the Rape of Iraq by Bush/IMF

Hi All,

I do realize that this list should focus on City issues. However, the e-mail below might be of interest to some. Phil, you mentioned yesterday how Chavez told the IMF to take a hike.

Marcy

I think it's good that we focus mainly on San Francisco issues, but one of the things that has made this list valuable, imho, is that people can and do talk about anything and everything.

  The overall impression I have gotten from the media about South American views the past few years is that they intensely dislike Bush, while Hugo Chavez tends to be seen as a man of the people. So I was recently surprised by a March 5 Wall Street Journal article (p. A4) which reported:

"Mr. Chavez has his own problems. Many in Latin America view the Venezuelan leader as a meddler with militaristic tendencies. A region-wide poll taken in December by the Latinobarometro firm of Santiago, Chile, found that 39% of Latin Americans viewed both Messrs. Bush and Chavez negatively -- a level of disapproval exceeded among the region's leaders only by Cuba's Fidel Castro, Mr. Chavez's ally and mentor."

  Castro more unpopular than Bush in Latin America, and his protege Chavez just as unpopular as the supposedly hated American president! Who would have guessed? I find some of my confidence in the perceptive abilities of the people of the world reaffirmed. Bad as Bush is, he is not in the same league as Castro, the world's longest-ruling dictator. Chavez, a demagogue who shows every sign of being a budding tyrant himself, would likewise have higher negatives than Bush in a saner world, but it is nevertheless a pleasant surprise to realize there is more sanity out there than I had been led to believe.

Love & liberty,
        <<< starchild >>>

Oh, I agree with you, Starchild! Conservative-leaning So. American
countries such as Chile, Argentina, Uruguay most likely see the
Chavez/Castro mold with very jaundiced eyes!

Marcy

  I think it's good that we focus mainly on San Francisco

issues, but

one of the things that has made this list valuable, imho, is that
people can and do talk about anything and everything.

  The overall impression I have gotten from the media about

South

American views the past few years is that they intensely dislike
Bush, while Hugo Chavez tends to be seen as a man of the people. So

I

was recently surprised by a March 5 Wall Street Journal article

(p.

A4) which reported:

"Mr. Chavez has his own problems. Many in Latin America view the
Venezuelan leader as a meddler with militaristic tendencies. A

region-

wide poll taken in December by the Latinobarometro firm of

Santiago,

Chile, found that 39% of Latin Americans viewed both Messrs. Bush

and

Chavez negatively -- a level of disapproval exceeded among the
region's leaders only by Cuba's Fidel Castro, Mr. Chavez's ally

and

mentor."

  Castro more unpopular than Bush in Latin America, and his

protege

Chavez just as unpopular as the supposedly hated American

president!

Who would have guessed? I find some of my confidence in the
perceptive abilities of the people of the world reaffirmed. Bad as
Bush is, he is not in the same league as Castro, the world's

longest-

ruling dictator. Chavez, a demagogue who shows every sign of being

a

budding tyrant himself, would likewise have higher negatives than
Bush in a saner world, but it is nevertheless a pleasant surprise

to

realize there is more sanity out there than I had been led to

believe.

Love & liberty,
        <<< starchild >>>

> Hi All,
>
> I do realize that this list should focus on City issues.

However,

> the e-mail below might be of interest to some. Phil, you

mentioned

> yesterday how Chavez told the IMF to take a hike.
>
> Marcy
>
> From: Amarcy D. Berry
> To: amarcyb@...
> Sent: Wednesday, May 02, 2007 6:45 PM
> Subject: Fwd: the Rape of Iraq by Bush/IMF
>
> --- In VotersForPeace@yahoogroupscom, "Linda Schade" <lschade@>
> wrote:
>
> Peace Voters,
>
>
>
> For those who haven't understood the IMF/World Bank relationship

to US

> militarism. and why 'they hate us'.
>
>
>
> Linda
>
>
>
>
>
>
>
> _____
>
> From: ufpj-leg-action-bounces+lschade=votersforpeace.org@
> [mailto:ufpj-leg-action-bounces+lschade=votersforpeace.org@
> g] On Behalf Of sue udry
> Sent: Wednesday, May 02, 2007 11:20 AM
> To: UFPJ legislative discussion list; ufpj-leg-action@
> Subject: [Ufpj-leg-action] Iraq's Oil Law
>
>
>
> Here is an excellent article that lays out the problems with

Iraq's

> hydrocarbon law. Both Congress and the Bush administration are
> prioritizing
> the passage of an oil law as one of the key 'benchmarks' for Iraq.
> It has
> become apparent that many members of Congress just don't

understand

> the
> implications of that benchmark -- this article may help them!

[more

> info on
> the oil law is available at
> http://www.uslaboragainstwar.org/article.php?preview=1
> <http://www.uslaboragainstwar.org/article.php?
> preview=1&cache=0&id=13157>
> &cache=0&id=13157 ]
>
>
>
> http://wwwniqash.org/content.php?contentTypeID=171
> <http://www.niqash.org/content.php?contentTypeID=171&id=1816&gt;

&id=1816

>
> Iraq's Hydrocarbon Law - in whose interests?
>
> Ewa Jasiewicz, PLATFORM
>
> A Hydrocarbon Law which advocates a radical restructuring of

Iraq's

> oil
> industry was approved by the Iraqi cabinet in February. If passed

by

> parliament, the law will mark a milestone in Iraqi history - a

shift

> of
> Iraq's massive reserves from public to private hands. It could see
> private
> companies develop and profit from Iraq's oil for 15-30 year

periods

> with
> virtually no possibility for the Iraqi state to renegotiate
> contractual
> terms and conditions.
>
> The first draft of the oil law was produced to a timeline set by

the

> International Monetary Fund. The IMF ordered, as a condition of

debt

> relief,
> the issuance of an oil law by December 2006. This law had to open

up

> Iraq
> oil (for the first time in over 30 years) to long-term investment

by

> foreign
> oil companies. Finally produced in July 2006, the first to review

it

> and
> comment on it were 9 multinational oil companies, the British
> government and
> US government. It would be eight months before the vast majority

of

> the
> Iraqi parliament would even see it.
>
> In January of this year, the US President decreed the passing of

an

> oil law
> allowing for foreign investment as his top benchmark. AP reported

in

> early
> April that sources close to Prime Minister Nouri Al Maliki had
> revealed he
> feared being ousted by the US administration if he did not secure

the

> passing of an oil law by the end of June.
>
> The Oil Law - Legislation for Oil Privatisation?
>
> The oil law and Production Sharing Agreements (re-

named 'Exploration

> and
> Risk Contracts and Development and Production Sharing Contracts in
> the Oil
> Law) do not amount to privatisation of Iraqi oil in a strict

technical

> sense. With PSAs and the provisions of the oil law, the oil
> underground
> technically remains 'the property of the Iraqi people'. It is not

set

> to
> pass into private ownership; existing assets will not pass into
> private
> ownership and corporate structures will also not be privately

owned.

> However, the rights to control what happens to Iraq's oil - how

it is

> developed, its' rate of extraction, the profits which the state is
> able to
> claim - the control of oil flow and development - this is all up

for

> exclusive private control. Sami Husseini of the Institute for

Public

> Accuracy uses Standard Oil's John D Rockefeller's maxim to

illustrate

> this.
> 'Own nothing, control everything'.
>
> Despite being sold as a de-facto peace plan for Iraq; The

mechanism

> for
> uniting all Iraqi factions by offering a fair distribution of oil
> wealth,
> only one out of 43 articles actually deals with this. The details

of

> revenue
> distribution, including the proportion shared between central
> government and
> the regions, and the means by which allocations and percentages

will

> be
> decided is actually the subject of another separate law which has

yet

> to be
> published.
>
> The Law could risks exacerbating sectarian tensions. Its provision
> for a
> creation of a Federal Oil and Gas Council - most likely composed

by

> the
> Prime Minister, in consultation with the main parties, could see

the

> current
> sectarianised decision-making reflected in economic oil policy -
> potentially
> pitting region against region in a race to secure competitive
> contracts.
>
> Contentious articles of the law
>
> Article 41 of the law stipulates that any disputes between foreign
> companies
> and Iraqi authorities which cannot be resolved through

negotiation,

> will be
> resolved 'through arbitration or the competent authority'. In
> practice this
> means that, a successive Iraqi government wishing to reverse any
> terms would
> not be able to use its own judicial system to do so. It would be
> forced to
> take its case to a remote court where it would be treated as a
> corporate
> entity, on an equal footing with an international oil company

rather

> than as
> a country representative of 35 million people and their welfare.
>
> Article 11 does not allow for Parliamentary scrutiny of contracts

or

> revenues accrued from new fields. Fields such as West Qurna and
> Majnoon each
> alone account for approx. 10% of all government revenue. As such,

the

> terms
> of these developments should be subject to Parliamentary debate as
> they are
> in other countries such as Syria, Azerbaijan, Russia and Yemen. If
> long-term
> PSAs are signed, then the vote on the oil law will be the last say
> Parliament will have over what happens to Iraq's oil for a
> generation.
>
> It is normal practice in major oil producing countries with a
> technically
> skilled workforce to guarantee a minimum percentage of state
> participation
> in contracts. No such minimum is set in the law. For a country as

well

> endowed with resources and technical skills as Iraq, a high

minimum

> threshold would have been expected (50% is a normal level).
>
> Article 35 also allows companies unlimited transfer of profits
> outside of
> Iraq. This could restrict the government's ability to manage

financial

> crises.
>
> Article 9 states that foreign companies are only 'encouraged' to

co-

> operate
> with Iraqi companies and purchase goods and services from
> them 'whenever
> they are competitive'. Iraqis should only be employed 'to a

reasonable

> extent'. Normally contracts specify minimum Iraqi content and
> employment and
> minimum levels of training and technology transfer.
>
> Article 4 equates the definition of 'good oil field practices'

with

> what oil
> companies think is right. This could seriously restrict the

regulatory

> influence of the Iraqi government on environmental and health and
> safety
> issues.
>
> Yet opposition to the law is mounting at parliamentary,

expatriate and

> grassroots level. In a recent statement, the Association of

Muslim'

>
> Scholars said: "We call on members of the parliament to reject

this

> law.
>
> This critical draft law would revive foreign companies' control on
> Iraqi oil
> wealth that Iraq had gotten rid of years ago'. The National Accord
> Front,
> Iraqi National Dialogue Party and prominent members of the Sadr

bloc

> and
> Alawi's Iraqi list have all publicly spoken against the law.
>
> Also, at a gathering in Jordan in February, 50 Iraqi technocrats

and

> former
> senior civil servants in Iraq's oil ministry issued a statement in
> which
> they criticized the law for its 'gaps and ambiguities', rejected

long-

> term
> contracts and called for more parliamentary scrutiny of the oil
> investment
> process. They said: 'Long-term contracts of exploration,

development

> and
> production with international companies are better avoided until

the

> security situation improves.In all cases, it is better to present
> contracts
> with international companies to the parliament for approval.'
>
> A ministry of oil source who cannot be named explained, 'I know

that

> Iraq
> doesn't need PSAs, but there are some things that the Americans

will

> not
> compromise on. They will not compromise on PSAs'. It appears that

the

> US and
> its' partners have drawn a red line that cannot be crossed.
> Conversely,
> powerful actors within Iraqi civil society have also drawn their

own

> red
> line. Five trade union federations representing hundreds of

thousands

> of
> workers stated in December 2006, 'We strongly reject the
> privatization of
> our oil wealth, as well as production sharing agreements, and

there

> is no
> room for discussing this matter.
>
> This is the demand of the Iraqi street, and the privatization of

oil

> is a
> red line that may not be crossed.
>
> So it appears that the lines have been drawn - between the

interests

> of
> foreign oil companies and their sponsoring states and the

interests

> of the
> Iraqi people, constrained by the political and economic violence

of

> occupation. The developments of the coming months will reveal

whose

> interests the oil law will finally serve.
>
>
>
> --
> Sue Udry
> Legislative Action Coordinator
> United for Peace and Justice
> 301-565-4050 x315
> visit our website: http://www.unitedforpeace.org/article.php?

id=3116

> support our work: http://www.unitedforpeace.org/article.php?id=160
> join one of our Legislative listserves:
> either announcements only (2-3 emails/week):
> https://lists.mayfirst.org/cgi-bin/mailman/listinfo/ufpj-leg-

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