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Iraq Paid North Korea $10 Million in Failed Missile Deal, Kay Says From Monday, October 6, 2003 issue.

Iraq Paid North Korea $10 Million in Failed Missile Deal, Kay Says


Prewar Iraq paid North Korea $10 million for ballistic missile technologies, but the deal was never carried out, chief U.S. weapons inspector David Kay said Friday (see GSN, Oct. 3).

According to Kay, who heads the Iraq Survey Group searching for evidence of alleged Iraqi WMD programs, Iraq began negotiations with North Korea for missile assistance in 1999, with such cooperation continuing through last year. Under the terms of their agreement, North Korea was to provide Iraq with missile technology for the 1,300-kilometer Nodong ballistic missile and other nonmissile-related prohibited technologies, Kay said.

While Iraq forwarded North Korea $10 million to hold up its side of the deal, U.S. pressure on North Korea prevented Pyongyang from delivering the technologies, according to Kay.

“In late 2002, the North Koreans came to the Iraqis as a result of the Iraqis inquiring ‘Where is the stuff we paid for?’ and the North Koreans said, ‘Sorry, there’s so much U.S. attention on us that we cannot deliver it,’” Kay said.

At that point, Iraq demanded its money back, Kay said. “And when Operation Iraqi Freedom commenced, the North Koreans were still refusing to give the $10 million back,” he said.

The failed deal was “a lesson in negotiating with the North Koreans that the Iraqis found out the hard way,” Kay said. “Money in advance may not come your way if there is nondelivery on a contract,” he said (Gertz/Dinan, Washington Times, Oct. 4).


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