Contribution to Occupation

Contribution to Occupation

2008/07/04

BAGHDAD/BERLIN

(Own report) - Berlin is actively trying to extend German activities in the Iraqi war zone. A new business agreement, signed Monday July 1, is intended to revive the dormant business relations. The SPD-affiliated Friedrich Ebert Foundation is engaged in talks concerning stronger support for Iraq, whose government has approved the opening of a branch office of the foundation in Baghdad. The impending administration change in Washington is the reason for these efforts, flanked by an intensification of political contacts. The next US administration "will demand more support from Germany, particularly in the Iraq question" predict German government advisors, meaning "a substantial contribution to the reconstruction of the country". In spite of warnings of the danger of possible kidnappings and assassination attempts against German emissaries to Iraq, the government is exploring the German potential for supporting the US occupation. Baghdad is baiting with billions in business deals. Berlin's desires are focused on the country's oil and gas deposits. Licenses for oil extraction are currently being granted. Two German enterprises, including the BASF subsidiary Wintershall, based in Kassel, have applied.

Change of Presidents

The current exploration of possibilities in Iraq must be seen against the backdrop of the imminent change of presidents in Washington. It was already predicted in May by Guido Steinberg, the expert on Iraq of the German Institute for International and Security Affairs (SWP), that the new US administration "would demand more support from Germany." This applies to the eventual electoral winner Barack Obama as well as for the possible US president John McCain. Germany will not be called upon to send troops to Iraq, but the "request" can be expected "to render substantial assistance to the reconstruction of the country." Steinberg, who just a few years ago was a consultant in the Federal Chancellery, is reflecting a widely held view. He simultaneously pointed out that an intensification of engagement in Iraq is in Germany's interests. It is not only about "fighting terrorism," but also "warding off migrants" and insuring energy supplies.[1]

More Contacts

As a matter of fact, Berlin is actively trying to extend German activities in Iraq, in spite of warnings of the dangers of possible kidnappings and assassination attempts. The Foreign Ministry has now opened a general consulate in Arbil in Northern Iraq. Consultations are being held on the possible installation of a Goethe Institute in the city.[2] Susanne Osthoff, the German kidnapped in 2005, had been involved in trying to establish a "cultural center" in Arbil immediately preceding her abduction.[3] Consultation contacts are also becoming more numerous. FDP parliamentarian, Elke Hoff visited Baghdad at the end of March, becoming, according to the Iraqi embassy in Germany, the first German parliamentarian to visit the country since the US invasion.[4] In the last few weeks, several high-ranking Iraqi politicians have visited Berlin for consultations in the Foreign Ministry and Chancellery. Soon Nuri al Maliki, Prime Minister of the Iraqi puppet government is expected to visit the German capital.

More Presence

In these consultations, the Iraqi side is pursuing the objective of enhancing the German presence in Baghdad, which was one of the topics of negotiations in June between the Iraqi ambassador to Berlin and the director of the Jordanian office of the (SPD-affiliated) Friedrich Ebert Foundation. The focus was on the possibilities of having Iraq more strongly included in the work of the foundation. It was announced afterwards that the ambassador expressed the wish "that the foundations come directly to Iraq".[5] Baghdad has been asking Foreign Minister Frank-Walter Steinmeier to personally visit the Iraqi capital. A growing number of German politicians are seconding this demand. Just a few days ago the FDP Bundestag's parliamentary group made a plea for "German government representatives to visit Iraq."[6]

New Agreements

The demand for Germany to show a stronger presence in Iraq is currently directed toward German business circles. New entrepreneurial activities would not only bring relief to the US occupiers, but also bind German Iraq policy tighter to that of the US occupier. Currently, because of the danger of kidnappings and assassinations, German companies are relatively little engaged. Last year the German-Iraqi trade volume sank to a new low. A bilateral agreement on investment security and promotion was signed in Berlin May 30. Michael Glos, German Minister of the Economy and Fawzi Hariri, Iraqi Minister of Industry, agreed Monday on a common protocol delineating the next steps toward economic cooperation between the two countries. The German-Iraqi Economic Commission was convened for the first time since 1987. Baghdad is dangling the prospect of billions in returns on investments. In the state budget, for this year alone, US $17 billion are earmarked for infrastructure projects, of which more than $6 billion are for the extension of the rail system. Billions more are planned for electrical supply, telecommunications and road construction. Iraq is seeking German companies and these are picking up the scent of lucrative business deals.

Access to Oil

This is particularly the case for oil and gas. Last week the Iraqi puppet regime opened to foreign companies access to bids for the country's oil extraction, providing western companies, for the first time in 36 years, access to Iraq's by far most significant resource. Baghdad has command over - according to the most recent estimates - the third, and possibly even the second, largest oil reserves in the world. The country's development is essentially dependent upon its oil. This is why June 1, 1972, the Iraqi Vice President at the time, Saddam Hussein initiated the nationalization of the oil industry - a measure that was quickly followed by Iraq being placed on the US list of countries allegedly supporting terrorism. This chapter is now to be closed. Among the oil fields soon to be opened for exploitation in Southern Iraq are Rumaila, Zubair and West Kurna, in the east of the country Maysan and Kirkuk and Bai Hassan in the north. Around 40 foreign firms are competing for this franchise, among them the BASF subsidiary Wintershal.[7]

Influence in the Gulf

For Wintershall, licenses in Iraq would be a welcomed extension of company activities in the Persian Gulf region. Since 2001, the BASF subsidiary has been active in Qatar, the third largest gas producer in the world.[8] If it can successfully implant itself in Iraq, the company would be extending the list of its current regions of focus (Russia, Caspian Basin, North Africa, Northern Europe, South America) to include the Persian Gulf and strengthen German influence in the region. At the moment, the RWE AG, with headquarters in Essen, is seeking access to Iranian reserves [9] and with the "Nabucco" consortium to build a pipeline to bring natural gas from the Middle East to Europe.[10] The EON company (Duesseldorf) is also seeking, through its subsidiary Ruhrgas to obtain access to Persian Gulf resources.[11] What position German companies will reach in the world's largest area of resources is, in the final analysis, dependent upon Baghdad's decision.

Travel Warnings

But prerequisites for resource business deals are a more extensive engagement in Iraq - first of all, to get Baghdad to issue licenses, and in case of success, to be able to begin work on site. But because the personal danger during a working residence in Iraq has remained acute, there is a lack of available personnel. In addition, insurance policies for travel to Iraq is at the moment at best astronomical - at worst out of reach - not least because the Foreign Ministry has warned against traveling to the country. In regards to the dangerous situation, the Foreign Ministry had announced that "German citizens are advised to leave the country." Employees not wishing to be sent to Iraq, could make reference to this warning. Business circles are seeking ways of finding personnel available for this Gulf state - and are demanding that Berlin rescind this travel warning.[12]

[1] Guido Steinberg: Warum Deutschland eine Irak-Politik braucht; Spiegel online 08.05.2008
[2] Firmen suchen ihre Chance im Irak; Handelsblatt 30.06.2008
[3] see also Rückzugsgebiet
[4] MdB Frau Elke Hoff - die erste deutsche Politikerin/Bundestagsabgeordnete, die seit dem Einmarsch der USA den Irak besucht; www.iraqiembassy-berlin.de/ 04.04.2008
[5] Friedrich-Ebert-Stiftung im Gespräch mit S.E. Alaa Al-Hashimy; www.iraqiembassy-berlin.de/ 11.06.2008
[6] Antrag der Fraktion der FDP: Mehr deutsche und internationale Unterstützung für den Wiederaufbauprozess im Irak; Deutscher Bundestag Drucksache 16/9605, 18.06.2008
[7] Öllizenzen im Irak: Wintershall darf mitmischen; n-tv 02.07.2008
[8] see also Der nächste Schritt
[9] see also Außendruck
[10] see also Nabucco and Rollenspiel
[11] see also Von Spanien bis Sibirien
[12] Firmen suchen ihre Chance im Irak; Handelsblatt 30.06.2008

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