UNITED NATIONS, Feb. 16 -- The Treasury Department provided assurances that the United States would not obstruct two companies' plans to import millions of barrels of oil from Iraq in March 2003 in violation of U.N. sanctions, according to an e-mail from one of the companies.
Diplomats and oil brokers have recently said that the United States had long turned a blind eye to illicit shipments of Iraqi oil by its allies Jordan and Turkey. The United States acknowledged this week that it had acquiesced in the trade to ensure that crucial allies would not suffer economic hardships.
But the e-mail, along with others released this week by Sen. Carl M. Levin (Mich.), the ranking Democrat on the Senate Governmental Affairs panel's Permanent Subcommittee on Investigations, provides evidence that the Bush administration directly abetted Jordan's efforts to build up its strategic reserves with smuggled Iraqi oil in the weeks before the United States invaded Iraq in March 2003.
The illicit oil exports took place outside the Iraq oil-for-food program, which the United Nations administered from 1996 to 2003. While allegations of corruption and mismanagement in that program are under investigation by five congressional committees, the Justice Department and a U.N.-appointed panel, the illicit oil exports outside the program have received less scrutiny. According to investigators, Iraq received more revenue from those exports than from the alleged oil-for-food kickbacks.
http://www.washingtonpost.com/wp-dyn/articles/A30725-2005Feb16.html