Godfather Diplomacy

By Cernig

So, other than the usual cheerleaders, no-one believes Ambassador Crocker when he says the Bush administration isn't trying to keep Iraq as a permanent satrapy, a colony of American power. Given the administration's track record in truth-telling, that's not surprising.

But tomorrows Independent has Patrick Cockburn following up his article from today which leaked details of US demands on Iraqi sovereignty by leaking how the Bush administration intends strongarming Maliki et al into acceptance - Godfather style. (Hat tip - dday guesting at Political Animal):

The US is holding hostage some $50bn (£25bn) of Iraq's money in the Federal Reserve Bank of New York to pressure the Iraqi government into signing an agreement seen by many Iraqis as prolonging the US occupation indefinitely, according to information leaked to The Independent.

US negotiators are using the existence of $20bn in outstanding court judgments against Iraq in the US, to pressure their Iraqi counterparts into accepting the terms of the military deal, details of which were reported for the first time in this newspaper yesterday.

Iraq's foreign reserves are currently protected by a presidential order giving them immunity from judicial attachment but the US side in the talks has suggested that if the UN mandate, under which the money is held, lapses and is not replaced by the new agreement, then Iraq's funds would lose this immunity. The cost to Iraq of this happening would be the immediate loss of $20bn.

Blackmail, then. As dday points out, this is pretty rich coming from a guy who vetoed a defense bill because it held provisions that he said might bankrupt Iraq with lawsuits.

Can someone in the MSM ask McCain if he's OK with this international racketeering?

Comments

[Eric Martin]

Someone made this point in the Political Animal thread, and I hadn't considered it until he mentioned it:

It's more extortion than blackmail.