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CIA: Iraq quadruples profits from 'illicit oil sales'

SPECIAL TO WORLD TRIBUNE.COM
Wednesday, October 9, 2002

Iraq has quadrupled its revenues from smuggled oil exports, allowing it to import dual-use technology for the development of weapons of mass destruction, a new CIA report says.

The 24-page unclassified report, entitled "Iraq's Weapons of Mass Destruction Programs, said Iraq has obtained $3 billion a year from what it termed illicit oil sales.

The report, released on Friday, said that in 1998 Iraqi smuggling was estimated at $750 million. Since 1991, Baghdad was bound to export oil through the United Nations, Middle East Newsline reported.



"Iraq has been able to import dual-use, WMD-relevant equipment and material through procurements both within and outside the UN sanctions regime," the report said. "Baghdad diverts some of the $10 billion worth of goods now entering Iraq every year for humanitarian needs to support the military and WMD programs instead. Iraq's growing ability to sell oil illicitly increases Baghdad's capabilities to finance its WMD programs.

Over the last four years Baghdad's earnings from illicit oil sales have more than quadrupled to about $3 billion this year."

The CIA report lacked many of the details of a British intelligence report released last month. The CIA study did not echo the British report's assertions that Iraq was developing missiles with a range of more than 1,000 kilometers.

The U.S. intelligence report asserted that the regime of President Saddam Hussein has also used oil revenues through UN auspices to bolster its military programs. The CIA said that over the last few years Baghdad has diverted goods contracted under the UN oil-for-food program for military purposes.

"Even within the UN-authorized oil-for-food program, Iraq does not hide that it wants to purchase military and WMD-related goods," the report said.



"For example, Baghdad diverted UN-approved trucks for military purposes and construction equipment to rehabilitate WMD-affiliated facilities, even though these items were approved only to help the civilian population.

The report said UN monitors at Iraq's borders do not inspect the hundreds of millions of dollars worth of cargo that enter the country annually outside of the Oil-for-Food Program. Iraq is said to be importing goods via planes, trains, trucks and ships without any international inspections. These included the import of fiber-optic communication used to bolster Iraq's air defense network.

The CIA said Iraq might have acquired uranium enrichment capabilities that could substantially decrease the amount of time required to make a nuclear weapon. The report cited Iraqi attempts to procure tens of thousands of high-strength aluminum tubes, which could be used in a centrifuge enrichment program. These tubes could produce enough weapons-grade uranium for several weapons a year.

The intelligence agency assessed that Iraq could produce a nuclear weapon within a year if it succeeds in procuring weapons-grade fissile material abroad.

"The acquisition of sufficient fissile material is Iraq's principal hurdle in developing a nuclear weapon," the report said.

"Without such material from abroad, Iraq probably would not be able to make a weapon until the last half of the decade."

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