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The Report of the Iraq Inquiry
that the US is compromised by its support for Israel, and false propaganda about
incidents in the No-Fly Zones.”
“Saddam would only accept the return of UN weapons inspectors if it were
accompanied by the immediate suspension of sanctions, with a clear
timetable for their lift. He would also demand access to oil revenues and try
to obtain abolition of the No-Fly Zones.”
“For now, Saddam will avoid measures that would unite the wider Arab world
against him and undermine his efforts to build regional economic ties. This will
further reduce the risk of military threats to Kuwait or Saudi Arabia. But he will
seek to shoot down coalition aircraft in the No-Fly Zones.”
The JIC stated that while Iraq’s illegal income was increasing, its income under the OFF
programme was likely to fall from US$17bn in 2000 to US$14bn in 2001, largely as a
result of Iraq’s temporary suspension of oil deliveries under the OFF programme.
Syria was now “the largest purchaser of illicit Iraqi oil” and was “becoming a more
favoured route for the supply of military spare parts, telecommunications equipment
and chemicals to Iraq”. There was “scope for the illegal trade … to grow further … in the
medium term there are plans for a new pipeline and additional road and rail links”.
Most of those who dealt with Iraq had not changed their minds about Saddam Hussein.
He had “no friends in Saudi Arabia or Kuwait” and he distrusted “both King Abdullah of
Jordan and President Bashar [al-Assad] of Syria”. But his strategy was “to place Syria
and Jordan under greater obligation than the west or Gulf States will be willing to
buy out”.
The “widespread renewal of Iraq’s diplomatic contacts” in 2000 had been extended in
2001 “by a variety of bilateral and multilateral meetings mainly to develop economic
relations”. International flights were continuing with Iraq-based civil aircraft flying between
Baghdad and Damascus “three or four times a week” with “a similar number of foreign
aircraft” flying “into Baghdad mainly from Russia, Turkey and other Arab countries”.
“Three ferries a week” operated “between the UAE, Bahrain and Iraq” which were “largely
unregulated”.
The JIC stated that:
“The regime feels stronger for having an external enemy and the elite is profiting. All
of Saddam’s close associates have become $ millionaires through sanctions breaking
trade …
“… Saddam judges his position to be the strongest since the Gulf War. Although
much of this is based on regional dependence on illicit oil, the regime is secure …”
328.  Iranian support for the British position provided the opportunity for Mr Blair to
maintain contacts with President Mohammad Khatami of Iran.180
329.  Mr Blair wrote to President Khatami on 30 July, thanking him for Iran’s public
support for the UK proposals which Mr Blair “… firmly believe[d] … are necessary to
180  Letter McDonald to Wechsberg, 24 July 2001, ‘Iran: Letter from the Prime Minister to President Khatami
on Iraq’.
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