Oral question asked in the House of Commons, by Vincent Cable (Liberal Democrat). It was answered on Tuesday, 5 June 2007 on behalf of the Foreign and Commonwealth Office.

Iraq

Question: Are the Government helping the Iraqi Government to meet one of the main concerns of Iraqi trade unions? Oil revenue that should be channelled into raising living standards is actually being siphoned off in large volumes to rich Gulf states as reparation for the first—not the second—Gulf war, including payments to companies that claim missed business opportunities at that time.

Answer: The hon. Gentleman will know that measures were taken and decisions reached at the United Nations on the payment of reparations and on other forms of payment to account for the loss of property and profits and damage during the first Gulf war period and the invasion of Kuwait. I am sure he agrees that we should see an end to those payments, which have been going on for a long time and are draining revenue that should be used to build Iraq. The Government are doing everything they can to persuade Iraq’s neighbours in the Gulf to forgo those reparations so that reconstruction can take place.

Secondary information