Shifting Price of Oil
TARIQ AZIZ: Our policy in OPEC opposes sudden jumps in oil prices.
HUSSEIN: Twenty-five dollars a barrel is not a high price.
GLASPIE: We have many Americans who would like to see the price go above $25 because they come from oil-producing states.
HUSSEIN: The price at one stage had dropped to $12 a barrel and a reduction in the modest Iraqi budget of $6 billion to $7 billion is a disaster.
GLASPIE: I think I understand this. I have lived here for years. I admire your extraordinary efforts to rebuild your country. I know you need funds. We understand that and our opinion is that you should have the opportunity to rebuild your country. But we have no opinion on the Arab-Arab conflicts, like your border disagreement with Kuwait.
I was in the American Embassy in Kuwait during the late 60's. The instruction we had during this period was that we should express no opinion on this issue and that the issue is not associated with America. James Baker has directed our official spokesmen to emphasize this instruction. We hope you can solve this problem using any suitable methods via Klibi or via President Mubarak. All that we hope is that these issues are solved quickly.
With regard to all of this, can I ask you to see how the issue appears to us?
My assessment after 25 years' service in this area is that your objective must have strong backing from your Arab brothers. I now speak of oil But you, Mr. President, have fought through a horrific and painful war. Frankly, we can see only that you have deployed massive troops in the south. Normally that would not be any of our business. But when this happens in the context of what you said on your national day, then when we read the details in the two letters of the Foreign Minister, then when we see the Iraqi point of view that the measures taken by the U.A.E. and Kuwait is, in the final analysis, parallel to military aggression against Iraq, then it would be reasonable for me to be concerned. And for this reason, I received an instruction to ask you, in the spirit of friendship -- not in the spirit of confrontation -- regarding your intentions.