Mission accomplished?
Wheat is war, and US enjoys a triumph without scrutiny
Richard Baker
The Age
November 25, 2006
WHEN a handful of AWB executives and Iraq Grains Board officials met in Cairo last year to negotiate a $900 million wheat deal, they were being watched.
As they moved around the Egyptian capital, the Australians were shadowed by a small group of personnel from the US Government's foreign agricultural service who were hell-bent on finding out what AWB was up to.
It would be another 10 months before a United Nations report outed AWB for paying $290 million in kickbacks to Saddam Hussein's regime.
Despite the heavy US attention, the Australians managed to secure an agreement from the Iraqis for a huge 2.6 million-tonne wheat contract ?- AWB's biggest ever single deal.
But it was not long before the US officials found out and made direct protests to senior Iraq Government ministers, according to sources. The Iraqis, including then prime minister Iyad Allawi, were told by the US ambassador in Baghdad that the deal with Australia was not to go ahead.
As the Howard Government this weekend digests the Cole inquiry into the wheat kickbacks scandal, it also has to consider how Australia lost its top wheat market and how the US, our friend and ally, played a key role in revealing AWB's corrupt activities to boost its own trade ambitions.
In Iraq, the US was involved in the scuttlebutt about metal filings being in Australian wheat. They were doing everything they could to get wheat contracts."
he Department of Foreign Affairs and Trade was told by Australians working in the CPA that a US official was responsible for leaking confidential AWB contracts with Iraq to the US media in 2003 in a bid to undermine Australia's dominant position in Iraq. These US press reports were the start of AWB's downfall.
So while AWB has suffered the full ramifications of having illicit dealings with Saddam Hussein, what has happened in the US to companies found to be paying kickbacks? Not much.
Despite some company executives being charged with offences, leading US Democrats have accused the Bush Administration, the Pentagon and the State Department of failing to co-operate with investigations into the involvement of US companies in oil-for-food rorts. Senior Democrat Carl Levin said: "We've got to look in the mirror at ourselves as well as point fingers at others."
The US Government is providing massive subsidies for American farmers to grow hard white wheat crops, which the Iraqis love and Australia has traditionally supplied, instead of their normal red wheat variety.
War for wheat