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CNN Live At Daybreak

International News Desk

Aired September 09, 2003 - 05:36   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


FREDRICKA WHITFIELD, CNN ANCHOR: A whole lot on the lap of our international journalists here at CNN.
International assignment editor David Clinch joins us this morning.

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Thanks, Fredricka.

Good morning.

Well, Iraq still very much our top story. There is some good news and I mean I don't think we're probably emphasizing this enough. There hasn't been a U.S. fatality or a coalition fatality for more than a week in Iraq, and I think there's not enough emphasis, I think. You know, we make a big deal when there is a casualty on the American side or on the coalition side in Iraq. We need to remind ourselves that they have improved security, they have apparently succeeded in reducing the amount of attacks, they have perhaps caught a lot of people. We're not really sure if they're catching the right people.

Whatever it is, the combination of things in Iraq, they have been able to stay casualty free for about a quick in Iraq. So there is some good news.

One of the stories, though, that is sort of behind-the-scenes when we're talking about a lot of the money that's being spent on Iraq is the oil export question. Right from the beginning on the U.S. occupation of Iraq, the idea was that they would be able to reconstruct the oil industry in Iraq and basically start exporting oil quickly, not necessarily a lot, but export it quickly and then increase the amount of oil they could export and start paying for the occupation.

Well, that hasn't happened. The main oil line out of Iraq is not functioning, probably won't be functioning -- that is, the northern pipeline that goes out to Turkey probably won't be functioning for about another five weeks or so.

There was another fire near Kirkuk yesterday, actually, on a branch line of that pipeline. That'll take time to repair.

The irony is that Iraq's oil production is actually increasing. They just can't export it because the pipeline keeps getting blown up all the time. And that's a major problem because if you can't even get to the basic export level to get income coming in to pay for the reconstruction of the oil industry, they'll never be able to work. It will take much, much longer to get to the long-term goal of producing and exporting six million, five, six million barrels a day.

Now, that, you know, is part of the story. It's behind-the- scenes or is a business aspect. It's not as exciting as soldiers and troops. But it's all to do with who will pay for this. The U.S. making it clear from the start that if they could get this oil out that they would take a large section of that money that they would make from exporting and use it immediately for the reconstruction.

Without that, that's why you're talking about $87 billion plus each year for the reconstruction of Iraq.

WHITFIELD: And, of course...

CLINCH: If that oil export can kick in and be sustained, then the money will start coming in.

WHITFIELD: Right. And, of course, speaking of that reconstruction and that proposed $87 billion, we are still monitoring the reaction coming out of Iraq that's trickling in as people there, those who were privy enough to hear it...

CLINCH: Absolutely. Well...

WHITFIELD: ... their reaction to the speech.

CLINCH: ... interestingly, some of the people we've talked to on the oil side say that's not enough money, they need more. So we may still see more money allocated for, for instance, rebuilding the oil industry.

WHITFIELD: All right, a lot on our plates today.

CLINCH: Absolutely.

WHITFIELD: David Clinch, thanks very much.

CLINCH: OK.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired September 9, 2003 - 05:36   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: A whole lot on the lap of our international journalists here at CNN.
International assignment editor David Clinch joins us this morning.

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Thanks, Fredricka.

Good morning.

Well, Iraq still very much our top story. There is some good news and I mean I don't think we're probably emphasizing this enough. There hasn't been a U.S. fatality or a coalition fatality for more than a week in Iraq, and I think there's not enough emphasis, I think. You know, we make a big deal when there is a casualty on the American side or on the coalition side in Iraq. We need to remind ourselves that they have improved security, they have apparently succeeded in reducing the amount of attacks, they have perhaps caught a lot of people. We're not really sure if they're catching the right people.

Whatever it is, the combination of things in Iraq, they have been able to stay casualty free for about a quick in Iraq. So there is some good news.

One of the stories, though, that is sort of behind-the-scenes when we're talking about a lot of the money that's being spent on Iraq is the oil export question. Right from the beginning on the U.S. occupation of Iraq, the idea was that they would be able to reconstruct the oil industry in Iraq and basically start exporting oil quickly, not necessarily a lot, but export it quickly and then increase the amount of oil they could export and start paying for the occupation.

Well, that hasn't happened. The main oil line out of Iraq is not functioning, probably won't be functioning -- that is, the northern pipeline that goes out to Turkey probably won't be functioning for about another five weeks or so.

There was another fire near Kirkuk yesterday, actually, on a branch line of that pipeline. That'll take time to repair.

The irony is that Iraq's oil production is actually increasing. They just can't export it because the pipeline keeps getting blown up all the time. And that's a major problem because if you can't even get to the basic export level to get income coming in to pay for the reconstruction of the oil industry, they'll never be able to work. It will take much, much longer to get to the long-term goal of producing and exporting six million, five, six million barrels a day.

Now, that, you know, is part of the story. It's behind-the- scenes or is a business aspect. It's not as exciting as soldiers and troops. But it's all to do with who will pay for this. The U.S. making it clear from the start that if they could get this oil out that they would take a large section of that money that they would make from exporting and use it immediately for the reconstruction.

Without that, that's why you're talking about $87 billion plus each year for the reconstruction of Iraq.

WHITFIELD: And, of course...

CLINCH: If that oil export can kick in and be sustained, then the money will start coming in.

WHITFIELD: Right. And, of course, speaking of that reconstruction and that proposed $87 billion, we are still monitoring the reaction coming out of Iraq that's trickling in as people there, those who were privy enough to hear it...

CLINCH: Absolutely. Well...

WHITFIELD: ... their reaction to the speech.

CLINCH: ... interestingly, some of the people we've talked to on the oil side say that's not enough money, they need more. So we may still see more money allocated for, for instance, rebuilding the oil industry.

WHITFIELD: All right, a lot on our plates today.

CLINCH: Absolutely.

WHITFIELD: David Clinch, thanks very much.

CLINCH: OK.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com