Volume 1 - Iraq Watch

that Iraq would strengthen its cooperation with theUN and improve relations with its neighbors.• Iraq indirectly threatened to end trade relations withChina if Beijing agreed to the goods review list (seeAnnex H: UN Security Council Resolutions Applicableto Iraq).Iraqi-France Relations. Unlike the relativelypredictable relationships with China and Russia,the Iraqi-French relationship was more tumultuous.Saddam recognized the important role that Franceplayed on the international stage, and in particular inthe UNSC. Consequently, Saddam ordered the MFAand other ministries to improve relations with France,according to recovered documents. The documentsrevealed that the IIS developed a strategy to improveIraqi-Franco relations that encompassed invitingFrench delegations to Baghdad; giving economicfavors to key French diplomats or individuals thathave access to key French leaders; increasing Iraqiembassy staff in Paris; and assessing possibilities forfinancially supporting one of the candidates in anupcoming French presidential election.Moreover, the IIS paper targeted a number of Frenchindividuals that the Iraqi’s thought had close relationsto French President Chirac, including, accordingto the Iraqi assessment, the official spokespersonof President Chirac’s re-election campaign, tworeported “counselors” of President Chirac, and twowell-known French businessmen. In May 2002, IIScorrespondence addressed to Saddam stated that aMFA (quite possibly an IIS officer under diplomaticcover) met with French parliamentarian to discussIraq-Franco relations. The French politician assuredthe Iraqi that France would use its veto in the UNSCagainst any American decision to attack Iraq, accordingto the IIS memo.From Baghdad’s perspective, the MFA concludedthat the primary motive for French continued supportand cooperation with Iraq in the UN was economic.According to Tariq Aziz, French oil companieswanted to secure two large oil contracts; Russiancompanies not only wanted to secure (or lock in) oilcontracts, but also sought other commercial contractscovering agricultural, electricity, machinery, food, andautomobiles and trucks products.• France competed with Russian agricultural productsfor Iraqi contracts.• In May 2002, a representative from a French waterpurification company requested projects for hiscompany in Iraq.MFA and Iraq’s Bilateral ProtocolsConcurrent with Iraq’s overarching strategy to breakUN sanctions, the MFA, with the approval of Saddam,attempted to mitigate the economic effects of UNsanctions and at the same time to by-pass the scrutinyof the UN’s OFF program by arranging various typesof economic bilateral agreements. These countries, inparticular, Syria, Turkey, and Jordan (see Figure 35),were willing to enter into such agreements.Geographic proximity, cultural affinity, and a historicaland interdependent economic relationship withIraq explain why Turkey, Jordan, and Syria reachedformal Protocols with Iraq outside the UN OFFprogram and in contravention of UN resolutions. Iraqwould sell oil and oil products to these countries inexchange for cash and goods. Kuwait, Saudi Arabia,and Iran did not enter into any economic arrangementswith Iraq, but Iran had reportedly assistedIraq’s oil smuggling operations in the Arabian Gulfregion throughout the 1990s and up to OIF.Ministry of TradeThe MoT coordinated economic activities betweenother Iraqi government ministries as well as foreigncompanies and foreign ministries. The MoTaccomplished these tasks by consolidating the importrequirements from all ministries, obtaining approvalexpenditures by the MoF, and negotiating overseastrade agreements. The MoT generally accomplishedtrade for Iraq through:• Legitimate channels under the auspices of the UNsanctions Regime and the UN OFF.• Cooperative preferential trade protocol agreementswith Syria, Jordan, Turkey, and Egypt.• Common trade agreements, albeit in contraventionof UN sanctions, with other partners.In addition to these traditional procurement roles,the MoT provided a limited role in the procurementof illicit goods such as military weaponry or WMD56