MENAFN.COM
Iraq asks Kuwait to invest reparations, no no's on debt to equity swap
Arab Times - 09/07/2009
(MENAFN - Arab Times) KUWAIT CITY, July 8: Kuwait is open to investing into Iraq some $25 billion still owed it in reparations from the 1990-1991 Gulf crisis, Iraq's parliament speaker said while visiting Kuwait Wednesday. A United Nations commission has been deducting a percentage of Iraqi oil revenues to pay compensation to Kuwaitis and other nationals harmed by Saddam Hussein's invasion of this close US ally in 1990.
Iraq, struggling to rebuild after decades of sanctions, war, and foreign occupation has asked Kuwait to forgo the reparations or reduce them, but Kuwait has insisted they should be paid. "We tried to propose an alternative solution," Iraqi parliament speaker Ayad al-Samarraie said at the end of a visit to Kuwait. "There would be an agreement between the two countries that the money paid to Kuwait as compensation would be reinvested in Iraq in one way or another."
The speaker said there were "enormous opportunities" in his country where foreign investments have virtually stopped since 1980, at the start of an 8-year war with Iran. He said Kuwaiti officials he met during his four-day visit "didn't object to the idea," which still needs to be discussed further. Al-Samarraie's counterpart, Jassem al-Khorafi, was quick to point out to reporters that such talks would first be taken up by the executive branches of government in both countries. Baghdad also wants Kuwait to forgive around $15 billion owed by Iraq from Saddam's time. Kuwait says it is a matter for its parliament to decide. Many lawmakers have expressed strong objections saying Iraq is richer than Kuwait in natural resources and can afford to pay.
The latest figures from the World Bank estimate Kuwait has a per capita income of more than $38,000 a year one of the highest in the world while Iraq's was believed to be less than $4,000. Ties between the two Arab neighbors were severed until the fall of Saddam in 2003. Kuwait was the launch pad for the US invasion that toppled the dictator. Asked to comment on the reaction of Kuwaiti officials to this proposal, Al-Samarrai stressed "some Kuwaiti government officials had earlier adopted the idea, but the issue is more serious now, especially since Kuwaiti officials have not expressed any objection to the proposal." He admitted this issue "requires more detailed discussions as it is related to many executive aspects, considering it concerns a certain amount which will be transformed into investments. We cannot settle this issue in one sitting because we have to deliberate on details."
Commenting on the same issue, Al-Khorafi pointed out this idea should come from the government authorities and it should be presented to the Kuwaiti and Iraqi parliaments to avoid confusion.
"We have to clarify that the two governments should deal with the issue of debts, so measures taken are executive in nature. After the two governments decide on a specific measure, this can be forwarded to the parliaments, in case implementation requires legislative procedures," Al-Khorafi explained, indicating Article 50 of the Kuwaiti Constitution, as well as articles of the Iraqi parliamentary law, stipulate the importance of separation of the functions of authorities but it doesn't prevent the legislature from helping the executive to work in the best of both countries.
When asked about the contradicting opinions of some Kuwaiti MPs and officials regarding Al-Samarrai's economic cooperation proposals, and whether this would affect relations between the two countries, Al-Khorafi asserted "we are in a democratic institution, and if this is a democratic institution in the truest sense, we can never arrive at a consensus. We may agree on the goal, but differ over the means to achieve it. At the end of the day, we must remember the positive aspects related to bilateral relations, and the positive remarks over supporting these ties. Both parties are keen on boosting bilateral ties, and everyone in Kuwait agrees on the basic goals."
Al-Khorafi agreed with his Iraqi counterpart on the importance of working towards improving relations between the two countries and removing Iraq from Chapter Seven of the UN Charter, provided the latter fulfills its obligations and hold regular discussions with Kuwaiti officials.
Affirming Al-Samarrai's visit was a step in the right direction, Al-Khorafi stated "as we often say 'a journey of a thousand miles begins with a single step'. His visit made a great impact as felt during his official meetings, especially the greeting and appreciation he conveyed on behalf of the Iraqi Parliament and Iraqi people". He confirmed the Kuwaiti Parliament has responded to the greeting warmly and agreed to continue efforts to strengthen ties between the two nations, as well as face future problems through direct dialogue.
Al-Khorafi added Al-Samarrai achieved a lot during his four-day visit to Kuwait, including a meeting with HH the Amir Sheikh Sabah Al-Ahmad Al-Sabah in which they had a "heart-to-heart talk that hinted on the possibility of both parties working together to help Iraq get out of Chapter Seven after implementing the UN resolutions."
On improving bilateral relations, Al-Khorafi said "this is in the interest of Kuwait and Iraq, so we should all work towards this goal even if we might have different ways to realize our objectives." He hopes there will be no negative reactions to a comment made here or in Baghdad regarding the issue, indicating "we must be cautious of such statements and the reactions they may ignite."
Al-Khorafi pointed out everyone agreed that it is in the interest of the two countries to resolve pending issues as soon as possible "and we must immediately address pending bilateral issues to avoid compounding our problems as we want to deal with them one at a time."
On the other hand, Al-Samarrai narrated the serious talk he had with HH the Amir of Kuwait concerning relations between the two countries. He also praised the honesty and openhandedness of his Kuwaiti counterpart and members of the Kuwaiti Parliament. He hopes these meetings will greatly contribute in building strong relations between the two countries that have common goals and interests.
Asked why Iraq has not yet named its ambassador to Kuwait, Al-Samarrai clarified this is a technical issue as the appointment of ambassadors requires approval of the Iraqi Parliament. "We have 64 nominees for ambassadors to various countries and the Iraqi Foreign Affairs Ministry is keen on appointing the most qualified to Kuwait," he added.
On the motivation behind his invitation to Al-Khorafi to visit Baghdad , Al-Samarrai said "I have conveyed a clear message to Kuwait and Kuwaiti officials have accepted it. We have to coordinate our efforts to further cement ties between the two countries. I believe the Kuwaiti and Iraqi parliaments are fully capable of removing obstacles and work towards finding a common ground to activate our roles. Moves to strengthen bilateral ties usually start with an exchange of visits before holding discussions on common issues."
On the borders issue, Al-Samarrai stated the maritime borders are not affected. He admitted there are some obstacles in the demarcation of borders but both countries are keen on overcoming these obstacles. He said he will discuss the issue with the Iraqi authorities and convey Kuwait's willingness to address the problem as soon as possible.
Commenting on a report published in Al-Seyassah daily regarding the Iraqi prisoners in Kuwait, Al-Samarrai confirmed these people are facing various criminal charges, while some were detained for their participation in the Iraqi invasion. "Ten Iraqis are still detained in Kuwaiti prisons. We have requested Kuwait to deal with this issue in a humanitarian way to either reduce their sentence or grant them full pardon, so others will not say there are Iraqis convicted in Kuwait or Kuwaitis convicted in Iraq."
Al-Sammarai also commended the Kuwaiti media for its neutral stand towards the visit of the Iraqi parliamentary delegation to Kuwait.
By Abubakar A. Ibrahim
Iraq asks Kuwait to invest reparations, no no's on debt to equity swap
Arab Times - 09/07/2009
(MENAFN - Arab Times) KUWAIT CITY, July 8: Kuwait is open to investing into Iraq some $25 billion still owed it in reparations from the 1990-1991 Gulf crisis, Iraq's parliament speaker said while visiting Kuwait Wednesday. A United Nations commission has been deducting a percentage of Iraqi oil revenues to pay compensation to Kuwaitis and other nationals harmed by Saddam Hussein's invasion of this close US ally in 1990.
Iraq, struggling to rebuild after decades of sanctions, war, and foreign occupation has asked Kuwait to forgo the reparations or reduce them, but Kuwait has insisted they should be paid. "We tried to propose an alternative solution," Iraqi parliament speaker Ayad al-Samarraie said at the end of a visit to Kuwait. "There would be an agreement between the two countries that the money paid to Kuwait as compensation would be reinvested in Iraq in one way or another."
The speaker said there were "enormous opportunities" in his country where foreign investments have virtually stopped since 1980, at the start of an 8-year war with Iran. He said Kuwaiti officials he met during his four-day visit "didn't object to the idea," which still needs to be discussed further. Al-Samarraie's counterpart, Jassem al-Khorafi, was quick to point out to reporters that such talks would first be taken up by the executive branches of government in both countries. Baghdad also wants Kuwait to forgive around $15 billion owed by Iraq from Saddam's time. Kuwait says it is a matter for its parliament to decide. Many lawmakers have expressed strong objections saying Iraq is richer than Kuwait in natural resources and can afford to pay.
The latest figures from the World Bank estimate Kuwait has a per capita income of more than $38,000 a year one of the highest in the world while Iraq's was believed to be less than $4,000. Ties between the two Arab neighbors were severed until the fall of Saddam in 2003. Kuwait was the launch pad for the US invasion that toppled the dictator. Asked to comment on the reaction of Kuwaiti officials to this proposal, Al-Samarrai stressed "some Kuwaiti government officials had earlier adopted the idea, but the issue is more serious now, especially since Kuwaiti officials have not expressed any objection to the proposal." He admitted this issue "requires more detailed discussions as it is related to many executive aspects, considering it concerns a certain amount which will be transformed into investments. We cannot settle this issue in one sitting because we have to deliberate on details."
Commenting on the same issue, Al-Khorafi pointed out this idea should come from the government authorities and it should be presented to the Kuwaiti and Iraqi parliaments to avoid confusion.
"We have to clarify that the two governments should deal with the issue of debts, so measures taken are executive in nature. After the two governments decide on a specific measure, this can be forwarded to the parliaments, in case implementation requires legislative procedures," Al-Khorafi explained, indicating Article 50 of the Kuwaiti Constitution, as well as articles of the Iraqi parliamentary law, stipulate the importance of separation of the functions of authorities but it doesn't prevent the legislature from helping the executive to work in the best of both countries.
When asked about the contradicting opinions of some Kuwaiti MPs and officials regarding Al-Samarrai's economic cooperation proposals, and whether this would affect relations between the two countries, Al-Khorafi asserted "we are in a democratic institution, and if this is a democratic institution in the truest sense, we can never arrive at a consensus. We may agree on the goal, but differ over the means to achieve it. At the end of the day, we must remember the positive aspects related to bilateral relations, and the positive remarks over supporting these ties. Both parties are keen on boosting bilateral ties, and everyone in Kuwait agrees on the basic goals."
Al-Khorafi agreed with his Iraqi counterpart on the importance of working towards improving relations between the two countries and removing Iraq from Chapter Seven of the UN Charter, provided the latter fulfills its obligations and hold regular discussions with Kuwaiti officials.
Affirming Al-Samarrai's visit was a step in the right direction, Al-Khorafi stated "as we often say 'a journey of a thousand miles begins with a single step'. His visit made a great impact as felt during his official meetings, especially the greeting and appreciation he conveyed on behalf of the Iraqi Parliament and Iraqi people". He confirmed the Kuwaiti Parliament has responded to the greeting warmly and agreed to continue efforts to strengthen ties between the two nations, as well as face future problems through direct dialogue.
Al-Khorafi added Al-Samarrai achieved a lot during his four-day visit to Kuwait, including a meeting with HH the Amir Sheikh Sabah Al-Ahmad Al-Sabah in which they had a "heart-to-heart talk that hinted on the possibility of both parties working together to help Iraq get out of Chapter Seven after implementing the UN resolutions."
On improving bilateral relations, Al-Khorafi said "this is in the interest of Kuwait and Iraq, so we should all work towards this goal even if we might have different ways to realize our objectives." He hopes there will be no negative reactions to a comment made here or in Baghdad regarding the issue, indicating "we must be cautious of such statements and the reactions they may ignite."
Al-Khorafi pointed out everyone agreed that it is in the interest of the two countries to resolve pending issues as soon as possible "and we must immediately address pending bilateral issues to avoid compounding our problems as we want to deal with them one at a time."
On the other hand, Al-Samarrai narrated the serious talk he had with HH the Amir of Kuwait concerning relations between the two countries. He also praised the honesty and openhandedness of his Kuwaiti counterpart and members of the Kuwaiti Parliament. He hopes these meetings will greatly contribute in building strong relations between the two countries that have common goals and interests.
Asked why Iraq has not yet named its ambassador to Kuwait, Al-Samarrai clarified this is a technical issue as the appointment of ambassadors requires approval of the Iraqi Parliament. "We have 64 nominees for ambassadors to various countries and the Iraqi Foreign Affairs Ministry is keen on appointing the most qualified to Kuwait," he added.
On the motivation behind his invitation to Al-Khorafi to visit Baghdad , Al-Samarrai said "I have conveyed a clear message to Kuwait and Kuwaiti officials have accepted it. We have to coordinate our efforts to further cement ties between the two countries. I believe the Kuwaiti and Iraqi parliaments are fully capable of removing obstacles and work towards finding a common ground to activate our roles. Moves to strengthen bilateral ties usually start with an exchange of visits before holding discussions on common issues."
On the borders issue, Al-Samarrai stated the maritime borders are not affected. He admitted there are some obstacles in the demarcation of borders but both countries are keen on overcoming these obstacles. He said he will discuss the issue with the Iraqi authorities and convey Kuwait's willingness to address the problem as soon as possible.
Commenting on a report published in Al-Seyassah daily regarding the Iraqi prisoners in Kuwait, Al-Samarrai confirmed these people are facing various criminal charges, while some were detained for their participation in the Iraqi invasion. "Ten Iraqis are still detained in Kuwaiti prisons. We have requested Kuwait to deal with this issue in a humanitarian way to either reduce their sentence or grant them full pardon, so others will not say there are Iraqis convicted in Kuwait or Kuwaitis convicted in Iraq."
Al-Sammarai also commended the Kuwaiti media for its neutral stand towards the visit of the Iraqi parliamentary delegation to Kuwait.
By Abubakar A. Ibrahim