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Row over war payments sours Iraq-Kuwait ties

Saturday, 6 June 2009


Relations between Kuwait and Iraq took a sharp turn for the worse in recent weeks, as lawmakers of the two neighbors traded accusations over UN-imposed war reparations Bagdad must make to the Gulf state.
The row between the two countries was triggered after Kuwait launched a diplomatic offensive over war payments stemming from Iraq's invasion in 1990.
Kuwaiti foreign ministry undersecretary Khaled al-Jarallah said the United Nations should not lift sanctions on Iraq before Baghdad makes war reparations for invading his country.
"We understand the Iraqi desire to exit from Chapter 7," al-Jarallah was quoted by local media as saying. "But there are obligations (on Iraq) and outstanding issues that are illogical to be left unresolved."
Bagdad has been calling on the UN Security Council to lift the remaining sanctions, particularly those concerning war reparations.
The move would enable Iraq to exit from the terms of Chapter 7 of the UN Charter, which allow for the imposition of sanctions or even military action on states that pose threats to international peace and security.
UN Secretary General Ban Ki-moon said during a recent visit to Baghdad that the world body was considering lifting all sanctions as the Security Council would conduct a review in June.
However, Kuwait had said Iraq should first resolve some outstanding issues with the country, including the fate of the missing and prisoners of war, payment of war reparations, the return of stolen property and the demarcation of land and maritime borders between the two neighbors.
In April, Kuwaiti officials said their country had received about 13 billion U.S. dollars in war reparations from Iraq, but another 25.5 billion dollars remained unpaid. Besides, Baghdad owes Kuwait around 16 billion dollars in other debts.
Jarallah urged the United Nations to "continue to guarantee these obligations since they were issued under Chapter 7."
Meanwhile, Mohammad Abulhassan, a representative of Kuwait's emir, visited some capitals of the permanent members of the UN Security Council to explain Kuwait's stance as to Iraq's efforts to lift the Chapter 7 sanctions.
He demanded that sanctions imposed on Iraq should not be lifted until Iraq fulfilled all its obligations in line with international resolutions.
Kuwait's move prompted tensions between the two countries as politicians and media of both sides exchanged accusations during the past few days.
Iraqi members of parliament Monday urged a halt to the reparation payments, with some demanding the Kuwaiti emirate compensate Baghdad for its role in the U.S.-led 2003 invasion.
Kuwaiti lawmakers then called on their government to recall the ambassador from Baghdad in protest of what they saw as "attacks" by Iraqi MPs. Kuwait sent an ambassador to Baghdad in October 2008 for the first time since 1990.
"The Kuwaiti stance is repulsive and reflects a vengeful spirit," said Hameed Mousa, a member of Iraq's parliament.
Iraq relies on oil revenues for almost all its income, and decreasing output and plummeting oil prices since last year has hit its budget hard, exacerbating worries in paying reparations to Kuwait.
Therefore, many Iraqis called on the United Nations to lift sanctions imposed on their country, saying the Iraqi people should not continue to suffer from the sanctions as the regime of former leader Saddam Hussein had already been toppled.
But Kuwait insists that Iraq remain under UN Chapter 7 rules, meaning Iraq must continue to pay 5 percent of its oil revenues to Kuwait and other claimants in war reparations.
Although relations between Kuwait and Iraq soured due to their spat over war payments, analysts said, bilateral ties are unlikely to further worsen as the two governments have exercised restraint and called for dialogues to defuse tensions.
On Wednesday, Iraqi Prime Minister Nuri al-Maliki said pending issues between Iraq and Kuwait could be settled by dialogues.
Maliki's remarks came during a meeting in his office with Kuwaiti ambassador to Iraq Ali al-Mu'min.
"Committing to calmness and dialogue between both sides could resolve problems inherited from the era of the former regime," Maliki was quoted as saying in a statement issued by his office.
"The two brotherly and neighboring sides can ensure their rights through dialogue," he said. — Xinhua