Iraq says Kuwait to review Iraq Gulf War payments
(Adds comments from foreign ministers)
By Ulf Laessing and Rania El Gamal
KUWAIT, April 22 (Reuters) - Kuwait has agreed to review the question of reducing Iraq's compensation payments imposed after the 1991 Gulf War, Iraqi government spokesman Ali al-Dabbagh said on Tuesday.
But Kuwaiti Foreign Minister Sheikh Mohammed Al-Salem Al-Sabah said any change in the compensation regime must be decided by the U.N. Security Council in New York.
Under U.N.-imposed peace terms after the Gulf War, Iraq must pay a share of its oil income to a U.N. fund to compensate for damage inflicted when the forces of former leader Saddam Hussein invaded and occupied Kuwait in 1990.
Since a U.S.-led, U.N. authorised force drove Iraqi troops out of Kuwait in 1991, the Geneva-based U.N. Compensation Commission (UNCC) has already paid out $23.4 billion and approved outstanding claims to pay $29 billion more. It now receives 5 percent of Iraqi oil income to fund claims.
The largest group of claimants are from Kuwait, although other neighbours such as Iran, Saudi Arabia and Jordan also have big claims for compensation for environmental damage.
Dabbagh said Iraqi Prime Minister Nuri al-Maliki made the case for reducing the payments to Kuwait's Emir Sabah al-Ahmad al-Sabah at a conference of Iraq's neighbours in Kuwait.
"The Emir expressed his good intention to review the matter," Dabbagh said. "We're about to form bilateral committees with Kuwait."
After the conference, Iraq's Foreign Minister Hoshiyar Zebari said: "This issue should be discussed bilaterally. There is an understanding from Kuwait about Iraq's needs. The Kuwaiti brothers assured us that these issues would not become obstacles between our countries."
But the Kuwaiti foreign minister, Sheikh Mohammad, said that unlike debt forgiveness, compensation for the war damage was a U.N. issue and could not be resolved bilaterally.
"Financial stability for Iraq is important. The compensation issue is to be decided by the U.N. Security Council while the debt issue is to be discussed bilaterally."
Earlier on Tuesday Dabbagh said Iraq wanted to reduce the amount it owes outright, but if that proves to be impossible, to at least reduce the rate at which it makes payments from 5 percent of oil income to 1 percent.
"A barrel (of oil) used to be $20 but now it is $100. We have been paying five-fold over the past 10 years," he said.
"We need strong international support. If the other countries don't approve a cancellation the other proposal would be to reduce payments to 1 percent."
The share of Iraqi oil income paid to the UNCC was initially set at 30 percent in 1991, but was reduced to 25 percent in 2000 and then to 5 percent after the fall of Saddam in 2003. (Additional reporting by Stephanie Nebehay in Geneva; writing by Peter Graff in Baghdad; Editing by Keith Weir)
By Ulf Laessing and Rania El Gamal
KUWAIT, April 22 (Reuters) - Kuwait has agreed to review the question of reducing Iraq's compensation payments imposed after the 1991 Gulf War, Iraqi government spokesman Ali al-Dabbagh said on Tuesday.
But Kuwaiti Foreign Minister Sheikh Mohammed Al-Salem Al-Sabah said any change in the compensation regime must be decided by the U.N. Security Council in New York.
Under U.N.-imposed peace terms after the Gulf War, Iraq must pay a share of its oil income to a U.N. fund to compensate for damage inflicted when the forces of former leader Saddam Hussein invaded and occupied Kuwait in 1990.
Since a U.S.-led, U.N. authorised force drove Iraqi troops out of Kuwait in 1991, the Geneva-based U.N. Compensation Commission (UNCC) has already paid out $23.4 billion and approved outstanding claims to pay $29 billion more. It now receives 5 percent of Iraqi oil income to fund claims.
The largest group of claimants are from Kuwait, although other neighbours such as Iran, Saudi Arabia and Jordan also have big claims for compensation for environmental damage.
Dabbagh said Iraqi Prime Minister Nuri al-Maliki made the case for reducing the payments to Kuwait's Emir Sabah al-Ahmad al-Sabah at a conference of Iraq's neighbours in Kuwait.
"The Emir expressed his good intention to review the matter," Dabbagh said. "We're about to form bilateral committees with Kuwait."
After the conference, Iraq's Foreign Minister Hoshiyar Zebari said: "This issue should be discussed bilaterally. There is an understanding from Kuwait about Iraq's needs. The Kuwaiti brothers assured us that these issues would not become obstacles between our countries."
But the Kuwaiti foreign minister, Sheikh Mohammad, said that unlike debt forgiveness, compensation for the war damage was a U.N. issue and could not be resolved bilaterally.
"Financial stability for Iraq is important. The compensation issue is to be decided by the U.N. Security Council while the debt issue is to be discussed bilaterally."
Earlier on Tuesday Dabbagh said Iraq wanted to reduce the amount it owes outright, but if that proves to be impossible, to at least reduce the rate at which it makes payments from 5 percent of oil income to 1 percent.
"A barrel (of oil) used to be $20 but now it is $100. We have been paying five-fold over the past 10 years," he said.
"We need strong international support. If the other countries don't approve a cancellation the other proposal would be to reduce payments to 1 percent."
The share of Iraqi oil income paid to the UNCC was initially set at 30 percent in 1991, but was reduced to 25 percent in 2000 and then to 5 percent after the fall of Saddam in 2003. (Additional reporting by Stephanie Nebehay in Geneva; writing by Peter Graff in Baghdad; Editing by Keith Weir)
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