IRAQ: Baghdad's endangered financial assets

One of the most troublesome issues in current negotiations between America and Iraq is what happens to Iraq’s assets when the country regains full sovereignty.

Iraq is currently subject to the United Nations’ Chapter 7 status, a legal designation that has stripped the nation of its full rights since its 1990 invasion of Kuwait. Iraq wants the U.N. Security Council to remove it from Chapter 7 in December. The country is currently negotiating a controversial bilateral security arrangement with the United States to replace the current U.N. mandate for U.S. forces in Iraq, which existed under the old Chapter 7 apparatus.

Whether or not the country continues to host U.S. forces, it will face difficulties protecting its financial assets once it regains its full privileges as a nation. In particular, the country risks being subjected to lawsuits and claims around the world dating to the Kuwait invasion. The combination of Iraq’s Chapter 7 status and opposition from President Bush has warded off the outstanding suits.

Iraqi Foreign Minister Hoshyar Zebari said Iraq could lose more than $50 billion if its revenues and properties are no longer protected. One solution would be releasing Iraq from Chapter 7 status regarding all matters but financial assets. “We are in a dilemma. Here we are contemplating if we can go back to the Security Council have another resolution to protect our financial assets under Chapter 7 again — to come out from the door and then to reenter the chapter through the window,” Zebari said.

— Ned Parker in Baghdad

Comments

[George]

If Iraq is subject to legal liability for claims against Saddam's regime, Iraq should pass a law making it joint and several liability with all those who aided and abetted Saddam.

Like Dick Cheney and Hallilburton.