Privatization plan for Iraqi oil unfolds -- Powell lied
Today an excellent talk given recently by investigative journalist Greg Palast was broadcast on Democracy Now! In it he discusses an internal U.S. State Department document concerning "post-conflict" economic planning for Iraq - a document developed prior to the war.

In an interview with Asia Times Palast explains, "This includes the privatization of the oil industry. The plan is essentially to turn Iraq into a corporate Disneyland."

Let's pay some attention to how this planning is unfolding with respect to oil. A story posted on Alternet, Operation Oily Immunity by Steve Kretzmann and Jim Valette (July 24, 2003) explains how U.N. Security Counsel resolution 1483 and Executive Order 13303 issued by President Bush opens the door for private exploitation of Iraqi oil. The U.S.-taxpayer-supported Export-Import bank apparently will be the conduit for credit to American companies moving into the Iraqi oil fields (no private bank will touch Iraq).

"The primary source of repayment," explained an [Export-Import Bank] release, "is the Development Fund for Iraq [the former "Oil-for-Food" account, continued under UNSCR 1483], or another entity established under the auspices of the Coalition Provisional Authority with access to foreign exchange and protection from claims of creditors of the former regime. In other words, the U.S. government is happy to provide credit to any U.S. business wishing to do business in Iraq - especially because the money comes from Iraq," Kretzmann and Valette write.

They continue, "If ExxonMobil or ChevronTexaco touch Iraqi oil, it will be immune from legal proceedings in the U.S. Anything that could go awry with U.S. corporate oil operations will be immune to judgment,.... The President, with a stroke of the pen, signed away the rights of Saddam's victims, creditors and of the next true Iraqi government to be compensated through legal action. Bush's order unilaterally declares Iraqi oil to be the unassailable province of U.S. corporations.

So the U.S. taxpayer will provide credit for private exploitation of practically any kind and 13303 will protect the companies from liability? Is that how this will work?

How does this square with assurances given by Secretary of State Colin Powell that the U.S. is not up to an oil grab in taking Iraq? In a news story, "Powell: U.S. policy not fueled by Iraqi oil" by Warren Vieth in the Los Angeles Times (1/23/2003) it is reported that Powell insisted, "The United States has no plans to claim Iraq's oil fields or use its petroleum revenue to recoup the cost of a possible war."

He offered "the most explicit U.S. assurance to date about the future of Iraq's oil industry." Powell said future production proceeds would be held "in trust" for ordinary Iraqis. "The oil of Iraq belongs to the Iraqi people," according to Powell, "Whatever form of custodianship there is It will be held for and used for the people of Iraq. It will not be exploited for the United States' own purpose."

Is Powell's "trust" unfolding as the "Development Fund for Iraq, or another entity established under the auspices of the Coalition Provisional Authority" ?? If so, it looks like this fund will serve as a conduit to support taxpayer financing of oil field development, while U.S. companies get the oil. Meanwhile, Powell is right, the oil revenue will not pay for war damage, the U.S. taxpayer will be responsible. This is the way it should be.

But the oil will end up in private domains. So perhaps the lie in Powell's pre-war assurances is that an oil "trust" will "benefit the Iraqi people."