14,7 76/1: Ir 19 UNITED STATES-IRAQI RELATIONS HEARING BEFORE THE SUBCOMMITTEE ON EUROPE AND THE MIDDLE EAST OF THE COMMITTEE ON FOREIGN AFFAIRS HOUSE OF REPRESENTATIVES ONE HUNDRED FIRST CONGRESS SECOND SESSION APRIL 26, 1990 Printed for the use of the Committee on Foreign Affairs PENNSYLVANIA STATE UNIVERSITY SEP 1 1 1990 DOCUMENTS COLLECTION U.S. Depository Copy U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1990 32-299 For sale by the Superintendent of Documents, Congressional Sales Office U.S. Government Printing Office, Washington, DC 20402 TOM VYN PENSON, T., Jr., San POOBERT GE J. SMAN, C COMMITTEE ON FOREIGN AFFAIRS DANTE B. FASCELL, Florida, Chairman LEE H. HAMILTON, Indiana WILLIAM S. BROOMFIELD, Michigan GUS YATRON, Pennsylvania BENJAMIN A. GILMAN, New York STEPHEN J. SOLARZ, New York ROBERT J. LAGOMARSINO, California GERRY E. STUDDS, Massachusetts JIM LEACH, Iowa HOWARD WOLPE, Michigan TOBY ROTH, Wisconsin GEO. W. CROCKETT, JR., Michigan OLYMPIA J. SNOWE, Maine SAM GEJDENSON, Connecticut HENRY J. HYDE, Illinois MERVYN M. DYMALLY, California DOUG BEREUTER, Nebraska TOM LANTOS, California CHRISTOPHER H. SMITH, New Jersey PETER H. KOSTMAYER, Pennsylvania MICHAEL DEWINE, Ohio ROBERT G. TORRICELLI, New Jersey DAN BURTON, Indiana LAWRENCE J. SMITH, Florida JAN MEYERS, Kansas HOWARD L. BERMAN, California JOHN MILLER, Washington MEL LEVINE, California DONALD E. "BUZ” LUKENS, Ohio EDWARD F. FEIGHAN, Ohio BEN BLAZ, Guam TED WEISS, New York ELTON GALLEGLY, California GARY L. ACKERMAN, New York AMO HOUGHTON, New York MORRIS K. UDALL, Arizona PORTER J. GOSS, Florida JAMES MCCLURE CLARKE, North Carolina ILEANA ROS-LEHTINEN, Florida JAIME B. FUSTER, Puerto Rico WAYNE OWENS, Utah HARRY JOHNSTON, Florida ELIOT L. ENGEL, New York ENI F.H. FALEOMAVEGA, American Samoa DOUGLAS H. BOSCO, California FRANK MCCLOSKEY, Indiana DONALD M. PAYNE, New Jersey JOHN BRADY, Jr., Chief of Staff KRISTINE WILLIE, Staff Assistant SUBCOMMITTEE ON EUROPE AND THE MIDDLE EAST LEE H. HAMILTON, Indiana, Chairman TOM LANTOS, California BENJAMIN A. GILMAN, New York ROBERT G. TORRICELLI, New Jersey JAN MEYERS, Kansas LAWRENCE J. SMITH, Florida DONALD E. "BUZ” LUKENS, Ohio MEL LEVINE, California JIM LEACH, Iowa EDWARD F. FEIGHAN, Ohio CHRISTOPHER H. SMITH, New Jersey GARY L. ACKERMAN, New York WAYNE OWENS, Utah MICHAEL H. VAN DUSEN, Subcommittee Staff Director RUSSELL J. WILSON, Minority Staff Consultant CHRISTOPHER KOJM, Subcommittee Staff Consultant KATHERINE A. WILKENS, Subcommittee Staff Consultant (II) and in Iraq-were likely to be increasingly important in the decade to come. One reason, of course, is energy. Gulf producers account for about 70 percent of world excess oil production capacity, and over the next 10 years, they will be called on to cover increasing per- centages in world consumption. Worldwide, Iraq's oil reserves are second only to those of Saudi Arabia. Another reason is the danger of proliferation of nuclear, chemi- cal, or biological weapons, and the missile systems to deliver them. Again, the importance of Iraq is clear. We also knew, of course, that in the final analysis only a policy based on American values and principles will succeed. This meant that human rights would be a central consideration for us. U.S.-IRAQI RELATIONS These fundamental concerns and interests will continue to guide our diplomacy with Iraq. We had reestablished full diplomatic rela- tions with Iraq in 1984, after Iraq expelled the Abu Nidal terrorist gang and was removed from the list of states that support interna- tional terrorism. The establishment of diplomatic relations helped us work with Iraq in efforts to end the Iran Iraq war. In subse- quent years we developed a dialogue with Iraqi leaders on issues from the Middle East peace process to Lebanon. By October 1989, we could point to some modest developments on issues of concern to us: Iraq had ended its arms supply to General Michel Aoun in Lebanon; Iraq was discussing a new Constitution which potentially would provide greater recognition of human rights; Iraq had participated in two disarmament conferences on chemical weapons and had joined, as an observer, the Conference on Disarmament at Geneva, where we are working toward a com- prehensive ban on chemical weapons; on the Middle East peace process Iraq was deferring to the parties more directly involved, in- cluding Egypt and the PLO. Since then, Iraqi actions have raised new questions about Iraqi intentions in the region. VISIT TO IRAQ In February, I visited the Gulf, and on February 12, I met with President Saddam Hussein. A week later President Hussein gave a harsh speech to the Foreign Ministers of the Arab Cooperation Council, a grouping of Iraq, Jordan, Egypt, and the Yemen Arab Republic, in which he criticized our naval presence in the Persian Gulf as a threat to the region. We have been told that Iraqi resentment of our criticism of Iraq's abysmal human rights practices in our 1990 report may have been a factor. We stand by that report. It is as accurate a charac- terization of the human rights situation in Iraq as we can make m the facts available to us. We wish the facts were more favor- able. We will continue to speak out to urge the Government of Iraq to improve its record in this area. Also in February, a U.S. citizen of Iraqi origin was arrested in California on charges of conspiracy to commit murder. Although he was released for lack of evidence, subsequent investigation showed 13 - 8 - In other areas, trade with Iraq is limited. As a matter of policy we do not sell items on the Munitions List to Iraq. We do not cooperate with Iraq's nuclear program. The Sub-Group on Nuclear Export Coordination (SNEC), an interagency committee, reviews license requests on the Department of Commerce's Nuclear Referral List, and rejects all those which it determines will contribute to Iraqi capabilities to develop nuclear weapons. Fifty chemicals are now on the list of CW precursors whose export is controlled to Iraq and certain other countries. We continue to work within the Australia Group to harmonize the export controls of many nations to deny Iraq materials for its chemical weapons program, as well as those of Syria, Iran and Libya. Iraq is a signatory to the 1972 convention banning biological weapons (although it has not deposited an instrument of ratification). We have denied Iraqi license requests for technology, such as cell dryers, which could conceivably be used in furtherance of a biological weapons program. The United States is active in trying to prevent the spread of missiles, especially in volatile areas such as the Middle East. Through our Missile Technology Control Regime we work with our allies to deny missile-related technology to a number of countries, including Iraq. 32-299 0 - 90 - 2 22 Amnesty International has charged that thousands of Kurds have been arrested in connection with the Kurdish rebellions Iraq has experienced in the last ten years. We have no way independently to verify Al's charges. Mr. GILMAN. Thank you, Mr. Chairman. I have exceeded my time. Thank you for allowing me to go ahead. Mr. HAMILTON. Thank you. Mr. Lantos. UNREALITY ABOUT POLICY Mr. LANTOS. Thank you, Mr. Chairman. Welcome, Mr. Secretary. With all due respect, Mr. Secretary, I detect an Alice in Wonderland quality about your testimony. Let me tell you why. You recite accurately a chamber of horrors. The Department of State calls Saddam Hussein's outrageous and pre- posterous comments, I quote, “inflammatory, irresponsible, and outrageous”. You talk about Iraq using poison gas against its own people, diplomats engaging in murder plots in the United States and the government smuggling nuclear trigger devices from here and from the U.K. and other places. We now have the big gun episode which is lied about as all other episodes are lied about and a human rights record which according to the State Department's human rights annual report is a night- mare. Then you express the hope, which boggles my mind, that somehow this will change and Iraq under Saddam Hussein will turn in the direction of being a responsible and civilized and peace loving and constructive member of the international community. I find this, to put it mildly, a non sequitur. I also find it remarka- ble that while the Administration uses the word "fungible" with great glee on the numbers of other occasions, meaning dollars saved in one place can be used elsewhere, it fails to see the fungibi- lity that our extension of agriculture and Ex-Im Bank credits pro- vide Iraq. There is another inconsistency that I would like to ask you to clarify for all of us, in the opening sentences of your presentation, you pointed to Iraq's enormous oil wealth. You are absolutely cor- rect. If Iraq has such enormous oil wealth why does it need these commercial and financial subsidies from the United States. Why can't it buy at open market rates? Let me make one observation before I ask you to respond. You drew a dichotomy between words and deeds. We are not just deal- ing with words, although the words that Saddam Hussein is spew- ing forth I have not heard since Adolf Hitler who also had to be believed when he said he would wipe out by gas a very significant portion of the people. I believe Saddam Hussein. I don't think he would have the slightest pangs of conscience for killing half the people living in Israel. He would probably rejoice and have a ban- quet at the end of the day. There are such people, Mr. Kelly. Saddam Hussein by his statements and by his actions, poison gas- sing Kurdish children, running the most bloody and murderous dic- tatorship on the face of this planet, is one of these people. At what point will the Administration recognize that this is not a nice guy, and that conceivably sanctions are appropriate? They were appro- priate vis a vis Nicaragua in the previous administration. Did Nica- ragua have a worse human rights record? Did Nicaragua threaten and will the Administ this planet, is onmoody and murderous gas- 33 What I am interested in really is what we are doing as a govern- ment to try to stop the proliferation of these exotic weapons. Mr. Kelly. All right. Let me take them in sequence. All materials or products, which could have application to devel- opment of a nuclear weapons capability are prohibited for export. In addition-- Mr. HAMILTON. By us, but not our allies, is that correct? Mr. KELLY. We have an agreement with other nuclear suppliers, in other words, other countries capable of providing the technology and the materials for this. Mr. HAMILTON. I want to talk also about the other weapons, chemical, biological, all of them. Mr. KELLY. I understand that, sir. In the nuclear area there is an agreement among the nuclear suppliers that involves the Western Europeans, Japanese, the Sovi- ets and others on restrictions of provisions of materials which could enhance the ability to make nuclear weapons. So that is, in effect, in the nuclear zone. In the chemical area, the United States unilaterally has prohibit- ed the export of, I believe, some 60 different chemicals to Iraq, which could be useful as precursors towards the manufacturing of chemical weapons. ROLE OF ALLIES Mr. HAMILTON. And our allies? Mr. KELLY. Our allies have—I don't want to mis-speak on this. If you will give me one minute to get this. The allies, through the Australia group, attempt to limit the export of, again, chemical precursors or materials which would en- hance chemical weapons, but that is a recent agreement interna- tionally. Mr. HAMILTON. Is it effective? Mr. KELLY. None of these is 100 percent or we wouldn't see the arrests of people attempting to get around some of these. Mr. HAMILTON. One has the impression that some of our closest allies are engaged in export of the kinds of materials that can be used in these exotic weapons, including West Germany, including Great Britain, including Japan. Is that an accurate impression? Mr. KELLY. There is a differentiation among each of those coun- tries. The West Germans clearly a few years ago had major prob- lems. Mr. HAMILTON. Do they now? Mr. KELLY. They are improving their record and have legislation in the Bundestag, which really tightens up. They brought criminal cases against people who have exported. Mr. HAMILTON. I was told at least a year ago that that bill you are talking about in the Bundestag would be enacted. It has not been, as I understand it. Mr. KELLY. That is my understanding also, Mr. Chairman. Mr. HAMILTON. Are you comfortable, satisfied with the efforts our close allies are making to stop the export of these materials? 34 Mr. Kelly. I am convinced there could be improvements, Mr. Chairman. OTHER POLICY EFFORTS Mr. HAMILTON. What else are we doing? Mr. KELLY. In the area of missile technology, the delivery sys- tems at extended ranges, there is a missile technology control regime, again, involving the United States and countries which have technology which is applicable to limit and cut-off the supply of equipment which would lend to the establishment of missile ca- pabilities beyond a certain range and payload. Mr. HAMILTON. What is that? That is just kind of an agreement. That is a missile regime, an agreement entered into by whom? Mr. KELLY. That is right. Mr. HAMILTON. By whom? Who are the signatories? Mr. KELLY. The principal Western Europeans, the Japanese. Mr. HAMILTON. China? Mr. KELLY. China has not. Mr. HAMILTON. Does China continue to export some of these fancy systems to some countries in the Middle East? Mr. KELLY. There are recurring reports that exports are immi- nent. There have not been any. The Chinese stated in December publicly they weren't going to be exporting any more missile sys- tems. U.S. POLICY Mr. HAMILTON. Does the United States support a region-wide ban on weapons of mass destruction in the Middle East? Mr. ŘELLY. We have supported in the United Nations the idea of a region-wide ban, but-around currently the Arabs are talking about region-wide bans, but they insist that any such regime would include the state of Israel. Mr. HAMILTON. If it does not include the state of Israel, then they are unwilling to negotiate on it, is that their position? Mr. KELLY. I think that is basically it, yes, sir. Mr. HAMILTON. And Israel's position? Mr. Kelly. I am not a spokesman for the Israeli Government. They have been reluctant to enter into schemes. Mr. HAMILTON. Now, I want to be clear. Our position is that we support a region-wide ban on weapons of mass destruction? Mr. KELLY. In general terms, yes, sir. Obviously, we have to look at the fine print. Mr. HAMILTON. Does that mean we are opposed to Israeli devel- opment of nuclear weapons? Mr. KELLY. We would like Israel to become a signatory to the nu- clear non-proliferation treaty which means that Israel would abjure the possession of nuclear weapons. Mr. HAMILTON. That is different, of course, from supporting a region-wide ban of weapons of mass destruction; isn't it? Mr. KELLY. It is, sir. Mr. HAMILTON. So that is not our position to support a region- wide ban of weapons of mass destruction? 35 Mr. KELLY. We are certainly willing to consider any of them, Mr. Chairman. Mr. HAMILTON. It is not our position? We are not out there advo- cating a region-wide ban on weapons of mass destruction at this point? Mr. KELLY. We are not. That is correct. IRAQ AND NPT Mr. HAMILTON. Iraq, of course, is a signatory to the nuclear non- proliferation treaty, aren't they? Mr. KELLY. They are, sir. Mr. HAMILTON. That means their nuclear facilities are open to International Atomic Energy Agency inspection, does it not? Mr. KELLY. That is correct, sir. Mr. HAMILTON. How often do those inspections take place? Mr. KELLY. I am not sure. I know there was one within the last couple of months. I don't know how often they are, whether it is every year or every two years. Mr. HAMILTON. Do they send a large team in—the IAEA—or is it just a few people? Mr. KELLY. I don't know the size of the team, Mr. Chairman. Mr. HAMILTON. Is it your view that those inspections—I am in- formed two people went in April, is that about right, do you think? Mr. KELLY. I do not know the size of the team. I have no reason to challenge that. Mr. HAMILTON. Do you believe those inspections are thorough enough to detect the diversion of any materials for weapon pur- poses? Mr. KELLY. Yes, I think the United States has developed a lot of confidence in the IAEA over the years. I am advised by my staff the inspections are every six months Mr. HAMILTON. And those inspections are only very few people then? Mr. KELLY. Two to four it says here. Mr. HAMILTON. And our Government has confidence that those inspections are sufficiently thorough that we could detect the diver- sion of any materials for nuclear weapon purposes? Mr. KELLY. I think that is correct, Mr. Chairman. There has been long experience with the IAEA in many coun- tries. While I am not an expert on the IAEA, my understanding is the United States does have confidence in IAEA inspections. That is one of the reasons we would like to see them expanded to include all nations. NUCLEAR PROGRAM Mr. HAMILTON. Yet you do think that Iraq is engaged on a nucle- ar weapons development program, did you not say that? Mr. KELLY. Certainly the effort to smuggle out the capacitors seems to be proof positive that such an effort is underway. Mr. HAMILTON. So we believe they are launched on a path of de- veloping nuclear weapons, but the IAEA has not been able to find that at this point? Mr. KELLY. I think that that is a fair statement. LIST 1 - EXIM-COVERED EXPORTS TO IRAQ (Page one of three) supnas. iaportarse products A.0. SKITK AL NILAL (NOUST CO. FRAC HP MOTORS CATERPILLAR TRACTOR STATE MACH IMPORT CO SCRAPERS TOC VALVE AUTO EXP SEN AUTO TRADIMO CO AUTO PARTS MCNEIL AKRON STATE EXT RUBRER IND TUSE PRESSES NRN CORP STATE EXT RUABER IND TIRE PRODUCTION EQUIPMT SNDUST SUP & CONSULT STATE EXT RUBBER IND RUBBER HAMU EQUIPXT PARTS VERKEER MANUF , STATE NACH THADING TRENCKERS JOHN DEERE ANO CO. STATE MACH TRADING TRACTORS & SPARES LOCKHEED BEORGIA CD TRARI AIRWAYS ATACRAFT PARTS CHERRY BURRELL STATE EXT VEB QILS PROCESSIX LINES & PARTS LUBRT ZOL CORP. STATE ENT OIL REFIN 182 TONS OF LZ $269 LUBRIZOL CORP STATE EXT OIL REFIN 400 TONS OF L7 4083 LUBRI ZOL CORD. STATE ENT OIL REFIN LUBRICANTSS FUEL ADDITIVE LUBRIZOL CORP. STATE ENT DIL REFIX LZ 4099- OETERVEXT INI INEX ELEC . MIN OF ELECTRICITY $$ KV CABLE BOXES & ACCES THERMO KINO STATE EXT AUTO INDRUS AC PARTS MT. VERMON TRADE MISAN STATE WEAR VEED KILLER VITTEMANN HARSELIERG SPECIAL PROJECTS CO PLANTS AME INTERNATIONAL AUTO TRADING COMPANY TRANSMISSION (BRAKE STRUCTUAL SEMAVIOR OIL EXPLORATIOM CO. LABORATONY EQUIPMEN COBILE TUFTING KACH EN'L ESTAB KOOLEN TEXTILE MACHIXERY PARTS ICO INOUST SUPPLY STATE EXT RUBBER IND XYLON TIRE CORD COP INT'L IRAQI TRADING CO. AC COMPRESSORS AL HADDAD LIONT INOUSTRIES CO. MC VMITS & PARES ELI LILLY CO. STATE ORA MECH & SUP TREFLAX (HENRICIDE) TELUAA IXT'L, INC. ODERM PAINT TROUST CHEMICAL RAW MAT, SOLVENTS VIDEOJET SYSTEN INTL NAT'L F0006 IMO CO DO INS MACHINES PETROGEN INTL LTO, ST ENT IRONE STEEL OXY-SA$ CUTTING TORCHES ENCO ENGINEERINO ING PROJECT 895 REVERSE OSMOSIS SYSTEM ROHN HAAS Co. ST DRG XECHE AG SUPP HERBICIDE YORK DIV. HORG VARN IRAQI TRADING Co. A/C & SPARE PARTS AL HAOOAD ENT LIGHT THOUSTRIES CO, ALUMINUX SHEETS STRAIGHT ENG. CO. IRAQI BRAIN BOARD GRAIN MANOL IXO PARTS JOHN DEERE 600. ST MACH TRADING CO. 200 TRACTORS & PARTS GOULO ELECTROXICS IRAQI BRAIN BOARD SPARE PARTS FOR ELEC EQUP PETROLITE INTL SOUTHERN PETRO ORS DELL SIFTER (sic) MORGAN INDUSTRIES NATL CHENG PLASTICS PRESS EQUIPNT ACCESS NRK CORD. XIX WEAVY (HOUSTRIES TIRE CURING PRESSES SOBERAY INC. MIX HEAVY INDUSTRIES RUBBER MIXIN ERU IPNEMT TRACEWAY INTL CORP. TRAG CO.CARTON MAMUF CARTOM LIXING PAPER BXIL INTL IRAQI TRADING CO. COLD STORAGE SPARE PARTS LUBRIZOL CORP. KIN OIL REFINERIES 100 TONS L 5792 CATERPILLAR TRACTOR ST MACH IMPORT CO S PARE PARTS SHEED-MCBRIDE INTL ST MACH TRADING ENT TUBING, PIPE, ERITTERS, ETC VERMED KAMUFAC CO. SY MACH TRADING CO. (121 7-BODC TREMCHERS V.O.P. INC. EST OIL & GAS PROCES CHENICAL CATALYST -R-33 PAR PHARMACEUTICAL ST CO ORUGS & HED DAVAS ELI LILLY ( CO. ST CO DRUMST MED DAV88 UGRONEL CO. LTD. IRA RING CO. REFRIO WIT SPARES AANSOME COMPANY OIL EQUIPMENT CO. ARC WELDING EQUIPMENT SOLVOCHEM-HOLLAND NATL CHEK & PLASTICS 300 TD 80/20 (SIC) TELVAR INTERNATIONAL MODERN PAINT INDUSTCHEN AAV MATERIALS, SOLUT MARMERKOOR LTD. RAYON STATE ESTAI COOLING PLANT PARTS TONICS IM. SAAD SEKL ESTAB YATER TREATXEKT EQVIPXT OTHERMO KING CORP. SENL AUTO TRADING AUTO PARTS SOLYOCHER- HOLLAND ST EMT AVSBER INOVST 300 TONS BAR COMPOUND OMRA CORPORATION TRAQI TRADING CO. MATHETIC CONDUTER TAPE THE ROKO COMPANY GENL CD BRAIN PROCES COLO STORAGE VKITS TRADING & INU CORA AL MILAL IMO ESTAB AIR COOLER PARTS SMAP-ON TOOLS LIST INDUSTRIES CO. SPARE PARTS ROGO INTL INC. SADAM GEHL ESTAOMT MACHINE TOOLS & TECK SUC6 COP INTL INC. IRAQI TAADINE c. A/C COMPRESSORS LOBEL CHEMICAL CORP, AT ORG MECH & AB SUP HERBICIDE RANSOME COMPANY OIL EQUIPMENT CO. (12) WELDING MACHINES TELVAR INTL IME. MODERN PAINT MOUST. CHEK XAV MAT & SOLVENTS YORK INTL CORP TRARI TRADING CO. A/C ACCESSORIES ORAPER CORD. ST EST COTTONE TEXT WEAVING LOOM PARTS VEST POINT ST ESTABLISH COTTON SPARE PARTS FOR LOOKG BRISTOL-MYERS ST CO. ORVSSG NEO A MEDICATED MILK MUMRAOTECH LTO. NORTH CEMENT ST ENT (2) 5 TON DUMP TRUCKS MOBAYT CROP OYES ST ERT LEATHER (NO LEATHER DYES UP JOHN WORLDWIDE ST CO.ORUSSE MED AP PHARNACEUTICALS BRISTOL KYERS INTL STO. 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DAVOSE MED AP PHARMACEUTICALS SUPERIOR AIR PROOUCT ST ENT MORTHERN BAS NITROGEX RASE PLANT ELDER PHARMACEUTICAL $1 CO DAU&$& MED APL PHARMACEUTICALS ELDER PHARMACEUTICAL ST CO DRUST MED APL HARMACEUTICALS CHOE CHLORINATOR IKC XISON ST SUSAR ENT (3) CHLOR INATORS SPARES VIDEOJET SYSTEM INTL $T EXT SEVERAGES 000!X9 MACHINE & PARTS MCNEIL ARRON, INC. NEW TYRES PAOJECT 126) TUBE PRESSES TRAKS ATLANTIC INC. AL-KADIS1Ex st ESTAS STANDARD TOOLS TRARE ATLANTIC INC. AL-KADISIEH ST ST STANDARD TOOLS LUXOR CALIFORNIA BT ENT TOBACCOG CIBA CIGARETTE PAPER & BLUE BREEZEVALE INC. . IRAQI TRADING CO. TIAES & TUBES 1.00 237801.00 06707/31 246750.00 06/07/08 36.00 320830.86 06/07/88 0.00 1921300,00 06/14/89 0.00 4231H.DO 06/14/01 0.00 776.00 06/14/80 0.00 2935.00 06/14/98 0.00 15487.00 06/14/ 0.00 1794448.00 86/14788 0.00 121057.00 06/14/88 32207.00 43307.00 06/14/88 0.00 1799988.00 08/21/18 0.00 194041a AVL1/R_....-40057,00.-