[A-List] US imperialism: Iraqi oil revenues

["Michael Keaney" <michael.keaney@xxxxxx>]

Doubts surface on control of Iraq oil revenue
By James Drummond in Baghdad
Financial Times: May 5 2004

Differing interpretations of control over Iraq's oil revenues emerged on
Tuesday in Baghdad, potentially calling into question the financial
independence to be ceded to the interim government that is due to take
charge of the country in July.

Adnan Pachachi, a senior Iraqi politician who is viewed as a candidate for
president during the period until elections can be held, said he expected
the interim government to control oil revenues, subject to provisos on the
repayment of debt and compensation to Kuwait.

However, the Coalition Provisional Authority (CPA) said that the status of
future oil receipts would have to be resolved via a future United Nations
resolution. On the CPA's interpretation, an interim administration would not
necessarily have the authority to spend oil money as it saw fit.

Future control of Iraq's oil revenues, the country's main source of wealth,
is an essential test of its sovereignty, which the US says it is committed
to handing over on June 30. The interim government is due to be named -
rather than elected - later this month by Lakhdar Brahimi, the UN special
envoy, in consultation with the CPA and Iraqi leaders.

Some 98 per cent of Iraq's forecast revenues this year - $16bn (?13bn,
£9bn) - will come from energy exports. Currently these are paid into a
UN-authorised development fund for Iraq. Separately, donors have pledged
$33bn over the next four takes for Iraq's reconstruction - more than half of
which will come from the US.

Asked whether on June 30 an Iraqi minister would take over responsibility
for managing and spending the country's oil money, Mr Pachachi said: "The
oil money, yes. But of course, when it comes to the money given by the
donors we have to agree with the donor countries. What comes from oil is our
money and it is now."

For its part, the CPA cited UN Security Council resolution 1483, which
states that proceeds from energy exports must be deposited in the
development fund "until such time as an internationally recognised,
representative government of Iraq is properly constituted". "The [Security
Council] has not taken the position that the Iraqi interim government [IIG]
will constitute 'an internationally recognised, representative government of
Iraq,' " the CPA said.

"If the IIG does not fit that term, the proceeds will continue to be
deposited into that fund until the [Security Council] decides otherwise.