Volume 1 - Iraq Watch

ISG uncovered further conventional military trade inNovember 2002 when a French electronic warfare/radar expert named “Mr. Cloud” (possibly Mr. Claudefrom the section above) met with representatives ofthe Al Kindi Research Facility. According to captureddocuments, the purpose of the visit was to facilitatemilitary-related microwave, direction finding, andpassive radar technology transfer. The recovereddocuments include military-related technology transfersand Iraqi contractual agreements with foreignmanufacturers.Beginning in late December 2002, the MIC initiatedefforts to acquire replacement parts for the RolandII Surface to air missile system, valves for Iraq’s airdefense system, and various other high technologyitems with military and battlefield applications. Theseefforts were underway with Majda Khasem Al-Khalil(a Lebanese female) who in turn met with the FrenchThompson Company representatives. ISG found evidenceof coordination on this procurement up until 23days before OIF.Former Federal Republic of YugoslaviaAccording to captured documents, Iraq and FRYcooperated extensively both militarily and economicallywhen the Milosevic Regime was in power. Thiscooperation ceased when a democratic governmenttook power. For example, talks were held betweenIraq and the former Yugoslavia on military andeconomic cooperation from 25 February to 2 March1999. The Iraqi side was represented by the Ministerof Defense, Sultan Hashim Ahmad al-Tai. Maj. Gen.Jovan Cekovic, the Director General of the Yugoslavcompany, Yugoimport, headed the Yugoslav side.The documents detail the Protocol resulting from themeetings.• The two countries expressed their readiness tore-establish and continue the military-economiccooperation, which they considered one of the mostco-operative bilateral endeavors.• According to the documents, the two sides agreedto foster greater cooperation among all services ofeach country’s military forces.• During the meetings, Iraq informed the Yugoslaviansthat because of the current economic situationin the country, it is not able to provide funds for thefuture cooperation. To remedy this problem, theIraqi side proposed the supply of crude oil and itsproduct instead of currency as a viable solution.• The two sides then agreed that the next session ofthe Joint Committee for Military and TechnicalCooperation was to be held in Belgrade in April1999.A source that was a senior executive in the MICstated that the former Federal Republic of Yugoslaviacooperated closely and extensively with theIAEC, the MIC, and the MoD. Representativesfrom Yugoimport Federal Directorate for Supply andProcurement (FDSP), a Yugoslav company, signednumerous business contracts with Iraq. Their Baghdadrepresentative was Colonel Krista Grujovic. Duringthe start of business with Iraq, which was sometimearound early 1998, Yugoimport opened accounts inAmman, Jordan, for Yugoslav Federal under the tradename Yugoimport FDSP. However, after a period oftime their name was changed to MIKA (also knownas MEGA), a Lebanese company. Yugoimport FDSPwas then effectively eliminated from all bank recordsand other documents.• Reportedly, Mahud Muhammad Muzaffar was incharge of the Yugoslav procurement connection andwas universally liked within the MIC. The IraqiGovernment sent him under diplomatic cover towork as a scientific advisor at the Iraqi embassyin Belgrade. When Yugoslav companies spoke toMuzaffar about doing business with Iraq, he wouldconnect their company contacts to MIC representatives.• Yugoslav Federal was a military institution underthe management of the Yugoslav Ministry ofDefense. It was responsible for overseeing severalYugoslav military production companies.• Yugoslav Federal signed the foreign trade contractson behalf of these military production companies inexchange for a certain percentage of the profits.112