Volume 1 - Iraq Watch

specified that the Iraqi attendees would include stafffrom the Director, Armament and Accommodations,Staff Brigadier General A’del Hameed, concernedrepresentatives from the Air Force Command-AirDefense Command, Communications Administration,a Navy Representative and a SSM CommandRepresentative.2000: Contracts Negotiated for Iraqi DefenseProgramsInformation from a former high ranking officialwho worked in the MIC, corroborated by captureddocuments, indicates that Iraq and North Korea hadnegotiated contracts worth $10 million to support theIraqi military programs by mid-2001. These contractsincluded a Volga air-defense missile homing head,ammunition, small machines, and spare parts.• Between the end of 2000 and the beginning of2001, North Korea and Iraq reportedly begandiscussing contracts supporting the Iraqi missileprogram, particularly for guidance and controlsystems. While the head of the MIC, Abd Al-TawabMullah Huwaysh, handled the negotiations withthe North Koreans, orders for the negotiations werepassed directly from Saddam via the TechnologyTransfer Office of the IIS.• A five-person North Korean delegation, headed bythe deputy Minister of Defense, visited Iraq at theend of 2000. A 7-person Iraqi delegation to NorthKorea reciprocated this visit, lead by the deputyMinister of the MIC, General Muzahim Sa’b Hasanal-Nasiri. Another North Korean delegation traveledto Iraq in the third quarter of 2002.• The Harith Company and Al-Karamah StateEstablishment signed the first contract at the end of2001 for the development of a Volga homing headby adding infrared sensor. Another 3 to 4 HutteenCompany contracts followed for small ammunition,small machines, and spare parts. The total value ofthese contracts was $10 million.• Iraq also proposed that North Korea supply andinstall guidance and control kits in 50 of Iraq’sAl Samud and Al Fat’h missiles. Each kit wouldconsist of 2 gyros, 3 accelerometers, and an onboardcomputer. The first installment was for 10kits. North Korea, however, rejected the proposal inthe near term, but agreed to study it further.• The Syrian companies Lama and SES allegedlyfacilitated the Iraq-North Korea contracts, chargingan additional 10-15 percent commission on thecontract value. (See also the Front Company discussion.)Recovered documents from 2001 corroborate theinformation given by this source. These documentsshow that a North Korean company signed four contractsand discussed others with Iraq. This includedthe supply of missile components, a deal to modifyradars and the Volga missile system, the supply ofengineers, an agreement for ammunition manufacturingequipment, and the supply of components forammunition. These contracts were between the Iraqicompanies Al-Karamah, Hutteen, and Al Harith andthe North Korean Hesong Trading Corporation, basedin Pyongyang. The goods were to be shipped to Syriaand then onto Baghdad.• The first contract was for the procurement ofcomponents for short-range missiles, associated testequipment, installation in Iraq, and for the trainingof Iraqi engineers.• The second contract was for the modification ofABARONA, P-15 radars, and modifications to theVolga System (S-75), including technology transferand the supply of 20 North Korean engineers.• The third contract was for an automatic copyingmachine for the manufacture of 122mm guns, ascrew filling machine, and TNT for munitions.• The fourth contract was for fuses for 57mm antiaircraftgun ammunition, RPG-7 projectiles, anddelay mechanisms for the RPG-7.• Minutes of a meeting dated 06 September 2001refer to another contract that has the names of highranking official “His Excellency Pak Gyong Cholthe 1 st Deputy Minister of D.I” and Muzahim SHasan, the MIC Deputy Minister. The minutes referRegime Financeand Procurement275