Kuwait port plan risks Iraq ire Baghdad (AFP) May 19, 2011 A decision by Kuwait to build a new port that would encroach on what some Iraqi officials insist are its territorial waters risks setting off a major diplomatic dispute between the two neighbours. Iraqis argue the construction of the Mubarak al-Kabir port would choke off the battle-scarred country's only access to international shipping lanes, thereby sparking a renewed row between two countries that have long had contentious relations. "Kuwait's Mubarak al-Kabir port will cause, if it is built, a triple-faceted crisis between Iraq and Kuwait -- political, economic and social," Iraqi political analyst Ihsan al-Shammari told AFP. "Relations had been improving after past leaks had been covered up, but this exposes them to a new rupture." Iraq still repays five percent of its annual oil revenues to Kuwait as war reparations for ex-dictator Saddam Hussein's 1990 invasion of the neighbouring emirate, and while relations between the two countries remain fractured, they have improved in recent years. Kuwait reopened its embassy to Iraq in 2008 after nearly two decades of closure, and Iraq reciprocated last year. But some disputes persist -- Kuwait's state airline has launched a lawsuit against its Iraqi counterpart, and the two countries have yet to resolve issues such as the remains of missing Kuwaitis and the demarcation of land and maritime boundaries. "Kuwait is seeking to cut off shipping routes leading to Iraq," said a senior official in Iraq's directorate of ports, speaking on condition of anonymity. "These provocative moves will effectively make Iraq a landlocked country -- Kuwait will override shipping routes, which is a flagrant violation of the principles of international maritime law, and is a violation of the maritime border with Iraq." Iraqi government spokesman Ali al-Dabbagh was not immediately available to comment when contacted by AFP. The multi-year Kuwaiti project will cost around $1 billion and add 60 docks with the capacity to cater to deep-water vessels, with the aim of making the country a key regional transportation hub. Kuwait gave approval for construction of the Mubarak al-Kabir port in February, with trucks beginning to transport material earlier this month. A source in the Kuwaiti ministry of foreign affairs told Al-Watan daily in Kuwait that there had been "no violation" of maritime borders with Iraq, saying: "The Mubarak al-Kabir port will be built on Kuwaiti land and within its territorial waters." The source referred to borders agreed in UN Security Council Resolution 833, which was accepted by Saddam following the 1991 Gulf War, but has yet to be approved by the Iraqi government after the 2003 US-led invasion. While Iraqi Foreign Minister Hoshyar Zebari said last year that delays in Baghdad's approval of the resolution were "political", diplomats have previously questioned whether Iraq's foot-dragging had to do with its desire to use it as a bargaining chip in talks with Kuwait. Within Iraq, opposition to the port has been strong -- several dailies have railed against its construction, and Shammari said Kuwait's decision to build it "sends a message to Iraq that it does not stand by Iraq's side, and that it is working to rein in Baghdad's power." Iraq is looking to upgrade its own port at Fao, at the country's southernmost point, in a $4.6 billion project announced in April 2010 that will expand it to a 100-dock facility with an annual capacity of 99 million tonnes. Once completed, along with a new rail line linking Fao to the Turkish border in the north, Iraq hopes to compete with the Suez Canal which connects the Red Sea and the Mediterranean. The Iraqi directorate of ports official described the planned Kuwaiti port as "adjacent to the site which was supposed to be for Al-Fao port." "Kuwait does not need to have a similar port -- they already have more important ones," he said.
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Outside View: Home sales and gas prices College Park, Md. (UPI) May 18, 2011 Economists expect the National Association of Realtors to report Thursday that existing home sales were 5.2 million in April, up modestly from 5.1 million in March but down significantly from 5.8 million April 2010. If April sales come in lower than economists expect, stock and bond investors will interpret this as bad news. Along with declining housing starts, slow traffic at ne ... read more |
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