STOCKHOLM, Sweden, May 29, 2008

Iraq Seeks Foreign Debt Cancellation

Rice Attends U.N. Conference In Sweden Where Iraqi Leaders To Seek Relief From $67B Burden

  • Iraqi Prime Minister Nouri al-Maliki, second left, is welcomed by Sweden's Foreign Minister Carl Bildt, right, after arriving at Arlanda Airport, Stockholm, Sweden, Wednesday May 28, 2008.

    Iraqi Prime Minister Nouri al-Maliki, second left, is welcomed by Sweden's Foreign Minister Carl Bildt, right, after arriving at Arlanda Airport, Stockholm, Sweden, Wednesday May 28, 2008.  (AP Photo/Scanpix Sweden/B. Ericson)

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(CBS/AP)  Iraqi Prime Minister Nouri al-Maliki is expected to push for debt relief and demand that some countries cancel debt and war compensation dating back to Saddam Hussein's regime when he addresses a U.N. conference in Sweden on Thursday.

Al-Maliki and several of his Cabinet ministers arrived in Stockholm amid tight security on the eve of the 500-delegate conference that will review the political and security progress in Iraq.

U.N. Secretary-General Ban Ki-moon, U.S. Secretary of State Condoleezza Rice and Iranian Foreign Minister Manouchehr Mottaki also will attend the meeting, which comes as the U.S. military says violence in Iraq has reached its lowest level in more than four years, following a series of crackdowns on Sunni and Shiite extremists.

"Iraq is demanding world countries to reopen embassies and to cancel debts," al-Maliki told reporters in Stockholm. Finance Minister Bayan Jabr said the demand was particularly aimed at Arab countries.

Iraq has at least $67 billion in foreign debt - most of it owed to fellow Arab countries Saudi Arabia, Kuwait, the United Arab Emirates and Qatar.

"The Bush Administration has downplayed the amount of debt relief it expects the conference to provide," according to CBS News foreign affairs analyst Pamela Falk, who says the White House is focusing on contributions from Arab states, "particularly since the administration is facing opposition from the U.S. Congress because Iraq's government is reaping windfall profits from soaring oil prices."

"The hope in establishing the conference is as much to get the Sunni and the Shiite-majority nations together in the room as it is to make any tangible headway on Iraq's debt relief, which in and of itself will do little without reconciliation," Falk added.

Iraqi and U.S. officials attending the one-day meeting outside Stockholm are likely to tout recent security gains in Iraq. The gathering also will see pressure on Iraqi leaders to make similar movement on political goals, such as reconciliation among the country's Sunni Arabs, Shiites and Kurds.

Iraq's internal strife has brought global attention to the long-founded tension between the Sunni and Shiite powerhouse nations in the region. Saudi Arabia and Egypt have majority Sunni populations and leadership, and have shown concern over the growing influence of Shiite Iran and Syria - both of which share borders with Iraq.

Rice, on her way to the conference Wednesday, acknowledged widespread skepticism about the improvement of conditions in Iraq but said the world must support the Iraqi government.

Despite those concerns, the Iraqi government should be rewarded for fulfilling pledges to boost security and enact political reforms, she said. Iraq, she said, was now a "fully functioning system" that should not be denied assistance from its friends and neighbors.

Still, officials said more progress was needed.

"Key is, of course, that the Sunni parts of society move more clearly to the governing structures," Swedish Foreign Minister Carl Bildt told The Associated Press in an interview Wednesday.

Iraq's largest Sunni Arab political bloc pulled its members out of Iraq's 39-member Cabinet in August, saying it was not getting enough say in decision-making. Sunni politicians have been negotiating a possible return, but said Wednesday they suspended talks due to a dispute over ministry posts.

Iraq's Sunni Arab minority has long felt it is being sidelined by the majority Shiites and the Kurds, who dominate the Iraqi parliament and al-Maliki's government.

Quote

I'm unaware of any plans for any contacts of any kind between any U.S. officials and any officials of the government of Syria or Iran, other than incidental passing-in-the-hallway.

State Department spokesman Tom Casey
The conference also offers an opportunity for sideline meetings between delegates representing more than 90 countries.

Bildt said he did not expect any private talks between Rice and Mottaki, who ignored each other at a conference in Kuwait last month, but added that lower-level contacts were possible between their delegations.

In Washington, U.S. State Department spokesman Tom Casey appeared to rule out that either Rice or her envoy to Iraq, U.S. ambassador Ryan Crocker, would reprise their sideline contacts with adversaries Iran or Syria.

"I'm unaware of any plans for any contacts of any kind between any U.S. officials and any officials of the government of Syria or Iran, other than incidental passing-in-the-hallway kinds of stuff," he said.

The conference is the first annual review of the International Compact with Iraq, a sweeping five-year economic and political reform package that Ban helped broker last May in Egypt.

The compact defined international help for Iraq - including debt relief - but also set tough commitments on the Baghdad government, particularly carrying out reforms aimed at giving Sunni Arabs a greater role in the political process.

No breakthroughs were expected at the conference. Bildt said he hopes Arab states such as Saudi Arabia and Kuwait would show support for Iraq's government, for example by opening embassies in Baghdad.

"That way they have a presence and can support the reconciliation process and the political process," Bildt told Swedish news agency TT.

Iraqi refugees living in Sweden urged Iraqi officials not to downplay the violence in their homeland.

"It would be very negative for us if they do not tell the truth about the dangerous situation in Iraq," said Yousif Janan, 24, an Iraqi living in Sodertalje, south of Stockholm. The city is home to more than 6,000 Iraqis and has been nicknamed "Little Baghdad."

Sweden has admitted about 40,000 Iraqis since 2003 - far more than any Western country - but recently tightened its immigration rules.

Police said at least eight different demonstrations were planned in the Stockholm area, including an anti-U.S. rally outside the conference center in Upplands Vasby, about 15 miles north of the capital. Officers from seven counties, the SAPO security police and a national anti-terror unit will be deployed during the conference.

© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Add a Comment See all 33 Comments
by minnick8-2009 May 31, 2008 2:20 PM EDT
"Iraq is demanding world countries to reopen embassies and to cancel debts,"

We have only been there five years, and already they have a sense of entitlement. We dun good.
Reply to this comment
by feelfree4u May 31, 2008 5:43 AM EDT

Re: "Iraq Seeks Foreign Debt Cancellation"

Oh, so they want all that nerve gas and blister agent for free now?

I don''t think so.
Reply to this comment
by vietnam21 May 30, 2008 5:28 PM EDT
Tell your troops that they are not in Iraq for nothing. Tell them, they are not there in vain.

Andreas Kollmuss
Outside Stockholm
Sweden

Andreas Kollmuss are right.
Reply to this comment
by bgwinnett May 30, 2008 12:05 PM EDT
They owe us a lot of oil for us invading them.

Posted by shanev137 at 04:01 AM : May 30, 2008

Did they ask to be invaded?
Reply to this comment
by killtheliars May 30, 2008 12:01 PM EDT
Ummmmmmm No
Reply to this comment
by bluestardad May 30, 2008 11:34 AM EDT
JUST CHARGE THE SAUDIS FOR THEIR OIL THEY STEAL WITH THEIR SLANT DRILLING LIKE STARTED GULF WAR 1.

THESE SAND MEN HAVE BEEN STEALING MONEY SO FAST THEY CANNOT PAY THEIR DEBTS!

QUIT SENDING AMERICAN MONEY AID OR TROOPS TO THESE IDIOTS!

AMERICA DEMAND WAR CRIMES TRIALS NOW!

STAND UP OR SHUT UP!
Reply to this comment
by hunterdon6 May 30, 2008 9:40 AM EDT
About a weeks worth of pumping Iraq oil will pay that debt off.
Reply to this comment
by shanev137 May 30, 2008 7:01 AM EDT
They owe us a lot of oil for us invading them.
Reply to this comment
by kommandbunke May 30, 2008 3:43 AM EDT
WE SHOULD STRIP IRAQ OF ALL OIL TO PAY OFF OUR DEFICIT. WHAT''S LEFT OVER CAN THEN BE PAID TO THE CORRUPT MUSLIM SANDMEN OVER THERE. CANCEL DEBT TO IRAQ . . . AS ROLLO, LAMONT SANFORD''S FRIEND WOULD SAY: SHHHHHHHHHHHHEEEEEET!!!
Reply to this comment
by patriot12436 May 30, 2008 3:41 AM EDT
noloyalisti
You are an instigator or a terrorist, which is it ?
Reply to this comment
by l8c6 May 29, 2008 9:49 PM EDT
Iraq is so selfish. They should work with us to rebuild their country and at least sell their oil to us for a reasonable price after our sacrifice to liberate their country.

Posted by vietnam21



Frightening levels of ignorance housed in simple craniums beg evolution to do its work on america.
Reply to this comment
by l8c6 May 29, 2008 9:40 PM EDT
They''''re sitting on $30 BILLION dollars in NY banks, expecting AMERICA to pay for it''''s rebuilding, and now wants all of their debts canceled too?

*** are they doing with that $30 BILLION? Saving it for a rainy day?

F*** them!!!!

Posted by hungry1968


You bet, they''ve already paid in oil. Cheney and the defense contractors have received the spoils in their private accounts.
Reply to this comment
by talkingham May 29, 2008 8:36 PM EDT
Don''t worry Iraq, Bush, Cheney and their terrorists friends have made enough money for several lifetimes- they have theirs now and will cancel your debt.
Reply to this comment
by Syndicate May 29, 2008 8:02 PM EDT
Anybody who helped finance the butcher of Baghdad deserves to loose their money.
Reply to this comment
by noloyalisti May 29, 2008 7:37 PM EDT
I think the United States should pay the entire thing off for them. After all the murder and destruction we have done to them to steal their oil.
Reply to this comment
by impeach_w May 29, 2008 5:28 PM EDT
This is just how the first Iraq war started!
Saddam sent his guy to Kuwait to ask them to forgive some huge debts. The Kuwait emir told him he would rather see every women in Bagdad become a $10whore to pay off the debt. Iraq invaded Kuwait right after. This was told to the FBI investigator by Saddam himself after his capture.
Reply to this comment
by vietnam21 May 29, 2008 5:20 PM EDT
Iraq is so selfish. They should work with us to rebuild their country and at least sell their oil to us for a reasonable price after our sacrifice to liberate their country.
Reply to this comment
by future121 May 29, 2008 5:02 PM EDT
Sounds like we want paid and before the other foreign govts. If all debt prior to Saddam is forgiven, then all debt afterwards still owed to us after Saddam should be ours. Not sure the world would agree. Sounds like a oil takeover.
Reply to this comment
by libh8er May 29, 2008 4:00 PM EDT
We should own that piece of land ten thousand times over. Posted by patriot12436 at 09:02 AM : May 29, 2008

I agree 100%. We should have super tankers lined up for miles taking Iraqi oil back to the US. They will never be able to pay us back, but that would be a good start.
Reply to this comment
by bluestardad May 29, 2008 1:25 PM EDT
REPIGS MAKING MONEY OFF IRAQ!

By Aram Roston
Investigative producer
NBC News
updated 6:32 a.m. ET, Wed., May. 28, 2008


Aram Roston
Investigative producer


A little-noticed civil lawsuit in Florida is shining a light on an unusual but hugely profitable Pentagon contract to ship millions of gallons of aviation fuel to U.S. bases in Iraq through the kingdom of Jordan.

The deal involves a cast of influential characters, including the king of Jordan%u2019s brother-in-law, who is suing Harry Sargeant III, a top Florida-based fundraiser for Sen. John McCain''''s presidential bid.

Sargeant is a Florida businessman and former Marine Corps pilot hailed by the McCain campaign as a "Trailblazer" for raising $100,000 or more in political donations. Through a company called International Oil Trading Co., or IOTC, Sargeant and a partner have a lucrative contract worth hundreds of millions of dollars per year to supply American military forces in Iraq with fuel, especially aviation fuel. The firm ships the fuel to Jordan and then trucks it across the border, where U.S. forces escort the convoys to air bases.
Reply to this comment
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