Hospitals & Asylums
RE: Paul
Volcker HA-7-205
Charges: Genocide, Deprivation of Relief
Benefits, Orchestrating State Failure, Maliscious Espionage against the health
and welfare of the Iraqi People (and in the USA), fraud regarding the false
representation of these maliscious crimes.
Remedy: 1. Fire Paul Volcker as UN investigator
2. Reinstitute the administration of cash assistance from oil sales at the
Iraqi Central Bank.
An investigation led by former Federal Reserve Chairman Paul Volcker accused
Sevan in an interim report released Thursday of a "grave conflict of
interest," saying his conduct in soliciting oil deals from Iraq was
"ethically improper and seriously undermined the integrity of the United
Nations."
The conflict of interest is clearly an American invention. Nowhere else
does anybody stress financial relationships in that fashion. Paul Volcker
is clearly representing the interests of warmongers to deprive the Iraqis of
their welfare benefits and is doing so through espionage, the breeching of
confidentiality of the financial records and fraud - the false representation
of the Oil For Food program as anything but a successful cash assistance
welfare program that fed 60% of the populace. Mr. Volcker has defrauded
nearly 20 million Iraqis to incite genocide and foment revolution at the behest
of the most murderous officials in the world. Mr. Volckers must be tried,
punished and the welfare state restored to the Republic of Iraq. Because
Volcker is such an annoying and persistent advocate of genocide the most
effective method of correcting this offender would be stripping him of his
diplomatic credentials as he has utterly failed in that capacity by falsely
representing himself as anything but the cause of state failure. This
state failure was recently tried in the United States in January when the
majority of state institutions were robbed. For these reasons and more
Hospitals & Asylums is considering totally severing relations with the
federal government of the United States of America that orchestrates nothing
but genocide and state failure at home and abroad.
A. Secretary-General Kofi Annan announced April 21 the appointment of
former U.S. Federal Reserve System Chairman Paul Volcker to head an independent
panel to investigate allegations of mismanagement in the Oil-for-Food Program,
and the U.N. Security Council unanimously backed his decision with a resolution
calling for full cooperation from all involved. The Executive Director of the
Oil for Food Program, Mr. Benon Sevan, handed operations and responsibilities
to the Coalition Provision Authority (CPA) on Friday, effective as of midnight
21 November, 2003, he continues to serve the Secretary-General as Executive
Director of the Iraq Program . The Iraqi Oil for Food Program was the
largest investment managed by the United Nations who are chastised for their
permissive behavior to colonial suppression, oppression and foreign occupation.
The Coalition Provisional Authority, however is dissolved, therefore forfeiting
all claims to debt, ownership or frozen assets that should belong to the Iraqi
Government as administrated from the Iraq Reconstruction and Development
Fund. Other nations may also choose to forfeit their debts and prior
encumberances upon Iraq and invest together in a new future, where the United
Nations only makes 1% of the Gross Domestic Product of the Oil Industries and
foreign corporations only 10% of those new industries that they found. We
hope that the articles of association and deed of incorporation can be conveyed
in one Report to the Secretary General, not scheduled for 2005 and no later
than 2007 when Iraq shall honor those debts they find to be valid. For
the time being the United Nations shall not tax Iraq and shall recognize the
importance of oil revenues for the health and welfare of the Iraqi people by
continuing clever distribution systems to bring free food to 60% of the
populace.
B. The Oil For Food Program has been Iraq's principal source of revenues since
the Iraq Kuwait War, it is operated by the Office of Iraqi Program . About 60%
of Iraq's 27 million people have been wholly dependent on food provided through
a food ration system program largely supplied by goods imported under the United
Nations' Oil for Food (OFF) program, which began operations in 1996. Every
Iraqi is supplied a monthly ration of staples such as wheat, rice, dried milk,
sugar, tea, and soap. This is distributed through a network of about 45,000
local grocers and other agents, with the food imported (with some local
procurement) and supplied to the distribution network through Iraq' s Ministry
of Trade . The heavy taxation of the Sanction Committee encouraged
smuggling and left Iraq vulnerable to persecution, primarily by the United
States, complicating the receipt of humanitarian goods. On May 22, 2003 the
Security Council adopted Resolution 1483 reaffirming Iraqi sovereignty and
responsibilities to the United Nation by limiting embargoes against Iraq to
arms ensuring the supply of humanitarian and trade resources, calling for a
Development fund to be established with the Central Bank of Iraq in
co-operation with International Financial Institutions to be managed in a
transparent fashion to meet the humanitarian needs of the Iraqis and calling
for the alleviation of sovereign debt. Until 2007 Iraq oil revenues shall
be free from taxation, judgment and encumbrances of all sorts .
Resolution 1483 transferred all assets owned by the Oil for Food Program to the
Coalition Provisional Authority. On November 24, 2003 the Security Council
adopted resolution 1518 reaffirmed the decision to abolish the Security Council
Sanction Committee established pursuant to resolution 661(1990). The
complete Council is now responsible for arms sanctions and black lists under
resolution 661 (1990) . On April 21, 2004 the Security Council adopted
Resolution 1538 to provide a full and fair investigation into bribery,
kickbacks, surcharges and illicit payments to procure humanitarian goods.
Concerned with allegations of abuse affirms that illicit contracts by UN
officials are unacceptable the resolution emphasizes full co-operation with
investigators, the Coalition Provisional Authority and Member States and
welcomes the appointment of a high level inquiry into the Oil for Food Program
. In summary, with the dissolution of the Coalition Provisional Authority
all assets earned from the Oil for Food Program shall be owned by the Interim
Government and funds earned from Iraqi oil sales shall be deposited in the
Iraqi Central Bank Fund. Future Iraqi oil sales shall be conducted on the
open market without any quotas or price fixing other than that of the market
itself.
C. The oil industry was nationalized by the Ba'ath party in 1972, prior to 1990
Oil revenues created a welfare state with considerable benefits. Iraq
possesses the world's second largest proven oil reserves, currently estimated
at 112.5 billion barrels, about 11% of the world total and its gas fields are
immense as well. Many experts believe that Iraq has additional undiscovered oil
reserves, which might double the total when serious prospecting resumes,
putting Iraq nearly on a par with Saudi Arabia. Iraq's oil is of high quality
and it is very inexpensive to produce, making it one of the world's most
profitable oil sources. Iraq produces crude oil for export.
D. The Oil for Food Program was begun in a UN mission to Iraq led by Sadruddin
Aga Khan in 1991 concluded that Iraq needed $22 billion that year to provide
civilian services at pre-war levels that is acknowledged in UN Security Council
Resolution 706 that called for oil sales not to exceed $1.6 billion over 6
months to be placed in an escrow account deducting 30% of these revenues for a
Compensation Commission for Kuwait. Resolution 712 on September 19, 1991
approved the deal ensuring that $900 million for the Iraqi people disregarding
the Secretary-General's request that the cap be raised. On December 10,
1996 the Oil for Food Program began and has been renewed every six months
since. Various agencies, including UNICEF, presented reports to the
Council, cataloguing the suffering, but the US and the UK used their diplomatic
weight and threatened use of the veto to block remedial action beyond the
Oil-for-Food program. The Council's Oil-for-Food program eased the worst of the
food shortages as supplies began to arrive in mid-1997, but reports from the
field suggested that the situation remained very serious. By 1998 Oil-for-Food
sales cap increased to $5.256 billion per six months.
E. Compensating victims of the invasion of Kuwait has been a priority in the
Oil for Food Program. The Council set up the Compensation Commission with
Resolution 692 and in Resolution 705 it set the deductions from the
Oil-for-Food account at the very high level of 30%, against the advice of the
Secretary General. The Compensation Commission has considered a very large
number of claims, including claims on behalf of many individuals. According to
the Commission's web site, the Commission received approximately 1,356,500
small individual claims and settled them all with payments of approximately $16
billion. Many of the claimants had been migrant workers from Egypt and other
countries, working in Iraq and Kuwait at the time the war broke out. A strong
case can be made for compensating these individuals. The Commission wisely gave
priority to their claims. Corporations and governments have made most of
the remaining claims, which come to an additional sum of about $290 billion.
This includes claims by various Kuwait government ministries and by the Kuwait
Oil Company concerning wartime losses. Considering the wealth of Kuwait and the
absence of humanitarian problems there, the deduction of a large share of
Iraq's oil sales for war reparations to such claimants appears punitive and not
attuned to Iraq's urgent humanitarian and reconstruction needs.
F. While the compensation fund received an allocation of about 29% of the oil
proceeds on average, it actually awarded a total of $38 billion in compensation
as of April 2002 compared to just $47 billion in humanitarian supplies ordered
by Iraq as of the same date, putting the compensation fund awards at 45% vs.
humanitarian orders placed at 55%. At of the same date, the compensation fund
had paid out $16 billion to settle claims, while the humanitarian program had
received only $21 billion in goods, putting the compensation fund at 43%, while
the actual humanitarian outlays came to just 57%.
G. Surveying throughout the 1990s by the Food and Agriculture Organization and
World Food Program documented the lack of food in Iraq and its effect on
vulnerable groups. In 1996 the World Health Organization reported on health,
morbidity and mortality data for 1989-1994 and commented to increase the Oil
sales cap:
In marked contrast to the prevailing situation prior to the events of 1990-91,
the infant mortality rates in Iraq today are among the highest in the world,
low infant birth weight affects at least 23% of all births, chronic
malnutrition affects every fourth child under five years of age, only 41% of
the population has regular access to clean water, 83% of all schools need
substantial repairs. Infant mortality rose from 47 per 1000 live births
during 1984-89 to 108 per 1000 in 1994-99, and under-5 mortality rose from 56
to 131 per 1000 live births. 800,000 Iraqi children are chronically
malnourished, 21% of children under five are underweight, 20% are stunted
due to chronic malnutrition and 9% are wasted due to acute malnutrition.
H. Investigation of the principal cause of this poverty shows that it results
from the imposition of sanctions by the fifteen Council members, of whom only
two made regular use of holds: the United States and the UK. The United States
imposed the overwhelming majority. As of February 2001, the US was solely
responsible for over 93% of all holds, the US and the UK together for 5%, and
the UK alone for 1%, while 1% was attributable to all other Council
delegations, past and present. As of July 19, 2002, no less than $5.4
billion in contracts were on hold, up from $3.7 billion on May 14, 2001. Holds
have blocked vital goods. They have affected water purification systems, sewage
pipes, medicines, hospital equipment, fertilizers, electricity and
communications infrastructure, oil field equipment, and much else. Sometimes
just a small part of these contracts is alleged to have dual use. On December
18, 2001, the OIP weekly update noted that The total value of contracts
placed on hold by the 661 Committee continued to rise . . . The "holds"
covered 1,610 contracts for the purchase of various humanitarian supplies and
equipment, including 1,072 contracts, worth $3.85 billion, for humanitarian
supplies and 538 contracts, worth $527 million, for oil industry equipment.
During the week, the Committee released from hold 14 contracts, worth $19.8
million. However, it placed on hold 57 new contracts, worth $140.6 million.
I. Rethinking sanctions Secretary-General Boutrous Ghali issued a report in
January 1995 calling sanctions a, "blunt instrument" and on April 14,
1995 UN Security Council Resolution 986 allows Iraqi government $2 billion in
oil sales every six months. 13% of total available funds were set aside
for UN use in the northern governorates. The 661 sanctions committee was
expected to review and approve all supplies purchased through the escrow
account. In May to June of 2001 the UK, French and Russian presented
draft resolutions to propose various new approaches to overcoming the US
embargo and the UK proposed a Goods Review List to alleviate sanctions, whereas
the decision for land based border monitoring was vacated. On August 12,
1999 UNICEF reports that, "an additional half million children under five
who would be alive under normal circumstances had died in Iraq between 1991 and
1998." Resolution 1284 offered to improve the Oil-for-Food program
and expressed its intention to suspend sanctions with the "fundamental
objective of improving the humanitarian situation in Iraq". The Oil
sales cap was lifted and some prohibited items were permitted to enter
Iraq. In February 2000 UN Secretary General Kofi Annan expressed doubts
of his own. At a meeting organized by the International Peace Academy and in
the presence of most Council ambassadors he concluded that:
The record of the "Sanctions Decade" has raised serious doubts not
only about the effectiveness of sanctions, but also about their scope and
severity when innocent civilians often become victims not only of their own
government, but of the actions of the international community as well.
When robust and comprehensive economic sanctions are directed against
authoritarian regimes, a different problem is encountered. Then, tragically, it
is usually the people who suffer, not the political elites whose behavior
triggered the sanctions in the first place. ...Sanctions remain a blunt
instrument, which hurt large numbers of people who are not their primary
targets.
J. In conclusion, the Oil for Food Program has been dissolved, and its assets
transferred to the Central Bank of Iraq Fund. Debt payments to Kuwait and
other nations in accordance with the International Compensation Commission have
ceased, however the United States recognizes their responsibility under
22USC(62)§5323 that encourages the United States to extend international debt
relief to third world debtor nations in order;
(1) to expand the world trading system and raise the level of exports from the
United States to the developing countries in order to reduce the United States
trade deficit and foster economic expansion and an increase in the standard of
living throughout the world;
K. The procedure for establishing the need for and the viability of
international debt relief 22USC(62)§5333 requires that the Secretary of the
Treasury be informed of;
(1) the review and analysis of the debt burden of the developing countries,
with particular attention to alternatives for dealing with the debt problem
including new
lending instruments, rescheduling and refinancing of existing debt,
securitization and debt conversion techniques, discounted debt repurchases by
both the International Monetary Fund and World Bank Group member, the
International Bank for Reconstruction and Development.
L. SEC. 2215. REPORTS ON IRAQ AND AFGHANISTAN. (a);
(1) The Coalition Provisional Authority (CPA) shall, on a monthly basis until
September 30, 2006, submit a report to the Committees on Appropriations which
details, for the preceding month, Iraqi oil production and oil revenues, and
uses of such revenues.
(2) The first report required by this subsection shall be submitted not later
than 30 days after enactment of this Act .
(3) The reports required by this subsection shall also be made publicly
available in both English and Arabic, including through the CPA's Internet
website.
(b) The Secretary of State, in consultation with the heads of other relevant
Federal agencies, shall submit a report to the Committees on Appropriations not
later than 90 days after enactment of this Act detailing:
(1) the amount of debt incurred by the Government of Saddam Hussein in Iraq,
the impact forgiveness of such debt would have on reconstruction and long-term
prosperity in Iraq, and the estimated amount that Iraq will pay, or that will
be paid on behalf of Iraq, to a foreign country to service such debt during
fiscal year 2004 ;
(2) INSERTED. One key to the successful reconstruction of Iraq is to
secure a multilateral debt reduction arrangement that the new Iraqi government
could ratify after the political transition. Of the approximately $120 billion
in Iraqi debt, roughly one third of it is held by Paris Club countries such as
Japan, Germany, Russia, France and the U. S., about a third is with Gulf
countries (mostly Saudi Arabia), and the rest is divided among non-Paris Club
countries, the private sector, and International Financial Institutions .
$82,620,139,000 is directly from the International Compensation Commission
. The best way to purchase this $120 billion Iraqi debt appears to for
the Paris Club Nations to totally forgive their $40 billion of the debt as they
wish to plead victory in war reparations to such an extent that they are a
likely source of a bank loan to, Saudi and Kuwait oil refining companies who
might be interested in investing their $40 billion portion into 10% ownership
of oil refining technology on site in Iraq.
M. OPEC is an international Organization of eleven developing countries which
are heavily reliant on oil revenues as their main source of income. Membership
is open to any country which is a substantial net exporter of oil and which
shares the ideals of the Organization. The current Members are Algeria,
Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United
Arab Emirates and Venezuela . At end-2001 world proven crude oil reserves stood
at 1,074,850 million barrels, of which 845,421 million barrels, or 78.7 per
cent, was in OPEC Member Countries.
N. According to the reference case of OPEC's World Energy Model (OWEM), total
world oil demand in 2000 is put at 76 million barrels per day, As world
economic growth continues, crude oil demand will also rise to 90.6m b/d in 2010
and 103.2m b/d by 2020, according to the OWEM reference case figures. Oil
comprises roughly 40% of the world energy fuel shares and gas 25%; hydro &
nuclear account for 10% and solids for 25% for a total of 100%. The countries
with the largest crude oil reserves are; (1) Saudi Arabia with 262,697 million
barrels, (2) Iraq 112,500, (3) Iran 99,080, (4)United Arab Emirates
97,800 and (5) Kuwait with 96,500.
O. Oil exploration can cost tens or hundreds of billions of dollars. The
actual costs depend on such factors as the location of possible oil reserves
(i.e. on land or in deep water), how large the oil field is expected to be, how
detailed the exploration information must be, and the type and structure of the
rock below the ground.
Exploration requires careful mapping of the surface in order to locate suitable
sites (ie, types of geological structures), deep formation surveys (eg, with
two and three-dimensional seismic techniques), and test-drilling. It is not
easy to determine a typical cost of such activities. OPEC has the lowest
average production costs in the oil industry. This is partly because some OPEC
Member Countries have large amounts of oil in reasonably accessible locations.
Yet OPEC Members will still need to spend tens of billions of dollars in future
to meet the growing need for oil . Similar investments will also be
required for gas exploration in Iraq. It is estimate that for a bank loan
of $25 billion USD Iraq, Kuwait and United Nations could begin exploiting both
the copious natural gas deposits in Iraq and improve human resources by
investing in an environmentally sound petroleum refining industry to improve
revenues from the sale of crude oil. It is recommended to wait for such an
expensive development project at least until 2005 when constitutional democracy
has been restored or 2007 when Iraq is advised to begin making payments on
their sovereign debt again by the UN Security Council. It is expected
that the Iraqi Oil industry will be much more independent from the United
Nations Security Council.
P. The United Nations should wait until 2005-2007 to settle for a long term
shareholding of perhaps only 1% of the Gross Domestic Product of Iraqi oil
refining and natural gas pipelines that can be estimated at as much as 25% the
market value of oil reserves. Essentially if Iraq invested in natural gas
they could swiftly earn $2.5 billion USD a year and if Iraq invested in
petroleum refining corporations, both fuels and plastics, they could
conceivably earn $1 to $10 billion USD a year. With the nationalized
natural gas industry mixed with international corporate investment in natural
gas, fuel and plastic manufacturing the State of Iraq could conceivably earn
$2.5 to $5 billion in revenues and be 89% owner of the foreign owned banking
association, loan, valued at between $10 and $20 billion. Shareholders
shall continue to receive payments after 2007. They are encouraged to
forgive their claims against Iraq. They should consider a long-term
bank loan that could be paid back in 50 years directly from natural gas
speculation, fuel and plastic industry investment in 89% Iraqi owned
corporations that employ 11% foreign consultants approved by the US Backed
World Bank and European Backed IMF when peace has been restored to a sovereign
Iraq. These industries could swiftly show a $2 billion profit for the
state of Iraq and make $500 million of payments on the loan but should not be
started until peace has been restored by a sovereign Iraqi Constitutional
Council (INC) in 2005 or when they shall honor their $120 billion international
debt again in 2007. It is recommended for international claimants to
discard the $40 billion US Paris Club, the $40 billion Saudi, Kuwait, and the
$40 billion United Nations Security Council Compensation Commission and forgive
Iraq debts to the international community that has become increasingly
obligated to support Iraq as the result of breaches of peace by Coalition
Forces.
Q. The World Bank is predicting Iraqi oil production will recover almost to
prewar levels later this year to around 2.7 million barrels per day compared to
2.8 million daily before the war. Right now, Iraq is bringing in revenues by
exporting around 1.8 million barrels a day compared to more than 2 million
barrels a day in exports in early 2003 .
For more information go to www.title24uscode.org/IraqIII.doc
Certificate of Service title24uscode@aol.com 7 February 2005
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