Battle Over Bush Oil Law Proposal

Jun. 10 - KGO (KGO) -- The threat of violence is of course a major concern for Iraqis, but so too is how to handle the country's oil resources. The Bush administration claims its plan to privatize production is the best way to rebuild Iraq's infrastructure. But representatives from Iraq's oil industry say the plan gives too much control to foreign interests. They're touring California right now to convey that message.

Most of the Iraqi oil wells which were destroyed during the first Gulf War and in the past four years may soon be under foreign control. A law backed by the Bush administration and now in Iraq's parliament would give control of the majority of these fields to foreign oil companies for about 30 years.

Severin Borenstein, U.C. Energy Institute: "There's a lot of expertise in the United States and in some other oil companies that simply doesn't exist in Iraq -- that they're going to need to make efficient use of these oil fields."

The plan is to privatize two thirds of the oil production with Iraq maintaining the other third. Two Iraqi labor leaders spoke in San Jose Sunday. They agree that Iraq needs help. But not so much that it has to give away It is one great natural resource for 30 years.

Faleh Abood Umara, Iraq Federation of Oil Trade Unions: "Improve the oil wells helping in the maintenance then leaving afterwards after getting their money."

Hashmeya Muhsinhussein is with the Electrical Utility Workers Union. Faleh Abood Umara is with the Federation of Oil Workers . They say the more than 60,000 Iraq electrical and oil workers they represent could strike -- paralyzing the country and stopping all oil production if parliament agrees with the Bush administration. Because of their stand they have faced death threats.

Hashmeya Mushin Hussein, Iraq Electrical Util. Workers Union: "But if every Iraqi says they're afraid nothing will happen."

Both see the law as an excuse for the U.S. and Europe to steal their oil.

While these two labor leaders are against the move to privatize the oil production some analysts believe it's the only way to help rebuild the country.

Patrick Hatcher of the University of San Francisco agrees with the U.S. stand. The Iraqi's need help to rebuild so we can leave.

Patrick Hatcher Ph.D., University of San Francisco: "We want it to work. Soon and start gaining revenues to build the country with. Not just our money via taxpayers' money."

The Iraqi Parliament is expected to vote on the new law this October.

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