Adamant: Hardest metal
Tuesday, January 14, 2003

Counterspin: Pro-war mythology

www.smh.com.au By Scott Burchill, lecturer in international relations at the School of Social & International Studies, Deakin University January 14 2003

Perhaps the most remarkable feature of this pre-war period is that despite intelligence dossiers, parliamentary speeches and months of disingenuous government propaganda portraying Saddam Hussein as an imminent threat to life on earth, only 37% of Australians support an illegal, unilateral strike by Washington against Baghdad.

We can be confident the Australian Government is concerned by this figure when the Prime Minister starts conjuring implausible and hysterical "what if in 5 years time..." scenarios to bolster his case for war (The Australian, 1 January, 2003). It's not easy making the current peace "seem unacceptably dangerous" (Mearsheimer & Walt 2002).

Spin doctors and PR consultants will therefore be working hard over the next two months in an effort to close the gap between public opposition to a war against Iraq and government enthusiasm thinly disguised as a commitment to the The United Nations Monitoring, Verification and Inspection Commission (UNMOVIC) process.

Their work will be made considerably easier by the support of loyal servants of state power within the fourth estate who will be reliable conduits for opinion management by governments in Canberra, London and Washington.

Amongst the agitprop, disinformation and outright fabrications by commissars and politicians, the following questions and themes will be prominent in future weeks. Each of them deserves careful analysis.

Is Saddam Hussein likely to use weapons of mass destruction (WMD) against the US and its allies?

First, many states, including the US, the UK and Israel, acquire these weapons for deterrence against external attack. You've got to admire Prime Minister Howard and the pro-war lobby for pretending not to understand the lesson that Iraq-North Korea are now teaching the world: If you want to deter the war addicts in Washington, you'd better have weapons of mass destruction and resources of terror. Nothing else will work.

Why wouldn't Iraq develop WMD for deterrence purposes given threats by Washington and London? We are discouraged from seeing things from Iraq's point of view, but in many ways WMD make sense for vulnerable states. As the realist theorist Kenneth Waltz argues, "North Korea, Iraq, Iran and others know that the United States can be held at bay only by deterrence. Weapons of mass destruction are the only means by which they can hope to deter the United States. They cannot hope to do so by relying on conventional weapons."

As with every country, Iraq's weapons inventory and systems tell us precisely nothing about its strategic intentions.

Secondly, Iraq had chemical and biological weapons during the Gulf War in 1991 and chose not to use them. Why would Saddam Hussein be more inclined to use them now knowing the horrendous consequences (as they were explained to him by Brent Scowcroft in 1991), unless his personal survival was at stake and he had nothing left to lose? AS CIA head George Tenet reminded President George W. Bush, Saddam was unlikely to launch WMD against the US unless the survival of his regime was threatened.

As Mearsheimer and Walt argue, "the threat of Iraqi nuclear blackmail is not credible. Not surprisingly, hawks do not explain how Saddam could blackmail the United States and its allies when a rival superpower like the Soviet Union [with 40,000 nuclear weapons] never seriously attempted to blackmail Washington, much less did it."

Saddam Hussein has form: He has used WMD before

It is true that Saddam Hussein has used these weapons before, against those who couldn't respond in kind - Iranian soldiers and perhaps most infamously on 17 March 1988 against "his own people" in the Kurdish city of Halabja. Within half an hour of this attack over 5000 men, women and children were dead from chemical weapons containing a range of pathogens which were dropped on them.

If Washington and London are genuinely concerned about Iraq's WMD, why did they continue to supply him with the means to acquire them for 18 months after the attack on Halabja?

Initially, the US blamed Iran for the Halabja attack, a particularly cynical ploy given Saddam had also used chemical weapons against Teheran's forces during their nine-year conflict in the 1980s. In fact Washington continued to treat Saddam as a favoured ally and trading partner long after the attack on Halabja was exposed as his handiwork.

At the time, the Reagan Administration tried to prevent criticism of Saddam's chemical attack on the Kurds in the Congress and in December 1989, George Bush's father authorised new loans to Saddam in order to achieve the "goal of increasing US exports and put us in a better position to deal with Iraq regarding its human rights record ". Surprisingly, the goal was never reached. In February 1989, eleven months after Halabja, John Kelly, US Assistant Secretary of State, flew to Baghdad to tell Saddam Hussein that "you are a source for moderation in the region, and the United States wants to broaden her relationship with Iraq".

According to the reports of a Senate Banking Committee, the United States provided the government of Iraq with 'dual-use' licensed materials which assisted in the development of Iraqi chemical, biological and missile-system programs. According to the report, this assistance included "chemical warfare-agent precursors; chemical warfare-agent production facility plans and technical drawings; chemical warfare-filling equipment; biological warfare-related materials; missile fabrication equipment and missile system guidance equipment". These technologies were sent to Iraq until December 1989, 20 months after Halabja.

According to William Blum a "veritable witch's brew of biological materials were exported to Iraq by private American suppliers," including Bacillus Anthracis (cause of anthrax), Clostridium Botulinum (a source of botulinum toxin), Histoplasma Capsulatam (causes disease which attacks lungs, brain, spinal chord and heart), Brucella Melitensis (bacteria which attacks vital organs) and other toxic agents. The US Senate Committee said "these biological materials were not attenuated or weakened and were capable of reproduction," and it was later discovered that "these microorganisms exported by the United States were identical to those the United Nations inspectors found and removed from the Iraqi biological warfare program".

After the recent leaking in Germany of Iraq's 12,000 page declaration of its weapons program, it is now known that at least 150 companies, mostly in Europe, the United States and Japan, provided components and know-how needed by Saddam Hussein to build atomic bombs, chemical and biological weapons. Unsurprisingly, the US was keen to excise these details from Iraq's report before its wider dissemination to non-permanent members of the Security Council (Newsday (US), 13 December, 2002; The Independent (UK), 18 & 19 December, 2002; Scotland on Sunday (UK), 22 December, 2002).

Historian Gabriel Kolko claims that "the United Stares supplied Iraq with intelligence throughout the war [with Iran] and provided it with more than $US5 billion in food credits, technology, and industrial products, most coming after it began to use mustard, cyanide, and nerve gases against both Iranians and dissident Iraqi Kurds".

If the US is genuinely concerned by Saddam's WMD, why did Donald Rumsfeld (then a presidential envoy for President Reagan, currently President George W. Bush's Defence Secretary) fly to Baghdad in December 1983 to meet Saddam and normalise the US-Iraq relationship, at a time when Washington new Iraq was using chemical weapons on an "almost daily" basis against Iran (Washington Post, 30 December, 2002)? Why were no concerns about the use of these weapons raised with Baghdad?

Saddam has been successfully deterred from using WMD against other states with WMD. There is no reason to believe this situation has changed or will.

Saddam Hussein has invaded his neighbours twice

True, but this can hardly be a source of outrage for Western governments or a pretext for his removal from power given they actively supported his invasion of Iran in the 1980s with intelligence (eg satellite imagery of Iranian troop positions) and weaponry and, in the case of Washington, told Saddam it was agnostic about his border dispute with Kuwait just prior to Iraq's invasion in August 1990 (US Ambassador April Glaspie told Saddam in 1990 that "We have no opinion on the Arab-Arab conflicts, like your border disagreement with Kuwait." The U.S. State Department reinforced this message by declaring that Washington had "no special defense or security commitments to Kuwait".) This is mock outrage at best.

Saddam's behaviour is no worse than several of his neighbours. As Mearsheimer and Walt remind us, "Saddam's past behavior is no worse than that of several other states in the Middle East, and it may even be marginally better".

"Egypt fought six wars between 1948 and 1973 (five against Israel, plus the civil war in Yemen), and played a key role in starting four of them. Israel initiated wars on three occasions (the Suez War in 1956, the Six Day War in 1967, and the 1982 invasion of Lebanon), and has conducted innumerable air strikes and commando raids against its various Arab adversaries."

Saddam Hussein is a monster who runs a violent, oppressive regime

True again, though this didn't prevent him from being a favoured ally and trading partner of the West at the peak of his crimes in the 1980s. As Mark Thomas notes, the conspicuous aspect of British Labour's attitude to Iraq has been the failure of Blair, Straw, Prescott, Blunkett, Cook or Hoon to register any concerns about Iraq's human rights record whenever the opportunities arose in the British Parliament during the 1980s and 1990s (New Statesman, 9 December, 2002).

Washington, London and Canberra never had reservations about General Suharto's brutal rule in Indonesia, to take on one example of relations between the West and autocratic regimes around the world, and were in fact overjoyed when he came to power over the bodies of hundreds of thousands of his fellow citizens in 1965.

Only the threat of force by the US has forced Iraq to accept weapons inspectors

Possibly true, although this ignores the fact that the last time force was used against Iraq on a significant scale because of its non-compliance with UN Security Resolutions, the opposite effect was produced.

After the Clinton Administration and Blair Government attacked Iraq from 16-19 December, 1998, the result was the collapse of Richard Butler's UNSCOM and the absence of weapons inspectors from Iraq for the next four years. Hardly a testament to the use of force, to say nothing of the precedent this kind of behaviour sets. The Prime Minister's claim that "Hussein effectively expelled weapons inspectors during 1998" is untrue and he knows it (The Australian, 1 January, 2003). Richard Butler withdrew his weapons inspectors on Washington's advice only hours before the Anglo-American attacks in December 1998.

Why wasn't the threat of force an appropriate strategy for the West in response to Indonesia's brutal 24-year occupation of East Timor? Or South Africa's occupation of Namibia? Or Turkey's occupation of northern Cyprus? Or Israel's occupation of Palestine? Etc, etc,.

Has the threat posed by Saddam Hussein increased recently?

The West, particularly London and Washington, was solidly supporting Saddam when he committed the worst of his crimes at the zenith of his power and influence in the 1980s.

In terms of international support - especially Western and Soviet backing, the strength of his armed forces and the state of his industry and equipment, Saddam was considerably more dangerous then than he is now under harsh UN sanctions, (illegal) no-fly zones in the north (since 1991) and south (since 1993) of the country, political isolation and a degraded civilian infrastructure. Why are Saddam's attempts to develop WMD a concern now if they weren't when he actually used them?

Saddam Hussein will pass WMD on to terrorist groups such as Al Qaeda

Despite forensic efforts by Washington to produce a pretext for war, no credible evidence for this claim has been found. All we are left with is unsubstantiated assertions by Bush Administration officials such as Richard Armitage that he has no doubts Iraq would pass WMD on to terrorists (though he doesn't explain how an obvious return address resulting in reciprocal annihilation could be concealed).

This may be enough for compliant power-magnets in the Australian media, but it cannot withstand even a cursory examination. Where is the evidence for such a claim? Osama bin Laden offered the Saudi Government the resources of his organisation to remove Iraqi forces from Kuwait in 1990 instead of Riyadh relying on the US, such is the animosity between Islamic fundamentalists and secular nationalists in the Arab world. Saddam has responded by repressing fundamentalist groups within Iraq.

Would Saddam be likely to hand over to Al Qaeda nuclear weapons so painstakingly built when he, himself might be their first victim? Remarkably, the pro-war lobby reads this history as evidence of likely future co-operation between Baghdad and Al Qaeda.

Much of this is a smokescreen designed to conceal who the real proliferators of WMD are. Which states, for example assisted Israel to develop nuclear weapons - France and the US? What role did Pakistan and China play in helping North Korea build its nuclear stockpile? Why can't we read the list of European, Asian and US companies which proliferated WMD technologies to Iraq? Instead of imaginary scenarios asking 'what if Iraq acquires nuclear weapons in five years and what if it passes them on to terrorist organisations?, why not more sensible questions about which rogue states (most of whom are members of the so called 'war against terrorism') are already responsible for the proliferation of WMD?

The US wants to democratise Iraq

There is no serious US interest in a democratic transition in Iraq, because this could ultimately encourage the Shi'ite majority in the country to pursue a closer relationship with Shi'ite Iran - a nightmare scenario for Washington. It's more likely that a dissident former General, possibly involved in war crimes against Iraq's Kurdish or Shi'ite communities, will be returned from exile and presented as the "democratic opposition" to Saddam Hussein.

The US is interested in compliance and obedience rather than democracy. It has rarely, if ever, expressed an interest in democracy in the Middle East. Ideally, a pro-Western, anti-Iranian, secular "iron fist" would do. The recently rehabilitated Iraqi opposition in exile (with whom until recently the US refused to deal) has no democratic credibility and is largely unknown inside Iraq.

What is the status of pre-emptive strikes in international law?

A number of points can be made about Canberra's interest in retrospectively amending international law to legitimise a shift of strategic doctrine from deterrence to pre-emption. It would establish a precedent that others (Pakistan, India; North and South Korea) might be encouraged to follow; it would have a destabilising effect on international order; the difficulty (impossibility) of getting changes through the UN Security Council; the heightened sense of vulnerability for smaller states and for states in the region, etc, etc,. It would open up a can of worms.

Significantly, there is currently only one country which could seriously consider exercising a right to anticipatory self-defence under existing international law - Iraq. It has been directly threatened with attack by both the US and UK. There has been no reciprocal threat from Iraq.

The term 'pre-emptive war' isn't strictly accurate. As Steven Miller explains:

"Though Bush's approach has been almost universally described, in the media and elsewhere, as a doctrine of preemption, this is incorrect. Preemption refers to a military strike provoked by indications that an opponent is preparing to attack. The logic is: better to strike than be struck. But no one is suggesting that Saddam is preparing to strike the United States. There are no indications that this is the case. Bush is instead making the case for preventive war, for removing today a threat that may be more menacing and difficult in the future. The administration may prefer to label its policy preemption because that is an easier case to make. But it is not an accurate use of the term as traditionally defined."

According to international law specialist Michael Byers, "there is almost no support for a right of anticipatory self-defence as such in present-day customary international law". To the extent that pre-emptive action is permissible under Article 51 of the UN Charter, it requires very strong evidence and there is a heavy burden of justification. The United States, for example, would have to be facing a specific, grave and imminent threat from Iraq which could only be averted by the use of force. According to the test established in the mid-nineteenth century by US Secretary of State Daniel Webster - criteria applied in 1945 at Nuremberg - the need for pre-emptive action must be "instant, overwhelming, leaving no choice of means, and no moment for deliberation".

Otherwise a unilateral strike not authorised by the UN Security Council would be an act of aggression and a breach of international law. As claimed earlier, Iraq has a stronger case at this point in time (given US troop and equipment movements in Qatar, to say nothing of Bush's stated threats).

Christine Gray, author of a seminal modern text on the use of force under international law, argues that the reluctance of states "to invoke anticipatory self-defence is in itself a clear indication of the doubtful status of this jurisdiction for the use of force". According to Gray, in cases where Israel (Beirut 1968, Tunis 1985) and the US (Libya 1986, Iraq 1993, Sudan & Afghanistan 1998) have invoked anticipatory self-defence under Article 51 to justify attacks on their enemies, "the actions look more like reprisals, because they were punitive rather than defensive". The problem for the US and Israel, she argues, "is that all states agree that in principle forcible reprisals are unlawful".

By definition, pre-emptive strikes depend on conclusive intelligence. If the intelligence is wrong, as it was on 20 August 1998 when the Clinton Administration attacked the El Shifa pharmaceutical plant in Khartoum, Sudan, mistakenly believing it was an Al Qaeda chemical weapons factory, the results can be catastrophic for the innocent - self-defence becomes aggression.

Interestingly, the US has not always supported the 'doctrine' of anticipatory self-defence, even when its closest allies invoked it. On 7 June 1981 unmarked American-built F-16 aircraft of the Israeli airforce attacked and destroyed a nuclear reactor at Osirak in Iraq. The raid was authorised by Prime Minister Menachem Begin, but had been internally opposed by Yitzhak Hofi, the director of Mossad, and Major-General Yehoshua Saguy, chief of military intelligence, because there was no evidence that Iraq was capable of building a nuclear bomb. This was also the view of the International Atomic Energy Authority. At the time of the attack, Israel itself had been developing and accumulating nuclear weapons for thirteen years, primarily at its nuclear facility at Dimona.

In response to Israel's unprovoked pre-emptive strike, US Vice President George Bush Snr argued that sanctions had to be imposed on Israel. The US State Department condemned the bombing for its destabilising impact "which cannot but seriously add to the already tense situation in the area". The basis of Washington's concern, it must be said, was not its opposition to anticipatory self-defence per se but that Israel had violated the UN Charter by not exhausting all peaceful means for the resolution of the conflict - in truth no peaceful resolution had been sought. A few days after the raid, Ronald Reagan's White House announced that the planned delivery of four additional F-16s to Israel would be suspended in protest against the attack. The suspension was discretely lifted soon after.

In the current climate when pre-emptive attacks are being invoked as just responses to terrorism, it is worth recalling Princeton University historian Arno Mayer comments in Le Monde shortly after the 9/11 attacks:

"...since 1947 America has been the chief and pioneering perpetrator of "pre-emptive" state terror, exclusively in the Third World and therefore widely dissembled. Besides the unexceptional subversion and overthrow of governments in competition with the Soviet Union during the Cold War, Washington has resorted to political assassinations, surrogate death squads, and unseemly freedom fighters (eg, bin Laden). It masterminded the killing of Lumumba and Allende; and it unsuccessfully tried to put to death Castro, Khadafi, and Saddam Hussein... and vetoed all efforts to rein in not only Israel's violation of international agreements and UN resolutions but also its practice of pre-emptive state terror."

The question of oil: Access or control?

From the middle of last century Washington's foreign policy priority in the Middle East was to establish US control over what the State Department described as "a stupendous source of strategic power and one of the great material prizes in world history", namely the region's vast reserves of crude oil. Middle Eastern oil was regarded in Washington as "probably the richest economic prize in the world in the field of foreign investment", in what President Eisenhower described as the most "strategically important area in the world".

Control could be most easily maintained via a number of despotic feudal oligarchies in the Gulf which ensured the extraordinary wealth of region would be shared between a small number of ruling families and US oil companies, rather than European commercial competitors or the population of these states. Until recently the US has not required the oil for itself though it needed to ensure that the oil price stayed within a desirable range or band - not too low for profit making or too high to discourage consumption and induce inflation. A side benefit of this control over such a vital industrial resource is the influence it gives the US over economic development in rival countries such as Japan.

The greatest threat to this control has always been independent economic nationalism, especially nationalist politicians within the oil-producing region who, unlike the feudal oligarchies of the Gulf states, would channel wealth into endogenous development priorities rather than to US transnationals.

The US wants to secure reliable access to the world's second largest oil reserves, 112 billion barrels already known with possibly double that figure still to be mapped and claimed, thus depriving France and Russia of commercial advantages they have developed in Iraq over the last decade when US companies have been excluded. Just as importantly, access to Iraqi oil would also make the US less reliant upon - and therefore less supportive of - the regime in Saudi Arabia. The geo-political dynamics of the Middle East would be transformed.

If Russia and France maintain their inside track on Iraqi oil, then US corporations will be partially shut out from an enormous resource prize. No US administration is likely to accept that scenario. Meanwhile, Iraqi dissidents close to Washington have promised to cancel all existing oil contracts awarded to firms which do not assist the US to remove Saddam Hussein from power. Regime change in Baghdad could therefore be a bonanza for US oil companies and a disaster for Russian and French companies which have painstakingly built up their relations with the Iraqi dictator since the Gulf war. When Iraq's oil comes fully back on stream, as many as 5 million barrels of oil (or 6.5%) could be added to the world's daily supply. The implications of this for existing suppliers, the global spot price, economic growth, OPEC and the world's consumers are enormous.

This is not an issue of access, it is primarily about control. The US was just as concerned to control Middle East oil producing regions when it didn't depend on them at all. Until about 30 years ago, North America was the largest producer and the US scarcely used Middle East oil at all. Since then Venezuela has normally been the largest oil exporter to the United States. US intelligence projections suggest that in coming years the US will rely primarily on Western Hemisphere resources: primarily the Atlantic basin - Venezuela, Mexico, Brazil, probably Colombia, but also possibly Canada, which has huge potential reserves if they become economically competitive. Imported supplies accounted for 50% of US oil consumption in 2000 and by 2020 the figure is expected to rise to 66%.

Control over the world's greatest concentration of energy resources has two goals: (1) economic: huge profits for energy corporations, construction firms, arms producers, as well as petrodollars recycled to US treasury, etc; and (2) it's a lever of global geo-political control. For those trying to understand the motives behind US behaviour towards Iraq, it is impossible to underestimate the importance which oil has in the minds of Washington's strategic planners.

Attempts to discredit arguments about US access to Iraqi oil by claiming that it if it is interested in access to supplies it could more easily strike a deal with Saddam to satisfy its "thirst for oil" rather than overthrow him, entirely miss the crucial issue - control (The Australian, 2 January, 2003).

The credibility of the UN and Canberra

In September 2002, the Iraq issue in Australia suddenly centred on the honour and integrity of the UN, a subject not previously thought to have concerned the Howard Government. The international community "can't afford" to have its authority "brushed aside," argued foreign minister Alexander Downer, otherwise it will "look meaningless and weak, completely ineffectual". According to the Prime Minister, "if the United Nations Security Council doesn't rise to its responsibilities on this occasion it will badly weaken its credibility".

Former chief weapons inspector and Australian Ambassador to the UN, Richard Butler, argued that the Security Council faces the "challenge of its life" and its future would be "terminal" if it didn't hold Iraq to account this time. His predecessor at the UN, Michael Costello, agrees. "If the UN Security Council won't enforce its own resolutions against Iraq, the whole UN collective security system will be badly wounded, perhaps fatally."

One might have thought that the credibility of the UN Security Council had been badly weakened before now, say in Bosnia in 1993, Rwanda in 1994 or in East Timor in 1999 to cite only three recent cases when it failed to protect defenceless civilians from slaughter. Palestinians might wonder why the organisation's authority hasn't been "brushed aside" by Israel's consistent non-compliance with numerous Security Council resolutions calling for it's withdrawal from occupied territories, from resolution 242 in 1967 to resolution 1402 in March 2002.

Washington clearly has an idiosyncratic view about states complying with UN Security Council resolutions. If the US objects to non-compliance, the country is attacked. If the US favors non-compliance it either vetoes the resolution or disregards it, in which case it is as good as vetoed. Since the early 1970s, for example, the US has vetoed 22 draft Security Council resolutions on Palestine alone - this figure doesn't include 7 vetoes relating to Israel's invasion of Lebanon in the 1980s.

At the National Press Club and later on commercial talkback radio, Mr Howard seemed to think that because Israel was a democracy it shouldn't be judged by the same standards as Iraq. The future of the UN Security Council is not apparently terminal when its resolutions regarding Palestine and Israel are flouted. He should be reminded that democracies are just as obliged to observe international law as authoritarian dictatorships - there is no exemption. In fact we should expect a higher commitment to the rule of law from countries which pronounce their democratic credentials. Later, the argument shifted slightly. Israel wasn't obliged to observe UN Security Council Resolutions because they are only invoked under Chapter 6 of the UN Charter, rather than Chapter 7. This is a novel interpretation of international law, to put it kindly.

Despite rhetoric which portrays the UN as a foreign body at its moment of truth, it is nothing more than the states which comprise it - including Australia and the US. If it has become dysfunctional, it is those member states which manipulate it for their own individual purposes which are to blame. Those who think the credibility of the UN is suddenly at risk over the question of Iraq might like to explain why non-compliance now is suddenly a pretext for an imminent attack on Iraq when Baghdad has been in violation of UN Security Council resolutions for four years.

The Prime Minister asks if Iraq has "nothing to hide and nothing to conceal from the world community, why has it repeatedly refused to comply with the resolutions of the United Nations Security Council"?

Perhaps it's for the same reason that he restricts the UN from entering Australia's refugee detention centres? Or for the same reason Israel would not allow the UN to inspect its research institute at Nes Ziona near Tel Aviv which produces chemical and biological weapons, a stockpile of chemical agents Mr Howard claims he is "not aware" of.

If he had bothered to inquire, Mr Howard would have found that "there is hardly a single known or unknown form of chemical or biological weaponswhich is not manufactured at the institute", according to a biologist who held a senior post in Israeli intelligence. Nes Ziona does not work on defensive and protective devices, but only biological weapons for attack, claims the British Foreign Report.

The Prime Minister believes that Iraq's "aspiration to develop a nuclear capacity" might be a sufficient pretext for war. He has repeatedly claimed that "there is already a mountain of evidence in the public domain," though he didn't say what any of it actually proved beyond the existing public record, or how it established that the United States faces a specific, grave and imminent threat from Iraq which can only be averted by the use of force.

According to the Prime Minister, the mountain of evidence includes an IISS report which actually found Saddam was much less dangerous now than in the past when he was backed by the West. Scott Ritter, a former UN weapons inspector in Iraq, described the IISS report as little more than conjecture. "It's absurd. It has zero factual basis. It's all rhetoric...speculative and meaningless." There was a similar response to President Bush's speech to the United Nations General Assembly on 12 September, which outlined Iraq's breaches of international law. According to conservative Middle East expert Anthony Cordesman, Bush's speech was "clumsy and shallow" and little more than "a glorified press release." It offered little, if anything, that wasn't already on the public record. More a trough than a mountain.

At the UN on 13 September, Foreign Minister Downer claimed that "Iraq's flagrant and persistent defiance is a direct challenge to the United Nations, to the authority of the Security Council, to international law, and to the will of the international community".

Pope: Iraq war is not inevitable

www.upi.com From the International Desk Published 1/13/2003 5:25 PM

ROME, Vatican City, Jan. 13 (UPI) -- Pope John Paul II Monday argued forcibly against war in Iraq except as "the very last option" and said such a conflict would be "a defeat for humanity."

In his annual New Year's address to diplomats accredited to the Holy See, the pope said, "One cannot resort to war, even when the intention is to ensure the common good, if not as the very last option, and in accordance with very strict conditions, and taking into account the consequences to the civilian population both during and after the military operation."

The pope said the new millennium had begun with the world in a precarious state, and he was impressed by "the fear that lies in the hearts of our contemporaries."

He listed world crises including, "terrorism that can strike anywhere at any time, the unresolved problem of the Middle East, including the Holy Land and Iraq, the tremors that disrupt South America, particularly Argentina, Colombia and Venezuela, the conflicts that prevent many African states from concentrating on their efforts on their development, the diseases that spread contagion and death, and the grave problem of famine, especially in Africa."

The speech was the pontiff's first direct reference to the Iraq situation, and his strongest appeal yet not to rush into conflict. Iraq's population was "already exhausted by 12 years of (U.N.-mandated) embargo," he said.

John Paul went on, "War is never inevitable. ... International law, honest dialogue, solidarity between states, and the noble efforts of diplomacy are worthy means of resolving differences between states."

Mexico Nov oil exports to US highest in 9 months-EIA

www.alertnet.org ------------------------------------------------------------------------13 Jan 2003 21:45 By Tom Doggett

WASHINGTON, Jan 13 (Reuters) - Mexico's oil exports to the United States in November reached the highest level in nine months, making the country the top foreign crude supplier to the U.S. market for the month, the Energy Information Administration said on Monday.

Mexico shipped an average 1.531 million barrels of oil per day to the United States in November, up 4,000 barrels per day (bpd) from the month before and the most since February.

Mexico rose two spots to become the biggest U.S. crude supplier for November, based on preliminary data from importing firms.

Saudi Arabia's oil exports fell 159,000 bpd from October to 1.474 million bpd in November, dropping the country from first to second place for the month.

Canada dropped one spot to third place, as the country's exports were down 117,000 bpd to 1.453 million bpd.

U.S. imports of Venezuelan crude averaged 1.438 million bpd, down 15,000 bpd from October and leaving the country in fourth place.

Venezuela's oil shipments for December are expected to show a huge decline when that month's EIA data is compiled, because of a disruption in exports due to the country's oil workers strike.

OPEC ministers agreed over the weekend to increase the cartel's oil production by 1.5 million bpd to help offset some of the lost Venezuelan oil.

Iraq's oil exports to the United States soared 77 percent, or 166,000 bpd, to an average 381,000 bpd in November -- their highest level since May but still at less than half the prior year's average daily shipments.

A U.S. military attack on Iraq would likely cut off that country's oil shipments. OPEC said it would not be able to produce enough oil to make up for the crude lost from both Iraq and Venezuela at the same time.

Total U.S. oil imports were 9.529 million bpd in November, up less than 1 percent from 9.495 million bpd the month before and the second highest since July 2001.

The following is EIA data on shipments from major U.S. oil suppliers and total monthly crude imports:

U.S. OIL IMPORTS

(million barrels per day) COUNTRY Nov Oct Sept Aug July June May 2001

avg Mexico 1.531 1.527 1.417 1.475 1.515 1.447 1.509 1.394 Saudi Arabia 1.474 1.633 1.512 1.411 1.354 1.565 1.503 1.611 Canada 1.453 1.570 1.412 1.537 1.355 1.450 1.454 1.356 Venezuela 1.438 1.453 1.302 1.514 1.331 0.958 1.106 1.291 Britain 0.632 0.486 0.278 0.480 0.471 0.580 0.402 0.244 Nigeria 0.589 0.549 0.489 0.792 0.539 0.691 0.537 0.842 Norway 0.421 0.308 0.294 0.402 0.356 0.498 0.424 0.281 Angola 0.390 0.246 0.329 0.211 0.298 0.446 0.353 0.321 Iraq 0.381 0.215 0.148 0.246 0.301 0.167 0.436 0.795 Colombia 0.267 0.232 0.263 0.217 0.199 0.204 0.202 0.260 Kuwait 0.230 0.182 0.286 0.169 0.238 0.244 0.163 0.237 Gabon 0.193 0.088 0.164 0.170 0.206 0.123 0.188 0.140 Russia 0.085 0.209 0.104 0.100 0.079 0.078 0.220 0 ALL IMPORTS 9.529 9.495 8.796 9.545 9.010 9.229 9.205 9.328

Mexico joins OPEC in boosting oil exports

www.islandpacket.com The Associated Press Published Monday, January 13th, 2003

MEXICO CITY (AP) - Mexico will raise its crude oil exports an expected 7 percent as of Feb. 1 as part of efforts by international producers to counter supply concerns in the market, the energy department said Monday.

The department said in a news release that measures taken in late 2002 haven't had the expected effect "because of the increasing instability in world supply, with a consequent volatility in prices."

Mexico plans to raise crude oil exports to 1.88 million barrels a day, compared with the target of 1.76 million barrels daily for January.

Monday's decision follows a meeting of the Organization of Petroleum Exporting Countries, in which members agreed to raise output quotas by 1.5 million barrels a day to 24.5 million barrels daily.

The OPEC meeting was aimed at addressing high crude prices, which have been pressured by the general strike in Venezuela and expectations of a U.S. attack on Iraq.

Mexico's energy department said the decision to raise exports complements the OPEC move, and will "contribute to stabilizing the world oil market and guarantee a continuous and secure supply."

State oil monopoly Petroleos Mexicanos, also known as Pemex, exported an average of 1.69 million barrels a day of crude oil in the second half of 2002, out of a production of around 3.2 million barrels daily.

Pemex plans to raise its crude production to 3.5 million barrels a day this year.

Mexico isn't a member of OPEC, but in recent years has cooperated on output levels with OPEC and with other independent producers, including Russia and Norway.

Whither peace - when global economy's crumbling?

straitstimes.asia1.com.sg By JEFFREY GARTEN

PARIS - The Bush administration is leaving no doubt that it intends to use the United States' enormous military power to make the world a safer place. But to succeed, Washington must develop a more robust global economic policy as well. Unless its military confrontations lead to something much better for the millions of people who will be hurt, Americans will have won the wars and lost the peace.

It is true that the administration is promoting trade liberalisation aggressively by pushing for new commercial deals with Latin America, as it has done with Chile recently and is now doing in Central America. It is also pressing for more tariff and quota reductions around the world in an omnibus negotiation that it hopes to conclude within two years under the auspices of the World Trade Organisation (WTO).

These efforts are an excellent start. But there are at least four broader challenges the US must confront now, and with an urgency that the Bush administration has yet to demonstrate.

The first is reinvigorating global economic growth. The world economy is in trouble: corporate investment and trade are slowing, factories are producing more than they can sell and deflation is threatening many regions. The two potential economic engines besides the US - Germany and Japan - are stagnating. Big emerging markets, from Indonesia to Brazil, are in deep trouble.

The US economy is the world's most powerful by far, accounting for almost a third of global demand these days, but even if it grows at a healthy rate this year, the US by itself cannot create a sustainable international economic recovery. Its own revival depends on the health of its companies and that, in turn, depends in part on expanding foreign markets.

Overseas sales of US goods and services made up at least 25 per cent of America's economic growth in the 1990s. Moreover, because many of America's top companies - Intel, Coca-Cola and Johnson & Johnson, for example - rely on Europe, Japan and developing countries for more than 30 per cent of their revenues, stronger foreign economies are important to the health of US stock markets.

Washington must bring together its economic partners - the Group of Seven nations made up of Canada and Japan and those in the European Union (EU) - to get the global economy moving again.

The US, which is already running huge budget deficits and has lowered interest rates to levels not seen in generations, has little room to manoeuvre. But it can encourage the European Central Bank, Europe's equivalent of the Federal Reserve, to lower its relatively high interest rates, since inflation on the continent is not nearly the threat that stagflation is.

The EU must also let up on its growth-constricting demands that Germany, Italy and France restrict spending and, in some instances, raise taxes. The US and Europe can push Japan to restructure its growth-strangling bank debts.

Second, there will soon be an acute need to rebuild countries that are either defeated or disintegrating. The estimates for reconstructing Iraq, for example, range from US$120 billion (S$209 billion) over 10 years, in the case of a very short war, to US$1.2 trillion after a prolonged conflict, according to extensive work by economist William Nordhaus.

The job of economic relief and reconstruction will most likely need to be handled by the United Nations, but substantial US financial support will be essential. Given budget deficits at home, this will be no easy task. Will this money come from domestic programmes or from foreign aid already promised to others?

One problem is that there is no single agency in Washington capable of overseeing the extensive UN efforts that must be mounted. One needs to be created, just as the Economic Cooperation Administration was established in 1948 to oversee the Marshall Plan.

Third, America needs to prepare for all-too-possible international economic crises. A major run-up in oil prices in reaction to turmoil in Venezuela and Iraq has already begun and could send the global economy into a deep recession. The US should be working with the EU and Japan to release emergency oil reserves if oil prices spiral out of control. It should be encouraging Russia to expand production, too, by promising that the US will buy Moscow's supplies well into the future.

Another crisis could involve the dollar, which was down 15 per cent against the euro last year. If the US trade deficit continues to soar and foreigners get nervous, they could dump their dollars.

It would help if Washington could persuade the European Central Bank to lower its interest rates and make the euro less attractive as an alternative to the dollar. Beyond that, Washington, Brussels and Tokyo will have to be prepared to coordinate purchases of the dollar if it goes into free fall.

Latin America could also provide the spark for a global financial debacle. After all, Argentina and Venezuela are in deep trouble, and Brazil's economy is fragile at best. In 1997, a currency collapse in Thailand set off a global financial meltdown. The lesson is that Washington and its economic partners had better focus more on what is happening south of the Rio Grande.

Finally, the US will have to give much more attention to helping developing countries, the very nations in which so much of today's turmoil exists, get a fairer deal from globalisation, which has so far disproportionally benefited rich countries.

This means not only negotiating trade agreements but also improving the WTO's ability to settle trade disputes and give technical assistance to struggling countries overwhelmed by the blizzard of new trade laws in the last decade. It also means helping the World Bank and its regional counterparts to deal with poverty more effectively, rather than just criticising their performance, which is what Washington so often does.

Admittedly, the Bush administration has never shown much interest in multilateral diplomacy except when other countries press it to the wall, as they have with Iraq. But in the economic realm, there is no choice but to seek partners.

In the immediate aftermath of World War II, the US pushed for the establishment of the International Monetary Fund and World Bank, and coordinated the Marshall Plan with European nations. Washington realised then that economic stability and prosperity were essential to a country's security.

It is true today, too.

  • The writer is dean of the Yale School of Management and author of The Politics Of Fortune: A New Agenda For Business Leaders. He held economic and foreign policy positions in the Nixon, Ford, Carter and Clinton administrations. This comment appeared in the New York Times.