Saddam builds palaces, imports whiskey

WASHINGTON -- Iraqi President Saddam Hussein, charging that international sanctions are killing his people, is spending billions of dollars in oil revenue to build palaces and smuggle whiskey.

U.S. officials said Saddam is denying Iraqis the billions of dollars in oil revenues. Instead, they said, Saddam continues to build new palaces around Iraq. The palaces, dotted by artificial lakes, contain marble floors, crystal chandeliers and gold-plated faucets.

The State Department has released photographs of nine palaces -- estimated at costing more than $2 billion -- constructed by Saddam. Five of them are around Baghdad, over which Saddam maintains a tight grip. The largest of the palaces is in Tikrit, Saddam's home town. That palace takes up a space of more than six square kilometers [four miles].

"Saddam Hussein has been building enormous palaces and VIP residences for himself and his regime," State Department spokesman James Rubin said on Tuesday. "These palaces cost billions of dollars, money which the government of Iraq could and should be spending on the needs of the Iraqi people. To pay for these palaces and these luxury goods for Saddam Hussein's family, Saddam Hussein himself and his supporters, the regime is selling oil outside of the Oil-for-Food Program and in violation of UN sanctions."

The UN program allows Iraq to sell more than $5 billion every six months for food and other supplies for Iraqis. U.S. officials, however, said Iraq smuggles billions of dollars worth of oil -- or 100,000 barrels a day -- to ensure Saddam's lifestyle and the loyalty of his security forces. Officials said Iran helps Iraq in the oil smuggling effort.

Rubin said that since the beginning of the year the United States has spotted ten 20-foot containers of whiskey in Jordan's Aqaba port bound for Iraq. He said each container is filled with 900 cases of whiskey, or 10,800 bottles.

Another container held wine and beer. "The regime in Baghdad is consuming more than 10,000 bottles of whiskey, 350,000 cans of beer and 700 bottles of wine per week - and alcohol is illegal in Iraq," Rubin said. "Food is exempt from sanctions, and these goods are classified as foods, so Baghdad is importing all of this legally. The important point here is that the regime is getting drunk while it claims that its people don't have enough to eat."

The release of the photos come as the United States faces Arab and some European opposition to the continuation of current sanctions. Last month, 70 members of the U.S. Congress urged President Bill Clinton to support the easing of sanctions, saying they only bolster Saddam's regime.

Rubin said the United States is considering intensifying efforts to end Iraqi smuggling. "We have made the decision to intercept ships and deter additional smuggling through this interception of ships," he said. "We're looking at providing additional assets. I'm not going to get into a tactical discussion with you about what our other options are."