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The Report of the Iraq Inquiry
JIC Assessment, 8 March 2001: ‘Impact of Smarter Sanctions’
238.  On 8 March, the JIC reviewed existing sanctions on Iraq and assessed the likely
impact of “smarter sanctions”.133
239.  The review of existing sanctions covered much the same ground as the February
assessment.
240.  On smarter sanctions, the JIC’s Key Judgements included:
It was envisaged that smarter sanctions would:
{{focus on military and dual-use items, and allow all civil trade;
{{retain UN control over oil revenue and bring oil smuggling under those
controls; and
{{enhance border controls against prohibited trade.
“By allowing all civil trade, smarter sanctions would give the US and UK the
opportunity to shift the political debate away from the humanitarian issue.” Iraq
argued for “control of revenues as an issue of sovereignty”. Saddam Hussein
would “still seek to blame sanctions [for humanitarian problems] and popular
Arab opinion will remain susceptible to his propaganda. But he will find it harder
to persuade Arab governments and the wider international community that
smarter sanctions are to blame for the suffering of the Iraqi people.”
“The greatest potential gains in terms of cutting Saddam’s illicit revenue would
come from curbing oil smuggling.” Neighbouring states would be likely to
demand compensation for bringing trade under UN control. The income lost
could be in excess of US$1bn per year. Unless all routes were closed off, a
reduction in oil smuggling via one route was likely to be made up, at least in part,
via another.
Governments in the region were “likely to agree in principle to inspection of
border crossings and trade in return for free civil trade”. But this would be “hard
to sell” and border controls would be difficult to implement effectively.
241.  The JIC stated that, if a smarter sanctions policy was adopted, Iraq would still
try to smuggle oil, evade the controls on military and dual-use imports, and abuse the
OFF programme. The “key battle would be over political perceptions and hence the
willingness of regional governments to co-operate with other aspects of a revised policy”.
242.  The JIC stated that whatever agreements on inspections of border crossings and
trade were reached in principle, it was:
“… unlikely that border controls would be effective in practice.
A comprehensive international border monitoring presence would be
required … such monitoring would be heavy on manpower and resources,
133  JIC Assessment, 8 March 2001, ‘Iraq: Impact of Smarter Sanctions’.
238
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