.GNN: What are the origins of western involvement in Iraq's oil?
Jim Vallette: The U.S. and the British have a history of intervention in Iraq for oil. It really goes back over seventy years to 1911 when the British, German and Turkish formed a pipeline consortium interest. After WWI, the U.K. took over Iraq and installed a king and took over this oil consortium. Herbert Hoover, the former U.S. president, forced the British to allow what is now Exxon Mobil into the consortium.
So by the 1920's you had a king installed by the British and you had oil exploration and production controlled by the origins of British Petroleum (BP), Exxon, Mobil, TotalFinaElf of France and Shell. From the 20's through the 60's, starting with the British and then with the U.S., there was a considerable backlash among the Iraqi people against the control of their resources.
There were interventions to get folks out of power who wanted to nationalize the oil company. In 1958, [Col.] Kassem took over in a coup and started nationalizing parts of the Iraq Petroleum Company. In 1963, the CIA assisted in a coup that wound up with an important deal and their oil interests somewhat protected. Then the Baath Party took over in 1968 and a few years later in 1972 they nationalized the oil interests of Exxon Mobil and BP.
That was the end of sixty-one years of a British and U.S. stranglehold over Iraq's oil. It severed the relationship between the U.S., U.K. and Iraq on a business and political level. They turned their support to the north where the Shah Reza Pahlavi was a very tight friend of the British and Americans. But then, the Iranian revolution in 1979 swept him from power and made Iran a mortal enemy of the U.S. Almost immediately Reagan put out an olive branch to Saddam. He took Iraq off the list of states that support terrorism, despite evidence that they still did - including harboring master terrorist Abu Nidal.
A year later the Iran-Iraq war started and the Reagan Administration took over. Almost immediately they put out an olive branch to Saddam, saying they were interested in reestablishing business connections. They took Iraq off the list of states that support terrorism, despite evidence that they still did [including harboring master terrorist Abu Nidal]. But that allowed the sale of dual-use munitions to Iraq.
In 1983, these business interests ratcheted up quite a bit after Bechtel officials met with State Department officials to discuss a plan to build an oil pipeline from Iraq to Jordan. George Shultz, the Secretary of State, had gone from being president and CEO of the Bechtel Group directly into the Reagan Administration.
GNN: Tell me about Bechtel.
Jim Vallette: Bechtel is a privately held company, one of the largest construction companies in the world. They and Halliburton are dominating the contracting for post-war Iraq. They have deep ties
http://www.citizenworks.org/corp/bechtel.php with the Bush-Cheney Administration.
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