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Anyone familiar with Iraq’s historical defiance of the
Rockefeller/Rothschild Oil Cartel would not have been surprised at the
ferocity of Iraqi insurgents battling US occupation forces.
Their frequent offensives were just the latest in a
century-long history of attempts by Iraqis to free their country from
the talons of the international bankers.
(What follows is excerpted from my book [You must be registered and logged in to see this link.] …: Chapter 12: The Gulf Oil War)
In 1776 the British East India Company set up headquarters at what is
now Kuwait. When Kuwaiti members of the al-Sabah clan helped Ottoman
Turks quell uprisings in southern Iraq, the Shiek of the Muntafiq tribe
gave the al-Sabahs date groves near Fao and Sufiyeh in southern Iraq.
Kuwait was seen as highly strategic by the British in protecting
their Indian Ocean sea lanes. By 1900 the British had cut a deal with
Mubarek al-Sabah, carving Kuwait out of Iraq and making it a British
protectorate. The vast majority of people who lived there opposed the
British plan. They wanted to remain part of Iraq and have always
considered Kuwait to be part of Iraq’s Basra Province.
For decades Iraqi leaders challenged the legitimacy of the 1920’s
Sykes-Picot Agreement through which the British and French created
Kuwait as a British Protectorate. Iraqis were never consulted when this
“gentleman’s agreement” was signed. Kuwait became an important
provider of oil to the West, then became petrodollar banker for the
Former British Foreign Secretary Selwyn Lloyd once stated that
Kuwaiti oil money was propping up the British pound. A running joke on
Wall Street asks, “Why do the US and Kuwait need each other?” The
answer, “Kuwait is a banking system without a country. The US is a
country without a banking system.”
In 1937 and again in 1946, the Iraqi Communist Party called strikes
at Iraq Petroleum Company (IPC) headquarters in Kirkuk. Since BP was
IPC’s major owner, the British sent troops to put down the strikes.
Half a million acres of land in Kut province was taken over by the
British lackey al-Yasin brothers and by 1958 1% of the landowners in
Iraq controlled 55% of the land.
In the 1950’s IPC was at the center of an oil boom in Iraq. Its many
tentacles included Basra Petroleum and Mosul Petroleum. Chevron,
Texaco, Exxon, Mobil, Gulf and RD/Shell were cut into IPC after the Four
Horsemen signed the Red Line Agreement.
The 1952 revolution in Egypt that deposed the Farouk monarchy and
brought nationalist leader Gamel Abdel Nasser to power inspired a series
of uprisings in Iraq aimed at IPC and the Iraqi monarchy. In 1958 King
Faisal was assassinated along with numerous members of the royal
family. The Iraqi monarchy, long a puppet of the British Empire, was
The US and the British acted quickly to ensure installation of
another puppet in the form of General Nuri es-Said. The US and Britain
convinced es-Said to sign the Baghdad Pact, part of which called for
official recognition of Kuwait. Another part of the deal authorized
Iraqi forces to be sent to Lebanon to prop up the unpopular pro-Western
government of Camille Chamoun.
In 1958 es-Said was deposed in a coup led by nationalist Army
officers loyal to Abdul Karim Qassim. The Paris weekly L’Express
reported, “The Iraqi coup was inspired by the CIA in a move to appease
the nationalists. The CIA saw Qassim as ‘containable’ and preferable to
more radical elements who were fast gaining support among the Iraqi
people”. Initially members of the Communist Party were banned from
But under pressure from the burgeoning left, Qassim dissolved the
Iraqi monarchy and cultivated ties with the Soviet Union and China. He
withdrew from the Baghdad Pact and called for incorporation of Kuwait
into Basra Province. He lifted a ban on the Iraqi Communist Party and
they became a major force in his government. He formed the state-run
Iraqi National Oil Company (INOC), making Iraq the first country
to nationalize Four Horsemen assets. In 1961 Qassim passed Law 80,
which repossessed 99.5% of IPC’s unexplored lands and called for the
annexation of Kuwait.
Big Oil had seen quite enough. By 1960 Sydney Gottlieb of CIA’s
Technical Services Division hatched a plan to assassinate President
Qassim. A low-intensity terror campaign was organized by CIA using
Nationalist and Ba’ath Parties to attack the Iraqi Communist Party, the
most formidable leftist party in the entire Middle East. The CIA gave
its stooges lists of leftist leaders to be targeted. In 1961 Kuwait
declared independence, taking Iraq’s only upriver port at Basra. US
troops were rushed to Lebanon and UK forces to Jordan.
In 1963 CIA agent Bruce Odell arranged an airlift of arms to a
right-of-center Ba’ath Party cell in Baghdad. The Ba’ath operatives
unleashed a wave of terror which featured countless massacres of
civilians. The CIA’s point man, whose right-wing Ba’ath faction emerged
victorious after assassinating Qassim in 1963, was Saddam Hussein.
According to an April 17, 2003 wire story from Indo-Asian News
Service the CIA spirited Saddam out of Iraq after the assassination and
put him up in a Cairo hotel for a few nights. Adb al-Salam Arif was
installed as President. His first decree repealed Law 80. The Four
Horsemen were back in the IPC saddle.
In 1967 IPC drilled several wells with 50,000 barrel/day potential,
hiding these findings from the Iraqi government. When the news leaked
to the Iraqi people they were outraged and Arif followed their lead. He
nationalized Iraq’s banks and insurance companies, along with 32 other
large firms. Iraq passed Laws 97 and 123 which gave the state-run INOC a
bigger role in Iraq’s oil industry, including an exclusive right to
develop the North Rumaila oilfield next to Kuwait.
Halliburton subsidiary Brown & Root had built the IPC oil
terminal at Fao which serves North Rumaila. The German company
Mannesman built IPC’s Kirkuk-Dortyol pipeline. Now these multinationals
were running for cover as an angry Iraq broke off relations with the
A year later leftist President al-Bakr was fighting off the
CIA-backed Patriotic Union of Kurdistan faction led by Jalal Talibani,
while Mustafa Barzani’s loyalist Kurd troops attacked IPC facilities
near Kirkuk. A March 11, 1970 Iraqi government decree rewarded
Barzani’s Kurds with autonomy over the northern provinces of Kirkuk and
In 1971 Iraq broke ties with Iran after the Shah was found to be
aiding Talibani’s faction on behalf of the CIA. In 1972 al-Bakr
nationalized IPC. In 1973 Basra Petroleum was nationalized. By
December 1975 all foreign holdings in Iraq were nationalized. Talibani is the current President of US-occupied Iraq.
Syria led other countries in the region in following the Iraqi
example. The IPC nationalization was wildly popular in Iraq and
bolstered the al-Bakr government, which now formed the Iraqi Company for
Oil Operations (ICOO) to market INOC petroleum overseas. ICOO signed
supply agreements with Japan, India, Brazil, Greece and many Warsaw Pact
nations. From 1973-78 Iraqi oil revenues went from $1.8 billion/year
to $23.6 billion/year.
Iraq implemented strict currency controls to prevent the international bankers from trashing their dinar.
They introduced import restrictions so that foreign currency wasn’t
wasted on frivolous luxury items. Iraq became a respected leader of the
price hawk faction of OPEC. It was setting an example globally in its
successful bid to free itself from dependency on the international
banker mafia who now wanted al-Bakr’s head. After a failed 1975 coup
attempt against al-Bakr, Iraqi police found US dollars in the possession
of the plotters.
Over four decades the Four Horsemen and their CIA henchman had tried
to quell the nationalist urge of the Iraqi people. Success was minimal
and their puppet regimes short-lived. Saddam Hussein’s regime looked
promising to the international bankers.He clamped down on nationalist
parties, killing and deporting the most radical elements. He invaded
revolutionary Iran on orders from Carter National Security Advisor and
Trilateral Commission co-founder Zbigniew Brzezinski. He privatized
cooperative farms, opened the Iraqi economy to Western multinationals
and founded the US/Iraqi Business Forum.
But when the Saudis and Kuwaitis began pressing Saddam for repayment
of $120 billion in Iranian war loans, which were originally called
“grants”, Saddam bristled. The US told the Kuwaiti al-Sabah monarchs to
hold the line, pushing Saddam onto the well-worn socialist path of the
Dean Henderson is the author of four books: Big
Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight
Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Das Kartell der Federal Reserve & Stickin’ it to the Matrix. You can subscribe free to his weekly Left Hook column @ [You must be registered and logged in to see this link.]