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The Report of the Iraq Inquiry
foreseeable future. Keeping us on as … lead nation until the end of June is exactly
what the Americans wanted from the start.”
525.  Sir Christopher told the Inquiry that he had advised Mr Blair to focus on three
things at Crawford:
“… how to garner international support for a policy of regime change, if that
is what it turns out to be.”
“If it involves removing Saddam Hussein, how do you do it and when …”
“Above all … get them to focus on the aftermath …”194
526.  Sir Christopher added that regime change in Iraq did not, at that time, “necessarily
mean an armed invasion”.
Advice on the economic effects of military action
527.  In response to his concern about the impact that high oil prices might have
on public support for military action, Mr Blair was sent advice by both the FCO
and Mr Scarlett.
528.  In his minute of 17 March, Mr Blair had described oil prices as his “big domestic
worry”; and that higher petrol prices “really might put the public off”.195
529.  Mr Michael Arthur, the FCO Economic Director, sent Sir David Manning a
briefing on the economic effects of military action against Iraq which concluded that:
while military action against Iraq would pose some risk to the oil market, it should be
containable; there would be unavoidable economic consequences for Iraq’s neighbours,
particularly Jordan; and economic effects on Iraq itself were inevitable.196 It suggested
that the UK should think about helping northern Iraq.
530.  Mr Scarlett responded to a separate request from Sir David Manning for an update
on Iraq’s oil production, the importance of oil income to the Iraqi regime and the effect of
a halt in oil exports on the world oil market on 4 April.197
531.  Mr Scarlett advised:
Iraq benefited from both manipulating the Oil-for-Food regime and illegal
oil exports.
It was “unlikely that Iraq would voluntarily cease its illegal oil sales”.
Iraq had halted oil exports under OFF for five weeks in mid-2001 to pressurise
the Russians to resist UK/US proposals on revised sanctions.
194  Public hearing, 26 November 2009, pages 27-28.
195  Minute Prime Minister to Powell, 17 March 2002, ‘Iraq’.
196  Letter Arthur to Manning, 26 March 2002, ‘Iraq: Back Pocket Economics’.
197  Minute Scarlett to Manning, 4 April 2002, ‘Iraq: Oil’.
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