=20
 title=3D"" =
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftn26"=20
 name=3D_ftnref26><FONT=20
 face=3DArial>[26]</A> </LI></UL>
<DIV> 
<HR align=3Dleft width=3D"33%" SIZE=3D1>

<DIV id=3Dftn1>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref1"=20
name=3D_ftn1>[1]</A>Central =
Intelligence Agency,=20
The World Factbook 2002, at=20
http://www.cia.gov/cia/publications/factbook.</DIV>
<DIV id=3Dftn2>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref2"=20
name=3D_ftn2>[2]</A>Jon Talton, =
&#8220;French Ideals=20
and Profits in the Iraqi Triangle&#8221;, The Arizona Republic, =
February 23,=20
2003.</DIV>
<DIV id=3Dftn3>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref3"=20
name=3D_ftn3>[3]</A>Jon Talton, =
&#8220;French Ideals=20
and Profits in the Iraqi Triangle,&#8221; The Arizona Republic, =
February 23,=20
2003.</DIV>
<DIV id=3Dftn4>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref4"=20
name=3D_ftn4>[4]</A>Kenneth =
Katzman, Iraq:=20
Oil-for-Food Program, International Sanctions, and Illicit Trade,=20
Congressional Research Service, September 26, 2002.</DIV>
<DIV id=3Dftn5>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref5"=20
name=3D_ftn5>[5]</A>Kenneth =
Katzman, Iraq:=20
Oil-for-Food Program, International Sanctions, and Illicit Trade,=20
Congressional Research Service, September 26, 2002.</DIV>
<DIV id=3Dftn6>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref6"=20
name=3D_ftn6>[6]</A>Evelyn =
Iritani, &#8220;Hussein&#8217;s=20
Government Signs Lucrative Contracts, Especially with Nations that =
Oppose the=20
U.S. Led Effort to Oust the Regime,&#8221; The Los Angeles=20
Verdana,Arial,Helvetica, November 11, 2002.</DIV>
<DIV id=3Dftn7>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref7"=20
name=3D_ftn7>[7]</A>Information =
from Stockholm=20
International Peace Research Institute (SIPRI), &#8220;Arms Transfers to =
Iraq,=20
1981&#8211;2001,&#8221; at=20
http://projects.sipri.se/armstrade/IRQ_IMPORTS_1982-2001.pdf.</FON=
T></DIV>
<DIV id=3Dftn8>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref8"=20
name=3D_ftn8>[8]</A>David R. =
Sands, &#8220;France,=20
Germany Protect Iraq Ties,&#8221; The Washington =
Verdana,Arial,Helvetica,=20
February 20, 2003.</DIV>
<DIV id=3Dftn9>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref9"=20
name=3D_ftn9>[9]</A>David R. =
Sands, &#8220;France,=20
Germany Protect Iraq Ties,&#8221; The Washington =
Verdana,Arial,Helvetica,=20
February 20, 2003.</DIV>
<DIV id=3Dftn10>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref10" =

name=3D_ftn10><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[10]</FONT></SPAN></A><FONT face=3DArial size=3D1>&#8220;Africa =
Analysis&#8212;Trade=20
Points Way to Peace&#8221;, <I>The Financial Verdana,Arial,Helvetica: =
Asia Africa=20
Intelligence Wire</I>, November 19, 2002.</FONT></P></DIV>
<DIV id=3Dftn11>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref11" =

name=3D_ftn11><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[11]</FONT></SPAN></A><FONT face=3DArial size=3D1>Faye Bowers, =
&#8220;Driving=20
Forces in War-Wary Nations: The Stances of France, Germany, Russia and =
China Are=20
Colored by Economic and National Interests,&#8221; <I>Christian Science =
Monitor</I>,=20
February 25, 2003.</FONT></P></DIV>
<DIV id=3Dftn12>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref12" =

name=3D_ftn12><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[12]</FONT></SPAN></A><FONT face=3DArial =
size=3D1>&#8220;Helping Saddam Rearm,&#8221;=20
<I>The Wall Street Journal</I>, October 11, 2002.</FONT></P></DIV>
<DIV id=3Dftn13>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref13" =

name=3D_ftn13><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[13]</FONT></SPAN></A><FONT face=3DArial size=3D1>Central =
Intelligence=20
Agency, <I>The World Factbook 2002</I>, at=20
<I>http://www.cia.gov/cia/publications/factbook</I>.</FONT></P></DIV>
<DIV id=3Dftn14>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref14" =

name=3D_ftn14>[14]</A>Testimony =
provided by Ariel=20
Cohen to the House International Relations Committee, &#8220;Russia and =
the Axis of=20
Evil: Money, Ambition and U.S. Interests,&#8221; February 26, =
2003.</DIV>
<DIV id=3Dftn15>
<A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref15" =

name=3D_ftn15><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[15]</FONT></SPAN></A><FONT face=3DArial size=3D1>Nelli =
Sharushkina, &#8220;Russia=20
Plays the Field in Iraq&#8212;Mixed Signals Worry Baghdad,&#8221; =
<I>Energy Intelligence=20
Briefing</I>, February 5, 2003.</FONT></P></DIV>
<DIV id=3Dftn16>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref16" =

name=3D_ftn16><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[16]</FONT></SPAN></A><FONT face=3DArial size=3D1>Dan Morgan =
and David B.=20
Ottaway, &#8220;In Iraqi War Scenario, Oil Is Key Issue,&#8221; <I>The =
Washington Post</I>,=20
September 15, 2002.</FONT></P></DIV>
<DIV id=3Dftn17>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref17" =

name=3D_ftn17><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[17]</FONT></SPAN></A><FONT face=3DArial size=3D1>Dan Morgan =
and David B.=20
Ottaway, &#8220;In Iraqi War Scenario, Oil Is Key Issue,&#8221; <I>The =
Washington Post</I>,=20
September 15, 2002.</FONT></P></DIV>
<DIV id=3Dftn18>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref18" =

name=3D_ftn18><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[18]</FONT></SPAN></A><FONT face=3DArial size=3D1>Scott =
Peterson, &#8220;Russia&#8217;s=20
Newest Tie to Iraq: Moscow Is Set to Sign a $40 billion Economic Pact =
with=20
Baghdad Next Month,&#8221; <I>Christian Science Monitor</I>, August 20,=20
2002.</FONT></P></DIV>
<DIV id=3Dftn19>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref19" =

name=3D_ftn19><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[19]</FONT></SPAN></A><FONT face=3DArial =
size=3D1>&#8220;Mideast Tensions to Delay=20
Iraq Iraqi&#8211;Russian Signing,&#8221; <I>Energy Compass</I>, April =
19,=20
2002.</FONT></P></DIV>
<DIV id=3Dftn20>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref20" =

name=3D_ftn20><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[20]</FONT></SPAN></A><FONT face=3DArial size=3D1>Dmitry =
Zhdannikov,=20
&#8220;Russian&#8217;s Grim About Working Under Saddam,&#8221; <I>The =
Houston Chronicle</I>, April=20
14, 2002.</FONT></P></DIV>
<DIV id=3Dftn21>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref21" =

name=3D_ftn21><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[21]</FONT></SPAN></A><FONT face=3DArial size=3D1>Information =
from Stockholm=20
International Peace Research Institute (SIPRI), &#8220;Arms Transfers to =
Iraq,=20
1981&#8211;2001,&#8221; at=20
<I>http://projects.sipri.se/armstrade/IRQ_IMPORTS_1982-2001.pdf</I>.</FON=
T></P></DIV>
<DIV id=3Dftn22>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref22" =

name=3D_ftn22><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[22]</FONT></SPAN></A><FONT face=3DArial size=3D1>Central =
Intelligence=20
Agency, <I>The World Factbook 2002</I>, at=20
http://www.cia.gov/cia/publications/factbook.</FONT></P></DIV>
<DIV id=3Dftn23>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref23" =

name=3D_ftn23><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[23]</FONT></SPAN></A><FONT face=3DArial size=3D1>Trish =
Saywell, &#8220;Oil: The=20
Danger of Deals with Iraq,&#8221; <I>Far Eastern Economic Review</I>, =
March 6,=20
2003.</FONT></P></DIV>
<DIV id=3Dftn24>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref24" =

name=3D_ftn24><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[24]</FONT></SPAN></A><FONT face=3DArial size=3D1>Kenneth R. =
Timmerman,=20
&#8220;Rogues Lending Hand to Saddam,&#8221; <I>Insight on the News</I>, =
March 4,=20
2003.</FONT></P></DIV>
<DIV id=3Dftn25>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref25" =

name=3D_ftn25><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[25]</FONT></SPAN></A><FONT face=3DArial size=3D1>Kenneth R. =
Timmerman,=20
&#8220;Rogues Lending Hand to Saddam,&#8221; <I>Insight on the News</I>, =
March 4,=20
2003.</FONT></P></DIV>
<DIV id=3Dftn26>
<P class=3DMsoFootnoteText style=3D"MARGIN: 0in 0in 0pt"><A title=3D""=20
href=3D"http://www.heritage.org/Research/MiddleEast/wm217.cfm#_ftnref26" =

name=3D_ftn26><SPAN class=3DMsoFootnoteReference><FONT face=3DArial=20
size=3D1>[26]</FONT></SPAN></A><FONT face=3DArial size=3D1>Information =
from Stockholm=20
International Peace Research Institute (SIPRI), &#8220;Arms Transfers to =
Iraq,=20
1981&#8211;2001,&#8221; at=20
<I>http://projects.sipri.se/armstrade/IRQ_IMPORTS_1982-2001.pdf</I>.</FON=
T></P></DIV></DIV></DIV></FONT></SPAN></DIV></DIV></BODY></HTML>

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