[Congressional Record Volume 148, Number 93 (Thursday, July 11, 2002)]
[Extensions of Remarks]
[Page E1240]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INDIA AND IRAQ: ``STRATEGIC PARTNERS'' STRENGTHEN TRADE TIES WITH OIL 
                                  DEAL

                                 ______
                                 

                            HON. DAN BURTON

                               of indiana

                    in the house of representatives

                        Thursday, July 11, 2002

  Mr. BURTON of Indiana. Mr. Speaker, India calls itself ``the world's 
largest democracy'' and it claims it is a partner in the fight against 
terrorism, yet it just signed an agreement to strengthen its trade ties 
with one of the nation's major sponsors of terrorism, Iraq. According 
to the British Broadcasting Company (BBC), Amir Muhammad Rasheed, the 
Iraqi Oil Minister, called India a ``strategic partner.''
  Under the agreement, India will provide medicine, wheat, rice, 
railway equipment, and turbines for electrical generators to Iraq. In 
addition, India, Iraq, and Algeria are in the final stages of an 
agreement to drill oil in the southern part of Iraq. Mr. Rasheed's 
counterpart, Indian Oil Minister Ram Naik, said that India opposes the 
sanctions on Iraq.
  On May 18, 1999, the Indian Express reported that Indian Defense 
Minister George Fernandes organized and led a meeting with the 
Ambassadors from Iraq, Red China, Cuba, Russia, Serbia, and Libya to 
discuss setting up a security alliance ``to stop the U.S.'' This 
demonstrates that many in India do not view America as an ally, but 
instead, view us as an enemy. Apparently, these people are even willing 
to support America's enemies.
  The time has come for the United States to recognize the truth about 
India. India has a long way to go before it can be considered an 
American ally. It is a supporter of terrorist regimes and a 
practitioner of terrorism itself. It has already been placed on the 
State Department's watch list of violators of religious freedom. Now it 
is time to impose appropriate sanctions on India. We should immediately 
cut off all American aid to India, and we should declare our support 
for the self-determination movements in South Asia, such as those in 
Kashmir, in Punjab, Khalistan, and in Nagalim, among others. If India 
is going to support terrorism around the world, it is not worthy of the 
support of the hard-working, freedom-loving people of the United 
States.
  Mr. Speaker, I would like to place the BBC report on the India-Iraq 
deal into the Record at this time for the information of my colleagues 
and the American people.

                Iraq and India Ties Warmed by Oil Deals

       Iraq and India have signed an agreement to boost trade 
     ties, especially in the oil sector.
       Indian Oil Minister Ram Naik told a press conference that 
     the Indian oil firm Oil Natural Gas Corporation Limited 
     (ONGC) would soon open offices in Baghdad.
       Mr. Naik added, after meeting his Iraqi counterpart Amir 
     Muhammed Rasheed, that ``work was progressing'' on an ONGC 
     oil concession in southern Iraq.
       Iraq has awarded Indian companies a number of contracts 
     under the United Nations ``oil-for food'' programme, in 
     return for India's diplomatic support.
       The programme allows Iraq to bypass sanctions imposed for 
     its 1990 invasion of Kuwait and use oil revenues to buy food 
     and humanitarian goods.
       The U.S. has classified Iraq as a member of the ``axis of 
     evil'' while it has strengthened relations with India to 
     prosecute the war in Afghanistan.


                           Strategic partner

       After meeting with Iraqi President Saddam Hussein on 
     Saturday, Mr. Naik said that India opposed the sanctions on 
     Iraq, and called for them to be ended immediately.
       Mr. Rasheed described India as a ``strategic partner''.
       ``We have entered new projects in railways, oil and gas, 
     health and industry in addition to technical co-operation and 
     this will give a boost to the economic relations of the two 
     countries, which in consequence will be reflected on the 
     volume of trade exchange,'' Mr. Rasheed said.
       Under the agreement, India is to supply Iraq with medicine, 
     wheat, rice railway equipment and turbines for electricity 
     generations.
       Mr. Rasheed said trade between Baghdad and New Delhi under 
     an ``oil-for-food'' deal with the UN had reached $1.1 bn.


                        Expanding oil interests

       Iraq, India and Algeria are ``in the final state'' of a 
     deal to start exploring and drilling the Tuba oil field 
     between Zubair and Rumaila in the south of the country.
       ``It is a consortium between Indian companies and the 
     Algerian Sonatrach Company, and we hope to realize it by the 
     end of summer,'' Mr. Rasheed was quoted as saying in the 
     ruling Baath party's Al-Thawra newspaper.
       The field was being developed by Iraq until the 1991 Gulf 
     War, when storage facilities were destroyed.
       ONGC is awaiting approval from its board to invest 
     approximately $63m in Iraq.
       India, which imports more than two-thirds of its crude oil 
     requirement, has been seeking foreign sources as domestic 
     output matures.
       Last month it took over a concession in Sudan from Canadian 
     oil company Talisman.

     

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