§ Mr. TownsendTo ask the Secretary of State for Foreign and Commonwealth Affairs (1) what proposals he has to obtain relief for British business men whose firms have suffered from the freezing of Iraqi assets held in the United Kingdom;
(2) what action he intends to take to deal with the release of Iraqi funds held in the United Kingdom for (a) the settlement of United Kingdom creditors' claims in respect of legitimate trade with Iraq prior to the imposition of sanctions and (b) the financing of trade in goods not embargoed under United Nations Security Council resolutions.
§ Mr. Douglas HoggUnited Nations Security Council Resolution 778 provides for the temporary sequestration of certain unencumbered frozen Iraqi assets to be paid into a UN-administered account to fund UN operations in Iraq and to provide interim funding for the UN compensation commission and fund. The resolution expressly forbids the release of assets for the financing of trade in goods not embargoed, except to the sub-account of the UN escrow account or directly to the United Nations for humanitarian activities in Iraq.
British companies may claim from the compensation fund for direct losses as a result of Iraq's invasion and occupation of Kuwait. Losses resulting from the operation of the UN embargo and related measures are not within the scope of the compensation commission. The same is true of debts and obligations of Iraq arising prior to 2 August 1990, which should be pursued through the normal mechanisms.
§ Miss Emma NicholsonTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make it his policy that the essential aim of the British Government's action in the post-Gulf war situation should be the establishment of peace and democracy in Iraq.
§ Mr. Douglas HoggWe aim to ensure that Iraq implements its obligations under all the relevant United Nations Security Council resolutions in full. These include the elimination of Iraq's weapons of mass destruction so that Iraq can never again build a capacity to threaten its neighbours with nuclear, chemical or biological weapons; and arrangements for compensation for those who suffered as a result of Iraq's invasion of Kuwait.
We want to see a democratic and pluralistic system in Iraq in which all sectors of the population would enjoy respect for political and human rights. It is difficult to see how this can be achieved while Saddam Hussein remains in power.
§ Miss Emma NicholsonTo ask the Secretary of State for Foreign and Commonwealth Affairs what is his estimate of the number of Iraqi Shias sheltering in the marshes; what information he has of air attacks on Iraqi Shias in the marshes and of the continued use by Iraqi forces of chemical weapons; and if he will make a statement.
§ Mr. Douglas HoggIt is difficult to obtain accurate information about the number of people in and around the marshes of southern Iraq but we believe that there are about 200,000 people in the area. There have been no flights of Iraqi aircraft over the marshes since the 27W imposition of the no-fly zone on 27 August. We have no conclusive evidence of the use of chemical weapons by Iraqi forces.