U.S. Will Press Russia, France, Kuwait to Forgive Iraqi Debt

[kskiska]

Oct. 27 (Bloomberg) -- The Bush administration, having won $18.5 billion in pledges of international aid to rebuild Iraq, now turns to removing another barrier to the war-torn nation's revival: Iraq's estimated $125 billion in sovereign debt.

The U.S. will press Russia, France and other governments to forgive debt, run up during Saddam Hussein's 24-year regime, when representatives of the 19 creditor nations of the Paris Club meet next month, Treasury Secretary John Snow said.

Iraq's debt is a ``matter of urgency,'' Snow said Friday at the end of a two-day conference in Madrid of representatives of more than 70 nations. At that conference, Japan, Kuwait and other countries pledged the money to help reconstruct Iraq, the world's second-largest holder of oil reserves.

Failure to win debt forgiveness would undermine efforts to stabilize Iraq and hurt President George W. Bush's standing on foreign policy among voters as he seeks re-election in 2004, said Lael Brainard, an adviser to former President Bill Clinton.

The administration has ``staked so much on success in Iraq,'' Brainard said in an interview.

more…
http://quote.bloomberg.com/apps/news?pid=10000103&sid=a7KRmQvlCjI0&refer=us#

[mikehiggins]

1. How much will THAT cost us?

Nobody in their right minds could imagine for a nanosecond that Germany and France are going to "write off" 125 billion in debts without getting a pound-and-a-half of flesh out of Bush (which means, our pockets).

Bush as one year and two weeks to convince the voters (or Diebold) to give him a second term. It's hard to see how he can do it.

[madrchsod]

2. the only way

anyone is going to do this is to get their cut of the contracts to rebuild iraq. the bush klan may go along with some concessions but i doubt france, russia and others will settle for getting crumbs from bush`s table. they`ll wait him out and hope the american people can vote him out....

[cliss]

3. good point, rchsod.

Why would France, Russia and other countries forgive such a large debt? Why don't they just bide their time, about a year from now, to see how the political winds may change. There may be a new president, who would feel very differently about this enormous debt.

Besides, why would any of them be willing to help Ole Bushwacker? What's he done for them lately?

Bush is basically saying, "look, we blasted this little country to kingdom come, even though you were opposed to us doing it. We know you had oil contracts with Saddam. Our declaring war on this defenseless nation made your contracts null and void. We know Iraq had many other debts to all of you. But now, in the spirit of good beginnings, we want you to forgive all of those debts. And in doing so, you will make me look good. My military adventures will be a success. AND, we have a few other slight plans for a few other countries, and we know you won't mind cancelling any of those debts, either."

Like hell they will.

[Paschall]

4. Sounds like the administration's position is weakening

A few months ago they claimed debts incurred by Saddam were not binding after his fall... which is NOT at all how international law views the issue.

I'm not sure that "getting a cut on Iraqi contracts" will be the major goal for France and Germany. No one may have noticed--and in France, at least, the government is cheerleading 24/7 to prevent people from noticing--but France and Germany's economies are currently in the worst conditions they've been in since about 1947. Or those are the comparisons the media is making.

Both countries have also recently passed budgets that violate the Euro Stability Pact, and there's talk of giving the pact "more flexibility."

I don't think there'll be much debt forgiveness on the horizon.

[JackSwift]

5. Their large debt is one of the reasons they didn't want

an invasion. I think that Bush is going to blackmail them with an ultimatum: either forgive the debt or we will support the new government in repudiating it. More money for BFEE. I see about a trillion dollars going their way from this administration.

[markses]

6. Yeah, Right after US banks forgive Latin American debt

accrued under client state dictators. What, is the current economic situation in Argentina somehow that much better than the situation in Iraq? I don't fucking think so. Buck up, US banks and bondholders!

[markses]

7. The debt is unconscionable, but then so is most 3rd World debt

They cannot simply make the argument that Saddam Hussein incurred the debt, so it should be forgiven as an unconscionable contract from the point of view of the Iraqi people. using that logic, US banks holding notes from most of latin America should forgive those debts immediately.

Of course, they SHOULD forgive 3rd world debt. The rallying cry in Argentina is not even about so-called "forgiveness" - as if the finance capital vultures and murderewrs were dispensing largesse - but rather DON'T OWE, WON'T PAY. Which seems about right. As for the US taking such a position with respect to iraq, that's...uh...well...too comical given our own predatory proclivities - not to mention all those notes WE HOLD!

[Paschall]

8. Question about the Kuwaiti debt

Does anybody know what this debt corresponds to? I ask because I'm wondering if it's not the money Iraq owes Kuwait for war reparations (oil field repair, among other things) from Gulf War I. In other words, are we going to pressure the Kuwaitis to say Gulf War I is "forgiven?"

[Monkey see Monkey Do]

10. Kuwaiti debt

according to the Jubilee Iraq site, is:

$27 million debt
$68.8 million reparations

see:

http://www.jubileeiraq.org/creditors/kuwait.htm

----

Over here, a guy called Mark Thomas did a show about the Iraqi debt last week. He's probably most similar to Michael Moore (esp when he was doing TV Nation). Stuff from the show, including an interview with Joseph Stielgtz on odious debt is here:

http://www.mtcp.co.uk/debtcollector/introduction.php

[teryang]

9. The regime can't parse out what it doesn't have

The notion that the b* junta controls anything in Iraq that hasn't already been carried off if an illusion. These economic discussions are academic now. Iraq is a sinkhole that you pour money, blood and gasoline into.

[Tyler Durden]

11. Forgive the debt so the Iraqis can pay off Halliburton.

Can you say, FUCK YOU, GEORGIE?

[JNelson6563]

12. Was Halliburton paid in cash by Saddam?

Just asking.