ANGLO SAUDI RELATIONS

Anglo Saudi Relations-1991-2006

Chapter 1: Introduction

Introduction

The Gulf conflict

1990 - 1991 (A.D)

Based on these late military successes and its steadfastness in resisting earlier Iranian offensives, Saddam Hussein's regime claimed victory in the war. But it was a hollow victory. Iraq gained no new territory. The economic disruptions of demobilizing part of its army - finding work for those returning from the front - were exacerbated by the end of economic aid to Iraq from the Gulf states. Since 1982, the revenue from Kuwaiti and Saudi oil production from the Neutral Zone territory on their border (approximately 650,000 barrels per day) was "loaned" to Iraq to support the war effort. 12 That regular cash infusion, along with other forms of Gulf aid, stopped when the fighting did. The war left Iraq with an enormous debt burden, usually estimated at $80 billion ($40 billion to the Gulf states, which would not be paid back but remained on the books, and $40 billion to other governments and private creditors).

Moreover, during the Iran-Iraq War Baghdad initiated a large-scale economic liberalization and privatization program, which ended up primarily benefiting cronies of the regime. The unintended consequences of this program included "high levels of inflation, unemployment, shortages in basic goods, growing and highly visible economic inequality, and the emergence of a brisk black market in foreign currencies."

As these economic difficulties became more obvious during 1989, Iraq attempted to reap the fruits of its "victory" in the Arab world, but through normal diplomacy, not saber rattling. In February 1989, Baghdad took the initiative in forming the Arab Cooperation Council, a loose grouping of Iraq, Jordan, Egypt and North Yemen, whose publicly announced purpose was to foster greater economic exchange and integration between the members. To allay Saudi worries about the new group, in April 1989 Saddam proposed to a startled King Fahd, visiting Baghdad at the time, that they sign a non-aggression pact.

Explanation

Gulf War (II) in accordance to the strategic standards

Iraqi diplomacy toward Kuwait, while clearly aimed at securing territorial concessions and economic benefits, was not overtly threatening. The border issue was raised in a number of meetings in 1989, sometimes by the Iraqi side, sometimes by the Kuwaiti side, but the Kuwaitis did not think that it was particularly pressing and the Iraqis did nothing to indicate otherwise. As late as September 1989, Shaykh Jabir al-Ahmad Al Sabah, the ruler of Kuwait, visited Baghdad. He was awarded Iraq's highest honor amid lavish praise from Saddam himself. Likewise, Iraqi rhetoric toward the United States and Israel in 1989 was in the moderate vein adopted by Baghdad during the Iran-Iraq War. As Iraqi economic difficulties grew, signs of political discontent within Iraq also emerged. In late 1988 and early 1989, scores of officers, many decorated for heroism in the war with Iran, were arrested and executed on charges of conspiring to bring down the government.

Britain-American perspective on post-war security in Gulf area

In cooperation with Britain, president Push introduced "Desert Storm" to defend democracy ...