Bush administration blackmailing Iraq over long-term military agreement.»

[babylonsister]

Have I mentioned lately how much I despise these people?

http://thinkprogress.org/2008/06/06/bush-administration-blackmailing-iraq-over-long-term-military-agreement/


Bush administration blackmailing Iraq over long-term military agreement.»

Yesterday, the UK Independent reported that the Bush administration is trying to push a secret deal to “perpetuate the American military occupation of Iraq indefinitely.” Today, the paper has more troubling details about the Bush administration’s shady tactics:

The US is holding hostage some $50bn (£25bn) of Iraq’s money in the Federal Reserve Bank of New York to pressure the Iraqi government into signing an agreement seen by many Iraqis as prolonging the US occupation indefinitely, according to information leaked to The Independent.

US negotiators are using the existence of $20bn in outstanding court judgments against Iraq in the US, to pressure their Iraqi counterparts into accepting the terms of the military deal.

The Bush administration is arguing that some of the Iraqi funds would lose immunity protection if the U.N. mandate “is not replaced by the new agreement.” But the Washington Post reports today that the Iraqi government may request an extension of the mandate. Juan Cole and Spencer Ackerman have more.

[spanone]

1. bu$h* is trying to tie the hands of the next administration.....

[babylonsister]

2. ...and the Iraqis. Dem. Now! is reporting on this. Sounds serious. nt

[seafan]

3. US issues threat to Iraq's $50bn foreign reserves in military deal

Nothing like a little Bush blackmail to move things along.

And what's the status in the Iraqi Parliament, of the *oil production sharing agreements* with western oil companies, otherwise known as Bush's Oil Grab Law? Seems like THAT is still pending as well.


US issues threat to Iraq's $50bn foreign reserves in military deal

By Patrick Cockburn
UK Independent

6 June 2008

The US is holding hostage some $50bn (£25bn) of Iraq's money in the Federal Reserve Bank of New York to pressure the Iraqi government into signing an agreement seen by many Iraqis as prolonging the US occupation indefinitely, according to information leaked to The Independent.

US negotiators are using the existence of $20bn in outstanding court judgments against Iraq in the US, to pressure their Iraqi counterparts into accepting the terms of the military deal, details of which were reported for the first time in this newspaper yesterday.

Iraq's foreign reserves are currently protected by a presidential order giving them immunity from judicial attachment but the US side in the talks has suggested that if the UN mandate, under which the money is held, lapses and is not replaced by the new agreement, then Iraq's funds would lose this immunity. The cost to Iraq of this happening would be the immediate loss of $20bn. The US is able to threaten Iraq with the loss of 40 per cent of its foreign exchange reserves because Iraq's independence is still limited by the legacy of UN sanctions and restrictions imposed on Iraq since Saddam Hussein invaded Kuwait in the 1990s. This means that Iraq is still considered a threat to international security and stability under Chapter Seven of the UN charter. The US negotiators say the price of Iraq escaping Chapter Seven is to sign up to a new "strategic alliance" with the United States.

The threat by the American side underlines the personal commitment of President George Bush to pushing the new pact through by 31 July. Although it is in reality a treaty between Iraq and the US, Mr Bush is describing it as an alliance so he does not have to submit it for approval to the US Senate.

.....

The fact that Iraq's financial reserves, increasing rapidly because of the high price of oil, continue to be held in the Federal Reserve Bank of New York is another legacy of international sanctions against Saddam Hussein. Under the UN mandate, oil revenues must be placed in the Development Fund for Iraq which is in the bank.

The funds are under the control of the Iraqi government, though the US Treasury has strong influence on the form in which the reserves are held.

Iraqi officials say that, last year, they wanted to diversify their holdings out of the dollar, as it depreciated, into other assets, such as the euro, more likely to hold their value. This was vetoed by the US Treasury because American officials feared it would show lack of confidence in the dollar.

Iraqi officials say the consequence of the American action was to lose Iraq the equivalent of $5bn.

.....

Related story that broke yesterday:

http://www.independent.co.uk/news/world/middle-east/revealed-secret-plan-to-keep-iraq-under-us-control-840512.html">Revealed: Secret plan to keep Iraq under US control




JIM WATSON/AFP/Getty Images

George Bush with General David Petraeus at Al-Asad Air Base in Anbar Province, Iraq, last year




Bush intends to so saddle the next administration with his permanent legacy in Iraq, that it will be nearly impossible to reverse it. And his ruinous plans to attack Iran in the very near future will unleash virulent hatred of America for generations.

[bdamomma]

4. I hate this effing *.

[sicksicksick_N_tired]

5. BushCO HATES democracy! Iraq's parliament said "no" to military agreement UNLESS,...

,...there was withdrawal of US forces. So, what does BushCO do,...basically blackmails Iraq.

What a crock!!!