Iraq’s Appeals for Debt Relief Stir Little Arab Response

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UPPLANDS VASBY, Sweden — Iraqi officials appealed yesterday to escape nearly $100 billion in debt and war reparations — owed mostly to Arab nations still reluctant to forgive Iraq’s belligerence during Saddam Hussein’s regime.

Iraq’s plea for debt relief — made before nearly 500 delegates at a U.N. conference to assess Iraq’s reconstruction — was echoed at the highest diplomatic levels including the U.N. Secretary-General, Ban Ki-moon, and Secretary of State Rice.

But Prime Minister Maliki of Iraq received no firm commitments, and two key neighbors — Saudi Arabia and Kuwait — sent only low-level envoys to the meeting outside Stockholm.

Iraq has at least $67 billion in foreign debt — most incurred under Saddam and owed to Saudi Arabia, Kuwait, the United Arab Emirates, and Qatar.

In addition, the U.N. Compensation Commission says $28 billion remains to be paid for Iraq’s 1990 invasion of Kuwait. Iraq now gives 5% of its oil revenue to meet the compensation claims.

The Iraqi government maintains it should not be saddled with debts accrued during Saddam’s repressive regime.

“It is time to liberate the people of Iraq from this burden,” the deputy prime minister, Barham Saleh, said.

Many Western nations and other growing economic partners in Iraq, including Russia and China, have dropped Baghdad’s debt.

But Sunni Arab neighbors — wary of Iraq’s Shiite-dominated government and its Iranian ties — have been reluctant to follow suit. Kuwait also remains steadfast in demanding payments for the widespread damage to commercial centers and oil facilities during the invasion, which led to the 1991 Gulf War.

Saudi Arabia announced last year it would forgive Iraq’s debt, but so far has failed to follow through with the decision.

Mr. Maliki said Saudi Arabia had made a proposal on reducing Iraqi debt during the conference, but added it “requires more clarification and more contact.”

Meanwhile, Iraq is flush with oil revenue as prices push into record territory — blunting calls for increased international aid to help Iraq rebuild. Oil brought in $16 billion in the first quarter of the year and $5.9 billion last month alone.

Ms. Rice urged Iraq’s Arab nations to strengthen diplomatic ties with Baghdad “through official visits to Iraq, the reopening of embassies and consulates and appointment of ambassadors.” Arab countries, however, have been hesitant to open embassies in Baghdad, largely because of the security worries.

Diplomats from several embassies have been kidnapped, killed, or wounded in recent years. Embassies, including the Turkish and Jordanian compounds, also were targeted by car bombs after the American invasion in 2003.


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