Iraq looks to cut Kuwait payments

kuwaittimes ^

[newbie2008]

It appears that Iraq is hoping to cut by half the amount of money it is required to pay Kuwait annually for damages inflicted during the first Gulf War, according to an aide to Prime Minister Nouri Al-Maliki. Currently, Iraq turns over 5 percent of its oil revenue to a United Nations war reparations fund created after the 1990 invasion of Kuwait. Kuwait is the fund's primary beneficiary.

Iraqi officials say the financial obligation is a heavy burden as Iraq attempts to rebuild; some say that their country should no longer be required to pay reparations. So far, Kuwait is insisting that Iraq continue its reparation payments. The issue is raising tensions between the two neighbors.

Negotiations with Kuwait are ongoing," said Maliki's adviser, Ali Al- Musawi. "We hope that Kuwait will (allow Iraq to) eliminate its debts, but we do not think they will accept it. So we want to reduce the 5 percent to 2.5 percent." Musawi made the comments days after Iraq's UN ambassador, Hamid al-Bayati, told reporters that Iraq is "trying to talk to the Kuwaitis to convince them either to forgive (the reparations) or reduce them.

[SolidWood]

I think Kuwait, which is very well-to-do, could cut Iraq some slack now. Iraq needs it’s ressources and the Baath regime responsible for the suffering of both Kuwait and Iraq has been deposed. Kuwait could also win some significant clout in Iraq, if they are magnamious on this.

[dila813]

If they were smart, they would negotiate a hefty investment in Iraq.

[LegendHasIt]

I wonder how much (if any) of it is actually going to Kuwait, since it is routed through the UN....

And of that that does get to Kuwait, I wonder how much of it gets to the people that actually suffered losses from Saddam’s invasion.

Oops... Sorry, I had my cynic’s hat on.
Nevermind.

[who_would_fardels_bear]

I think that Iraq should go to war with Kuwait over this debt ... oh whoops ... then we would be right back where we started!

[malia]

“-—since it is routed through the UN....”

my first reaction, also.....

[4rcane]

have we not learn anything from the Treaty of Versailles. French demanding Germans to pay for damages that bankrupt the German economy and sow resentment to their new slavemasters

[SeeSharp]

The Iraq government should not be keeping any of the oil revenue. It should all be privatized. Two governments arguing over oil revenue is just two thieves arguing over loot.

[trumandogz]

In international law, when a nation has a regime change the debts accrued by the ousted regime become the responsibility of the new government. Otherwise, states would run up huge debts and then radically change their government in order to relive themselves of massive debt.

It is a good law and Iraq needs to cough up the cash.

[Pudding Biafra]

I agree. It was frustrating to see Iraq’s limited resources go to Kuwait while we spent our (US) money to rebuild the country Saddam destroyed. As far as I am concerned, we were paying the money to Kuwait on Iraq’s behalf.

I think Kuwait should reconsider and accept a lesser amount, but I suspect there is some political, cultural and/or religion-based reason they don’t. Does Kuwait not like Shiite’s?