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

[sabra]

Source: UK independent

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.

...

Iraqi officials say the consequence of the American action was to lose Iraq the equivalent of $5bn. Given intense American pressure on a weak Iraqi government very dependent on US support, it is still probable that the agreement will go through with only cosmetic changes. Grand Ayatollah Ali al-Sistani, the immensely influential Shia cleric, could prevent the pact by issuing a fatwa against it but has so far failed to do so.



Read more: http://www.independent.co.uk/news/world/middle-east/us-issues-threat-to-iraqs-50bn-foreign-reserves-in-military-deal-841407.html

[ck4829]

1. Didn't the Bush Administration OPPOSE using past judgments against Iraq just last year?

[klebean]

2. time for the Iraq's to appeal to the world n/t

[badgervan]

3. Ah, Blackmail...

... what have we allowed our government to become? If Sistani goes along with this, he will have given his country over to a foreign permanent occupation. Hopefully, President Obama will revoke this travesty his first day in office. If it isn't a "treaty", it means next to nothing.

[magellan]

4. Blackmail and sneaking around the law. Par for the course for Bush**. n/t

[dipsydoodle]

5. I Googled the exact headline you used 2 hours ago

and total results then were about 8400. Just did it again and now its 14900.

I guess the word is starting to spread rapidly. Interesting that it was one of our UK newpapers who announced it.

[LynnTheDem]

6. Coz that's "democracy" in Americaneese.

I only wonder why "they" don't all hate us a whole lot more than they do.

"Do what we say...OR ELSE." Funny how other nations just don't like that.

[ananda]

7. Why thy don't hate us more..

Perhaps it just feels futile. The hate is still there
but buried under desparing resignation.

Or else the reason might be something akin to
Stockholm Syndrome.

[Canuckistanian]

8. Oh, my. The puppets are resisting their strings being pulled.

Obviously, some Iraqi parliament members are balking at this bogus "accord" (no doubt afraid of a public backlash).

So, the Bush Crime Family uses some good old-fashioned mafia techniques - blackmail and extortion.

Unbelievable.

No, wait. It's totally believable.

[Javaman]

9. well, since moron* as broken all sorts of other laws adding blackmail is no great leap. nt

[formercia]

10. Congress does not have to sign off on an "alliance?"

Any other day, this would be a treaty.

George Bush has lost his 'Fast Track' authorization, so it has to go to Congress for approval, methinks.

[yurbud]

11. teaching democracy by pushing the gun further in their mouth

[Truth2Tell]

12. K&R

Where are our Congressional leaders?

Where is the MSM?

Where is Obama?

Let's keep this kicked.

[jus_the_facts]

13. k'n'r

:nuke: