WRITTEN QUESTION E-1694/03 by Erik Meijer (GUE/NGL) to the Commission. Ongoing and permanent take-over of the Iraqi economy and oil reserves by US firms.
Date: 2003-05-21
Institutions: European Parliament, Provisional data
Subjects: Iraq, United States, award of contract, business ethics, common commercial policy, communications systems, contract, economic reconstruction, national sovereignty, oil industry, political morality, self-determination

8.4.2004

EN

Official Journal of the European Union

C 88 E/41

(2004/C 88 E/0044)

WRITTEN QUESTION E-1694/03

by Erik Meijer (GUE/NGL) to the Commission

(21 May 2003)

Subject: Ongoing and permanent take-over of the Iraqi economy and oil reserves by US firms

1.
Is the US approach of concluding contracts in Iraq creating in a situation in which US firms, such as
Halliburton, SteveDoring Services, Bechtel, Parsons, Fluor, Louis Berger Group and Washington Group
International, after being awarded a provisional contract of one year, may obtain an extension for an
indefinite period giving them the right to manage Iraqi infrastructure permanently?

Are efforts being made to introduce the US CDMA GSM mobile phone system in Iraq, which will

2.
mean that it will permanently differ from that used in Europe and remain dependent on US producers?

3.
Does the Commission consider it realistic that the total cost of the reconstruction of Iraq, estimated
at between USD 25 and 100 billion, and the existing Iraqi debt burden of USD 383 billion will be covered
by the resumption of oil exports? Is the lower volume of oil revenue and the provisionally limited
production and export capacity being used to justify the rapid sale of underground crude oil reserves to US
oil companies, such as Chevron, as a result of which the revenue from oil exploitation will no longer be
available in the future to fund the activities of the Iraqi government?

Is this state of affairs rapidly bringing about a fait accompli with regard to the future management of

4.
oil reserves and the oil industry, which it will no longer possible to break up later?

5.
Does the Commission consider that this approach of closely linking the economy of Iraq with sectors
of the US economy is consistent with the prevailing view of free competition and transparent international
trade relations or is it incompatible with the latter?

6.
Is the European Union opposing this approach, which conflicts with the Iraqi people’s right to self-
determination, may result in impoverishment and instability in Iraq and is giving the US permanent
advantages vis-à-vis the rest of the world?

Joint answer
to Written Questions E-1693/03 and E-1694/03
given by Mr Patten on behalf of the Commission

(7 July 2003)

The Commission has been following the contracting practices followed by United States authorities in Iraq
and has examined them in the light of the United States international obligations. The Commission notes
that the United Nations Security Council (UNSC) Resolution 1483 underlines that the Development Fund
for Iraq shall be used in a transparent manner to meet the humanitarian and reconstruction needs of the
Iraqi people. The Resolution also stresses the right of Iraqi people to control their own natural resources.
The Commission expects that the Authority, which exercises the obligations and the competence of the
occupying forces according to UNSC Resolution 1483, will administer the country in the interest and for
the benefit of the Iraqi population. The Commission will continue to follow events in this area with a view
to defend the application of the principles of transparency and of free trade in international commerce to
which the Union is so strongly committed.

The Commission has indicated to the United States Government that the Union expects the United States
to comply with the relevant international rules, such as the World Trade Organisation (WTO) Government
Procurement Agreement
including the principles of transparency, non-discrimination, national
treatment and procedural guarantees.

(GPA)

The Commission has examined on a case-by-case basis some of the major contracts awarded, including
notably the first eight contracts awarded by United States Agency for International Development (USAID)
through the ‘less than full and open competition’ procedure, and has not, thus far, determined that there
has been a breach of the GPA. USAID Inspector General’s investigation and correspondance with the
United States Congress approving the use of the restricted procurement process, justified by reasons of
time constraint and the urgent need for these contracts to be carried out have been noted.

C 88 E/42

Official Journal of the European Union

EN

8.4.2004

Because of the large number of tenders it is extremely difficult for the Commission to monitor all
procurement procedures launched by United States authorities for the reconstruction of Iraq with respect
to their consistency with GPA rules. The large amount of daily tenders and insufficient information
available to non-bidders prevent the Commission from conducting any comprehensive analysis of that sort.
The initial information available through a tender notice is very limited, and more detailed information
(the tender documentation) is only available upon request by a bidder. To a large extent, the Commission
has to rely on the information provided, by Member States or by individual companies in order to carry
out an exhaustive examination of individual cases. However, despite some vague references in the press
about complaints filed by Community suppliers, no formal complaint has been submitted to the
Commission. As soon as a complaint is received, it will give the necessary priority to respond timely and
accurately. In any case, the Commission will continue to monitor closely this matter.

It should also be noted that the Commission has not received from the United States administration any
request of co-funding in exchange for the involvement of European firms.

(2004/C 88 E/0045)

WRITTEN QUESTION E-1695/03

by Mario Mantovani (PPE-DE) and Antonio Tajani (PPE-DE)
to the Commission

(21 May 2003)

Subject: Humanitarian emergency in Iraq:

the plight of children, disabled people and the elderly in

hospitals

Following Commissioner Nielson’s visit to Baghdad can the Commission supply exact figures about the
dramatic situation of children, the disabled and the elderly in Iraqi hospitals, the main innocent victims of
the overthrown regime?

In particular does it have detailed information as to whether patients whose cases constitute an emergency
may be transferred to EU countries for immediate appropriate treatment? Which countries would be
involved?

Over and above the emergency humanitarian aid swiftly made available by the European Union is the
Commission aware, following the discussions being held between the various Member States, of any
decisions concerning a possible emergency evacuation plan? If so, how would it be carried out? Otherwise,
what are the possible solutions?

Answer given by Mr Nielson on behalf of the Commission

(3 July 2003)

The still chaotic situation in Iraq makes it very difficult to obtain precise figures on the situation of
children, disabled and elderly people in Iraqi hospitals.

However, according to a recent Unicef report, the main threats to Iraqi children are posed by unexploded
ordnance (UXO), as sadly demonstrated with one of the latest incidents in Basra where six children were
reported killed while playing with ammunitions, and by the poor quality of water.

The quality of water supply is decreasing due to cross-contamination with sewage water from damaged
pipe systems and the lack of cooking fuels to boil water. This combination of factors has serious
implications on the health and nutrition status of children. In Basra, incidence rates of diarrhoea have
doubled compared to the same time last year. In Baghdad, a Unicef survey showed that malnutrition rates
have increased as 7,7 per cent of surveyed children under the age five are suffering from acute
malnutrition, compared with last year’s figure of four per cent.