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The Report of the Iraq Inquiry
30.  In December 2000, the British Embassy in Washington reported growing pressure
to change course from containment to military action to oust Saddam Hussein,
but no decision to change policy or to begin military planning had been taken by
President Clinton.15
31.  The Key Judgements of a JIC Assessment in February 2001 included:
There was “broad international consensus to maintain the arms embargo at least
as long as Saddam remains in power. Saddam faces no economic pressure
to accept … [resolution] 1284 because he is successfully undermining the
economic sanctions regime.”
“Through abuse of the UN Oil-for-Food [OFF] programme and smuggling of oil
and other goods” it was estimated that Saddam would “be able to appropriate
in the region of $1.5bn to $1.8bn in cash and goods in 2001”, and there was
“scope for earning even more”.
Iranian interdiction efforts” had “significantly reduced smuggling down
the Gulf”, but Saddam had “compensated by exploiting land routes to
Turkey and Syria”.
“Most countries” believed that economic sanctions were “ineffective,
counterproductive and should now be lifted. Without active enforcement, the
economic sanctions regime” would “continue to erode”.16
32.  The Assessment also stated:
Saddam needed funds “to maintain his military and security apparatus and
secure its loyalty”.
Despite the availability of funds, Iraq had been slow to comply with UN
recommendations on food allocation. Saddam needed “the Iraqi people to
suffer to underpin his campaign against sanctions”.
Encouraged by the success of Iraq’s border trade agreement with Turkey,
front‑line states” were “not enforcing sanctions”.
There had been a “significant increase in the erosion of sanctions over the past
six months”.
33.  There were differences of view within the UK Government about the benefits
of in‑country inspections, based on a concern that they could hand the initiative to
Saddam Hussein without offering any substantive gains.17
34.  The stated position of the UK Government in February 2001 was that containment
had been broadly successful.18
15  Letter Barrow to Sawers, 15 December 2000, ‘Iraq’.
16  JIC Assessment, 14 February 2001, ‘Iraq: Economic Sanctions Eroding’.
17  Minute McKane to Sawers, 15 February 2001 attaching Note, ‘Iraq’.
18  House of Commons, Official Report, 26 February 2001, column 620.
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