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Foreign and Commonwealth Office

Answer

Glenda Jackson: To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of whether UN Security Council Resolution 1483 permits the 100 per cent. purchase by foreign companies of all Iraqi economic sectors, excluding only natural resources. [135762] Mr. Rammell: Resolution 1483 authorises the Coalition to undertake activities to promote economic reconstruction in Iraq, in co-ordination with the Special Representative of the UN Secretary General CPA Order 39 on Foreign Direct Investment permits up to 100 per cent. participation in a new or existing business in Iraq, but does not allow for foreign direct and indirect ownership of the natural resources sector involving primary extraction and initial processing. In addition, this Order does not apply to banks and insurance companies. Foreign direct investment is an important means of promoting employment opportunities and improving social welfare. This Order creates the conditions for much needed capita] to enter the Iraqi economy. The Government are therefore satisfied that Security Council Resolution 1483 provides a sound legal basis for the policy goals of the CPA Foreign Investment Order. We have also satisfied ourselves through UK officials working within the CPA, and the office of the UK Special Representative for Iraq that co-ordination with the UN has taken place, in consultation with the International Financial Institutions. The Order was approved by the Governing Council and had the support of the Minister of Finance.

Secondary information

Type

Written question

Reference

413 c1308W;413 c1304W; 135762

Session

2002-03

Subjects

Business Financial institutions Iraq Foreign investment Oil Natural resources UN resolutions Reconstruction

Link

View this Written question on www.publications.parliament.uk