U.S. Requests Waiver on Iraqi Debt

The United States has requested those countries that have shown opposition to the Iraq War such as France, Germany and Russia to give up on debt collection from Iraq. Accordingly, it looks as though the United States and the three countries regarding the war will turn into an ‘economic war’, on the basis of the handling of liabilities after the war.

The debt Korean companies such as Hyundai Construction are supposed to receive from Iraq totals 1.6284 billion dollars, therefore damage to domestic business is very much a concern.

“The money lent to the dictator (President Saddam Hussein) by these three countries had been used for weapons purchases, the construction of presidential palaces as well as suppression of Iraqi citizens. Methods of persuading countries to waive all or a part of their claims on Iraq must be seriously considered in order for the new soon-to-be born Iraqi government to be burdened less from its debt,” said U.S. Deputy Secretary of Defense Paul Wolfowitz during an executive military committee meeting on April 10.

He also suggested that Russia, France and others would most likely not acknowledge contracts they made on petroleum development during the period of the Hussein regime stating that “the long term development plan of petroleum in Iraq must be decided by the new Iraqi government.”

Pointing out France, who stubbornly opposed the war, Wolfowitz clarified that “it must pay the price” and expressed implicit ‘revenge’ against the anti-war countries of Europe.

According to the U.S. Center for Strategic & International Studies and Korean Ministry of Construction & Transportation, the total debt that Iraq owes foreign countries totals 384 billion 468.4 million dollars. From this total, Russia’s claims 64 billion dollars, France 4 billion dollars, and Germany 6 billion dollars as compensation from the previous Gulf War.

Meanwhile, Secretary of Defense Donald Rumsfeld clarified that the U.S. Army and the Kurdish militia advanced into Mosul, the northern-most city of Iraq on April 11 after seizing the northern oil fields of Kirkuk. He also added that the allies have started collecting weapons from Iraqi soldiers along with warm welcomes from residents. The U.S. Army has intensified bombing on the northern cities of Tikrit and Quaim (border city), predicted to be the last pockets of resistance for the Hussein regime.

After clarifying the three steps of handing over power to the new Iraqi government through the steps of ‘military administration -> temporary Iraqi government -> Iraqi self government’, Wolfowitz stated at the executive military committee meeting, “our best interest is in handing over Iraq to the Iraqis as soon as possible”

Turkey has sent military inspectors to Kirkuk due to the concern over agitation of the Kurds within Turkey following the Kurds seizing the northern region of Iraq. The United States has also sent its First Infantry Division residing in Germany in order to relieve the Kurdish militia there.

Meanwhile, USA Today reported on April 11 that an executive officer of the Information Center of the Department of Defense stated that “President Hussein deceased on April 7 due to U.S. bombings and it is believed that his dead body is in the debris of a collapsed building.”

sechepa@donga.com