Some Highlights
From the report (PDF file warning). The headings here are mine and indicate separate sections in the text:
Saddam's Goals
Saddam’s primary goal from 1991 to 2003 was to have UN sanctions lifted, while maintaining the security of the Regime. He sought to balance the need to cooperate with UN inspections — to gain support for lifting sanctions — with his intention to preserve Iraq’s intellectual capital for WMD with a minimum of foreign intrusiveness and loss of face. Indeed, this remained the goal to the end of the Regime, as the starting of any WMD program, conspicuous or otherwise, risked undoing the progress achieved in eroding sanctions and jeopardizing a political end to the embargo and international monitoring.
The introduction of the Oil-For-Food program (OFF) in late 1996 was a key turning point for the Regime. OFF rescued Baghdad’s economy from a terminal decline created by sanctions. The Regime quickly came to see that OFF could be corrupted to acquire foreign exchange both to further undermine sanctions and to provide the means to enhance dual-use infrastructure and potential WMD-related development.
By 2000-2001, Saddam had managed to mitigate many of the effects of sanctions and undermine their international support. Iraq was within striking distance of a de facto end to the sanctions regime, both in terms of oil exports and the trade embargo, by the end of 1999.
Saddam wanted to recreate Iraq’s WMD capability — which was essentially destroyed in 1991 — after sanctions were removed and Iraq’s economy stabilized, but probably with a different mix of capabilities to that which previously existed. Saddam aspired to develop a nuclear capability — in an incremental fashion, irrespective of international pressure and the resulting economic risks — but he intended to focus on ballistic missile and tactical chemical warfare (CW) capabilities.
Manipulating the U.N.
One aspect of Saddam’s strategy of unhinging the UN’s sanctions against Iraq, centered on Saddam’s efforts to influence certain UN SC permanent members, such as Russia, France, and China and some nonpermanent (Syria, Ukraine) members to end UN sanctions. Under Saddam’s orders, the Ministry of Foreign Affairs (MFA) formulated and implemented a strategy aimed at these UNSC members and international public opinion with the purpose of ending UN sanctions and undermining its subsequent OFF program by diplomatic and economic means. At a minimum, Saddam wanted to divide the five permanent members and foment international public support of Iraq at the UN and throughout the world by a savvy public relations campaign and an extensive diplomatic effort.
Another element of this strategy involved circumventing UN sanctions and the OFF program by means of “Protocols” or government-to-government economic trade agreements. Protocols allowed Saddam to generate a large amount of revenue outside the purview of the UN. The successful implementation of the Protocols, continued oil smuggling efforts, and the manipulation of UN OFF contracts emboldened Saddam to pursue his military reconstitution efforts starting in 1997 and peaking in 2001. These efforts covered conventional arms, dual-use goods acquisition, and some WMD-related programs.
Once money began to flow into Iraq, the Regime’s authorities, aided by foreign companies and some foreign governments, devised and implemented methods and techniques to procure illicit goods from foreign suppliers.
To implement its procurement efforts, Iraq under Saddam, created a network of Iraqi front companies, some with close relationships to high-ranking foreign government offi cials. These foreign government officials, in turn, worked through their respective ministries, state-run companies and ministry-sponsored front companies, to procure illicit goods, services, and technologies for Iraq’s WMD-related, conventional arms, and/or dual-use goods programs.
The Regime financed these government-sanctioned programs by several illicit revenue streams that amassed more that $11 billion from the early 1990s to OIF outside the UN-approved methods. The most profitable stream concerned Protocols or government-to-government agreements that generated over $7.5 billion for Saddam. Iraq earned an additional $2 billion from kickbacks or surcharges associated with the UN’s OFF program; $990 million from oil “cash sales” or smuggling; and another $230 million from other surcharge impositions.
Making Progress
By mid-2000 the exponential growth of Iraq’s illicit revenue, increased international sympathy for Iraq’s humanitarian plight, and increased complicity by Iraqi’s neighbors led elements within Saddam’s Regime to boast that the UN sanctions were slowly eroding. In July 2000, the ruling Iraqi Ba’athist paper, Al-Thawrah, claimed victory over UN sanctions, stating that Iraq was accelerating its pace to develop its national economy despite the UN “blockade.” In August 2001, Iraqi Foreign Minister Sabri stated in an Al-Jazirah TV interview that UN sanctions efforts had collapsed at the same time Baghdad had been making steady progress on its economic, military, Arab relations, and international affairs.
Companies in Syria, Jordan, Lebanon, Turkey, UAE, and Yemen assisted Saddam with the acquisition of prohibited items through deceptive trade practices. In the case of Syria and Yemen, this included support from agencies or personnel within the government itself.
Numerous ministries in Saddam’s Regime facilitated the smuggling of illicit goods through Iraq’s borders, ports, and airports. The Iraqi Intelligence Service (IIS) and the Military Industiralization Commission (MIC), however, were directly responsible for skirting UN monitoring and importing prohibited items for Saddam.
Saddam's Goals
Saddam’s primary goal from 1991 to 2003 was to have UN sanctions lifted, while maintaining the security of the Regime. He sought to balance the need to cooperate with UN inspections — to gain support for lifting sanctions — with his intention to preserve Iraq’s intellectual capital for WMD with a minimum of foreign intrusiveness and loss of face. Indeed, this remained the goal to the end of the Regime, as the starting of any WMD program, conspicuous or otherwise, risked undoing the progress achieved in eroding sanctions and jeopardizing a political end to the embargo and international monitoring.
The introduction of the Oil-For-Food program (OFF) in late 1996 was a key turning point for the Regime. OFF rescued Baghdad’s economy from a terminal decline created by sanctions. The Regime quickly came to see that OFF could be corrupted to acquire foreign exchange both to further undermine sanctions and to provide the means to enhance dual-use infrastructure and potential WMD-related development.
By 2000-2001, Saddam had managed to mitigate many of the effects of sanctions and undermine their international support. Iraq was within striking distance of a de facto end to the sanctions regime, both in terms of oil exports and the trade embargo, by the end of 1999.
Saddam wanted to recreate Iraq’s WMD capability — which was essentially destroyed in 1991 — after sanctions were removed and Iraq’s economy stabilized, but probably with a different mix of capabilities to that which previously existed. Saddam aspired to develop a nuclear capability — in an incremental fashion, irrespective of international pressure and the resulting economic risks — but he intended to focus on ballistic missile and tactical chemical warfare (CW) capabilities.
Manipulating the U.N.
One aspect of Saddam’s strategy of unhinging the UN’s sanctions against Iraq, centered on Saddam’s efforts to influence certain UN SC permanent members, such as Russia, France, and China and some nonpermanent (Syria, Ukraine) members to end UN sanctions. Under Saddam’s orders, the Ministry of Foreign Affairs (MFA) formulated and implemented a strategy aimed at these UNSC members and international public opinion with the purpose of ending UN sanctions and undermining its subsequent OFF program by diplomatic and economic means. At a minimum, Saddam wanted to divide the five permanent members and foment international public support of Iraq at the UN and throughout the world by a savvy public relations campaign and an extensive diplomatic effort.
Another element of this strategy involved circumventing UN sanctions and the OFF program by means of “Protocols” or government-to-government economic trade agreements. Protocols allowed Saddam to generate a large amount of revenue outside the purview of the UN. The successful implementation of the Protocols, continued oil smuggling efforts, and the manipulation of UN OFF contracts emboldened Saddam to pursue his military reconstitution efforts starting in 1997 and peaking in 2001. These efforts covered conventional arms, dual-use goods acquisition, and some WMD-related programs.
Once money began to flow into Iraq, the Regime’s authorities, aided by foreign companies and some foreign governments, devised and implemented methods and techniques to procure illicit goods from foreign suppliers.
To implement its procurement efforts, Iraq under Saddam, created a network of Iraqi front companies, some with close relationships to high-ranking foreign government offi cials. These foreign government officials, in turn, worked through their respective ministries, state-run companies and ministry-sponsored front companies, to procure illicit goods, services, and technologies for Iraq’s WMD-related, conventional arms, and/or dual-use goods programs.
The Regime financed these government-sanctioned programs by several illicit revenue streams that amassed more that $11 billion from the early 1990s to OIF outside the UN-approved methods. The most profitable stream concerned Protocols or government-to-government agreements that generated over $7.5 billion for Saddam. Iraq earned an additional $2 billion from kickbacks or surcharges associated with the UN’s OFF program; $990 million from oil “cash sales” or smuggling; and another $230 million from other surcharge impositions.
Making Progress
By mid-2000 the exponential growth of Iraq’s illicit revenue, increased international sympathy for Iraq’s humanitarian plight, and increased complicity by Iraqi’s neighbors led elements within Saddam’s Regime to boast that the UN sanctions were slowly eroding. In July 2000, the ruling Iraqi Ba’athist paper, Al-Thawrah, claimed victory over UN sanctions, stating that Iraq was accelerating its pace to develop its national economy despite the UN “blockade.” In August 2001, Iraqi Foreign Minister Sabri stated in an Al-Jazirah TV interview that UN sanctions efforts had collapsed at the same time Baghdad had been making steady progress on its economic, military, Arab relations, and international affairs.
Companies in Syria, Jordan, Lebanon, Turkey, UAE, and Yemen assisted Saddam with the acquisition of prohibited items through deceptive trade practices. In the case of Syria and Yemen, this included support from agencies or personnel within the government itself.
Numerous ministries in Saddam’s Regime facilitated the smuggling of illicit goods through Iraq’s borders, ports, and airports. The Iraqi Intelligence Service (IIS) and the Military Industiralization Commission (MIC), however, were directly responsible for skirting UN monitoring and importing prohibited items for Saddam.
Labels: oil-for-food, Saddam, united nations
