Let me begin by discussing procurement and financing, two critical areas that cut across all potential WMD efforts. The ISG has been investigating Iraq’s procurement process, sources of finance, the involvement of foreign firms, and the specific types of goods that were sought. Iraq utilized a complex and well developed procurement system hidden by an effective denial and deception strategy. By the late 1990s, Iraq, in contravention of UN sanctions, pursued the procurement of military goods and technical expertise for military capabilities.
The primary source of illicit financing for this system was oil smuggling conducted through government-to-government protocols negotiated by Iraq with neighboring countries. Money also was obtained from kickback payments made on contracts set up through the UN’s Oil for Food program.
Iraq derived several billion dollars between 1999 and 2003 from oil smuggling and kickbacks. One senior regime official estimated Iraq earned $4 billion from illicit oil sales from 1999 to March 2003. By levying a surcharge on Oil for Food contracts, Iraq earned billions more during the same period.
This was revenue outside UN control and provided resources the regime could spend without restriction. It channeled much of the illicitly gathered funds to rebuild Iraq’s military capabilities through the Military Industrialization Commission, the MIC. MIC worked with the Iraqi Intelligence Service to establish front companies in Iraq and other countries to facilitate procurement.
The budget of MIC increased nearly 100 fold from 1996 to 2003, with the budget totaling $500 million in 2003. Most of this money came from illicit oil contracts. Iraq imported banned military weapons and technology and dual-use goods through Oil for Food contracts. Companies in several countries were involved in these efforts. Direct roles by government officials are also clearly established.
Even as procurement and finance cut across all of Iraq’s technical development efforts, denial and deception were infused in these efforts as well.
Much is known about Iraq’s various efforts to conceal WMD from UNSCOM after the Gulf War in 1991. The ISG, however, has uncovered more details about the extensive efforts undertaken by Iraq against UNSCOM and later UNMOVIC. Moreover, these efforts at deception did not end with the departure of inspectors in 1998, and indeed deception continued right up until war in 2003.
The Iraqi Intelligence Service was tasked with monitoring and infiltrating UNSCOM and UNMOVIC. Iraqi officials tell us hundreds of officers from multiple directorates were tasked to monitor the UN officials, employing a spectrum of capabilities from human to electronic surveillance. Elaborate plans were developed and rehearsed to enable sensitive sites to be able to hide sensitive do ents and equipment on as little as 15 minutes notice. Iraqi intelligence engaged in a worldwide effort to collect intelligence on the UN, including efforts to recruit sources inside the UN, UNSCOM and UNMOVIC.
The ISG has developed new information regarding Iraq’s dual-use facilities and ongoing research suitable for a capability to produce biological or chemical agents on short notice. Iraq did have facilities suitable for the production of biological and chemical agents needed for weapons. It had plans to improve and expand and even build new facilities.
For example, the Tuwaitha Agricultural and Biological Research Center has equipment suitable for the production of biological agents. While it conducts civilian research, ISG has also determined that it was conducting research that would be important for a biological weapons program. For example, we are continuing to examine research on Bacillus thuringiensis that was conducted until March 2003. This material is a commercial biopesticide, but it also can be used as a surrogate for the anthrax bacterium for production and weapons development purposes. Work continued on single cell proteins at Tuwaitha as well. Single cell protein research previously had been used as the cover activity for BW production at al-Hakam. We are now focusing on what such activities meant.
With respect to chemical production, Iraq was working up to March 2003 to construct new facilities for the production of chemicals. There were plans under the direction of a leading nuclear scientist/WMD program manager to construct plants capable of making a variety of chemicals and producing a year’s supply of any chemical in a month. This was a crash program. Most of the chemicals specified in this program were conventional commercial chemicals, but a few are considered “dual use.” One we are examining, commonly called DCC (N,N-Dicyclohexyl carbodiimide), was used by Iraq before 1991 as a stabilizing agent for the nerve agent VX. Iraq had plans before OIF for large-scale production of this chemical. Again, what do these activities mean?
Likewise, in the nuclear arena, the ISG has developed information that suggests Iraqi interest in preserving and expanding the knowledge needed to design and develop nuclear weapons.
One significant effort illustrating this was a high-speed rail gun program under the direction of two senior scientists associated with Iraq’s pre-1991 nuclear weapons program. Do ents from this project show that the scientists were developing a rail gun designed to achieve speeds of 2-10 kilometers per second. The ostensible purpose for this research was development of an air defense gun, but these speeds are what are necessary to conduct experiments of metals compressing together at high speed as they do in a nuclear detonation. Scientists refer to these experiments as “equation of state” measurements.
Not only were these scientists developing a rail gun, but their laboratory also contained do ents describing diagnostic techniques that are important for nuclear weapons experiments, such as flash x-ray radiography, laser velocimetry, and high-speed photography. Other do ents found outside the laboratory described a high-voltage switch that can be used to detonate a nuclear weapon, laser detonation, nuclear fusion, radiation measurement, and radiation safety. These fields are certainly not related to air defense.
It is this combination of topics that makes us suspect this lab was intentionally focused on research applicable for nuclear weapons development.
We continued our efforts to determine if Iraq was seeking to develop technologies for a uranium enrichment capability. Iraq’s efforts to procure high tolerance aluminum tubes were examined. Ostensibly these tubes were for small rockets, but the manufacturing tolerances specified were much higher than would normally be required for this purpose. Technical reasons for the high tolerances were explained by a number of Iraqis associated with their acquisition, but there are still a number of discrepancies to examine with regard to these tubes. Again, we need to determine what these activities mean.
In addition to WMD technologies, the ISG has continued to uncover a very robust program for delivery systems that were not reported to the UN. New information has been discovered relating to long-range ballistic missile development and Unmanned Aerial Vehicles (UAVs). Missiles and UAVs were flight tested that easily exceeded the UN limit of 150 kilometers. More than that, the Iraqi regime was developing technology to extend one of their ballistic missile’s range beyond 150 kilometers with changes to airframes and fuels. Discussions were underway with North Korea regarding technology associated with a 1,300 km system—presumably the No Dong. Other foreign support was being used or solicited.
Iraq was developing a variety of UAVs using inertial navigation systems and navigation using GPS. New information on the L-29 based UAV has also been developed.
Foreign technology and technical assistance were critical to the progress made by Iraqi engineers and designers. Foreign missile experts worked in Iraq in violation of UN sanctions from 1998 until just before the start of OIF. They undertook a complete review of the al-Samoud surface-to-surface missile system, which exceeded UN range limits. Based on this technical assistance, Iraq determined the original al-Samoud concept was not optimal and changed the production process to incorporate the new design information. Contracts were concluded calling for foreign firms to produce several major al-Samoud subsystems.
A variety of foreign companies with high-level political connections acted as middlemen to import technology into Iraq for missile and UAV development. These actions clearly violated UN sanctions.