STATEMENT OF JAMES A. PLACKE DEPUTY ASSISTANT SECRETARY FOR NEAR EAST AND SOUTH ASIAN AFFAIRS DEPARTMENT OF STATE BEFORE THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES FRIDAY, JANUARY 27, 1984

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00337R000100050016-2
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: December 22, 2016
• Document Release Date: November 18, 2010
• Sequence Number: 16
• Publication Date: January 27, 1984
• Content Type: REPORT

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STATEMENT OF
JAMES A. PLACKE
DEPUTY ASSISTANT SECRETARY
FOR NEAR EAST AND SOUTH ASIAN AFFAIRS
DEPARTMENT OF STATE
BEFORE THE SENATE COMMITTEE ON ENERGY
AND NATURAL RESOURCES
FRIDAY, JANUARY 27. 1984
MR. CHAIRMAN, MEMBERS OF THE COMMITTEE:
I AM PLEASED TO HAVE THE OPPORTUNITY TO APPEAR BEFORE THIS
COMMITTEE ON BEHALF OF SECRETARY OF STATE SHULTZ TO REVIEW THE
SECURITY SITUATION IN THE PERSIAN GULF AS IT MAY AFFECT OIL
SUPPLY. CONSCIOUS OF THE CONTINUING IMPORTANCE OF GULF OIL
SUPPLIES TO OUR ALLIES AND TO THE REST OF THE WORLD, THE
ADMINISTRATION IS ACCORDING HIGH PRIORITY TO POLITICAL AND
DIPLOMATIC POLICIES DESIGNED TO PREVENT AN ESCALATION IN THE
FIGHTING BETWEEN IRAN AND IRAQ AND TO STRENGTHEN SECURITY
ARRANGEMENTS TO DEAL WITH ANY ATTEMPT TO DISRUPT FREE WORLD OIL
SUPPLIES.
THE IRAN-IRAQ WAR, NEARLY THREE AND ONE-HALF YEARS OLD, HAS
FROM ITS BEGINNING HAD THE POTENTIAL TO AFFECT VITAL U.S.
INTERESTS IN THE PERSIAN GULF REGION. SINCE THE START OF THE
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WAR, WE HAVE REGULARLY STATED THAT VITAL U.S. INTERESTS WERE AT
STAKE THERE AND THAT WE WOULD TAKE THE STEPS NECESSARY TO
PROTECT THEM. THE PRESIDENT AND SECRETARY SHULTZ HAVE
REAFFIRMED THIS POLICY ON SEVERAL OCCASIONS.
AN ESCALATION OF THE WAR, WHETHER INVOLVING INCREASED
ATTACKS ON NON-BELLIGERENT SHIPPING IN THE GULF OR ON OIL
FACILITIES IN IRAN AND IRAQ OR ATTACKS ON FACILITIES IN
NEIGHBORING COUNTRIES, COULD INTERFERE WITH THE PRODUCTION OF
NEARLY ONE-FOURTH OF THE CRUDE OIL CURRENTLY CONSUMED IN THE
FREE WORLD, NOT ALL OF WHICH COULD BE REPLACED BY OTHER
SUPPLIERS. ANY PROLONGED CURTAILMENT OF OIL EXPORTS FROM THE
GULF WOULD HAVE VERY SERIOUS CONSEQUENCES FOR THE ECONOMIES OF
THE U.S. AND OUR ALLIES. THE GULF EXPORTERS SINCE THE LAST
GULF COOPERATION COUNCIL (GCC) MEETING AT DOHA, QATAR IN
NOVEMBER, 1983 ALSO HAVE MADE CLEAR PRIVATELY THAT THEY WOULD
CALL ON THE WESTERN ALLIANCE TO MAINTAIN FREEDOM OF NAVIGATION
IN THE GULF IF THIS WERE THREATENED. WE CONTINUE TO REGARD
FREE MOVEMENT OF GULF OIL SUPPLIES AS A MATTER AFFECTING OUR
VITAL INTERESTS AND THOSE OF OUR ALLIES AND THE GULF STATES.
WE REMAIN DEEPLY CONCERNED ABOUT CONTINUING THREATS TO
SECURITY IN THE PERSIAN GULF ARISING FROM THE PERSISTENT DANGER
THAT THE WAR COULD ESCALATE. IRAQ, WHICH IS INCREASINGLY
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FRUSTRATED BY IRANIAN INTRANSIGENCE AND CONCERNED ABOUT THE
OUTCOME OF A WAR OF ATTRITION, HAS THREATENED TO INTERDICT
IRANIAN OIL SHIPPING AND FACILITIES IN AN EFFORT TO BRING IRAN
TO NEGOTIATE OR FAILING THIS, TO PRESSURE THE INTERNATIONAL
COMMUNITY TO INTERVENE DIRECTLY IN RESPONSE TO IRANIAN COUNTER
THREATS TO CLOSE THE GULF.
NUMEROUS EFFORTS TO BRING ABOUT A NEGOTIATED SETTLEMENT
HAVE BEEN MADE BY PARTIES HAVING CLOSER TIES TO THE
BELLIGERENTS THAN DOES THE U.S.. INCLUDING THE U.N. SECRETARY
GENERAL'S SPECIAL REPRESENTATIVE. SWEDISH PRIME MINISTER PALME.
MEMBERS OF THE GCC AND THE ISLAMIC CONFERENCE AND THE
NON-ALIGNED MOVEMENT. UNFORTUNATELY, NONE OF THESE EFFORTS HAS
BEEN SUCCESSFUL WITH IRAN, WHICH SHOWS NO WILLINGNESS TO
NEGOTIATE AN END TO THE WAR. WE HAVE REPEATEDLY STATED OUR
STRONG SUPPORT FOR A NEGOTIATED SETTLEMENT OF THE IRAN-IRAQ
WAR. BASED ON OUR RESPECT FOR THE TERRITORIAL INTEGRITY AND
POLITICAL INDEPENDENCE OF BOTH BELLIGERENTS, AND OUR INTEREST
IN AVOIDING ESCALATION OR WIDENING OF THE CONFLICT. WHILE
REAFFIRMING OUR COMMITMENT TO MAINTAIN FREEDOM OF NAVIGATION IN
THE STRAIT OF HORMUZ.
OUR POLICY ON THE WAR CONTINUES TO BE ONE OF NEUTRALITY.
WE HAVE NOT SUPPLIED AND DO NOT SUPPLY WEAPONS TO EITHER
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BELLIGERENT, NOR DO WE APPROVE THIRD COUNTRY TRANSFER OF U.S.
ARMS. HOWEVER, IT HAS BEEN AND CONTINUES TO BE AN OBJECTIVE OF
OUR POLICY THAT NEITHER BELLIGERENT SHOULD DOMINATE THE OTHER
OR THE PERSIAN GULF, NOR SHOULD EITHER COME UNDER THE INFLUENCE
OF ANY THIRD PARTY, SUCH AS THE SOVIET UNION. IN THIS
CONNECTION, WE ARE CONCERNED THAT THE STRATEGIC BALANCE IN THE
WAR IS INCREASINGLY SHIFTING TO IRAN. TO BRING ABOUT SUCH A
SHIFT. IRAN HAS BEEN PURSUING A TWO PART STRATEGY: MAINTAINING
MILITARY PRESSURE THROUGH PROBING ATTACKS ALONG THE FRONTIER
WITH IRAQ AND FINANCIAL STRANGULATION, BROUGHT ABOUT BY
CONSTRAINING IRAQ'S OIL EXPORTS. IRAQ'S MAIN EXPORT FACILITIES
ON THE GULF WERE DESTROYED BY IRAN AT THE BEGINNING OF THE WAR
AND SYRIA HAS COOPERATED WITH IRAN TO KEEP CLOSED THE EXPORT
PIPELINE ACROSS ITS TERRITORY WHICH WAS CARRYING 400,000 B/D
PRIOR TO ITS CLOSURE IN APRIL 1982 AND HAS A CAPACITY OF 1.2
MMBD. IRAQ CURRENTLY IS ABLE TO EXPORT ONLY ABOUT 800,000 B/D
ACROSS TURKEY, AND THUS ITS REVENUES ARE LESS THAN ONE HALF OF
THOSE OF IRAN. THE LONGER TERM CONSEQUENCES OF THIS ECONOMIC
IMBALANCE MAY CAUSE IRAQ TO ESCALATE THE WAR IN THE GULF BY
ATTACKING IRANIAN OIL EXPORTS, IN HOPES THAT THE DAMAGE, OR
WESTERN INTERVENTION, WOULD FORCE IRAN TO NEGOTIATE AN END TO
THE WAR.
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AN IRANIAN VICTORY IN THE WAR WOULD SERIOUSLY DESTABILIZE
THE REGION AND ENDANGER U.S. INTERESTS. IRAN'S INTEREST IN
EXPORTING REVOLUTION AND ITS SPONSORSHIP OF TERRORIST GROUPS IS
ALREADY A DESTABILIZING FACTOR AND A SOURCE OF CONCERN
THROUGHOUT THE GULF. OUR POLICY IS DESIGNED TO COUNTER THE
THREAT OF AN IRANIAN MILITARY VICTORY RESULTING IN AN
UNACCEPTABLE SHIFT OF THE BALANCE OF POWER IN THE REGION. WE
SEE:A-REDRESS OF THE STRATEGIC BALANCE AS THE BEST WAY TO
PREVENT ACHIEVEMENT OF IRAN'S GOAL OF DOMINATION OF IRAQ AND TO
BRING IRAN TO THE NEGOTIATING TABLE.
TO REDRESS THE STRATEGIC BALANCE AND TO IMPROVE LONG-TERM
ENERGY SECURITY, WE SUPPORT PROPOSALS BY OTHERS FOR ADDITIONAL
PIPELINE ROUTES FROM IRAQ TO EXPORT OUTLETS OUTSIDE THE PERSIAN
GULF. ONE OF THESE PROPOSALS INVOLVES A 500.000 B/D LINK FROM
IRAQ TO SAUDI ARABIA'S CURRENTLY UNDERUTILIZED PETROLINE
TERMINATING AT THE RED SEA PORT OF YANBU AS THE FIRST PHASE OF
AN EVENTUAL PARALLEL PIPELINE FOR IRAQI CRUDE. THE TWO
COUNTRIES ARE PRESENTLY PROCEEDING WITH NEGOTIATIONS WITHOUT
USG INVOLVEMENT. HOWEVER, IT IS POSSIBLE THAT U.S. FIRMS WOULD
PARTICIPATE IN THE DESIGN, FINANCING AND CONSTRUCTION OF THE
LINK.
ANOTHER POSSIBILITY WOULD BE A LINE TO TRANSPORT IRAQI OIL
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ACROSS JORDAN TO THE JORDANIAN RED SEA PORT OF AQABA. AMERICAN
ENGINEERING FIRMS ARE ACTIVELY DISCUSSING THIS POSSIBILITY WITH
IRAQ AND JORDAN. WE HAVE INDICATED TO IRAQ THAT WE RELIEVE
THAT DIVERSIFIED OUTLETS HAVE SIGNIFICANT LONG-TERM SECURITY,
AS WELL AS IMMEDIATE FINANCIAL, ADVANTAGES.
ANOTHER EXPORT OPTION WOULD BE TO DOUBLE THE CAPACITY OF
THE EXISTING LINE ACROSS TURKEY BY EXTENSIVE LOOPING. WORK IS
ALREADY UNDER WAY TO INCREASE THE CAPACITY OF THIS LINE TO ONE
MILLION B/D BY MID-YEAR.
WE ARE TAKING DIPLOMATIC INITIATIVES TO FORESTALL
ESCALATION AS WELL AS PURSUING COOPERATIVE PLANNING TO ENSURE
THAT THE UNITED STATES IS ABLE TO RESPOND EFFECTIVELY. IF
POSSIBLE WITH OTHERS, TO IRANIAN MILITARY THREATS. ON THE
DIPLOMATIC FRONT, WE CONTINUE TO SUPPORT THE EFFORTS OF THE
UNITED NATIONS AND OTHERS TO REDUCE AND TO HALT THE FIGHTING.
WE BELIEVE THAT UN SECURITY COUNCIL RESOLUTION 540 OF LAST
OCTOBER, WHICH CALLS FOR A CEASEFIRE IN THE GULF, PROVIDES A
USEFUL FRAMEWORK WITHIN WHICH BOTH BELLIGERENTS COULD. AS A
FIRST STEP, REDUCE THE LEVEL OF THE FIGHTING. (TEXT
ATTACHED). A CEASEFIRE IN THE GULF WOULD SAFEGUARD OIL-RELATED
FACILITIES OF BOTH COUNTRIES AND ENABLE IRAQ TO RESUME OIL
EXPORTS THROUGH THE GULF, WHICH WOULD HELP SECURE ITS FINANCIAL
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POSITION. IRAN HAS REJECTED RESOLUTION 540, BUT HAS SUPPORTED
PREVIOUS MEDIATION EFFORTS BY THE SECRETARY GENERAL AND WANTS
AN UPDATED UN INVESTIGATION OF WAR DAMAGES, THE SUBJECT OF A
PREVIOUS UN REPORT. IRAQ HAS INDICATED IT WOULD WOULD SUPPORT
A NEW STUDY ONLY IF IRAN WERE TO ACCEPT RESOLUTION 540. IN THE
HOPE THAT THE POSITIONS OF BOTH PARTIES ON RENEWED UN EFFORTS
MAY BECOME MORE FLEXIBLE, WE ARE ENCOURAGING THE UN SECRETARY
GENERAL TO EXPLORE REACTIVATING MEDIATION EFFORTS.
WE ARE INTENSIFYING OUR EFFORTS BOTH TO BRING OTHER STATES
TO CEASE THEIR ARMS SALES TO IRAN, AS A MEANS OF DISCOURAGING
IRAN FROM CONTINUING THE WAR. AND TO PREVENT THE TRANSFER OF
U.S.-ORIGIN ARMS TO BOTH BELLIGERENTS. WE HAVE MET WITH SOME
SUCCESS AND ARE CONTINUING DISCUSSIONS ON THIS MATTER.
IN EARLY DECEMBER A STATE/DEFENSE TEAM VISITED THE SIX GCC
STATES (BAHRAIN. KUWAIT, OMAN, QATAR, UNITED ARAB EMIRATES,
SAUDI ARABIA) TO REVIEW THE SITUATION. ESPECIALLY THE
POSSIBILITY OF ESCALATION OF THE WAR IN THE GULF. THE TEAM'S
PURPOSE WAS TO DISCUSS OUR DIPLOMATIC STRATEGY WITH REGARD TO
THE WAR AND U.S. CAPABILITIES TO DETER OR RESPOND TO A THREAT
TO GULF OIL SUPPLIES, AS WELL AS TO EXPLORE THE RECEPTIVITY OF
THE GULF STATES TO JOINT PLANNING WITH THE U.S. AND OUR ALLIES
FOR A POSSIBLE MILITARY RESPONSE. WE WERE WELL RECEIVED IN ALL
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SIX GCC CAPITALS. INDICATING THE MOUNTING GULF CONCERN ABOUT
THE IRAN-IRAQ WAR, THE THREAT OF ESCALATION IN THE GULF AND THE
POSSIBILITY OF AN IRANIAN VICTORY.
ALL SIX STATES CONCURRED WITH US THAT THE FIRST PRIORITY
SHOULD BE DIPLOMATIC ACTION TO END THE WAR. THEY ALSO AGREED
THAT WESTERN INTERVENTION WOULD BE NECESSARY IN THE EVENT OF
IRANIAN MILITARY ACTION CLOSING THE GULF AND UNDERSTOOD THE
NEED FOR REGIONAL SUPPORT. ALL THE GULF STATES HAVE LET US
KNOW THAT FOR POLITICAL REASONS THEY WANT NO PUBLICITY
CONCERNING SECURITY DISCUSSIONS WITH THE U.S. AND THAT ANY
COOPERATION WITH US WILL REQUIRE A DISCREET. LOW VISIBILITY
APPROACH. WE THEREFORE WANT TO PURSUE THESE CONSULTATIONS WITH
MAXIMUM CONFIDENTIALITY. WE ARE SAYING NOTHING PUBLIC ABOUT
THE SPECIFICS OF THESE CONSULTATIONS. EXCEPT THAT THEY ARE PART
OF OUR ONGOING DIALOGUE WITH FRIENDLY STATES IN THE REGION. IN
OUR DISCUSSIONS WITH THE GULF STATES, WE WERE ENCOURAGED BY THE
REALISM WITH WHICH THESE SUBJECTS WERE DISCUSSED AND BY THEIR
AVOIDANCE OF THE USUAL RHETORIC CONCERNING REGIONAL ISSUES. WE
VIEW THIS SET OF CONVERSATIONS AS ONE STEP IN AN ONGOING
CONSULTATION WHICH WE PLAN TO CONTINUE AT A PACE ACCEPTABLE TO
EACH GOVERNMENT.
IN DECEMBER, WE ALSO CONSULTED WITH OUR MAJOR.EUROPEAN AND
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FAR EASTERN ALLIES ON OUR ASSESSMENT OF THE THREAT IN THE GULF
AND OUR DESIRE TO WORK WITH THEM TO PREVENT OR DEFEAT IRANIAN
MILITARY MOVES ENDANGERING FREEDOM OF NAVIGATION IN THE GULF OR
ACCESS TO GULF OIL. WE HAVE DISCUSSED, WITH THOSE ABLE TO
PROJECT FORCE IN THE AREA, OUR OWN CAPABILITIES IN THIS
REGARD. THESE CONSULTATIONS CONTINUE.
OUR INTENSE AND CONTINUING DIPLOMATIC EFFORTS HAVE, WE
BELIEVE, HAD THE EFFECT OF REDUCING IRAQ'S FEELING OF
INTERNATIONAL INDIFFERENCE TO THE WAR'S TRAGIC CONSEQUENCES AND
OF CONSTRAINING ITS FRUSTRATION WITH IRANIAN INTRANSIGENCE FROM
LEADING IT TO RASH ESCALATION OF FIGHTING IN THE GULF. IRAQ
HAS MADE IT CLEAR THAT IT IS PREPARED TO FOREGO A CONCERTED
ATTACK ON IRAN'S OIL FACILITIES AND SHIPPING SO LONG AS THERE
IS THE IMMEDIATE PROSPECT OF MOVEMENT TOWARD A CEASE-FIRE OR A
NEGOTIATED SETTLEMENT. IT HAS ISSUED NO ULTIMATUMS OR
DEADLINES, BUT HAS MADE IT CLEAR THAT IT RETAINS AND EVENTUALLY
MAY EXERCISE THE ESCALATION OPTION IF INTERNATIONAL PRESSURES
ON IRAN HAVE NO AMELIORATING EFFECT. IN RESPONSE, WE HAVE
WARNED IRAQ OF THE SERIOUS CONSEQUENCES OF ITS ESCALATION OF
THE WAR IN THIS CRITICALLY IMPORTANT AREA. MEANWHILE. IRAN'S
RHETORIC ABOUT CLOSING THE GULF HAS COOLED, AS COMPARED WITH
LAST SUMMER. IT NOW TALKS OF RESPONSES MEASURED TO WHATEVER
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ACTIONS IRAQ TAKES IN THE GULF.
THE SITUATION REMAINS UNSTABLE AND UNPREDICTABLE, ADDING
URGENCY TO OUR EFFORTS TO DETER THE SPREAD OF FIGHTING AND WIND
DOWN THE WAR. OR, IF THESE ARE NOT SUCCESSFUL. TO BE IN A
POSITION, ALONG WITH OUR FRIENDS AND ALLIES, TO ASSURE THE
CONTINUED FLOW OF OIL TO THE FREE WORLD.
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UN SECURITY COUNCIL RESOLUTION 540
The Security Council
Having considered again the question entitled "The Situation
Between Iran and Iraq",
Recalling its relevant resolutions and statements which, inter
alia, call for a comprehensive cease-fire and an end to all
military operations between the parties,
Recalling the report of the Secretary-General of 20 June 1983
(S/15834) on the mission appointed by him to inspect civilian
areas in Iran and Iraq which have been subject to military
attacks and expressing its appreciation to the
Secretary-General for presenting a factual, balanced and
objective account,
Also noting with appreciation and encouragement the assistance
and cooperation given to the Secretary-General's mission by the
Governments of Iran and Iraq,
Deploring once again the conflict between the two countries,
resulting in heavy losses of civilian lives and extensive
damage caused to cities, property and economic infrastructures,
Affirming the desirability of an objective examination of the
causes of the war,
1. Requests the Secretary-General to continue his mediation
efforts with the parties concerned with a view to achieving a
comprehensive, just and honorable settlement acceptable to both
sides;
2. Condemns all violations of international humanitarian law,
in particular, the provisions of the Geneva Conventions of 1949
in all their aspects, and calls for the immediate cessation of
all military operations against civilian targets, including
city and residential areas;
3. Affirms the right of free navigation and commerce in
international waters, calls on all states to respect this
right, and also calls upon the belligerents to cease
immediately all hositilities in the region of the Gulf,
including all sea-lanes, navigable waterways, harbour-works,
terminals, offshore installations and all ports with direct or
indirect access to the sea, and to respect the integrity of the
other littoral states;
4. Requests the Secretary-General to consult with the parties
concerning ways to sustain and verify the cessation of
hosilities, including the possible dispatch of United Nations
observers, and to submit a report to the Council on the results
of these consultations;
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5. Calls upon both parties to refrain from any action that may
endanger peace and security as well as marine life in the
region of the Gulf;
6. Calls once more upon all other states to exercise the utmost
restraint and to refrain from any act which may lead to a
further escalation and widening of the conflict and thus to
facilitate the implementation of the present resolution;
7. Requests the Secretary-General to consult with the parties
regarding immediate and effective implementation of this
resolution.
30 October 1983
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