-Caveat Lector-

>>>Recently, the IHSL stated that as long as Hussein remains in power in
Iraq, he can't be trusted ... A<:>E<:>R <<<


http://www.guardian.co.uk/Iraq/Story/0,2763,908426,00.html
Britain's dirty secret

David Leigh and John Hooper
Thursday March 6, 2003
The Guardian

A chemical plant which the US says is a key component in Iraq's chemical
warfare arsenal was secretly built by Britain in 1985 behind the backs of
the Americans, the Guardian can disclose.

Documents show British ministers knew at the time that the £14m plant,
called Falluja 2, was likely to be used for mustard and nerve gas
production.

Senior officials recorded in writing that Saddam Hussein was actively
gassing his opponents and that there was a "strong possibility" that the
chlorine plant was intended by the Iraqis to make mustard gas. At the
time, Saddam was known to be gassing Iranian troops in their thousands in
the Iran-Iraq war.

But ministers in the then Thatcher government none the less secretly gave
financial backing to the British company involved, Uhde Ltd, through
insurance guarantees.

Paul Channon, then trade minister, concealed the existence of the
chlorine plant contract from the US administration, which was pressing for
controls on such exports.

He also instructed the export credit guarantee department (ECGD) to keep
details of the deal secret from the public.

The papers show that Mr Channon rejected a strong plea from a Foreign
Office minister, Richard Luce, that the deal would ruin Britain's image in
the world if news got out: "I consider it essential everything possible be
done to oppose the proposed sale and to deny the company concerned
ECGD cover".

The Ministry of Defence also weighed in, warning that it could be used to
make chemical weapons.

But Mr Channon, in line with Mrs Thatcher's policy of propping up the
dictator, said: "A ban would do our other trade prospects in Iraq no good".

The British taxpayer was even forced to write a compensation cheque for
£300,000 to the German-owned company after final checks on the plant,
completed in May 1990, were interrupted by the outbreak of the Gulf war.

The Falluja 2 chlorine plant, 50 miles outside Baghdad, near the Habbaniya
airbase, has been pinpointed by the US as an example of a factory rebuilt
by Saddam to regain his chemical warfare capability.

Last month it featured in Colin Powell's dossier of reasons why the world
should go to war against Iraq, which was presented to the UN security
council.

Spy satellite pictures of Falluja 2 identifying it as a chemical weapons site
were earlier published by the CIA, and a report by Britain's joint
intelligence committee, published with Tony Blair's imprimatur last
September, also focused on Falluja 2 as a rebuilt plant "formerly associated
with the chemical warfare programme".

UN weapons inspectors toured the Falluja 2 plant last December and Hans
Blix, the chief inspector, reported to the security council that the
chemical equipment there might have to be destroyed.

But until now, the secret of Britain's knowing role in Falluja's construction
has remained hidden.

Last night, Uhde Ltd's parent company in Dortmund, Germany, issued a
statement confirming that their then UK subsidiary had built Falluja 2 for
Iraq's chemical weapons procurement agency, the State Enterprise for
Pesticide Production.

A company spokesman said: "This was a normal plant for the production of
chlorine and caustic soda. It could not produce other products".

The British government's intelligence at the time, as shown in the
documents, was that Iraq, which was having increasing difficulty in
obtaining precursor chemicals on the legitimate market, intended to use
the chlorine as a feedstock to manufacture such chemicals as
epichlorohydrin and phosphorous trichloride. These in turn were used to
make mustard gas and nerve agents.

Paul Channon, since ennobled as Lord Kelvedon, was last night holidaying
on the Caribbean island of Mustique. He issued a statement through his
secretary, who said: "He can't object to the story. So he's got no
comment."

Guardian Unlimited © Guardian Newspapers Limited 2003
Forwarded for your information.  The text and intent of the article
have to stand on their own merits.
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for non-profit research and educational purposes only.
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