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Iraq
U.S. Needs U.N. OK on Iraq Oil Revenues
2003-04-04
The United States will have to go back to the bitterly divided U.N. Security Council for approval to tap Iraqi oil revenues for reconstruction or to award contracts to modernize the oil industry, a senior U.N. official asserted said.

The Bush administration has made oil central to its postwar plans, choosing a former U.S. oil executive to resuscitate Iraq's oil industry and saying it wants to use the nation's vast reserves to finance rebuilding.

But Mark Malloch Brown, high swindler administrator of the United Nations Mis-Development Program, said Thursday the United States as a liberating an occupying power in Iraq doesn't have authority over its oil riches.
Feel free to fly to Baghdad and enforce that.
Iraq's oil is currently sold under the U.N. oil-for-food program, which is controlled by the Security Council. The proceeds go into a U.N.-run escrow account and are used primarily to buy food, medicine and humanitarian supplies. Even though no oil is being shipped at the moment, only the Security Council can change how it is sold - and what the money is used for.
The oil-for-food program was done via an agreement with a government that will shortly cease to exist. I don't see a problem here.
Similarly, any U.S.-run administration in Iraq would not be entitled under international law to award American companies major contracts to modernize and run Iraq's oil industry, Malloch Brown said.

``Under the Geneva Conventions, which will be the only international legal framework unless and until there is a new Security Council resolution, you are only as the occupying power able to deal with day-to-day administrative decisions,'' he said.
Until, of course, the Interim Authority is established and asserts sovereignty. Then it will decide how the oil money is spent.
For the United States, going to the Security Council to divert oil money to reconstruction or reward U.S. companies will be not be easy, not least because France and Russia used to have extensive oil concessions in Iraq.

France, Russia, Germany, China and other countries on the 15-member council opposed the U.S. and British rush to war, hallucinating arguing that Iraq could be disarmed peacefully through strengthened U.N. weapons inspections. The unreasonable strong opposition forced Washington and London to drop a resolution that would have given U.N. backing to the war. But days later, they attacked Iraq without council authorization.

Malloch Brown said ``emotions are still high'' and ``a lot of damage has been done'' but he held out hope that council members will return to the table to agree on post-conflict arrangements for Iraq. The United Nations, he said, will be pushing for quick restoration of Iraqi civil authority to control the people and the country's resources, including its oil.

``In the interim, we will equally be pushing for as international and broad-based as possible a management of both the humanitarian and reconstruction (problems),'' Malloch Brown said.

He said he believes ``the overwhelming consensus of the international community other than the powers that really matter'' is that the best way to get from occupation to self-government in Iraq is through U.N. management and a U.N.-brokered political process.
Lovely straw man he built there.
The French, Germans and even the British, the closest U.S. ally, agree that a U.S.-British occupation of Iraq ``is going to create huge problems,'' he said.
For whom?
Malloch Brown questioned the wisdom of U.S. plans to install an American ministerial team in Iraq rather than rely on Iraq's highly trained bureaucracy.
Yes, highly trained thugs and swindlers. We have to de-Baath the place, not put them back in charge.
Philip Carroll, who was president and chief executive of Shell Oil Co., the U.S. arm of the London-based Royal Dutch/Shell Group, from 1993 until his retirement in 1998 confirmed to the Houston Chronicle Thursday that he had been asked by the Defense Department to restore oil production and create new production capacity if needed.

``If you take the oil sector, any potential American oil company investing in the modernizing of those fields will need legal assurance that the concessions that it's granted are secure for a 10-20 year horizon, a kind of payback period for this industry,'' he said.

But Malloch Brown said Washington has no right to authorize such concessions. ``You are not able to either change the constitution or make legal commitments with the country going ahead many years of any major kind,'' Malloch Brown said.
We'll just allow the Interim Authority to do that. Watch how easy we make it look.
Posted by:Steve White

#21  Thanks Murat. We use the same semantics: crush, liberate. Just like the Kurds. Except, oh yeah, they don't throw flowers at your tanks, do they?

I guess we actually follow through on our committments to liberty (viz. Japan, Germany) while I hear the former-Ottoman nations are doing quite well in that department...

PS, Speaking of crushing, can you explain your nation's conduct in the Armenian genocide? Or is that just an Islamist thing to do?
Posted by: Brian   2003-04-04 15:55:06  

#20  Once again, we have the United Nations trying to dictate to the United States. Haven't they figured it out yet that we're tired of that c$$p and won't play? What are they going to do? If worse comes to worse, we can take a batallion of New York National Guard and ring the damned UN building, and lay seige to it. How long do you think those diplomatic types will be able to hold out? Rent the QEII for a few days, and transport them to someone who cares. France sounds about right - that way we only have to target ONE place, instead of several.
Posted by: Old Patriot   2003-04-04 12:50:04  

#19  Murat, MSNBC didn't need to truck the stuff in -

http://msnbc.com/news/895185.asp?0cv=CA01&cp1=1

Its starting to show up without government help.
Posted by: Don   2003-04-04 10:00:43  

#18  The oil can only go out under oil for food program because of the existence of sanctions. SO we may soon have the absurd prospect of the US pushing for an end to sanctions, and France vetoing!!!!!!

The principle US weapon against any UN authority is the proclamation of a provisional Iraqi government - in that case we would no longer be an occupying power but we would be present at the invitation of the govt. For various good reasons the US doesnt want to rush the creation of such a govt, but if the UN (IE the French and Russians) prove recalcitrant, thats the option in our back pocket.
Posted by: liberalhawk   2003-04-04 09:40:29  

#17  I think the traditional response is you and what army. Some sort of deal will have to be done eventually though.
Posted by: Hiryu   2003-04-04 09:35:00  

#16  Don't forget to impound that $40 billion in Oil for Food cash in French banks when the program goes dark. It's not *their* money, y'know, it belongs to the people of Iraq.
Posted by: mojo   2003-04-04 09:30:41  

#15  FINALLY! Murat has figured it out! We just had to put it in easier terms. Crushing = Liberating.
Pure genius I tell you.
Posted by: Mike N.   2003-04-04 09:12:14  

#14  No, my dear Ptah, a victim of British journalism almost all my pieces posted where from British papers and sources.
Posted by: Murat   2003-04-04 09:08:49  

#13  Oh poor murat, a Victim of Al-jazeera's selective journalism!
Posted by: Ptah   2003-04-04 08:57:20  

#12  So this is the UN ace in the hole to strongarm their way into postwar Iraq? Hold Iraqi aid (and the Iraqi people) hostage so they can advance their agenda? Beautiful. Restores my faith in this fine organization.
Posted by: tu3031   2003-04-04 08:57:02  

#11  Brian, you are right when you put it like: crushing = liberating
Posted by: Murat   2003-04-04 07:09:53  

#10  Murat, when you say: "Being sceptical I would be concerned of how to handle a 5mln populated Baghdad if they continue to show the same determination, is the coalition prepared for a show down of the proportion Mega Mogadishu and the civilian (casualties) liberations it would invoke?" do you really believe that with overwhelming air power (we had no fixed wing in Somalia) and heavy armor (ditto, we had to borrow Pakistani [!] forces) that we're going to get sucked into anything resembling Stalingrad Grozny Jenin (oh Ethyl, my pills!) or do you think that we'll just crush them like the rest of the opposition?
Posted by: Brian   2003-04-04 07:05:05  

#9  Flash news, last minute: another suicide attack kills 3 soldiers at the Hadisa checkpoint
Posted by: Murat   2003-04-04 06:26:00  

#8  Till now the battle developed in a different way than planned, people didn’t rise up against Saddam in fact they where (and still are) quite anti to the Anglo-Sakson coalition and there is still no proof of WMD weapons found which should legitimize this war (but these are of course of minor concern as one can bring in a couple of trucks loaded with chemicals and brand them as being Iraqi). Being sceptical I would be concerned of how to handle a 5mln populated Baghdad if they continue to show the same determination, is the coalition prepared for a show down of the proportion Mega Mogadishu and the civilian casualties liberations it would invoke?

Bulldog, the second goal was not that important anymore as the game was lost already. The game caused however quite an earthquake for our squad, the coach is likely to scrap Okan and Umit Davala for their bad performance and maybe a few others to be replaced by younger blood. Well the next game will be interesting indeed.
Posted by: Murat   2003-04-04 06:20:29  

#7  By the time the fighting's over, all's calmed down, and the full extent of breaching of UN sanctions is exposed, the French and Russian reputaions will be so tattered I think they'll be inclined to keep shtoom over oil rights and will be trying to forget Iraq even exists.

Thanks Murat, but you didn't mention the second goal was of questionable legitimacy, to say the least. I commend your restraint. Next leg should be exciting - I hope the Turkish fans are better behaved than some of England's were this time.
Posted by: Bulldog   2003-04-04 05:20:44  

#6  Hi Bulldog, congrats with the victory, well deserved at least, but there is still the home game to play I have hope. I liked specially that Rooney guy, a very talented lad.
Posted by: Murat   2003-04-04 05:01:19  

#5  Hi Bulldog, congrats with the victory, well deserved at least, but there is still the home game to play I have hope. I liked specially that Rooney guy, a very talented lat.
Posted by: Murat   2003-04-04 04:59:41  

#4  Murat has a point. After what TotalFinaElf, the french run "oil for food" program, and the efforts to prevent the liberation of the Iraqi people, it would really dumb to hand it back to that bunch of windbags.
Posted by: Ben   2003-04-04 04:23:41  

#3  Why does the UN believe it has any authority left whatsoever? Are they going to send their uberarmy into Iraq to sort out the nasty Anglos?

Hey Murat, did you enjoy the football on Wednesday? Heh heh heh heh heh...
Posted by: Bulldog   2003-04-04 04:14:18  

#2  What, placing the oil under the UN, after all the hard efforts of operation free iraqi oil?
Posted by: Murat   2003-04-04 03:06:10  

#1  The UN created Israel, yet the dirty majority has been trying to destroy it ever since. It is that majority which is interpreting the UN Charter in a lawless manner. Israel has always complied with the Charter, and not the sharia based orders of terrorists.
Posted by: Anonon   2003-04-04 01:51:25  

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