How to resolve the conflicts?

Arab League

What did Iraq want from Kuwait?

• Rumaila Oilfield compensation• Bubiyan and Warbah islands• Oil production pegged to OPEC quota• Rebuild Iraq after Iran-Iraq war• Clear the war debt

Kuwait’s actions

• Rumaila Oilfield’s compensation– Denied theft accusation– Refused to pay compensation of US$2.4billion

• Angered Iraq– Relationship soured and tension rose

Kuwait’s actions

• Bubiyan and Warbah islands– Claimed ownership – Refused to lease islands– Talks failed

• Iraq deemed Kuwait as a threat – Block off Iraq’s access to the gulf– Affect oil export– Affect revenue

Kuwait’s actions

• Oil production pegged at OPEC quota– Refused to abide to quota– Oil price fell from US$18 to US$7 per barrel

• Iraq deemed Kuwait as waging economic war– Revenue fell– Lost US$1 billion when price fall by a dollar

Reactions

• America’s stand– Fear

Reasons for Invasion

• Clear war debt/ rebuild economy– Needs to clear debt of US$80 billion– Require US$230 billion for reconstruction works

• Not enough resources in war torn Iraq• People were unhappy with post-war situations– Shi’a Muslims– Iraqi soldiers

On-lookers and their actions

• Arab League– Mediator– Pressured other countries to write off debts eg.

Saudi– Pressured Kuwait and UAE to lower production– Organized dialogue between Iraq and Kuwait • Kuwait to raise oil prices to US$21 per barrel• Kuwait to write off war debt• Kuwait to provide US$500 million loan

Outcome of negotiations

• Failed– Due to islands disputes– Fielded troops at border

• 2 Aug 1990– Invasion of Kuwait– Kuwait fell within 12 hrs– Moved towards Saudi

Reasons for Invasion

• Free Kuwaitis – revolutionaries• To calm/ improve situations in Iraq (Shi’a

Muslims + Iraq soldiers)• US sympathy

What it means if Iraq takes over Kuwait?

• Control 20% of world’s oil production– Set high prices – Affect world’s economy

• Bold– Look towards Saudi’s riches

Reactions from Arab

• Say “NO” to western intervention• Kuwait requested Arab League to condemn

Iraq’s actions/withdrawal– Divided outcome– ineffective

Reactions from US

• Intervened and deployed soldiers to defend Saudi – Operation Desert Shield

• Joined in by Britain, France and members of Arab League – coalition forces

Reactions from International community

• UN security council passed resolution– Immediate withdrawal from Kuwait

• Set up for negotiations between Iraq and Kuwait

• Kuwait and Iraq’s assets frozen• Military and economic sanctions (useful??)

Iraq’s reactions

• Before Arab League’s act to condemn Iraq– Withdraw from Kuwait– Kuwait’s ruling power ousted

• After Arab League’s act to condemn Iraq with coalition forces– Declared annexation– Took westerners as hostages in Iraq and Kuwait

Iraq’s reactions

• Pressured to withdraw from Kuwait (with conditions– End sanctions– Full control of Rumaila oilfield– Access to the gulf

• Conditions not accepted by US• Last meeting before deadline for war– failed

Operation Desert Storm

• 15 January 1991• Force Iraq out of Kuwait• Destroyed Iraq’s command and control

capability through air raids• Destroyed communication centers• Iraq crippled

Impact

• Kuwait– More than 1000 civilians killed, thousands

tortured– Fled their country– Looting– Set fire to 600 out of 950 oil wells– Damages over US$25 billion

Impact

• Iraq– Military crippled• Destroyed almost 1/3 war machines• Destroyed air defence• Loss of morale among troops• Iraqi soldiers surrendered• Thousands of troops killed along the Highway of Death

Impact

• Kurds rise against Saddam– No military support from coaltion– Massacred one million Kurdish refugees– Coalition abandoned the Kurds– Peacekeepers sent in

• Iraqi’s sufferings– Widespread destruction– Spread of diseases - contamination

Regional/ International Impacts

• Environmental catastrophe– Oil wells fires– Dumping of oil (11 million barrels) in Persian Gulf– Marine life threatened– $$ to put out fire– $$ to clean up oil slick

Regional/ International Impact

• Displaced foreigners– 2 million foreigners fled the country– Sufferings for their family