Julian Borger

Preparing for an attack on Iran?

The Bush administration thinks that if it "can get rid of a few crazy mullahs and bring in the young guys who like Gap jeans, all the world's problems are solved," a former CIA official says.

President Bush’s second inauguration on Thursday will provide the signal for an intense and urgent debate in Washington over whether or when to extend the “global war on terror” to Iran, according to officials and foreign policy analysts in Washington. That debate is being driven by neoconservatives at the Pentagon, who emerged from the post-election Bush reshuffle unscathed despite their involvement in collecting misleading intelligence on Iraq’s weapons in the run-up to the 2003 invasion.

Washington has stood aside from recent European negotiations with Iran, and Pentagon hardliners are convinced that the current European-brokered deal suspending nuclear enrichment and intensifying weapons inspections is unenforceable and will collapse in months. Only the credible threat, and if necessary the use, of air and special operations attacks against Iran’s suspected nuclear facilities will stop the ruling clerics in Tehran from acquiring warheads, many in the administration argue.

Moderates, who are far fewer in the second Bush administration than the first, insist that if Iran does have a secret weapons program, it is likely to be dispersed and buried in places almost certainly unknown to U.S. intelligence. The potential for Iranian retaliation inside Iraq and elsewhere is so great, the argument runs, that there is in effect no military option.

A senior administration official involved in developing Iran policy rejected that argument. “It is not as simple as that,” he told the Guardian at a recent foreign policy forum in Washington. “It is not a straightforward problem, but at some point the costs of doing nothing may just become too high. In Iran you have the intersection of nuclear weapons and proven ties to terrorism. That is what we are looking at now.”

The New Yorker reported this week that the Pentagon had already sent special operations teams into Iran to locate possible nuclear weapons sites. The report by Seymour Hersh, a veteran investigative journalist, was played down by the White House and the Pentagon, with comments that stopped short of an outright denial. “The Iranian regime’s apparent nuclear ambitions and its demonstrated support for terrorist organizations is a global challenge that deserves much more serious treatment than Seymour Hersh provides,” Lawrence DiRita, the chief Pentagon spokesman, said Monday: “Mr Hersh’s article is so riddled with errors of fundamental fact that the credibility of his entire piece is destroyed.”

However, the Guardian has learned the Pentagon was recently contemplating the infiltration of members of the Iranian rebel group Mujahedin-e-Khalq (MEK) over the Iraq-Iran border to collect intelligence. The group, based at Camp Ashraf near Baghdad, was under the protection of Saddam Hussein and is under U.S. guard while Washington decides on its strategy. The MEK has been declared a terrorist group by the State Department, but a former Farsi-speaking CIA officer said he had been asked by neoconservatives in the Pentagon to travel to Iraq to oversee “MEK cross-border operations.” He refused, and does not know if those operations have begun.

“They are bringing a lot of the old warhorses from the Reagan and Iran-Contra days into a sort of kitchen Cabinet outside the government to write up policy papers on Iran,” the former officer said. He said the policy discussion was being overseen by Douglas Feith, the undersecretary of defense for policy, who was one of the principal advocates of the Iraq war. The Pentagon did not return calls for comment on the issue Monday. In the run-up to the Iraq invasion, Feith’s Office of Special Plans also used like-minded experts on contract from outside the government to serve as consultants helping the Pentagon counter the more cautious positions of the State Department and the CIA.

“They think in Iran you can just go in and hit the facilities and destabilize the government. They believe [if] they can get rid of a few crazy mullahs and bring in the young guys who like Gap jeans, all the world’s problems are solved. I think it’s delusional,” the former CIA officer said.

However, others believe that at a minimum military strikes could set back Iran’s nuclear program several years. Reuel Marc Gerecht, another former CIA officer who is now a leading neoconservative voice on Iran at the American Enterprise Institute, said: “It would certainly delay [the program], and it can be done again. It’s not a one-time affair. I would be shocked if a military strike could not delay the program.” Gerecht said the internal debate in the administration was only just beginning.

“This administration does not really have an Iran policy,” he said. “Iraq has been a fairly consuming endeavor, but it’s getting now toward the point where people are going to focus on [Iran] hard and have a great debate.”

That debate could be brought to a head in the next few months. Diplomats in Vienna, Austria, who are following the Iranian nuclear saga at the International Atomic Energy Agency expect the Iran dispute to reerupt by the middle of this year, predicting a breakdown of the diplomatic track that the E.U. troika of Britain, Germany and France is pursuing with Tehran. The Iran-E.U. agreement reached in November was aimed at getting Iran to abandon the manufacture of nuclear fuel that can be further refined to bomb grade.

Now the Iranians are feeding suspicion by continuing to process uranium concentrate into gaseous form, a breach “not of the letter but of the spirit of the agreement,” said one European diplomat.

Opinions differ widely over how long it would take Iran to produce a deliverable nuclear warhead, and some analysts believe that Iranian scientists have encountered serious technical difficulties. “The Israelis believe that by 2007, the Iranians could enrich enough uranium for a bomb. Some of us believe it could be the end of this decade,” said David Albright, a nuclear weapons expert at the Institute for Science and International Security. A recent war game carried out by retired military officers, intelligence officials and diplomats for the Atlantic Monthly came to the conclusion that there were no feasible military options and if negotiations and the threat of sanctions fail, the United States might have to accept Iran as a nuclear power.

However, Sam Gardiner, a retired Air Force colonel who led the war game, acknowledged that the Bush administration might not come to the same conclusion. “Everything you hear about the planning for Iraq suggests logic may not be the basis for the decision,” he said.

Gerecht, who took part in the war game but dissented from the conclusion, believes the Bush White House, still mired in Iraq, has yet to make up its mind. “The bureaucracy will come down on the side of doing nothing. The real issue is: Will the president and the vice president disagree with them? If I were a betting man, I’d bet the U.S. will not use preemptive force. However, I would not want to bet a lot.”

Showdown over science

The teaching of "intelligent design" alongside evolution in public schools gets its first legal test at a trial in Pennsylvania.

Religion and science clashed in a drab Pennsylvania courtroom Monday over a test case that could decide how evolution is taught in America’s public schools.

The civil trial, triggered last year by a classroom battle, marks the beginning of the first major legal assault on evolution science in 18 years. The case also represents the first legal test of “intelligent design,” the belief that life on earth is too complex to be explained by random genetic mutation and therefore a guiding force must be involved.

In Monday’s court hearings, supporters argued that “intelligent design” does not stipulate what that guiding force might be, and is therefore not a religion. Its opponents derided it as a mere repackaging of creationism, the religious dogma that God brought life into being in its present form a few thousand years ago.

The case is a test of strength that secularist organizations hope will prove decisive in destroying the scientific credibility of intelligent design once and for all. They are therefore determined to pursue it as far as the Supreme Court if necessary.

Witold Walczak, a lawyer for the American Civil Liberties Union arguing the case Monday, told the Guardian before the trial: “It’s the first vigorous review of intelligent design. They have so far refused to enter the forum where scientists publish their theories.”

The contest was joined Monday under the weak light bulbs of a federal district court in the state capital of Harrisburg. In a chamber more accustomed to hearing arguments over taxes and copyright, lawyers debated the meaning of science and the origins of life.

The defendants are the members of the school board of Dover, Pa., which last year became the first district in the country to require its teachers to question the scientific underpinning of evolution.

“The theory [of evolution] is not a fact. Gaps in the theory exist for which there is no evidence,” Dover teachers had to tell their students. “Intelligent design is an explanation of the origin of life that differs from Darwin’s view.”

The plaintiffs are 11 parents who claim that statement is religious and therefore a violation of the constitutional separation between church and state. Their legal team, backed by the ACLU, launched an assault on intelligent design, describing it as a “clever, tactical repacking of creationism,” which the Supreme Court ruled in 1987 could not be taught alongside evolution.

“It is a wedge strategy to overturn the rules of science,” argued Eric Rothschild, the lead lawyer for the plaintiffs. “It’s creationism with the words God and Bible left out. Intelligent design is not science in its infancy. It’s not science at all.”

The case for intelligent design was argued by three lawyers from the Thomas More Legal Center, a Christian foundation founded by Thomas Monaghan, a Roman Catholic multimillionaire and founder of the Domino’s Pizza chain. In his opening statement yesterday, Pat Gillan, the lead attorney for the defense, argued that the case is “about freedom in education, not about a religious agenda.”

Pointing out that the Dover statement asked schoolchildren to keep “an open mind,” Gillan said: “The primary effect of the policy would be to advance science education. It is not religion. Intelligent design is really science in its purest form — a refusal to close avenues of exploration in favor of a dominant theory.”

In the United States, the case is being portrayed as a replay of the Scopes trial of 1925, in which a Tennessee biology teacher was fined for breaking a state law banning the teaching of evolution. It was known as the “Monkey Trial” because the teacher, John Scopes, was derided for believing humans were descended from apes.

Secular science has won all the big legal battles since then, but not the struggle for American minds. In an echo of the Scopes trial, some of the Dover parents involved in the case were recently mocked at a local fair by opponents who performed a monkey dance around them.

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Sacrificing the kids

A breakaway Mormon sect is accused of abandoning as many as 1,000 teenage boys to free up the group's females for polygamous marriages.

Up to 1,000 teenage boys have been separated from their parents and thrown out of their communities by a polygamous sect to make more young women available for older men, Utah officials claim. Many of these “lost boys,” some as young as 13, have simply been dumped on the side of the road in Arizona and Utah, by the leaders of the Fundamentalist Church of Jesus Christ of Latter-day Saints (FLDS), and told they will never see their families again or go to heaven.

The 10,000-strong FLDS, which broke away from the Mormon Church in 1890 when the mainstream faith disavowed polygamy, believes a man must marry at least three women to go to heaven. The sect appeared to be in turmoil Monday after its assets were frozen last week and a warrant was issued in Arizona on Friday for the arrest of its autocratic leader, Warren Jeffs, for arranging a wedding between an underage girl and a 28-year-old man who was already married.

Jeffs is also being sued by lawyers for six of the lost boys for conspiracy to purge surplus males from the community, and by his nephew, Brent Jeffs, who accuses him of sexual abuse.

Warren Jeffs’ whereabouts Monday were uncertain, but Utah officials said they believed he may be hiding in an FLDS compound near Eldorado, Texas, and they have contacted the Texan authorities.

Some have voiced concern that an attempt to corner the sect leader could provoke a tragedy like the 1993 siege of the Branch Davidian sect in Waco, Texas. Jim Hill, an investigator in Utah’s attorney general’s office, told the Guardian Monday: “From everything I’ve been able to discern about Warren Jeffs, he is someone who is capable of some very different things. Whether that includes a mass suicide, I don’t know. But I worry about it all the time.”

FLDS officials and the sect’s lawyer, Rodney Parker, did not return calls seeking comment, but they have previously argued that the lost boys were exiled from their communities because they were teenage delinquents who refused to abide by the sect’s rules.

Hill said although the boys may have been rebellious, their expulsion had more to do with the ruthless sexual arithmetic of a polygamous sect. “Obviously if you’re going to have three to one or four to one female-to-male marriages, you’re going to run out of females. The way of taking care of it is selectively casting out those you don’t want to be in the religion,” the investigator said.

Dave Bills, who runs Smiles for Diversity, a foundation in Salt Lake City set up by an ex-FLDS member to look after the lost boys, said it was difficult to estimate their numbers because they had been scattered. But Bills said the figures could be “as low as 400 and as high as 1,000.”

“They live every day like it’s their last day and they don’t care about anything,” Bills said. “They’re told they won’t have three wives, and they’re doomed. But they all want to go back to their moms.”

One of the boys, Gideon Barlow, said he was expelled from a FLDS community in Colorado City, Ariz., for wearing short-sleeved shirts, listening to CDs and having a girlfriend. He said his mother rejected him on orders from the sect’s leaders. “I couldn’t see how my mom would let them do what they did to me,” he told the Los Angeles Times. After his expulsion, he attempted to give her a Mother’s Day present, but she told him to stay away. “I am dead to her now,” he said.

Joanne Suder, a lawyer representing some of the boys in a case against the sect, said there had been “a conspiracy to excommunicate young boys to change the arithmetic so there are more young girls available for polygamy.” She said some of the boys were simply driven out of town and dumped on the side of the road, leaving them traumatized. “I think anyone who finds themselves ousted from the only environment they ever knew and left in the middle of nowhere, and then is not allowed to be with their family and loved ones, and is led to believe that they can no longer go to heaven, is going to be troubled,” Suder told the Guardian.

Polygamy is illegal in the United States, but authorities have been wary of confronting the FLDS for fear of provoking a siege or inviting political attacks for religious persecution.

State investigators have also found it hard to persuade FLDS members to give evidence against Jeffs. However, authorities in Utah and Arizona have recently increased the pressure on the sect’s leader. Last week, a Utah judge froze FLDS assets, and the attorney’s office in Mohave County, Ariz., charged Jeffs for arranging a marriage between a 28-year-old married man and a 16-year-old girl. If convicted he could serve up to two years in prison.

Jeffs inherited the leadership of the FLDS three years ago after the death of his father, Rulon. Since then, he has ruled its enclaves on the Arizona-Utah border, in Texas and in Canada with fearsome discipline. At the age of 49 he has reportedly fathered at least 56 children by 40 wives.

There have been no confirmed sightings of Jeffs for over a year, but a photograph of a man resembling the sect leader was taken in January at the FLDS 1,700-acre Texas ranch near Eldorado.

Randy Mankin, the editor of the local newspaper, the Eldorado Success, said: “People on the ranch don’t have contact with the outside world. Two men only do whatever is necessary to do their business.”

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Triggering a new arms race?

Bush is expected to give the Air Force the go-ahead to develop advanced space-based weapons.

President Bush is expected to issue a directive in the next few weeks giving the U.S. Air Force a green light for the development of space weapons, potentially triggering a new global arms race, it was reported Wednesday. The new weapons being studied range from hunter-killer satellites to orbiting weapons using lasers, radio waves or even dense metal tubes dropped from space by weapons known as “rods from God” on ground targets.

A national security directive on space has been sought by the Air Force since last year. The New York Times Wednesday quoted a senior administration official as saying a decision is expected within weeks. Neither the Air Force nor the White House returned calls seeking comment.

The directive will replace a 1996 directive signed by Bill Clinton that was vaguely worded but that emphasized the peaceful use of space, in line with almost unanimous global opinion. Plans for potential space weapons were vetoed by the Clinton White House.

Space warfare experts said they expected the Bush administration directive to be similarly vague but also to signal a shift in attitude toward exploring ways of affirming U.S. dominance in space militarily. “Up to now, this has been a campaign by the Air Force to have the freedom to do what they want to do in space,” said Theresa Hitchens, vice president of the Center for Defense Information. “This will, for the first time in U.S. history, give them the go-ahead.”

Hitchens says the directive would trigger an arms race in space. “Let’s think of a world where the U.S. has ‘death stars’ everywhere in space that are going over countries every 10 minutes. Do you think other countries are going to accept that?” she said.

The new push to develop space weapons comes as the Earth-based missile defense system, which is intended to hit an incoming missile with another missile and was heavily promoted by the Bush administration, has been set back by technical problems and failed tests. The Air Force’s intentions were spelled out last September by Gen. Lance Lord, head of its space command, who said satellites had given U.S. military power a decisive advantage with their spying, communications and targeting capacities. That advantage had to be maintained by “space superiority.” “It can be our destiny if we work it hard and continue to aggressively follow that,” he said.

The potential weapons fall into two main categories as defined by a 2002 Pentagon planning document: “space control,” or anti-satellite warfare, and “space force application,” or attacking the ground from orbit. The Air Force claims that it can design military satellites that could protect U.S. military and civilian satellites already in orbit. However, most space experts argue that the satellites are aimed at destroying other country’s satellites.

“Space force application” weapons include the global strike program, which envisages a space plane armed with half a ton of munitions. The “rods from God” scheme would aim tungsten, titanium or uranium cylinders at targets on the ground from a position in low Earth orbit. By the time they hit the Earth they would be traveling at around 7,500 mph, with the impact of a small nuclear warhead.

Another option would use mirrors to focus an intense laser beam onto terrestrial targets, referred to as a “death star” by its critics. According to one estimate, a space-based laser would cost $100 million per target. “It’s an enormously expensive way of hitting the ground,” said Laura Grego, a space weapons expert at the Union of Concerned Scientists. She said the “space control” satellites were more likely to be deployed, but even they could trigger an arms race.

“We’re legitimizing the idea of attacking other people’s satellites, and we have the most to lose. This technology is diffusing rapidly,” Grego said. “To be the masters of space you’d have to not allow anyone else to launch into space. But you can’t blow up everyone’s launch pads.”

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“Crazed, pro-war lickspittles”

British M.P. George Galloway turns his Senate hearing on oil-for-food allegations into an indictment of the invasion of Iraq.

George Galloway confronted his accusers in the U.S. Senate Tuesday, denying any involvement in Iraqi oil trades and using the occasion to unleash an indictment of the war with a stunning ferocity. Galloway, the newly elected M.P. for Bethnal Green and Bow, was appearing before the Senate investigations subcommittee examining sanctions-busting oil deals in Iraq before the war.

In a lengthy preamble before his appearance, Senate staff presented a series of documents, enlarged and printed on huge white boards, which they said were Iraqi government memorandums naming Galloway as the recipient of highly lucrative allocations of cheap Iraqi oil under the U.N.-administered oil-for-food program.

Sen. Norm Coleman, the Republican committee chairman who has taken the lead in making allegations against Galloway, repeatedly insisted that the hearing was “not a court of law.” But the early stages were nothing if not lawyerly, with Coleman very much in the role of chief prosecutor. In a low, businesslike voice, the senator from Minnesota read out an indictment of Galloway running through the evidence against him.

“Senior Iraqi officials have confirmed that you, in fact, received oil allocations and that the documents that identify you as an allocation recipient are valid,” Coleman said. “If you can provide any evidence that challenges the veracity of these documents or the statements of former Iraqi officials, we’d welcome that input.”

Then it was the Respect Party leader’s turn, and any sense of judicial propriety was instantly shattered. The courtroom became a vaudeville theater, as the M.P. lampooned his interrogators, accusing them of making “schoolboy howler” mistakes.

Galloway insisted that he was entirely innocent. “Senator, I am not now nor have I ever been an oil trader, and neither has anyone on my behalf,” he declared, in language that deliberately echoed that of Joe McCarthy’s anticommunist witch hunt conducted half a century ago just meters from the chamber used for Tuesday’s hearing. “I have never seen a barrel of oil, owned one, bought one, sold one, and neither has anybody on my behalf,” he said.

The wide, wood-paneled room was packed with journalists and spectators. A group of politics students stood at the back. The turnout among senators was less spectacular, however. Only four appeared for the start of the hearing. By the time Galloway took the microphone, there were only two left, Coleman and Carl Levin, the leading Democrat on the panel.

Witnesses in this august setting, a little below and surrounded by the horseshoe bench of powerful senators, are usually awed and almost always on the defensive. Galloway was on the attack from the first moment. He entered the hearing room with guns blazing, telling journalists his inquisitors were “crazed,” “pro-war” “lickspittles” of the president, and predicting he would turn the tables on them. “I want to put these people on trial. This group of neocons is involved in the mother of smokescreens,” he said.

That was the common theme in a feat of bare-knuckled rhetoric not often witnessed by U.S. senators, who are accustomed to considerably more reverence for their positions. CNN called it a “blistering attack on senators rarely heard or seen on Capitol Hill.”

Galloway deflected every charge against him and flung it back at the Bush administration and the U.S. Congress. For example, he denied the committee’s claim that he had met Saddam many times, asserting there had been only two such meetings — and that U.S. Defense Secretary Donald Rumsfeld had met the then Iraqi president the same number of times, to sell arms, Galloway said.

“Now, you have nothing on me, senator, except my name on lists of names from Iraq, many of which have been drawn up after the installation of your puppet government in Baghdad.”

The senators mostly soaked up the punches, reserving judgment until a press conference later, when Coleman claimed Galloway’s credibility was “very, very suspect.” In the hearing, however, the senators struggled to pin down Galloway with Iraqi oil sales documents with his name on them.

“What counts is not the names on the paper; what counts is where is the money, Senator?” Galloway said. “Who paid me hundreds of thousands of dollars of money? The answer to that is nobody. And if you had anybody who ever paid me a penny, you would have produced them here today.”

A jubilant Galloway later told an American television interviewer that his appearance marked a victory for the “British parliamentary style” over the more sedate Senate. Galloway used antiwar rhetoric far more raw than most politicians are accustomed to in America, where shared patriotism normally trumps outrage. He said that 100,000 people had paid with their lives for false assumptions on Iraq, “1,600 of them American soldiers sent to their deaths on a pack of lies, 15,000 of them wounded, many of them disabled forever on a pack of lies.”

In their cross-examination, the senators focused on Galloway’s relationship with Fawaz Zureikat, a Jordanian businessmen with extensive dealings in prewar Iraq who served as chairman of and as principal contributor to Galloway’s charity, the Ma-riam Appeal. They suggested Zureikat had been oil trading in his name and the M.P. must have known about it.

Once more, the accused sought to turn the tables on his accusers. When Coleman asked how he could have failed to be aware of Zureikat’s oil deals, Galloway turned the attention to Coleman’s campaign fundraising. He said: “Well, there’s a lot of contributors, I’ve just been checking your Web site …”

“Not many at that level, Mr. Galloway,” the senator interjected.

“No, let me assure you there are,” Galloway went on. “I’ve checked your Web site. There are lots of contributors to your political campaign funds — I don’t suppose you ask any of them how they made the money they give you.”

Coleman stuck to his task. “If I can get back to Zureikat one more time, do you recall a time when you specifically had a conversation with him about oil dealings in Iraq?”

“I’ve already answered that question,” Galloway replied. “I can assure you, Mr. Zureikat never gave me a penny from an oil deal, from a cake deal, from a bread deal or from any deal.”

He danced around many of the questions, frequently responding, “I can do better than that” and answering a slightly different question. His biggest stumble came when he mistakenly assumed Sen. Levin had backed the war.

Levin’s investigation of the U.S. government’s own failure to police sanctions provided Galloway ammunition for his counterattack. But he made no more headway than his Republican counterpart in his cross-examination of the witness. When Levin invited Galloway to say whether he was alleging the documentary evidence was forged, the British M.P. replied: “Well, I have no way of knowing, sir.”

“That’s fine. So you’re not alleging,” Levin persisted.

“I have no way of knowing.”

“Is it fair to say, since you don’t know, you’re not alleging?”

“Well, it would have been nice to have seen it before today,” Galloway said.

The minuet of exchanges played on for a few more minutes before the senators gave up frustrated. They had come equipped for a trial and found themselves in the role of stooges for a man accustomed to playing to the gallery.

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Helping Saddam

A Senate report says the Bush administration was aware of U.S. firms' illegal kickbacks to the Iraqi leader in oil-for-food sales but did nothing to stop them.

The U.S. administration turned a blind eye to extensive sanctions busting in the prewar sale of Iraqi oil, according to a new Senate investigation. A report released Monday night by Democratic staff on the Senate investigations subcommittee presents documentary evidence that the Bush administration was made aware of illegal oil sales and kickbacks paid to the Saddam Hussein regime but did nothing to stop them.

The scale of the shipments involved dwarfs those previously alleged by the Senate subcommittee against U.N. staff and European politicians like British M.P. George Galloway and the former French Interior Minister Charles Pasqua. In fact, the Senate report found that U.S. oil purchases accounted for 52 percent of the kickbacks paid to the regime in return for sales of cheap oil — more than those of the rest of the world put together.

“The United States was not only aware of Iraqi oil sales which violated U.N. sanctions and provided the bulk of the illicit money Saddam Hussein obtained from circumventing U.N. sanctions,” the report says. “On occasion, the United States actually facilitated the illicit oil sales.

The report is likely to ease pressure from conservative Republicans on Kofi Annan to resign from his post as U.N. secretary-general. The new findings are also likely to be raised when Galloway appears before the Senate subcommittee on investigations Tuesday.

The Respect M.P. for Bethnal Green and Bow arrived Monday in Washington and demanded an apology from the Senate for what he called the “schoolboy dossier” passed off as an investigation against him. “It was full of holes, full of falsehoods and full of value judgments that are apparently only shared here in Washington,” he said at Washington Dulles Airport. He told Reuters: “I have no expectation of justice … I come not as the accused but as the accuser. I am [going] to show just how absurd this report is.”

Galloway has denied allegations that he profited from Iraqi oil sales and will come face to face with the subcommittee in what promises to be one of the most highly charged pieces of political theater seen in Washington for some time.

Monday’s report makes two principal allegations against the Bush administration. First, it found that the U.S. Treasury failed to take action against a Texas oil company, BayOil, that facilitated payment of “at least $37 million in illegal surcharges to the Hussein regime.” The surcharges were a violation of the U.N.’s oil-for-food program, by which Iraq was allowed to sell heavily discounted oil to raise money for food and humanitarian supplies. However, Saddam was allowed to choose which companies were given the highly lucrative oil contracts. Between September 2000 and September 2002 (when the practice was stopped) the regime demanded kickbacks of 10 to 30 cents a barrel in return for oil allocations.

In its second main finding, the report said the U.S. military and the State Department gave a tacit green light for shipments of nearly 8 million barrels of oil bought by Jordan, a vital American ally, entirely outside the U.N.-monitored oil-for-food program. Jordan was permitted to buy some oil directly under strict conditions, but these purchases appeared to be under the counter.

The report details a series of efforts by U.N. monitors to obtain information about BayOil’s oil shipments in 2001 and 2002, and the lack of help provided by the U.S. Treasury. After repeated requests over eight months from the U.N. and the U.S. State Department, the Treasury’s Office of Foreign Assets Control wrote to BayOil in May 2002, requesting a report on its transactions, but did not “request specific information by U.N. or direct Bayoil to answer the U.N.’s questions.”

BayOil’s owner, David Chalmers, has been charged over the company’s activities. His lawyer, Catherine Recker, told the Washington Post: “BayOil and David Chalmers [said] they have done nothing illegal and will vigorously defend these reckless accusations.”

The Jordanian oil purchases were shipped in the weeks before the war, out of the Iraqi port of Khor al-Amaya, which was operating without U.N. approval or surveillance. Investigators found correspondence showing that Odin Marine Inc., the U.S. company chartering the seven huge tankers that picked up the oil at Khor al-Amaya, repeatedly sought and received agreement from U.S. military and civilian officials that the ships would not be confiscated by U.S. Navy vessels in the Maritime Interdiction Force (MIF) enforcing the embargo. Odin was reassured by a State Department official that the U.S. “was aware of the shipments and has determined not to take action.”

The company’s vice president, David Young, told investigators that a U.S. naval officer at MIF told him that he “had no objections” to the shipments. “He said that he was sorry he could not say anything more. I told him I completely understood and did not expect him to say anything more,” Young said.

An executive at Odin Maritime confirmed the Senate account of the oil shipments as “correct” but declined to comment further.

It was not clear Monday night whether the Democratic report would be accepted by Republicans on the Senate investigations subcommittee.

The Pentagon declined to comment. The U.S. representative’s office at the U.N. referred inquiries to the State Department, which failed to return calls.

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