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UK Blocks US Plans To Spend
Iraq Oil Fund On Museum

By Jonathan Steele
The Guardian - UK
7-16-4
 
BAGHDAD -- Britain has blocked an American plan for a memorial museum in Baghdad to document the atrocities of Saddam Hussein's regime.
 
US officials described the $10m (£5.4m) project as a special commitment by Paul Bremer, the former US administrator of occupied Iraq.
 
The money was to come from Iraqi oil revenues deposited in the Development Fund for Iraq which was set up under UN sanctions and maintained by the US after it toppled Saddam.
 
Britain, alongside Australia, which also took part in last year's invasion, had voting rights on the fund's review board, as well as officials from two Iraqi ministries.
 
The US withdrew its request when Australia's official said that although he supported the museum idea it should be left to the Iraqis to decide.
 
The US representative asked for the project to be approved at the board's final meeting last month, shortly before the transfer of sovereignty.
 
The aim was to collect ideas from all over Iraq on how best to remember Saddam's victims and document his regime's crimes, and also to seek private funding for a museum.
 
It is not clear why Mr Bremer tried to rush the idea through rather than leave it to the incoming Iraqi regime. He may have feared it might not get off the ground, or wanted to leave his personal mark, analysts say.
 
The review board ended with the occupation. Iraqis now control the development fund on their own.
 
Britain's representative, Dr Yusaf Samiullah, who heads the Iraq office of the Department for International Development (Dfid), said the project was not an emergency.
 
The British move was just one of several instances in which Dfid either blocked or amended last-minute US attempts to spend Iraq's oil money before the new government took office.
 
Dr Samiullah said yesterday: "We had two motivations. It was a signal of our respect for sovereignty and our awareness the new government would face unforeseen needs for which it would require money."
 
Britain rejected a US request for $41m at the same meeting of the board, this time over a hazardous waste disposal facility consisting of landfill, incineration and biodegradation, after the American official conceded he did not know how much of the waste came from the occupation.
 
Australia's representative asked why Iraqis should pay to "clean up coalition waste".
 
At meetings in May, Britain amended plans for a high-spending victims' compensation fund for Iraqis who suffered under Saddam, as well as a fund for claims arising over disputed property following the Arabisation campaign which drove hundreds of thousands of Kurds out of their homes.
 
Britain approved the plan but had the draft changed so that a taskforce would first study the complexities and stop money being paid to victims until sovereignty was transferred.
 
Dr Samiullah said the two-month delay was insignificant but gave political recognition to the new government.
 
"Also, after decades of persecution, you don't want to rush to make the first payments and then find, a year later, that you may feel you have underpaid or overpaid."
 
Britain took issue with two huge projects - a $500m plan to build up Iraqi security forces and $315m for electricity investment. It questioned whether Iraqi money was being spent to duplicate projects covered by US aid grants and whether foreign companies could bid alongside US ones.
 
Backed by Australia, Britain won US agreement that no Iraqi oil money could be used to cover cost over-runs on security projects that the US had awarded without competitive bidding. On electricity, Dr Samiullah told the board that every single project had over-run its target cost.
 
Asked if US officials were irritated by British objections, Dr Samiullah said: "Professional development colleagues were relieved that others were saying things that it would be difficult for them to say in their system.
 
"Dfid's independence gives us a degree of authority. US aid comes under the state department which may have its own political objectives."
 
Guardian Unlimited © Guardian Newspapers Limited 2004 http://www.guardian.co.uk/Iraq/Story/0,2763,1262464,00.html

 


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