1. How to resolve the conflicts?
Arab League

2. What did Iraq want from Kuwait?
• Rumaila Oilfield compensation
• Bubiyan and Warbah islands
• Oil production pegged to OPEC quota
• Rebuild Iraq after Iran-Iraq war
• Clear the war debt

3. Kuwait’s actions
• Rumaila Oilfield’s compensation
– Denied theft accusation
– Refused to pay compensation of US$2.4billion
• Angered Iraq
– Relationship soured and tension rose

4. Kuwait’s actions
• Bubiyan and Warbah islands
– Claimed ownership
– Refused to lease islands
– Talks failed
• Iraq deemed Kuwait as a threat
– Block off Iraq’s access to the gulf
– Affect oil export
– Affect revenue

5. Kuwait’s actions
• Oil production pegged at OPEC quota
– Refused to abide to quota
– Oil price fell from US$18 to US$7 per barrel
• Iraq deemed Kuwait as waging economic
war
– Revenue fell
– Lost US$1 billion when price fall by a dollar

6. Reactions
• America’s stand
– Fear

7. Reasons for Invasion
• Clear war debt/ rebuild economy
– Needs to clear debt of US$80 billion
– Require US$230 billion for reconstruction works
• Not enough resources in war torn Iraq
• People were unhappy with post-war situations
– Shi’a Muslims
– Iraqi soldiers

8. On-lookers and their actions
• Arab League
– Mediator
– Pressured other countries to write off debts eg.
Saudi
– Pressured Kuwait and UAE to lower production
– Organized dialogue between Iraq and Kuwait
• Kuwait to raise oil prices to US$21 per barrel
• Kuwait to write off war debt
• Kuwait to provide US$500 million loan

9. Outcome of negotiations
• Failed
– Due to islands disputes
– Fielded troops at border
• 2 Aug 1990
– Invasion of Kuwait
– Kuwait fell within 12 hrs
– Moved towards Saudi

10. Reasons for Invasion
• Free Kuwaitis – revolutionaries
• To calm/ improve situations in Iraq (Shi’a
Muslims + Iraq soldiers)
• US sympathy

11. What it means if Iraq takes over
Kuwait?
• Control 20% of world’s oil production
– Set high prices
– Affect world’s economy
• Bold
– Look towards Saudi’s riches

12. Reactions from Arab
• Say “NO” to western intervention
• Kuwait requested Arab League to condemn
Iraq’s actions/withdrawal
– Divided outcome
– ineffective

13. Reactions from US
• Intervened and deployed soldiers to defend
Saudi – Operation Desert Shield
• Joined in by Britain, France and members of
Arab League – coalition forces

14. Reactions from International
community
• UN security council passed resolution
– Immediate withdrawal from Kuwait
• Set up for negotiations between Iraq and
Kuwait
• Kuwait and Iraq’s assets frozen
• Military and economic sanctions (useful??)

15. Iraq’s reactions
• Before Arab League’s act to condemn Iraq
– Withdraw from Kuwait
– Kuwait’s ruling power ousted
• After Arab League’s act to condemn Iraq with
coalition forces
– Declared annexation
– Took westerners as hostages in Iraq and Kuwait

16. Iraq’s reactions
• Pressured to withdraw from Kuwait (with
conditions
– End sanctions
– Full control of Rumaila oilfield
– Access to the gulf
• Conditions not accepted by US
• Last meeting before deadline for war
– failed

17. Operation Desert Storm
• 15 January 1991
• Force Iraq out of Kuwait
• Destroyed Iraq’s command and control
capability through air raids
• Destroyed communication centers
• Iraq crippled

18. Impact
• Kuwait
– More than 1000 civilians killed, thousands
tortured
– Fled their country
– Looting
– Set fire to 600 out of 950 oil wells
– Damages over US$25 billion

19. Impact
• Iraq
– Military crippled
• Destroyed almost 1/3 war machines
• Destroyed air defence
• Loss of morale among troops
• Iraqi soldiers surrendered
• Thousands of troops killed along the Highway of Death

20. Impact
• Kurds rise against Saddam
– No military support from coaltion
– Massacred one million Kurdish refugees
– Coalition abandoned the Kurds
– Peacekeepers sent in
• Iraqi’s sufferings
– Widespread destruction
– Spread of diseases - contamination

21. Regional/ International Impacts
• Environmental catastrophe
– Oil wells fires
– Dumping of oil (11 million barrels) in Persian Gulf
– Marine life threatened
– $$ to put out fire
– $$ to clean up oil slick

22. Regional/ International Impact
• Displaced foreigners
– 2 million foreigners fled the country
– Sufferings for their family