Volume 1 - Iraq Watch

Circumvention of UN Sanctions ImportingMissile-Related Materials in 1998To avoid UN inspectors’ possible detection of sanctionedmaterials, Iraqi offi cials would instead fi ndalternate methods to get what they needed. The AlFat’h missile project illustrates how the Iraqis managedto avoid UN detection. Documents capturedat the MIC Headquarters reveal the MIC’s March1998 plan to purchase dual-use materials, including:ammonium perchlorate, aluminum powder, carbonfi ber, and phenolic resin for use in the Al Fat’h missileproject. After discovery of these materials by the UN,Iraqi offi cials were instructed to submit a form B-1by Richard Butler, Chairman of UNSCOM. This formdetailed Iraq’s plans to use 20 tons of ammoniumperchlorate and 3 tons aluminum powder to manufacturecomposite solid propellant for the Al Fat’h motor.It also described a need for 350 kilograms of carbonfi ber to insulate parts of the Al Fat’h motor. Thematerials were to be shipped through Jordan by theIraqi company Al ‘Ayan, with Al Wadha CommercialAgencies Company, possibly a subsidiary of Al-Eman,acting as an intermediary.A letter, classified “Top Secret” by the Iraqi Government,from Al ‘Ayan Trading Company to the MICsummarized the inability to ship the ammonium perchlorate,aluminum powder, carbon fi ber, and phenolicresin because of the UN restrictions on Jordan inshipping those materials for the missile program. Al‘Ayan suggested the following solution:• Advise the benefi ciary to contact the supplier topublicize the “cancellation” of the contract with Al‘Ayan.• All related communications and inquiries wouldremain strictly at the commission (possibly theMIC) offi ce and not at the project site.• Al ‘Ayan would divert the shipment routing to avoidentering Jordan.• Al ‘Ayan would change the type of commodity onthe bill of lading, alter the benefi ciary’s name atintended port of entry, and change the port name.• The contract duration would be amended to addone month for delivery.The contract would increase in value by 20 percent ofthe actual sum to compensate Al ‘Ayan for aiding Iraqin acquisition of prohibited materials.136