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Context of 'January 12, 2004: Former US Energy Official Says Iraq Can Develop Its Oil Industry without the Help of Foreign Companies'

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An FBI wiretap at the Israeli Embassy in Washington picks up Richard Perle, an aide to Senator Henry “Scoop” Jackson (D-WA—see Early 1970s), discussing classified information with an Israeli official. This is the second time Perle has been involved in providing classified information to Israel (see Late 1969). This data was given to Perle by National Security Council staff member Helmut “Hal” Sonnenfeldt, who has been under investigation since 1967 for providing classified documents to the Israelis. [Atlantic Monthly, 5/1982; American Conservative, 3/24/2003; CounterPunch, 2/28/2004]

Entity Tags: Helmut Sonnenfeldt, Richard Perle, Henry (“Scoop”) Jackson

Timeline Tags: US International Relations, Neoconservative Influence

West and East Germans come together as the Berlin Wall is torn down.West and East Germans come together as the Berlin Wall is torn down. [Source: FreedomAgenda (.com)]The Berlin Wall, the fortified network of guarded walls and fences that separates East and West Berlin, is officially breached. East Germany’s communist government gives reluctant permission for gates along the Wall to be opened after hundreds of protesters in the East, and thousands in the West, converged on crossing points and demanded that the Wall be opened. When the gates open, hundred of East Berliners surge through to be welcomed by their Western fellows; shortly thereafter, crowds of people clamber atop the Wall and begin tearing it apart, chunk by chunk. The 28-mile Wall has stood since 1961, and has served as a symbol of the so-called “Iron Curtain” forcibly separating the communist East from the democratic West. The Wall became symbolically breached days before when a new and more liberal regime in Hungary opened its border and allowed its citizens to flee into West Germany. Czechoslovakia followed suit shortly thereafter. West German Chancellor Helmut Kohl calls the decision to open the Wall “historic.” [BBC, 11/9/1989; Chronik Der Mauer, 2/9/2008]
Symbolic End to Cold War - Many reporters and historians will mark the “Fall of the Wall” as the date, symbolic or real, when the Cold War between the US and the Soviet Union officially ended. [US News and World Report, 11/13/2008]

Entity Tags: Helmut Kohl

Timeline Tags: US International Relations

A report commissioned by former US Secretary of State James Baker and the Council on Foreign Relations, titled “Strategic Energy Policy Challenges For The 21st Century,” is completed and submitted to Vice President Dick Cheney. The report was drafted by the James A. Baker III Institute for Public Policy. Edward L. Morse, an energy industry analyst, chaired the project, and Amy Myers Jaffe was the project’s director. The paper urges the US to formulate a comprehensive, integrated strategic energy policy to address the current energy crisis, which it attributes to infrastructural restraints, rapid global economic expansion, and the presence of obstacles to foreign investment in the oil-rich Middle East. The report says the world’s supply of oil is not a factor in the crisis. “The reasons for the energy challenge have nothing to do with the global hydrocarbon resource base…. The world will not run short of hydrocarbons in the foreseeable future,” the paper says. One of the report’s recommendations is to “[r]eview policies toward Iraq” with the ultimate goal of stemming the tide of anti-Americanism in the Middle-East and “eas[ing] Iraqi oil-field investment restrictions.” Iraq, under the leadership of Saddam Hussein, remains a “destabilizing influence… to the flow of oil to international markets from the Middle East.” It also notes, “Saddam Hussein has also demonstrated a willingness to threaten to use the oil weapon and to use his own export program to manipulate oil markets.” Therefore, the report says, the “United States should conduct an immediate policy review toward Iraq, including military, energy, economic, and political/diplomatic assessments” and work with key allies to develop a new integrated strategy toward Iraq. Key elements of the new policy should include narrowing the focus of sanctions and using diplomatic means to enforce existing UN resolutions. [University, 4/2/2001 pdf file; Sunday Herald (Glasgow), 10/5/2002; Sydney Morning Herald, 12/26/2002]

Entity Tags: Council on Foreign Relations, James A. Baker, Edward L. Morse, Richard (“Dick”) Cheney, Amy Myers Jaffe, James A. Baker III Institute for Public Policy of Rice University

Timeline Tags: Complete 911 Timeline, Events Leading to Iraq Invasion

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Andreas von Bulow, a former German government minister, releases a book called “Die CIA und der 11. September” (The CIA and September 11), in which he alleges US government complicity in 9/11. Von Bulow was Federal Minister of Research and Technology under Chancellor Helmut Schmidt, and before that was high up in Germany’s Ministry of Defense. [Der Spiegel (Hamburg), 9/8/2003] He argues that 9/11 was a covert operation in which the CIA and the Israeli Mossad played a role. He suggests remote control could have been used to direct the hijacked planes into their targets; that the WTC towers collapsed due to explosives; that no planes crashed into the Pentagon or in Pennsylvania; and that the CIA had faked mobile phone calls from Flight 93 passengers. [Frankfurter Allgemeine Zeitung (Frankfurt), 9/9/2003; International Herald Tribune, 10/1/2003; Daily Telegraph, 11/20/2003] Von Bulow tells the Daily Telegraph, “If what I say is right, the whole US government should end up behind bars.” The book is a bestseller in Germany, selling over 100,000 copies. [Daily Telegraph, 11/20/2003] He previewed some of his theories in a January 2002 interview (see January 13, 2002). [Daily Telegraph, 11/20/2003]

Entity Tags: Israel Institute for Intelligence and Special Tasks (Mossad), United States, Andreas von Bulow, Central Intelligence Agency, Pentagon, World Trade Center

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

In an opinion piece published by Middle East Economic Survey, Helmut Merklein, a former US assistant secretary of international energy affairs (1984 to 1990), argues that “the concept that Iraqi oil production should remain under exclusive Iraqi control should be anchored in the Iraqi constitution.” He reasons that because oil production accrues “huge rents,” those rents, “like all rents, belong in principle to the resource owner, the people of Iraq.” He says the best way for Iraqis to capture those rents is to leave the Iraq National Oil Company (INOC) in public hands and use utility contracts as the model for any agreements with the private sector. In utility-type agreements, the host governments, instead of the oil companies are the ones to benefit when profits exceed an agreed-upon rate of return. Merklein disputes the notion that Iraq would be unable to jump start the oil sector on its own. He says very little new development is needed and that the funds needed for investment “are dwarfed by the wealth represented by already proven but undeveloped reserves.… They certainly don’t need $10 billion, as projected by the Council of Foreign Relations, or $38 billion for ‘green field development’ (Deutsche Bank)…. If their objective were to restore production to their pre-Gulf-War quota of 3.14 million barrels per day, they would need a capital infusion of less than $1.0 billion. And they categorically do not need the multinationals to get access to that kind of investment. $1.0 billion is less than 0.1 percent of the value of Iraq’s currently proved reserve base. That would be like securing a $300 loan by pledging a fully paid-for $300,000 residence as collateral. With that kind of collateral, there will be no shortage of commercial or governmental (bilateral or multilateral) credit institutions eager to supply the required capital needed to rehabilitate oil production in Iraq.” The Iraqis do not need help from the international oil companies, he says, “The Iraqis have been producing oil for the last 31 years…. They are quite capable of boosting production without the help from international oil companies. They have the experience, they have a lot of practical know-how, and they are known to be inventive and flexible. Whatever they don’t have by way of technological advances, they can acquire through outsourcing in the open market, much like the multinationals do when they turn to seismic firms for exploration, drilling firms for drilling, logging firms for reserve definition, and reservoir engineering firms for production optimization.” Merklein also takes issue with claims that Iraq would be unable to produce more than three million barrels per day. “Just how ridiculous that claim is can be seen from a comparison of the US and Iraqi reserve bases and the production these bases are able to maintain. The US has at present 22.4 billion barrels of proved crude oil reserves; Iraq has 112 billion. The US produces 5.3 million barrels per day from that base. At five times our proven reserve base, Iraq can produce five times the US daily production rate, or some 23 million barrels per day. Without any additional exploration. These are proved reserves. The Iraqis have some 73 oil fields, 58 of them idle. All they have to do is drill them up.” [Middle East Economic Survey, 1/12/2005]

Entity Tags: Helmut Merklein

Timeline Tags: Iraq under US Occupation

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